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court_cases
Madras High CourtV.K.K.Nair vs Mr.D.Shittal Kumar on 22 July, 2004Equivalent citations: 2004 A I H C 4834, (2004) 4 MAD LW 579, (2005) 2 BANKCAS 383, (2004) 5 CTC 724 (MAD)Author:V.KanagarajBench:V.KanagarajIN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22/07/2004. CORAM THE HONOURABLE MR.JUSTICE V.KANAGARAJ CIVIL REVISION PETITION NPD. No.1755 OF 2003 AND C.M.P.No.18430 OF 2003 V.K.K.Nair ... Petitioner -Vs- Mr.D.Shittal Kumar ... Respondent Civil Revision Petition filed underSection 115of the Code of Civil Procedure for the relief as stated therein. !For petitioner : Mr.G.Dhesinghu ^For respondent : Mr.A.Venkatesan :ORDERThe above Civil Revision Petition is directed against the fair and decretal order dated 31.7.2002 made in I.A.No.6778 of 2002 in O.S.No.6 037 of 2001 by the Court of VIII Assistant Judge, City Civil Court, Chennai.2. Tracing the history of the above Civil Revision Petition, what comes to be known is that the respondent herein has filed the above suit in O.S.No.6037 of 2001 for recovery of a sum of Rs.37,500/= together with interest at the rate of 30% p.a. and for costs; that the petitioner herein, who is the second defendant in the above suit, has filed an Interlocutory Application in I.A.No.6778 of 2002 under Order 37 Rule 3(5)C.P.Cseeking leave to defend the suit; that the lower Court has dismissed the above application on 31.7.2002 on the ground that the petitioner/defendant has not raised any triable issue in the suit. It is only testifying the validity of the said fair and decretal order, the petitioner/defendant has come forward to file the above civil revision petition on certain grounds as brought forth in the grounds of revision.3. During arguments, the learned counsel appearing on behalf of the petitioner, besides giving a picture as to what was the petition before the lower Court, the defence taken by the other side and the decision arrived at by the Court below, would also cite the following judgments:1. 2001(3) CTC 420 (V.SAMUEL vs. THABAK FINANCE CORPORATION, REP.BY ITS PARTNER S.MADANCHAND AND JHABAK)2. 1998(II) CTC 382 (SUNIL ENTERPRISES AND ANOTHER vs. SBI COMMERCIAL AND INTERNATIONAL BANK LTD.)3. (1976) 4 SCC 687 (M/s.MECHELEC ENGINEERS & MANUFACTURERS vs. M/s. BASIC EQUIPMENT CORPORATION)4. AIR 1958 SC 321 (SANTHOSH KUMAR vs. BHAI MOOL SINGH)4. So far as the first judgment cited above is concerned, a learned single Judge of this Court has held:"... having regard to the stand taken by the defendant that he had not received any money, the disputes can be raised only on framing proper issues and taking evidence. The Court below was in error in deciding the issue at the inception itself as if the defendant did not raise any proper issue and that there is no triable issue."5. In the second judgment cited above, the Honourable Apex Court would sum-up the propositions laid down in the judgments (3) and (4) referred to above as follows:"(a)If the defendant satisfies the court that he has a good defence to the claim on merits, the defendant is entitled to unconditional leave to defend.(b) If the defendant raises a triable issue indicating that he has a fair or bona fide or reasonable defence, although not a possibly good defence, the defendant is entitled to unconditional leave to defend.(c)If the defendant discloses such facts as may be deemed sufficient to entitle him to defend, that is, if the affidavit discloses that at the trial he may be able to establish a defence to the plaintiffs claim, the court may impose conditions at the time of granting leave to defend - the conditions being as to time of trial or mode of trial but not as to payment into court or furnishing security.(d) If the defendant has no defence, or if the defence is sham or illusory or practically moonshine, the defendant is not entitled to leave defend.(e) If the defendant has no defence or the defence is illusory or sham or practically moonshine, the court may show mercy to the defendant by enabling him to try t prove a defence but at the same time protect the plaintiff imposing the condition that the amount claimed should be paid into court or otherwise secured."In view of the extraction of the above propositions laid down by the Honourable Apex Court in the second judgment cited above and in full consideration of the principles embodied in the judgments cited (3) and (4) above, extracting from the Judgments No.3 and 4 also is unnecessary. Citing the above judgments, the learned counsel for the petitioner would pray to set aside the order of the Court below.6. On the contrary, the learned counsel appearing on behalf of the respondent would only adhere to the lower Court order and extracting certain relevant portions therefrom, would conclude that simply to deny the execution of the pronote, the petitioner has come forward to file such an application and no triable issue has been raised by the petitioner and hence the Court below has rightly rejected his claim. On such arguments, the learned counsel for the respondent would pray to dismiss the above civil revision petition.7. In consideration of the facts pleaded, having regard to the materials placed on record and upon hearing the learned counsel for both, so far as the first judgment rendered by the learned single Judge of this Court, cited No.(1) above is concerned, generally it is averred that 'disputes can be raised only on frami ng proper issues and taking evidence'. This is common in all other matters wherein generally trial is the answer. But, so far as Order 37 Rule 3(5)CPCis concerned, the position of law is different wherein unless the defendant is in a position to show that he has got triable issues in such money suits and applies on such summons for leave to defend such suit, he would not be permitted to defend the suit and unless the defendant is in a position to satisfy the Court that he has a substantial defence to raise or that the defence intended to be put up is raised, it is not incumbent on the part of the Court to grant leave. In such event, even if an attempt is made on the part of the defendant to show the substantial defence and if the same is frivolous or vexatious, no leave could be granted, as per proviso No.1 to the above Section. According to Proviso No.(2) of the same Section, 'where a part of the amount claimed by the plaintiff is admitted by the defendant to be due for him, leave to defend the suit shall not be granted unless the admitted amount is deposited by the defendant in the Court'.8. While the position of law is such, it cannot be so easily said that generally in all cases of such nature, the defendant must be given the opportunity to defend and the same cannot be denied preliminarily. It cannot also be said that the disputes can be raised only on framing proper issues and taking evidence, in which event, almost the trial procedure will be over and the Courts will be left with the choice of only rendering the judgments. Therefore, this proposition laid down by the learned single Judge of this Court cannot be held either valid or capable of being followed and this Court is not in a position to accept this proposition of law.9. So far as the second judgment covering up the third and fourth judgments also is concerned, to put it in a nutshell, the defendant should satisfy the Court that he has a good defence on merits, that the defendant should raise triable issues indicating that he has a fair, bonafide and reasonable defence and if it is not there and if the defence is sham or illusory, the defendant is not entitled to defend in which event, the Court may on ground of mercy enable the defendant to try to prove the defence but protect the plaintiff imposing the condition that the amount claimed should be paid into court or otherwise secured.10. So far as the case in hand is concerned, the trial Court is not at all able to find any valid defence or triable issue in the whole of the case put up by the petitioner/defendant to consider to grant leave adhering to the facts and circumstances of the case as it could be seen from the fair order of the lower Court. Therefore, within the parameters set by law and the propositions of the Honourable Apex Court, the trial Court has fairly concluded that the defendant has nothing to put forth in his defence as a result of which the trial Court has ultimately dismissed the application. Therefore, this Court does not find any valid or tangible reason to interfere with such a well considered and merited fair and decretal order passed by the trial Court in rejecting the claim of the petitioner/defendant and hence the following order:In result,(i) the above civil revision petition does not merit acceptance and the same is liable to be dismissed and is dismissed accordingly.(ii) The fair and decretal order dated 31.7.2002 made in I.A.No.6778 of 2002 in O.S.No.6037 of 2001 by the Court of VIII Assistant Judge, City Civil Court, Chennai is hereby confirmed.However, in the circumstances of the case, there shall be no order as to costs.Consequently, C.M.P.No.18430 of 2003 is also dismissed.Index : Yes Internet: Yes Rao To The Registrar, City Civil Court, Chennai.
7b5f63f8-7cdd-5e9c-b5d9-1c3f89210d45
court_cases
Calcutta High Court (Appellete Side)2400/2010 on 17 August, 2010Author:Ashim Kumar RoyBench:Ashim Kumar Roy.2010 CRR No. 2400 of 2010 In Re:- Mantu Ranjan Mondal & Ors. petitioners Mr. Prabir Majumdar for the petitioner Ms. Rupa Bandyopadhyya for the State Liberty to correct the petition.Heard Mr. Prabir Majumdar, learned advocate appearing on behalf of the petitioners as well as Ms. Rupa Bandyopadhyya, learned advocate appearing on behalf of the State.InvokingSection 483of the Code of Criminal Procedure, the present petitioners who have been facing their trial of a charge underSections 468/471/420/120Bof the Indian Penal Code in connection with G.R. Case No. 249 of 2003 before the Learned Chief Judicial Magistrate, Krishnagar, Nadia arising out of Nakashipara P.S. Case No. 27 of 2003 dated 16th February, 2003 have approached this court for a direction for expeditious conclusion of the trial.It is submitted that on 16th of February, 2003, the Nakashipara P.S. Case No. 27 of 2003 underSections 468/471/420/120Bof the Indian Penal Code was registered against the present petitioners and finally the said case was ended in charge-sheet and charge-sheet for the self same offence was submitted on September 11, 2003. Thereafter, charge was framed on 18th November, 2004 but till date out of nine witnesses only four have been fully examined.Now, having regard to the facts that the right to speedy trial is a fundamental right of an accused guaranteed under2Article 21of the Constitution and the facts that the aforesaid case is pending for trial for a pretty long period, I direct the Learned Magistrate to conclude the trial as expeditiously as possible, preferable within a period of eight months from the next date fixed for trial. The learned Magistrate is directed to proceed with the trial strictly in terms ofSection 309of the Code of Criminal Procedure and on a continuous basis. The learned Magistrate is further directed not to grant any adjournment to either of the parties unless the court finds the same is necessary for ends of justice.This criminal revisional application is thus disposed of. Criminal Section is directed to deliver urgent photostat certified copy of this order to the parties, if applied for, as early as possible.(Ashim Kumar Roy,J.)
26e187f3-8587-5aeb-b4da-039fade37035
court_cases
Delhi High CourtRamesh Rai vs Ministry Of Home Affairs & Anr on 13 December, 2018Equivalent citations: AIRONLINE 2018 DEL 2890Author:Sanjeev NarulaBench:S.Muralidhar,Sanjeev Narula$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 648/2017 RAMESH RAI ..... Petitioner Through: Mr. Naushad Alam, Advocate with Mr. Jitendra Bharti, Advocate. versus MINISTRY OF HOME AFFAIRS & ANR ..... Respondents Through: Mr. Rajesh Kumar Gogna, CGSC with Mr. Akhilesh Kumar, Mr. Perala Upendra Sai and Ms. Liu Gangambi, Advocates. CORAM: JUSTICE S.MURALIDHAR JUSTICE SANJEEV NARULA ORDER% 13.12.2018 SANJEEV NARULA, J1. By way of the present petition underArticle 226of the Constitution of India, Petitioner seeks directions for re-fixation of first financial upgradation granted under the ACP Scheme dated 9th August, 1999 and consequential benefits arising therefrom.Factual Background2. The Petitioner was appointed as Constable/Radio Operator (CT/RO) with Border Security Force (BSF) on 5th September, 1980.W.P.(C) 648/2017 Page 1 of 123. After successful completion of BRT and trade course, Petitioner was promoted to the rank of Naik/Radio Operator (NK/RO) on 16th August, 1982. Later, on 1st September, 1984, after qualifying Limited Departmental Competitive Examination (LDCE), he was appointed to the rank of Head Constable/Radio Mechanic (HC/RM). On 19th December, 1999, the Petitioner was promoted to the rank of Assistant Sub Inspector/Radio Mechanic (ASI/RM).Financial Upgradation4. The Petitioner's appointment as Constable/RO was at the pay scale of Rs. 210/-. After successful completion of BRT and trade course, and on being appointed to the rank of NK/RO, he was getting a pay scale of Rs. 225-5- 260-6-290-EB-6-308 + Special Pay Rs. 40/-. On becoming HC/RM Petitioner was getting pay scale of Rs. 330-8-370-10-400-EB-10-480. His pay scale was re-fixed to the pay scale of Rs. 1200-30-1440-EB-30-1800 w.e.f. 1st January, 1986. The rank of HC/RM was merged with the rank of ASI/RM w.e.f. 22nd January, 1998 in the pay scale of 4000-100-6000.5. Government introduced Assured Career Progression Scheme (ACP Scheme) on 9th August 1999 effective w.e.f. 01.01.1996. As a consequence (on successful completion of promotional cadre course), Petitioner was granted first financial upgradation on 3rd February, 2007 in the pay scale of 5500-175-9000 and his pay was fixed at Rs. 5850/- with DNI 01-04-2008, Controversy in the present case6. Though the Petitioner had sought several reliefs in the writ petition,W.P.(C) 648/2017 Page 2 of 12however, during the course of the arguments, learned counsel appearing on behalf of the Petitioner on instructions stated that he would like to confine the present petition to seek the relief of re-fixation of the effective date for grant of first financial upgradation under the ACP Scheme and consequential orders . According to him the benefit has been granted belatedly and should have been instead allowed from the date of introduction of the ACP Scheme .Analysis7. The Court has heard the learned counsels appearing on behalf of the parties. The scope of the present petition having been narrowed down as noted above, the submissions of the parties were heard only on this precise issue.8. Learned counsel for the Petitioner argued that the subject matter of the present petition is covered by several decisions of this Court and strongly relied upon the order dated 6th September, 2013 passed by this court in W.P. (C) No. 5539/2013 titled asJaipal Singh v. UOI. He also fairly stated that in order to be eligible for grant of first financial upgradation under the ACP Scheme, the Petitioner has to fulfil the eligibility conditions that includes undergoing the promotion cadre course (PCC). He admitted that the Petitioner had successfully completed the requisite promotional cadre course in the year 2007. He however asserted that notwithstanding the fact that Petitioner had undergone the promotional cadre course in the year 2007, he would be entitled to first financial upgradation, w.e.f 1st August, 1999, the date of introduction of the ACP Scheme. He submitted that since theW.P.(C) 648/2017 Page 3 of 12Petitioner had completed 12 years of regular service without any promotion on the date of introduction of ACP scheme, he was fulfilling the eligibility conditions for grant of the first financial upgradation, the Respondents ought to have granted the financial upgradation from the aforesaid date.9. Elaborating this contention, learned counsel for the Petitioner referred to para 15 of the Annexure I to the ACP Scheme that provides as under:-"15.Subject to Condition No. 4 above, in cases where the employees have already completed 24 years of regular service, with or without a promotion, the second financial up gradation under the scheme shall be granted directly. Further, in order to rationalise unequal level of stagnation, benefit of surplus regular service (not taken into account for the first up gradation under the scheme) shall be given at the subsequent stage (second) of financial up gradation under the ACP Scheme as a one time measure. In other words, in respect of employees who have already rendered more than 12 years but less than 24 years of regular service, while the first financial upgradation shall be granted immediately, the surplus regular service beyond the first 12 years shall also be counted towards the next 12 years of regular service required for grant of the second financial upgradation and, consequently, they shall be considered for the second financial upgradation also as and when they complete 24 years of regular service without waiting for completion of 12 more years of regular service after the first financial upgradation already granted under the Scheme".10. The learned counsel for the Petitioner also referred to the clarification order dated 6th March, 2012 issued by the Office of Directorate General, CRPF which reads as under:-W.P.(C) 648/2017 Page 4 of 12"Sub: Grant of Financial Benefits under ACP/MACP Scheme- Clarification.A case was referred to the MHA seeking clarification in connection with grant of financial up-gradation under MACP scheme to the Constables and fixation of pay thereupon. The issue was examined in MHA, DoPT and Department of Expenditure (MoF). After due examination the Ministries have clarified the position as under:A) The case of Cts who have 'qualified promotional course (i.e. SCO) and allowed E' AGP benefit from the next date of termination of SCC qualified by them may be reviewed and they may now be granted financial up-gradation under AGP and MACP schemes as under:-S.No. Categories of CTs Modalities for Grant of Financial up-gradation benefits under ACP/MACP Schemes1) CTs who qualified Since these CTs were promotional course detailed on promotional within maximum course after completion of permissible three chances more than 12 years of service, they may be allowed 1st financial upgradation under ACP Scheme (of August 1999) from the date of completion of 12 years of service subject to fulfilment of otherW.P.(C) 648/2017 Page 5 of 12eligibility conditions, as there is no fault on their part for late detailment on promotional course.Financial up-gradation under MACP will be admissible to such CTs wherever they complete 20/30 years of continuous regular service or spent 10 years continuously in the same Grade Pay whichever is earlier."11. Relying on the aforestated clarification, learned counsel for the Petitioner urged that Constables who were detailed for promotional cadre course after completion of 12 years are entitled to first financial upgradation under the ACP Scheme from the date of completion of 12 years of service, subject to fulfilment of other eligibility conditions. He emphasised that attending the course is not at the option of the officers and therefore they cannot be at disadvantage on account of the delay on the part of the Respondents for detailing them for the course.12. As per the Service Rules, Constables are given three chances for qualifying the promotional cadre course. It is pertinent to note that the Petitioner was detailed for URM Grade II, the promotional course in theW.P.(C) 648/2017 Page 6 of 12year 1988, but he could not clear the exam. He was again detailed for URM Gde-II in the year 1996, but at that stage, he submitted his unwillingness.According to the Respondents since the Petitioner failed to qualify the exam and later declined to undergo the course, he alone is responsible for not having acquired the necessary eligibility condition in time and therefore they are justified in granting him the benefit w.e.f. 3rd February, 2007.13. The stand of the Respondent does not appear to be correct. It is not in dispute that the Petitioner is entitled to three chances for undertaking the promotion cadre course. No doubt, Petitioner had failed in his first attempt in the year 1988 and thereafter had expressed his unwillingness, when he was detailed for the second time in the year 1996, however, that would itself not disentitle him for the benefit under the scheme. Both the attempts were made, prior to the introduction of the ACP Scheme on 1st September, 1999. Therefore, even if the Petitioner did not qualify in the first two attempts ,it would be of no consequence. He was entitled to a third chance and this option concededly was not offered to him until the year 2007.14. It is also an admitted position that the candidates do not have any say in the matter for being detailed for the promotional course. It is for the Respondent's administration, to take a decision regarding the detailment of candidates for the promotional course. The Respondents cannot take advantage of not discharging their obligation, which precedes the obligation of the employee to clear the promotional cadre course. The chance of clearing the promotional course was given to the Petitioner in the year 2007. The question therefore arises as to what should be the effective date forW.P.(C) 648/2017 Page 7 of 12grant of first financial upgradation?15. The ACP Scheme has been introduced for granting financial benefits, to such persons who complete the requisite number of years of service (12/24.) without any promotional opportunity. It is the responsibility of the Respondent to detail the individuals for promotional cadre course. After the introduction of ACP Scheme, employees without a regular promotion are entitled to financial benefits of next higher grade in accordance with the existing hierarchy of posts in a cadre. It was thus incumbent for the Respondents to offer a chance to complete the promotional course. Petitioner was not detailed for promotional cadre course after the introduction of the Scheme untill 2007. Therefore, we are of the opinion that the Petitioner is justified in claiming that first financial upgradation should be have granted w.e.f 1st September, 1999, instead of 3rd February, 2007.16. We also note that a similar question had arisen for consideration before this Court in W.P.(C) No. 1506/2012 titledR.S. Rathore v. UoI and Ors.and W.P.(c) No.6973/2010 titled Hargovind Singh v. CISF relevant paragraph of the same has been reproduced as under:"This very contention is urged before us. Just as the present case in hand, the petitioner Hargovind Singh also did not get the opportunity to undergo the PCC course on the date he became eligible for grant of further financial upgradation which was withdrawn. On this aspect, in Hargovind Singh‟s case (supra) the court has ruled on the respondents contention urged before us as well, commented on the responsibility of the department to detail the person forW.P.(C) 648/2017 Page 8 of 12undertaking the promotional course. In this regard, observations made in para 8 to 14 of the judgment are being relied upon which reads thus :"8 Learned counsel for the respondent would urge that the issue at hand is squarely covered against the petitioner as per the judgment and order dated 30.9.2010 disposing ofW.P.(C) No.8631/2009 Bhagwan Singh Vs. UOI & Ors.9. A perusal of the decision in Bhagwan Singh‟s case (supra) would reveal that the petitioner therein was working as a Head Constable and was denied the second upgradation under the ACP Scheme on account of the fact he had consciously refused to undergo the mandatory promotional courses which would have made him eligible to be promoted as an Assistant Sub Inspector and, in writing, had given that he foregoes the right to be promoted.10. The Division Bench noted paragraph 10 of the ACP Scheme which reads as under :"10. Grant of higher pay-scale under the ACP Scheme shall be conditional to the fact that an employee, while accepting the said benefit, shall be deemed to have given his unqualified acceptance for regular promotion on occurrence of vacancy subsequently. IN regular promotion subsequently, he shall be subject to normal debarment for regular promotion as prescribe din the general instructions in this regard. However, as and when he accepts regular promotion thereafter, he shall become eligible for the second upgradation under the ACP Scheme only after he completes the required eligibility service/period under the ACP Scheme in that higher grade subject to the condition that the period for which he was debarred for regular promotion shall not count for the purpose. For example, if a person hasW.P.(C) 648/2017 Page 9 of 12got one financial upgradation after rendering 12 years of regular service and after 2 years therefrom if he refused regular promotion and is consequently debarred for one year and subsequently he is promoted to the higher grade on regular basis after completion of 15 years (12+12+1) of regular service, he shall be eligible for consideration for the second upgradation under the ACP Scheme only after rendering ten more years in addition to two years of service already rendered by him after the first financial upgradation (2+10) in that higher grade i.e. after 25 years (12+2+1+10) of regular service because the debarment period of one year cannot be taken into account towards the required 12 years of regular service in that higher grade.11. In the instant case, facts noted hereinabove, would show that the respondents offered to detail the petitioner for the mandatory PCC course to be held with effect from 15.11.2004. We shall deal with the effect of the petitioner not joining the said course, but relevant would it be to note that the petitioner‟s entitlement to the ACP benefit accrued with effect from the month of November 1999 and it is not the case of the respondents that till they offered petitioner the chance to clear the PCC course commencing with effect from 15.11.2004, any earlier opportunity was granted to the petitioner to attend the course.12. It is an admitted position that the department has to detail persons for undertaking the promotion cadre course and attending said courses is not at the option of the officers concerned.13. If that be so, the respondents cannot take advantage of not discharging their obligation which precedes the obligation of the incumbent to clear the promotion cadre course. The prior obligation of the department is to detail the person concerned to undertake the promotion cadreW.P.(C) 648/2017 Page 10 of 12course."14. As regards petitioner‟s unwillingness to undergo the promotion cadre course commencing from 15.11.2004, it may be noted that the use of the word „unwilling' would be a misnomer. What has happened is that prior to the petitioner being intimated that he would be detailed to undertake the promotion cadre course commencing with effect from 15.11.2004, on account of the extreme ill medical condition of the wife of the petitioner he had sought for and was granted leave to proceed to his native village."13. Before us, it is an admitted position that the petitioner became eligible for grant of financial upgradation on 20th June, 2000which was actually granted to him. So far his being given an opportunity to undergo the PCC is concerned, he was detailed for the first time to undergo the course which commenced on 5th May, 2003.14. Undoubtedly for the reasons recorded inHargobind Singh's case (supra), the petitioner could not be deprived of the financial upgradation for this period. It is apparent from the working of the ACP Scheme by the respondents that a person is entitled to the financial benefit on the date he completes the required twelve years of service without a promotional opportunity.The respondents have so worked the scheme in Hargovind Singh's case as well as the present case. The completion of the promotional cadre course is akin to completion of the requisite training upon appointment/promotion. It does not change the date of the appointment or the date of his promotion."17. In view of the foregoing discussion and the judgments of this court, we see no legal impediment to grant the petitioner the relief prayed for. Accordingly we direct as follows:-W.P.(C) 648/2017 Page 11 of 12(i). A writ of certiorari is issued quashing signals/reply dated 06.01.2015 and 26.10.2016.(ii) The respondents are directed to grant first financial upgradation to the Petitioner w.e.f. 1st September, 1999 and re-fix the pay.(iii) As a result of the above Respondnerts shall also consider and grant second financial upgradation under the ACP and the third financial upgradation under the MACP after 24 years and 30 years of service respectively.(iv) The respondents while granting the 2nd financial upgradation under the ACP scheme shall also take into consideration the surplus service of 4 years and 11 months.18. The Respondents shall pass the necessary consequential orders to give effect to the aforesaid directions within a period of eight weeks. The order passed thereon should be conveyed to the Petitioner. The amounts due and payable in the above terms shall be released to the Petitioner within a period of four weeks thereafter. The above writ petition is allowed in the above terms with no order as to costs.SANJEEV NARULA, J S.MURALIDHAR, J DECEMBER 13, 2018 ssW.P.(C) 648/2017 Page 12 of 12
2951e695-4983-5270-9581-9ebedf25e5d9
court_cases
Kerala High CourtK.R.Prakash vs Kerala State Electricity Board on 4 May, 2000IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.N.RAVINDRAN MONDAY, THE 28TH DAY OF MAY 2012/7TH JYAISHTA 1934 WP(C).No. 31023 of 2011 (C) --------------------------- PETITIONERS: ----------- 1. K.R.PRAKASH, S/O.RAGHAVAN, KAVUMPERAYIL HOUSE, CHITHIRAPURAM P.O. IDUKKI DISTRICT, PIN 685 565. 2. ARUN K.PRAKASH, S/O.K.R.PRAKASH, KAVUMPERAYIL HOUSE, CHITHIRAPURAM P.O. IDUKKI DISTRICT, PIN 685 565. 3. SHIJO K.PRAKASH, S/O.K.R.PRAKASH, KAVUMPERAYIL HOUSE, CHITHIRAPURAM P.O. IDUKKI DISTRICT, PIN 685 565. BY ADVS.SRI.S.VINOD BHAT SRI.LEGITH T.KOTTAKKAL RESPONDENT(S): -------------- 1. KERALA STATE ELECTRICITY BOARD, VIDYUTHI BHAVAN, PATTOM P.O. THIRUVANANTHAPURAM- 695 004. 2. THE ASSISTANT EXECUTIVE ENGINEER, ELECTRICAL MAJOR SECTION KERALA STATE ELECTRICITY BOARD, ADIMALI P.O. PIN 685 561. 3. THE KERALA FINANCIAL CORPORATION, HEAD OFFICE, VELLAYAMBALAM, THIRUVANANTHAPURAM REPRESENTED BY ITS, MANAGING DIRECTOR, PIN 695 033. 4. DEPUTY TAHSILDAR (R.R), KERALA FINANCIAL CORPORATION, KATTAPPANA-685 508. VK WP(C).No. 31023 of 2011 (C) --------------------------- ADDL.R5 IMPLEADED ----------------- ADDL.R5. K.P.WILSON, KUDIYIRICKAL HOUSE, MACHIPLAVU, ADIMALI, IDUKKI DISTRICT 685561, ADDL.R5 IS MPLEDED VIDE ORDER DT. 8.2.12 IN IA.N0.1686/12. R1, 2 BY SRI.K.M.SATHYANATHA MENON,SC,KSEB SRI.T.R.RAJAN,SC,K.S.E.B. R3 BY ADV. SRI.M.M.SAYED MUHAMMED, SC, KFC SRI.T.V.GEORGE, SC, KFC BY ADV. SRI.K.S.ROCKEY ADDL.R5 BY ADV. SRI.AUGUSTINE JOSEPH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 28-05-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK WP(C).No. 31023 of 2011 (C) --------------------------- APPENDIX --------- PETITIONER(S) EXHIBITS ----------------------- EXHIBIT-P1. COPY OF THE SANCTION LETTER DATED 4.5.2000. EXHIBIT-P2. COPY OF THE LOAN SANCTION LETTER DATED 16.11.2001. EXHIBIT-P3. COPY OF PROVISIONAL STATEMENT OF ACCOUNTS. EXHIBIT-P4. COPY OF THE NOTICE DATED 28.11.2006 ISSUED BY GENERAL MANAGER, KFC. EXHIBIT-P5. COPY OF THE LETTER NO.040189010/1177/06 DATED 29.11.2006 ISSUED BY BRANCH MANAGER,KFC. EXHIBIT-P6. COPY OF THE ORDER DATED 4.4.2008 IN IA 16/2007 IN CC 35/2007 OF CONSUMER DISPUTES REDRESSAL RORUM, IDUKKI. EXHIBIT-P7. COPY OF THE RECIPT DATED 25.6.2008 ISSUED BY KERALA FINANCIAL CORPORATION. EXHIBIT-P8. COPY OF THE LOAN AGREEMENT DATED 11.8.2008 BETWEEN PETITIONERS AND KERALA FINANCIAL CORPORATION. EXHIBIT-P9. COPY OF THE LETTER NO.L/2120/2008/L.DIS DATED 9.7.2008 ISSUED BY DISTRICT INDUSTRIES CENTRE, IDUKKI. EXHIBIT-P10.COPY OF THE LETTER DATED 19.7.2008 ISSUED BY THE 1ST PETITIONER. EXHIBIT-P11.COPY OF THE LETTER DATED 22.8.2008 ISSUED BY THE 1ST PETITIONER. EXHIBIT-P12.COPY OF THE LETTER DATED 22.8.2008 ISSUED BY THE 1ST PETITIONER. EXHIBIT-P13.COPY OF THE ORDER DATED 22.8.2009 IN C.C.49/2009 OF CONSUMER REDRESSAL FORUM, IDUKKI. EXHIBIT-P14.COPY OF THE LETER NO.DB9/08-09/PA/22-8-2008 ISSUED BY KSEB. EXHIBIT-P15.COPY OF THE LETTER NO.B/3/RIA/08-09/96/12-08-09 ISSUED BY KSEB. EXHIBIT-P16.COPY OF RECEIPT DATED 29.8.2008. EXHIBIT-P17.COPY OF NOTICE OF SALE OF IMMOVABLE PROPERTY NO.I.69/11 DATED 7.10.2011 ISSUED BY THE 4TH RESPONDENT. vk WP(C).No. 31023 of 2011 (C) --------------------------- RESPONDENTS' EXHIBITS : --------------------- EXT.R1 (A). COPY OF THE NOTICE DATED 9.5.2007 ISSUED BY THE ASSISTANT ENGINEER, ELECTRICAL SECTION, KERALA STATE ELECTRICITY BOARD,,ADIMALY EXT.R1(B). COPY OF THE REGISTERED NOTICE DATED 28.5.2007 ISSUED BY THE ASSISTANT ENGINEER, ELECTRICAL SECTION, KERALA STATE ELECTRICITY BOARD, ADIMALY. EXT.R1(C0. COPY OF TE POSTAL ACKNOWLEDGING RECEIPT EVIDENCING RECEIPT OF EXHIBIT R1(B). EXT.R1(D). COPY OF TE LETTER DATED 26.7.2008 SENT BY ASSISTANT ENGINEER, ELECTRICAL SECTION, KERAA STATE ELECTRICITY BOARD, ADIMALY. EXT.R1(E) COPY OF THE COMMUNICATION DATED 26.7.2008 ISSUED BY THE PETITIONER TO THE ASSISTANT ENGINEER, ELECTRICAL SECTION, KERALA STATE ELECTRICTY BOARD, ADIMALY. / TRUE COPY / VK P.A. TO JUDGE P.N.RAVINDRAN,J. ------------------------------- W.P.(C) No.31023 of 2011 -------------------------------------- Dated this the 28th day of May, 2012 JUDGMENTThe first petitioner availed two loans from the Kerala Financial Corporation (hereinafter referred to as 'the KFC' for short) to establish a small scale industrial unit for manufacturing interlocking-bricks. The second and third petitioners are guarantors to the loan availed by the first petitioner. The first petitioner defaulted repayment of the loan. The KFC thereupon took over possession of the industrial unit on 28.11.2006 invoking its power undersection 29of the State Financial Corporations Act. On the next day, the KFC sent Ext.P5 letter to the second respondent requesting him to disconnect and dismantle the electricity supply to the first petitioner's industrial unit. In accordance with the said request, electricity connection to the first petitioner's industrial unit was disconnected on 29.11.2006 and dismantled on 24.7.2007.2. After the KFC took over the unit, the first petitioner moved the Consumer Disputes Redressal Forum, Idukki by filing C.C.No.35 of 2007. In that complaint, the KFC filed a memo to the effect that it has no objection to the first petitioner re-opening the unit upon payment ofW.P.(C) No.31023 of 20112the sum of Rs.1,00,000/-. Taking note of that memo, the Consumer Disputes Redressal Forum passed Ext.P6 order dated 4.4.2008 directing the opposite party to permit the first petitioner to open the industrial unit on payment of the sum of Rs.1,00,000/-. The first petitioner accordingly remitted the sum of Rs.1,00,000/- on 25.6.2008, as can be seen from Ext.P7 receipt. Thereupon, possession of the industrial unit was handed over to the first petitioner on 17.8.2008 for a period of six months after the petitioners and the KFC entered into Ext.P8 loan agreement dated 11.8.2008. In that agreement, the petitioners admitted and agreed that as on 1.7.2008 the overdue amount is Rs.23,74,886/- and the balance outstanding in the loan account is Rs.24,62,986/- and that the KFC will be at liberty to take steps either under the provisions of theState Financial Corporations Actor theKerala Revenue Recovery Actor any other provisions of law if the petitioners fail to comply with the terms and conditions of the agreement. Even before Ext.P8 agreement was entered into, the General Manager of the District Industries Centre had sent Ext.P9 letter dated 9.7.2008 to the Executive Engineer of the Kerala State Electricity Board requesting him to personally look into the matter and to take step to restore electricity connection to the first petitioner's industrial unit. The first petitioner also took steps to have the electricity supplyW.P.(C) No.31023 of 20113restored by sending Ext.P11 letter dated 22.8.2008.3. The Assistant Engineer, Electrical Section, Adimaly had in the meanwhile sent Ext.R1(d) letter dated 26.7.2008 to the first petitioner calling upon him to remit the sum of Rs.20,528/- for restoration of the dismantled electricity supply. The first petitioner thereupon sent Ext.R1(e) letter dated 26.7.2008 to the Assistant Engineer, Kerala State Electricity Board, Electrical Section, Adimaly informing him that on account of paucity of funds he is not in a position to deposit the sum of Rs.20,528/-and therefore, further steps on the application may be kept in abeyance. He thereafter filed C.C.No.49 of 2009 in the Consumer Disputes Redressal Forum, Idukki, joining, besides the Branch Manager and the Managing Director of the Kerala Financial Corporation, the Assistant Engineer, Kerala State Electricity Board, Electrical Section, Adimali, the Assistant Executive Engineer, Electrical Sub Division, Chithirapuram and the Secretary of the Kerala State Electricity Board as parties. In that complaint his main grievance was that the Board should not have disconnected the supply on a request made by the KFC and therefore, the Board should restore the power supply. When that complaint was taken up for consideration on 22.8.2009, the opposite parties submitted that they will give electricity connection to the first petitioner's industrial unit if no amount is due from him and if heW.P.(C) No.31023 of 20114complies with all the formalities, within 15 days. Pursuant thereto, the first petitioner was informed that no amount is due from him by way of arrears of energy charges.4. The electricity connection that was dismantled on 24.7.2007 pursuant to Ext.P5 letter was however not restored. It appears the petitioner had in the meanwhile applied for a fresh service connection to the same building and a new service connection was given on 10.9.2008 with a connected load of 6728 watts. The said connection bears consumer No.17411 of Electrical Major Section, Adimali. While matters stood thus, the KFC issued Ext.P17 notice dated 7.10.2011 proposing to sell 6.07 ares of land situated in Sy.No.419/5 of Mannamkandam Village, Devikulam Taluk, Idukki District by public auction on 25.11.2011 under the provisions ofKerala Revenue Recovery Act, 1968. The instant writ petition was thereupon filed on 21.11.2011 challenging Ext.P17 notice and seeking the following reliefs:"i) To issue a writ of mandamus or such direction directing the 1st and 2nd respondents to restore the power supply to the Industrial concern set up by the 1st petitioner which is the subject matter of mortgage (item No.1 in Ext.P2);ii) To issue a writ of certiorari or such other writ or order quashing Ext.P17;iii) To issue a writ of mandamus or such other order directing the 3rd respondent not to initiate proceedings toW.P.(C) No.31023 of 20115recover the dues from the petitioners for a period of one year from date when the 1st and 2nd respondents restore supply of power to the Unit set up by the 1st petitioner."5. When the writ petition came up for admission hearing on 25.11.2011, a learned single judge of this Court passed the following order:"Admit.The learned Standing Counsel takes notice on behalf of respondents 1 and 2. The learned Standing Counsel takes notice on behalf of respondents 3 and 4.Sale can go on, but shall not be confirmed without getting orders from this Court.The respondents shall file their counter affidavit within two weeks. Post after two weeks."In terms of the said order, the property belonging to the first petitioner was sold in public auction on 25.11.2011 and it was purchased by the additional fifth respondent. The respondents thereupon moved this Court for vacating the interim order passed by this Court on 25.11.2011. Taking note of the fact that the demand in Ext.P17 notice was for Rs.37,88,980/-, a learned single judge of this Court directed that the order of stay earlier granted by this Court will continue to operate only in the event of the petitioners remitting the sum of Rs.25,00,000/- within two weeks. Aggrieved thereby, the petitioners filed W.A.No.856 of 2012. By judgment delivered on 27.4.2012, aW.P.(C) No.31023 of 20116Division Bench of this Court allowed the appeal and directed that the interim order earlier granted by this Court shall continue in the event of the petitioners remitting the sum of Rs.10,00,000/- within ten days. The Division Bench also directed that if the sum of Rs.10,00,000/- is not paid, the interim order shall cease to operate. It is not in dispute that pursuant to the said judgment the petitioners remitted the sum of Rs.10,00,000/- on 3.5.2012.6. Respondents 1 and 2 have filed a counter affidavit dated 9.12.2011 wherein it is stated that though the officers of the Board had taken steps to restore the electricity connection which was dismantled on 24.7.2007 upon the first petitioner paying the sum of Rs.20,528/-, the first petitioner did not pursue the application on the ground that he does not have the requisite funds to pay the said amount. It is stated that even earlier on the first petitioner's application, a fresh service connection was given on 10.9.2008 with a connected load of 6728 watts. It is also stated that as the first petitioner has an existing connection which was given on 10.9.2008, another service connection cannot be given to the very same premises. When the writ petition came up for hearing today, Sri.T.R.Rajan, learned standing counsel appearing for the Kerala State Electricity Board submitted that if what the petitioner needs is additional connected load, the officers of theW.P.(C) No.31023 of 20117Board will consider the same if an appropriate application in that regard is filed before the Assistant Executive Engineer concerned.7. The third respondent has filed a counter affidavit dated 9.12.2011 justifying the action taken by the KFC. It is stated that during the past 11 years the petitioners have remitted only Rs.3,64,000/- including the sum of Rs.1,00,000/- remitted pursuant to Ext.P6 order passed by the Consumer Disputes Redressal Forum, Idukki and since the petitioners did not take steps to clear the arrears, the KFC was constrained to initiate revenue recovery proceedings to recover the amount due from them. It is also stated that though as on 1.11.2011 the sum of Rs.40,36,031/- was due from the petitioners, in the sale held on 25.11.2011, the property was purchased by the additional fifth respondent for Rs.23,52,000/-, that on the same day he remitted Rs.3,52,800/- being 15% of the bid amount, but in view of the interim order passed by this Court the confirmation of sale was delayed. The additional fifth respondent has in I.A.No.5672 of 2012 filed by him to vacate the interim order of stay passed by this Court stated that he remitted the sum of Rs.3,52,800/- on 25.11.2011 itself and the balance sum of Rs.19,99,200/- on 23.12.2011 and has thus paid the purchase price in full. The third respondent has filed an additional counter affidavit dated 23.3.2012, contending inter alia that in view of theW.P.(C) No.31023 of 20118deposit of the entire sale price by the additional fifth respondent, if confirmation of the sale is further delayed, it will seriously prejudice the rights of the third respondent and the auction purchaser.8. I heard Sri.S.Vinod Bhat, learned counsel appearing for the petitioners, Sri.T.V.George, learned standing counsel appearing for the KFC, Sri.T.R.Rajan, learned standing counsel appearing for the Board and Sri.Augustine Joseph, learned counsel appearing for the additional fifth respondent. I have also gone through the pleadings and the materials on record. The petitioners have in the instant writ petition sought two reliefs. One is for an order directing respondents 1 and 2 to restore power supply to the first petitioner's industrial unit. The other is in relation to the sale held on 25.11.2011. As regards the first relief sought, I am of the opinion that the first petitioner who has already obtained a fresh service connection to the very same premises on 10.9.2008 with consumer No.17411 of Electrical Major Section, Adimaly, cannot have any subsisting grievance. The electricity connection that was initially given to his establishment was disconnected on 29.11.2006 and it was dismantled on 24.7.2007, after the maximum permissible period of six months. Thereafter, though the first petitioner applied for restoration of the electricity connection and the Board had agreed to restore the connection on the first petitioner remitting the sum ofW.P.(C) No.31023 of 20119Rs.20,528/-, he responded by sending Ext.R1(e) letter dated 26.7.2008, expressing inability to pay the said amount due to paucity of funds. He even requested the Assistant Engineer to defer consideration of the application for restoration of electricity connection. It was thereafter that he applied for and obtained a fresh electricity connection on 10.9.2008 with Consumer No.17411. From the pleadings and the materials on record and the submissions made at the Bar, the grievance of the first petitioner appears to be that with the existing connected load he cannot carry on his business and that he requires at least a connected load of 20KVA to properly run his business. In my opinion, as he is already having a fresh electricity connection his grievance can be redressed by directing that in the event of the first petitioner applying to the competent authority for additional connected load in accordance with the provisions contained in theElectricity Act, 2003and the regulations made thereunder, the competent authority shall consider the same and take an appropriate decision thereon within one month from the date on which a request in that regard is received from the first petitioner. Needless to say, the first petitioner should comply with the statutory formalities prescribed for the purpose.9. The only other issue that remains to be considered is whether Ext.P17 notice is liable to be interfered with at the instance ofW.P.(C) No.31023 of 201110the petitioners. It is not in dispute that challenging the sale held on 25.11.2011, the first petitioner has moved the Deputy Collector (Revenue Recovery), Kerala Financial Corporation, Thiruvananthapuram by filing an application undersection 53of Kerala Revenue Recovery Act, 1968. It is however not in dispute that the said application was filed only on 8.5.2012, after the instant writ petition was admitted and an interim order staying the confirmation of the sale was passed. In my opinion, as the sale had not been confirmed as on 8.5.2012 and the petitioners have pursuant to the judgment of the Division Bench of this Court in W.A.No.856 of 2012 deposited the sum of Rs.10,00,000/- with the Kerala Financial Corporation on 3.5.2012, the fourth respondent should consider the said application and take an appropriate decision on the merits with notice to the petitioners and respondents 3 and 5 and take an appropriate decision thereon before confirming the sale.I accordingly dispose of the writ petition with a direction to the Deputy Collector (Revenue Recovery), Kerala Financial Corporation, Thiruvananthapuram to consider the petition dated 8.5.2012 filed by the first petitioner undersection 53of Kerala Revenue Recovery Act, 1968 challenging the sale held on 25.11.2011, with notice to the petitioner, the Kerala Financial Corporation and the additional fifth respondent and take an appropriate decision thereon expeditiously andW.P.(C) No.31023 of 201111in any event within two months from the date on which either of the parties produces a certified copy of this judgment before him. It will be open to all the parties to file written representations before the District Collector, who shall after affording the parties an opportunity of being heard, pass an order giving reasons in support of his findings and conclusions. The contentions of both sides on the merits are kept open. Until such time as the Deputy Collector (Revenue Recovery), Kerala Financial Corporation passes orders as directed above, confirmation of the sale held on 25.11.2011 shall be kept in abeyance.Sd/-P.N.RAVINDRAN JUDGE /TRUE COPY/ P.A. To JUDGE vpv
4336803f-8806-5c67-ba2b-85221328d17c
court_cases
Madras High CourtThe Management Of Kaleeswarar Mills, ... vs The Appellate Authority Under The ... on 28 June, 2002Equivalent citations: (2003)ILLJ354MADAuthor:P. SathasivamBench:P. SathasivamORDER P. Sathasivam, J.1. Aggrieved by the order of the Appellate Authority underPayment of Gratuity Act(Deputy Commissioner of Labour), Coimbatore/first respondent herein in A.G.A.Case No. 88/79 dated 31-10-1979 confirming the order of the Controlling Authority in granting gratuity to the workers for the period from December, 1970 to March, 1972, the Management of Kaleeswarar Mills, Coimbatore has preferred the above writ petition.2. The case of the petitioner is briefly stated hereunder:The petitioner is a textile Mill under the control of National Textile Corporation (Tamil Nadu and Pondicherry) Limited. The Mills originally belonged to a public limited company by name The Kaleeswarar Mills Limited, Coimbatore. The Mill remained closed on 3 different occasions for the period from 1958 to 1973. Subsequently in terms of the provisions of the Sick Textile Undertakings (taking over of Management) Ordinance, 1972 , the petitioner Mill was taken over by the Central Government. Subsequently on 1-4-74 under the provisions of theSick Textile Undertakings (Nationalisation) Act, 1974, the Mills were taken over by the Government of India and vested with the National Textile Corporation (Tamil Nadu and Pondicherry) Limited. The petitioner Mills is an establishment covered by thePayment of Gratuity Act, 1972and the rules framed thereunder. Respondents 3 to 83 were employees of the petitioner Mills and left the Mills on various dates between 30-5-71 and 11-3-77 on account of superannuation. On the basis of their last drawn wages and the years of service excluding the period of closure, put in by them, they were offered gratuity in terms of theProvisions of the Payment of Gratuity Act, 1972. All those persons accepted the amounts paid to them without any demur or protest and passed stamped receipts in full and final settlement of their claim for gratuity. While so, after a lapse of nearly two to six years, the applicants preferred applications before the 2nd respondent, the Controlling Authority under thePayment of Gratuity Act, praying for a direction to be issued to the petitioner for payment of amounts claimed therein. They alleged that the petitioner had not taken into account the period of closure of the Mills for the purpose of computing the number of years of service put in by them. The 2nd respondent, by a common order dated 27-1-1979, after holding that there was no closure of Mills in legal sense and there was only a cessation of work not due to the fault of the employees concerned notwithstanding the provisions of Sick Textiles (Nationalisation) Act, directed the petitioner Mills to pay the amounts mentioned against the name of every individual/employee in Annexure 'C' of the writ petition. Aggrieved by the said order of the 2nd respondent, the petitioner preferred an appeal underSection 7(7)of the Payment of Gratuity Act to the first respondent (Appellate authority). By the impugned order, the first respondent confirmed the order of the controlling authority and dismissed the appeal. Hence the present writ petition.3. Heard Mr. Sanjay Mohan, learned counsel for the petitioner-Management and Mr. N.G.R. Prasad for respondents 3 to 83.4. Even at the outset, Mr. Sanjay Mohan, by relying on a Division Bench decision of this Court inThe Management of Kaleeswarar Mills, Coimbatore-9 v. The Appellate Authorityunder thePayment of Gratuity Act, 1972(W.P.Nos. 10304 of 1983 etc., batch dated 20-9-1989), would contend that in the absence of employer-employee relationship in the petitioner mills, the employees cannot be granted gratuity and prayed for similar order as passed by the Division Bench. On the other hand, Mr. N.G.R. Prasad, learned counsel for the workmen, contended that it was not a closure within the meaning ofSection 2(cc)of the Industrial Disputes Act and both the authorities have correctly issued direction to the Management for payment of gratuity during the period of closure.5. There is no dispute that the petitioner mills were taken over under the provisions ofSick Textile Undertakings (Nationalisation) Act, 1974by the Government of India and vested with the National Textile corporation (Tamil Nadu and Pondicherry) Limited. It is also not disputed that the employees in question left the mills on various dates between 30-5-71 and 11-3-77 on account of superannuation. It is also not disputed that on the basis of their last drawn wages and the years of service excluding the period of closure, put in by them, they were offered gratuity in terms of the provisions of thePayment of Gratuity Act, 1972. However, it is the definite case of the petitioner mills that the mills remained closed on 3 different occasions as detailed below:"SPINNING DEPARTMENT:a) From 13-8-58 to 15-11-59 ) Totalling 5 years,b) From 10-12-66 to 11-11-69 ) 9 months and 17 days.c) From 30-5-71 to 13-1-73 ) WEAVING DEPARTMENT;a) From 13-8-58 to 15-11-59 ) Totallingb) From 10-12-66 to 26-7-70 ) 7 years, 1 monthc) From 30-5-71 to 16-8-73 ) and 5 days."The question to be answered is whether during the period of closure there was employer and employee relationship between the petitioner and the workmen; and whether such closure constituted a break in service. In this regard, as rightly pointed out by Mr. Sanjay Mohan, it is relevant to refer the decision of the Division Bench of this Court in W.P.Nos. 10304/83 etc., batch dated 20-9-89 (cited supra). The very same defence was taken by the Management before the Division Bench saying that gratuity claimed by the employee is not payable because during the period in question, there was no relationship between employer and employee. Accepting the contention of the Mills, the Division Bench allowed all the writ petitions. The said order is as follows:"In these writ petitions, the petitioner-mills wants to say that the gratuity claimed by the employees is not payable because during the period in question there was no relationship of employer and employee, the petitioner-mills having had been would up, and there having had been cessation of work in the petitioner-mills. The Controlling Authority and the Appellate Authority under thePayment of Gratuity Act, did not countenance this case of the petitioner-mills. That is why the petitioner-mills is here by way of these writ petitions. The pronouncements of this Court have countenanced in the case of the petitioner-mills itself that during the relevant period, there existed no employer-employee relationship in the petitioner-mills. Adopting the same ratio, we have to hold that for the period in question, the employees cannot claim gratuity. Accordingly, these writ petitions are allowed...."Though Mr. N.G.R. Prasad has argued that the relationship of employer and employee continued even during the closure, in the light of the conclusion of the Division Bench in respect of the very same mills and on the very same issue, namely, payment of gratuity to the employees concerned, I am unable to accept his contention and I hold that the judgment of the Division Bench governed the issue raised in this writ petition.6. It is also relevant to refersection 14(4)of Sick Textile Undertakings (Nationalisation) Act, 1974 which reads as follows:"Section 14(4)Where, under the terms of any contract of service or otherwise, any person whose services become terminated or whose services become transferred to the National Textile Corporation by the reason of the provisions of the Act is entitled to any arrears of salary or wages or any payment for any leave not availed of or other payment, not being payment by way of gratuity or pension, such person may, except to the extent such liability has been taken over by the Central Government undersection 5enforce his claim against the owner of the sick textile undertaking but not against the Central Government or the National Textile Corporation."The above provision makes it clear that gratuity is payable only to those employees whose services were terminated by the reason of the provisions of the Act.7. Apart from the above legal position, the second respondent failed to note that the applications have been filed after enormous delay and the applicants had not adduced any reason at all for the delay.8. In view of the fact that the provisions ofSection 14(4)of the Sick Textile Undertakings (Nationalisation) Act, 1974 apply only to those persons who had been terminated by reason of the provisions of the Act and in the light of earlier Division Bench decision in W.P.Nos. 10304/83 dated 20-9-089 (cited supra), holding that there existed no employer-employee relationship in the petitioner-mills, the employees cannot claim gratuity during the period in question. Accordingly, the Writ Petition is allowed. No costs. It is made clear that the petitioner-mills is not entitled to ask for the refund of the amount paid by them to the respondents 3 to 83 during the pendency of the above proceedings.
3531cc6e-eeac-5d19-b9d0-4411f05ce6c8
court_cases
National Consumer Disputes RedressalRitu Gupta vs Neelkanth Town Planners Pvt. Ltd. & Anr. on 4 October, 2018NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI   CONSUMER CASE NO. 1588 OF 2016   1. RITU GUPTA W/o Mr. Navneet Gupta R/o 28-A, Ashok Avenue, Sanik Farms, Delhi 110062 ...........Complainant(s) Versus   1. NEELKANTH TOWN PLANNERS PVT. LTD. & ANR. Regd. Office: G-36, 2nd Floor, Outer Circle, Connaught Place, New Delhi 110001 2. Ms. Shrutiraina Sr. Manager Neelkanth Town Planners Pvt. Ltd. Regd. Office: G-36, 2nd Floor, Outer Circle, Connaught Place New Delhi 110001 ...........Opp.Party(s) BEFORE:     HON'BLE MR. JUSTICE V.K. JAIN,PRESIDING MEMBER For the Complainant : Mr. Susheel Sharma, Advocate Mr. J.S. Chhilar, Advocate For the Opp.Party : Mr. Sidharth Arora, Advocate Dated : 04 Oct 2018 ORDER JUSTICE V.K.JAIN, PRESIDING MEMBER (ORAL)           One Sanjay Taneja booked a residential flat with the OP in a project namely 'Ouraina', which the OP was to develop in Sector-53 of Gurgaon at Golf Course Road, Gurgaon, Haryana.  Flat No. 802 in the aforesaid project was allotted to him vide provisional allotment letter dated 15.10.2009.  The said allotment was purchased by the complainant from the original allottee Mr. Sanjay Taneja and the said transfer was approved by the OP on 01.04.2010.  An Apartment Buyers Agreement was then executed between the complainant and the OP on 25.10.2010.  The allotment was made @ Rs.3,500/- per sq. ft., super area being 1968 sq. ft., PLC charges, car parking and power back up were payable in addition thereto.  The basic sale price of the flat including PLC, car parking and power back up was Rs.73,75,600/-.  The possession of the apartment was proposed to be delivered within three years from the execution of the said agreement dated 25.10.2010 unless there was delay due to reasons mentioned in clause 11.1, 11.2 and 11.3 and clause 37 or due to the failure of the allottee to pay the price of the apartment and other charges in time.  Vide letter dated 20.07.2016, the OP requested the complainant to remit the balanced amount as per the statement of account so that the process of final possession could be initiated.  The demand raised upon the complainant was detailed in a final statement of account as on 19.07.2016 annexed to the said letter.  The complainant is disputing the aforesaid charges and her case is that the possession of the apartment was not offered to her despite she having already paid Rs.77,94,706/- to the OP.  The complainant is therefore, before this Commission seeking possession of the allotted flat alongwith compensation etc.  2.      The complaint has been resisted by the OP which has admitted the initial allotment made to Sh. Sanjay Taneja as well as the transfer of the allotment in favour of the complainant.  The OP has also admitted the execution of the Buyers Agreement with the complainant on 25.10.2010 as also payment received from her.  The complaint has been resisted by the OP primarily on the grounds on which CC No.417 of 2016 Alop Kumar Mittal Vs. Neelkanth Town Planner Pvt. Ltd. & Anr. decided by this Commission on 27.11.2017 was opposed.  3.      This is not in dispute that the issues involved in this complaint are identical to the issues involved in Alop Kumar Mittal (supra) and the facts are identical except that the complainant is not the original allottee but is a subsequent purchaser of the flat.  The aforesaid distinction, in my view, is not material, since the Buyers Agreement was executed directly with the complainant.  Therefore, the view taken by this Commission in Alop Kumar Mittal (supra) would fully apply to this complaint.  4.      The decision of this Commission in Alop Kumar Mittal (supra) to the extent it is relevant, reads as under: 4.      During pendency of this complaint, the requisite Occupancy Certificate was received by the OP on 27.4.2016 and thereafter possession was offered to the complainant vide letter dated 26.5.2016. 5.      The OP had sent a demand letter to the complainant demanding additional payment from them. The complainant is disputing the (1) demand of other charges amounting to Rs.273733/-  and service tax on that amount, (2) car parking charges (3) interest bearing maintenance security and (4) administration charges and misc. expenses amounting to Rs.35,000/- along with service tax on that amount. In addition thereto the complainant is also disputing the extent of the super area for which he has been charged in the aforesaid letter. 6.      As far as the super area of the flat is concerned, this Commission vide order dated 26.7.2017 directed as under:- "The OP is directed to file an affidavit of its Architect explaining how the super area of the flat allotted to the complainant has been computed in the light of the definition of super area given in Annexure-1 to the Buyers Agreement.  The OP shall also place on record a copy of the declaration, if any, made by it to any authority disclosing therein the super area of the flat allotted to the complainant. The report of the Architect will also explain which computations have led to the alleged increase in the super area of the flat allotted to the complainant.  The complainant will also be entitled to file the report of a qualified Architect computing the super area of the flat allotted to him in the light of the definition of super area given in the Buyers Agreement."  7.      The complainants did not file report of a qualified architect in terms of the aforesaid direction and stated that their architect cannot compute the super area of the flat allotted to them since it is not possible for him to compute the said area in the light of the definition of super area given in the Buyers Agreement. The OP has, however, filed the affidavit of its architect in compliance of the said direction and the aforesaid affidavit to the extent it is relevant, reads as under:- "3. That I and my team calculated the Final Super Area of the Apartment bearing No. Coral, 507 in terms of the Apartment Buyer Agreement dated 01.07.2010 duly executed between the Complainants and the Respondent Company. In terms thereof and specifically as per Annexure I (mentioned at Page 39), Annexure 2 (mentioned at Page 40), Annexure 4 (Page 42-43) of the above mentioned Apartment Buyer Agreement. The Calculations of the Final Super Area of the above mentioned Apartment, Coral 507, is 119.1 sq. m or 1282 sq. feet, computed as per the details below:a) Entire area enclosed by its peripheral walls including area under walls, columns, cupboards, lofts, and half of area of common walls with other apartment: 7 6.94sq. .b) Area of the Exclusive Balconies, exclusive to the apartment : 10.87 sq.m.c) Pro Rata Share of the Plumbing shaft, exclusive to the apartment: 1.95 sq.m.d) From the total area of 2491.47 sq.m of the common areas in the said Building / Tower Coral, Pro-rata share for the Apartment Coral 507 is: 19.18 sq.m.e) From the total of 4053.94 sq. m. of the common areas common to all apartments including those outside the said Building/ Tower Coral, Pro-rata Share of the Apartment Coral 507 is: 10.16 sq.m."It is thus evident from the affidavit of Shri Pitamber Sahni, Architect of the OP that the super area of the flat allotted to the complainant, when calculated in terms of the agreement executed between the parties comes to 119.1  sq.mt. which is equivalent to 1282 sq.ft. In view of the aforesaid affidavit, I therefore find no merit in the objection to the extent it pertains to the extent of the super area for which the complainants have been charged by the OP.8.      As regards other charges amounting to Rs.273733/-, the learned counsel for the OP has drawn my attention to clause 1.1 (i) to (iii) of the Apartments Buyers Agreement, which reads as under:-"i)  Any tax paid or payable by the Company and/ or its contractors by way of Value Added Tax, State Sales Tax, Central Sales Tax, Works Contract Tax, Service Tax and Education Cess or any other taxes by whatever name called, in connection with the construction of the said Complex (hereinafter collectively referred to as "Taxes").ii) The Apartment Allottee shall pay, in addition to the total price a price equal to the proportionate, share of Taxes; the proportionate share being calculated in the ratio of the Super Area of the said Apartment to the Super Area of all the apartments in the said Complex (hereinafter referred to 'the additional price').iii) The Company shall periodically intimate to the ln tending Allottee, on the basis of certificates from a Charted Engineer and/ or a Chartered Accountant, the amount payable as additional  price as stated in (ii) above and the Apartment Allottee shall make payment within 30 (Thirty) days of such intimation."It would thus be seen that any tax paid or payable by the OP and / or its contractors in connection with the construction of the complex was to be paid by the flat buyers on a proportionate basis. The learned counsel for the OP has placed on record a certificate dated 13.7.2016 issued by Virender K. Gupta & Co., Chartered Accountants of the OP  wherein it is stated that expenses amounting to Rs.107582569/- were incurred as per clause 1.1(i) & (ii) of the Buyers Agreement. The OP has also filed an affidavit stating therein that the share of the complainant in the aforesaid taxes comes to Rs.273733/-.  Hence, there is no merit in the challenge to the aforesaid charges and service tax on those charges.9.      As far as club membership charges are concerned, the same are payable in terms of clause 1.12 of the Buyers Agreement but the said charges, in my view, can be recovered only when the club is fully functional. I, therefore, hold that the said charges will not be payable  immediately but would  be payable on demand when the club becomes fully functional.10.    As far as the interest bearing maintenance security is concerned, the learned counsel for the OP has drawn my attention to clause 14.2  of the Byers Agreement wherein it is clearly stated that interest bearing maintenance security calculated @ Rs.100 per sq.ft. of the super area of the apartment would be payable. In view of the aforesaid contractual obligation of the complainants, the OP is entitled to the aforesaid interest bearing maintenance security.11.    The OP has also demanded Rs.35,000/- towards administration charges and misc. expenses along with Rs.5250/- towards service tax on the said charges and misc. expenses. However, I find no obligation on the part of the flat buyer to pay the aforesaid administration charges and misc. expenses. I therefore, hold that the administration charges and misc. expenses amounting to Rs.35,000/- and service tax amounting to  Rs.5250/- making an aggregate of Rs.40250/- are not payable by the complainants.12.    As far as car parking charges amounting to Rs.2,50,000/- are concerned, even if it is held that the covered car parking is a part of the common area, the cost of the said parking  is payable by the flat buyer in terms of the buyers agreement. My attention has not been drawn to any statutory provision prohibiting the builder from recovering the said charges from the flat buyer despite the contractual obligation to pay the same. I therefore, hold that subject to the allocation of parking to the complainants, they are liable to pay the aforesaid charges.13.    The next question which arises for consideration in this complaint is as to what should be the quantum of compensation payable to the complainants for the delay in offering possession of the apartment. Admittedly, in terms of the Buyer's Agreement,  the possession ought to have been offered by 1.7.2013. The said possession was offered vide letter dated 23.5.2016. The contention of the learned counsel for the OP is that they after completing the construction in all respects they had applied for the Occupancy Certificate way back on 1.7.2014 and the delay having occurred on the part of the concerned Authorities, the OP cannot be made to pay compensation for the time taken by the said authority in issuance of the Occupancy Certificate. The learned counsel for the complainant, however, has drawn my attention to the reply dated 21.7.2015 sent by the OP to the legal notice of the complainants. Para 4 of the said reply reads as under:-"3.  The Company has at all times been making earnest efforts to expedite the construction as well as timely delivery of the Apartments in the said Project, without compromising the quality and standards set by the Company in its various other Projects. It has already been intimated to your Clients that the construction of the Apartments is nearing completion, and we have already approached the competent officials of the Government to procure the Occupation Certificate as well as other statutory approvals and documents."The aforesaid reply contradicts the stand taken in the letter dated 9.3.2015 wherein it was stated that the construction of the project was completed and the OP had already applied for the Occupancy Certificate  with the concerned authorities, for offering the possession of the units.14.    The learned counsel for the opposite party has filed an affidavit of its authorized representative Mr. Rajesh Kumar to clarify the delay in offering the possession of the apartment to the complainant.  The aforesaid affidavit, to the extent it is relevant reads as under:"(a)    I state that initially the license was issued in the name of M/s. Puri Construction Pvt. Ltd.  I further state that after completion of the construction of the area in question, the Occupancy Certificate was applied for vide Application dated 01.7.2014 made to the Directorate, Town & Country Planning, Haryana.  The said Application was complete in all respects.  The copy thereof is annexed herewith as Annxure -A.(b)     I further state that as the License was in the name of M/s. Puri Construction Pvt. Ltd., any correspondence issued by Directorate, Town & Country Planning, Haryana was addressed to and received by M/s. Puri Construction Pvt. Ltd. and thereafter the same was sent to the office of the respondent company.(c)     I state that to the best of my knowledge and as per the records maintained by the respondent company as also the records of the correspondence sent by M/s. Puri Construction Pvt. Ltd., the respondent company received a letter dated 28.12.2015 regarding concerns of the authority with regard to application for the occupancy certificate.  The copy of the letter dated 28.12.2015 is annexed herewith as Annexure-B.(d)     I state that there were some correspondences that were issued by the authority with regard to submission / resubmission of documents.  The same were submitted to / responded to by the respondent.  The respondent is carrying its record to the Hon'ble Commission for inspection if so required.(e)     Further, it is necessary to state that the finishing work/sanitary work referred to in the letter of the authority        pertains to final finishing work of the project.  I state that the final works include and refer to installation of shower fittings, taps, commode seat covers, wooden flooring, last coat of paint final deep cleaning of the apartment.  I state that these are works that are done prior to handover to ensure that the customer gets the feeling of walking into a brand new apartment after taking over possession of his property".15.    It is thus evident that according to the opposite party, their predecessor in interest M/s. Puri Construction Pvt. Ltd. which applied on 01.7.2014 for the grant of the occupancy certificate.  The opposite party claims not to be aware of the entire correspondence exchanged between Puri Construction Pvt. Ltd. and the District Town Planner, Gurgaon.  Therefore it cannot be said that no objection was conveyed by the District Town Planner, Gurgaon to the completion plan submitted by the developer M/s. Puri Construction Pvt. Ltd.   In any case, even in the letter dated 28.12.2015, which the opposite party itself has placed on record it was clearly stated by the District Town Planner, Gurgaon that on inspection of the site, it was found that the internal road was incomplete at the site and sanitary was incomplete.  It is therefore evident that the construction was not complete in all respects at the time the predecessor in interest of opposite party applied for the occupancy certificate on 01.7.2014.  This is also borne out from the reply of the opposite party dated 21.7.2015 sent to the complainant wherein it was clearly stated that the construction of the apartment was nearing   completion, meaning thereby that it was not complete in all respects.  Therefore, it is quite clear that the issuance of the occupancy certificate was delayed on account of the fact that the construction was not complete in all respects and the said delay cannot be attributable to the District Town Planner, Gurgaon.  The opposite party therefore must compensate the complainant for the period till the possession was actually offered to him on 26.5.2016.16.    The next question which arises is as to how much is the quantum of compensation to be awarded, as the complainants have already received possession of the flat allotted to them.  Considering all the facts and circumstances of the case, including the interest rates prevailing at the relevant time and the recent downwards trend in the interest rates, I am of the view that the opposite party should pay compensation in the form of simple interest @ 8% per annum to the complainants from the committed date of possession till 26.5.2016, when the possession as actually offered to him.5.      The learned counsel for the OP states that the OP has already filed an appeal before the Hon'ble Supreme Court against the decision of this Commission dated 27.11.2017 Alop Kumar Mittal (supra) as well as the order dated 09.02.2018 whereby a review application filed by the OP seeking review of the order of this Commission dated 27.11.2017 was dismissed by this Commission.  Therefore, it would only be fair that whatever order the Hon'ble Supreme Court passes in the appeal, which the OP has already preferred against the decision of this Commission in Alop Kumar Mittal (supra) applies to this case as well.  The complaint is therefore, disposed of with the following directions:(i)      The OP shall deliver possession of the flat in question complete in all respects to the complainant within 12 weeks from today.(ii)      The OP shall pay compensation in the form of simple interest @ 8% per annum to the complainant on the entire principal amount of Rs.77,94,706/- received by it, with effect from 25.10.2013 till 20.07.2016.(iii)     The OP shall, furnish to the complainant, within four weeks from today, proof of having paid service tax on the amount of Rs.10,75,82,569/- referred in para 8 of the order dated 27.11.2017 in Alop Kumar Mittal (supra) failing which the amount of Rs.66,746/- demanded as service tax on the amount of Rs.4,44,976/- which is stated to be the share of the complainant in the total expense of Rs.10,75,82,569/- shall not be payable.(iv)    Club membership shall be payable to the OP from the date the club becomes fully functional and intimation of the club having become fully function is given to the complainant.(v)    The amount comprising administrative charges and miscellaneous expenses and the service tax on that amount, will not be payable to the opposite party.(vi)     Rest of the amount payable to the opposite party in terms of the demand letter dated 20.07.2016 shall be paid within four weeks from today, along with interest on that amount @ 8% per annum, with effect from 20.07.2016.(vii)    The opposite party shall pay a sum of rs.25,000/- as the cost of litigation to the complainants.(viii)   The payment in terms of this order shall be made by the opposite party within three months from today.(ix)     The order if any, passed by the Hon'ble Supreme Court in the appeal preferred by the OP against the order of this Commission dated 27.11.2017 in CC No.417 of 2016 and the order dated 09.02.2018 in Alop Kumar Mittal (supra) shall apply to this complaint in supersession of the directions issued hereinabove.......................J V.K. JAIN PRESIDING MEMBER
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Calcutta High CourtPeople United For Better Living In ... vs Union Of India on 2 September, 2013Author:Arun MishraBench:Arun MishraORDER SHEET WP 461 OF 2013 GA 2045 OF 2013 GA 2211 OF 2013 GA 2566 OF 2013 IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction ORIGINAL SIDE PEOPLE UNITED FOR BETTER LIVING IN CALCUTTA(PUBLIC) & ANR. Versus UNION OF INDIA, THROUGH SECRETARY, MINISTRY OF ENVIRONMENT AND FOREST & ORS. BEFORE: The Hon'ble CHIEF JUSTICE MR. ARUN MISHRA The Hon'ble JUSTICE JOYMALYA BAGCHI Date : 2nd September, 2013. Mr. J.K. Mitra, Sr. Adv. appears. Mr. S. Mitra, Sr. Adv. appears. Mr. B. Bhattacharyya, Adv. appears. Mr. P.K. Dutta, Sr. Adv. appears. Mr. S. Talukdar, Adv. appears. The Court : Heard the learned counsel appearing. The applications for addition as party respondentsbeing G.A. No.2045 of 2013 and G.A. No.2211 of 2013 are allowed.However, no order of stay is passed in G.A. No.2566 of 2013.Let the matter along with the connected applications appear in the list on September 9, 2013. Affidavits may be exchanged in the meantime.(JOYMALYA BAGCHI, J.) (ARUN MISHRA, CJ.) tk
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Custom, Excise & Service Tax TribunalC.C., Amritsar vs Sharman Woollen Mills on 23 June, 2009CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Block No.2, R.K.Puram, New Delhi COURT-III Date of hearing/decision: 23.6.09 Customs Appeal No.521 of 2006 Arising out of the order in appeal No.69/Cus/CHD/06 dated 8.5.06 passed by the Commissioner of Central Excise (Appeals), Chandigarh. C.C., Amritsar . Appellant Vs. Sharman Woollen Mills . RespondentFor Approval and Signature:Honble Mr. M. Veeraiyan, Member (Technical) Hoble Mr. P.K. Das, Member (Judicial)1Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?No2Whether it should be released under Rule 27 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?3Whether their Lordships wish to see the fair copy of the Order?Seen4Whether Order is to be circulated to the Departmental authorities?Yes Appearance:Shri S.R. Meena, Authorized Departmental Representative (DR) for the Revenue and Shri Sudhir Malhotra, Advocate for the respondent Coram: Honble Mr. M. Veeraiyan, Member (Technical) Honble Mr. P.K. Das, Member (Judicial) Oral Order No.____________________ Per M. Veeraiyan:This is an appeal by the Department against the order of Commissioner (Appeals) No. 69/Cus/CHD/06 dated 8.5.06.2. Heard both sides.3. The respondent, admittedly, imported bright dyed 3.3 DTEX Acrylic Tow falling under sub-heading No.5501.30 of the Customs Tariff Act and cleared them duty free by producing advance licence. Anti-dumping duty is leviable on import of acrylic fibre falling under sub-heading No.5501.30 or 5503.30, in terms of Notification No.133/2001-Customs dated 31.12.2001. The original authority while dealing with the refund claim, held that the acrylic tow imported by the respondent has to be considered as acrylic fibre and therefore, the same attracts anti-dumping duty, in terms of Notification No.133/2001-Cus cited supra. On appeal by the party, the Commissioner (Appeals) held that the acrylic fibre and acrylic tow are different goods and that anti-dumping duty was chargeable only on acrylic fibre and not on acrylic tow and accordingly, set aside the order of the original authority.4. Learned SDR submits that the acrylic fibre and acrylic tow are basically the same items and they differ only on length, size. The Notification imposing anti-dumping duty refers to both sub-heading No.5501.30 , 5503.30 and therefore, the implication is that acrylic tow and acrylic fibre should be treated as one and the same. Otherwise, levy under sub-heading 5503.30 under Notification No.133/2001-Cus., will be inoperative. Therefore, he seeks setting aside the order of the Commissioner (Appeals) and restoration of the order of the original authority.5. Learned Advocate reiterates the finding and reasoning of the Commissioner (Appeals).6. We have carefully considered the submission from both sides. The relevant findings of the Commissioner (Appeals) accepting the partys appeal is reproduced below: The main contention of the appellant is that they have imported acrylic tow falling under sub-heading 5501.30 ofCustom Actvide Bill of Entries No.353 dated 19.8.02, 355 dated 19.8.02, 372 dated 24.8.02, 373 & 374 dated 24.8.02 and 375 dated 28.8.02 and the department pressed them to deposit the anti-dumping duty on these goods amounting to Rs.14,10,698/- + interest amounting to Rs.2,66,191/- under protest. As per Notification No.133/2001-Cus dated 31.12.2001, made final vide Notification No.104/2002 dated 9.2.2002 anti-dumping duty was chargeable on acrylic fibre originate or imported from U.K., Germany, Bulgaria & Brazil, but no such duty is chargeable on acrylic tow i.e. the goods imported by the appellant. This view has also been confirmed by the CESTAT in the case of Beeta Exports v. C.C.ASR, 2003 (153) ELT 621 whereas it has been held that Acrylic fibre and Acrylic tow are different goods. The learned Adjudicating authority erred in not appreciating said factual position. He has not given any findings with regards to the said submission of the appellant. The above contention of the appellant is quite correct and convincing in as much as the acrylic fibre and acrylic two are two different goods and the anti dumping duty is chargeable only on acrylic fibre and not on acrylic tow.The further contention of the appellant that the duty in question was got deposited by the department under pressure , after expiry of limitation period, i.e. the Bill of Entries were assessed from 19.8.02 to 26.8.02 and the duty was got deposited on 3.12.2003. I fully agree with this contention of the appellant in as much as the duty deposited after the expiry of one year were clearly time barred and further the show cause notice dated 31.12.04 issued for recovery of said duty amount was also time-barred, because it is neither a case of any suppression of facts nor any wilful attempt to evade any duty when no duty is chargeable on the goods in question held by the CESTAT in para 5.2 of the order supra, which clearly says that anti-dumping duty imposed on acrylic fibre by Notification No.81/97-Cus cannot be imposed on acrylic tow. Therefore, duty deposited by the appellant is refundable to them as the doctrine or unjust enrichment is not applicable when duty paid subsequent to clearance of goods. This view has been taken by the CESTAT in the case of Gujarat State Fertilizer vs. C.C.E.- 2005 (180) ELT 607 TM.The order in original rejecting the refund claim is set aside.7. We are dealing with the case of levy of anti-dumping duty by a Notification issued by the Central Government underSection 9A(2)of the Customs Tariff Act on the basis of the findings of the designated authority. This levy is imposed after detailed investigation as prescribed under special law and after hearing the concerned parties including the importer, domestic industries and the exporter and other interested parties. The levy cannot be based on implication. The levy is clearly on acrylic fibre . Customs Tariff 5501 at 4 digit level refers to acrylic tow and 5503 refers to acrylic fibre. Therefore, there is conscious distinction between the acrylic tow and acrylic fibre. Notwithstanding the fact that sub-headings 5501.30 and 5503.30 have been mentioned in the notification, the levy is only on import of acrylic fibre. It cannot be extended to acrylic tow by any implications.8. In view of the above, we are in agreement with the above finding and reasoning adopted by the Commissioner (Appeals). No valid ground is adduced to interfere with the said finding.9. Appeal filed by the Department is, therefore, rejected.(M. Veeraiyan) Member (Technical) (P.K. Das) Member (Judicial) scd/3
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Gujarat High CourtMahendrabhai Jethabhai Kakkad vs State Of Gujarat & 3 on 23 November, 2006Author:H.K.RathodBench:H.K.RathodSCA/24271/2006 1/1 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 24271 of 2006 ========================================================= MAHENDRABHAI JETHABHAI KAKKAD - Petitioner(s) Versus STATE OF GUJARAT & 3 - Respondent(s) ========================================================= Appearance : MR MURALI N DEVNANI for Petitioner(s) : 1, MR LB DABHI AGP for Respondent(s) : 1, None for Respondent(s) : 2 - 3. ========================================================= CORAM : HONOURABLE MR.JUSTICE H.K.RATHOD Date : 23/11/2006 ORAL ORDER1. Heard the learned advocate, Mr.M.N.Devnani, appearing on behalf of petitioner and learned AGP, Mr.Dabhi, appearing on behalf of respondent No.1.2. I have considered the submissions made by both the learned advocates and the question involved in the present petition requires detailed examination. Hence, Rule. Expedited.(H.K.RATHOD,J.) (vipul) HC-NIC Page 1 of 1 Created On Sun Aug 13 08:05:02 IST 2017
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Supreme Court of IndiaGovt. Of Andhra Pradesh & Ors vs Gudepu Sailoo & Ors on 28 April, 2000Author:S.Saghir AhmadBench:S.S.Ahmad,D.P.WadhwaPETITIONER: GOVT. OF ANDHRA PRADESH & ORS. Vs. RESPONDENT: GUDEPU SAILOO & ORS. DATE OF JUDGMENT: 28/04/2000 BENCH: S.S.Ahmad, D.P.Wadhwa JUDGMENT:S.SAGHIR AHMAD, J.Leave granted. On 21.10.1961, each of the respondents was allotted an area of 7.06 acres of Government land situated in village Manchirevula, District Rangareddy, situated at a distance of about 10 miles from the city of Hyderabad in Andhra Pradesh. This assignment was subject to two conditions, namely, (i) that the land would be used only for cultivation and (ii) that it would not be alienated regarding which each one of the assignees had given a written undertaking that they would not sell the land under any circumstance without the prior sanction of the Tehsildar and in case the land was sold, it would revert back to the Government. (Learned Senior Counsel, Mr. M.N. Rao and Mr. Sudhir Chandra object to this undertaking being read by us on the ground that this was not filed before the High Court). In exercise of the power conferred bySection 172of the Andhra Pradesh (Telangana Area) Land Revenue Act, 1317 F., the Government had made THE LAONI RULES, 1950 of which Rule 19 is quoted below:- "19. The allottee of the land shall prepare the land for cultivation within three years of being placed in possession and commence cultivation of the land thereafter. The pattadar may be rejected by the order of the Collector for breach of any of the above conditions: Provided that he has been served with a notice calling upon him to comply with the conditions which he has violated and he fails to comply with it within three months of the date of service thereof. If land has been transferred in contravention of the conditions, the Collector may eject the transferee." ( Emphasis supplied ) Permission to occupy the Government land is given on the prescribed Form 'G'. One of the conditions contained in Form 'G' is that the "grantee is not empowered to transfer the occupancy without the sanction previously obtained from the Collector". Under the Revised Assessment Policy, published in Part II of Andhra Pradesh Gazette dated 31.7.1958 (pages 771-773), which again was made in exercise of the powers conferred bySection 172of the Andhra Pradesh (Telangana Area) Land Revenue Act, 1317 F., it was provided in Part VI thereof as under:- "VI. Terms and conditions of assignment:- (i) the assignment of lands shall be free of market value; (ii) lands assigned shall be heritable but not alienable; (iii)lands assigned shall be brought under cultivation within three years; (iv) no land tax shall be collected for the first three years except for the extent if any, which has already been brought under cultivation. Water rate shall, however, be charged if the lands are irrigated with Government water; and (v) cultivation should be by the assignee or the members of his family or with hired labour under the supervision of himself or a member of his family." Thus, under the original Laoni Rules, 1950 as also under the Revised Policy published in 1958, the alienation of the assigned land was prohibited. While under the Laoni Rules, 1950, the alienation or transfer without the previous sanction of the Collector was prohibited, under the Revised Policy, it was clearly provided that though the assigned lands would be heritable, they would not be transferred. On 14th of August, 1991, the respondents to whom the land was assigned, executed a Power of Attorney in favour of a builder, M.A. Baksh, giving him, inter alia, the following powers:- "5. To negotiate, enter into agreements for and/or let lease or licence the said property or any portion thereof to such person(s) or body and for such consideration and upon such terms and conditions and for such purpose(s) as my said attorney may in his absolute discretion deem fit. 6. To negotiate and agree to and/or to enter into agreement, to sell/develop/lease/mortgage the said property or to sell, convey, lease, mortgage, assign or to otherwise transfer the said property or any portion thereof to such person(s) or body and for such consideration and upon such terms and conditions and for such purpose(s) as the said attorney may in his absolute discretion deem fit and to collect and receive the considerations thereof and to give a valid receipts therefor. 7. To enter into agreement(s) to develop the said property by laying roads, drainage, water connections, Electricity connection etc. and or erecting individual/multistoreyed, residential/commercial buildings thereon with any person(s), firms, company/companies or society/societies upon such terms and conditions as my said attorney may in his absolute discretion deem fit." Acting upon the Power of Attorney, M.A. Baksh applied to the Mandal Revenue Officer and obtained a Memo dated 23.9.1992 from him that the sale of land was not hit by the provisions ofAndhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977. In the meantime, the Inspector-General of Police, Special Security Force, Andhra Pradesh, sent a requisition on 12.11.1993 to the Government for acquisition of the land situated in Manchirevula Village, Rejendranagar Mandal for setting up of operational Headquarters with residential accommodation for the Police Academy. It was, at this stage, that the validity of the assignments made in favour of the respondents in 1966 was examined and on certain irregularities having been noticed in making those assignments, it was decided to take action underSection 166-Bof the Andhra Pradesh (Telangana Area) Land Revenue Act, 1317 Fasli and, therefore, a notice, requiring them to show cause why the assignment of land made in their favour in 1961 be not cancelled, was issued to the respondents on 28.3.1994 by the District Revenue Officer. It was on receipt of the show cause notice that the respondents filed Writ Petition No. 9106 of 1994 in the Andhra Pradesh High Court challenging the validity of the notice. This Writ Petition was disposed of by a learned Single Judge on 3.5.1994 by the following order:- "This writ petition is filed for a writ of certiorary by calling for the records relating to the impugned order dt. 28.3.1994 of the second respondent and quash the same, by the impugned notice dated 28.3.1994 the Distt. Collector Ranga Reddy has issued a show cause notice to the petitioner as to why the Patta granted earlier should not be cancelled in view of certain alleged contraventions. However, it is the case of the petitioner that he has not submitted his explanation, instead furnished in this court. This writ petition is premature as it is filed against the show cause notice. However, having regard to the facts and circumstances of the case, I direct the petitioner to submit his explanation within a period of one week from today and the same shall be considered by the second respondent. Pending consideration of his explanation, the petitioner shall not be dispossessed. Subject to above the writ petition is disposed of at the stage of admission." It may be stated that the second respondent in the Writ Petition to whom a direction was issued to consider the explanation which was to be submitted by the respondents was the District Collector, Rangareddy District. It was he who had issued the show cause notice dated 28.3.1994. Pursuant to the judgment passed by the High Court, the respondents submitted their explanations to the show cause notice which was considered by the District Revenue Officer and he, by his order dated 15.9.1994, held that there was no irregularity in the assignment of lands to the respondents. It was further held by him that the respondents were in possession over the assigned lands in pursuance of the Certificate granted to them in Form `G' issued on 21.10.1961 and, therefore, the assignment was not affected by the subsequent G.O.Ms. No.1122, dated 29.6.1961 by which the assignment of lands falling within 10 miles of Hyderabad City was banned. This order was examined by the Collector who was of the opinion that the District Revenue Officer had not examined certain vital aspects of the matter and consequently by his order dated 3rd of January, 1995, he suspended the operation of the order dated 15.9.1994, passed by the District Revenue Officer. This order was challenged by the respondents in Writ Petition No.484 of 1995. In the meantime, the Collector wrote to the Government on 31st of July, 1995 to ratify the action indicated by him in his order dated 3rd of January, 1995. By order dated 24th of January, 1996, the Government ratified the Collector's order dated 3rd of January, 1995 and directed him to proceed with the enquiry and pass final order. This order of the Government was challenged by the respondents in Writ Petition No.7221/96. By a common judgment dated 1st of September, 1997, a learned Single Judge of the High Court allowed both the Writ Petitions and quashed the order of the Government dated 24th of January, 1996. It may be stated that in the counter-affidavit, filed on behalf of the Government of Andhra Pradesh (appellants), it was, inter alia, stated that the respondents had alienated the lands in favour of a third person. They had converted the agricultural lands into non- agricultural lands and had also appointed a General Power of Attorney in favour of a developer, for developing and sale of the plots, who converted the lands into residential plots in the name and style of "Bakshi Estates". The State of Andhra Pradesh, thereafter, filed two appeals before the Division Bench but the Division Bench took up only one of the two appeals, namely, Writ Appeal No.1487/98 and by judgment dated 14th of September, 1998, it dismissed the said appeal and maintained the order of the Single Judge that the assignment of lands, made in favour of the respondents thirty years ago, could not be touched. We may observe that when two writ appeals were filed against the common judgment and there were two distinct questions involved in the appeal, both the appeals should have been heard together. However, having regard to the facts of the present case, we are of the view that since the High Court in the first Writ Petition, namely, Writ Petition No. 9106/94, which was filed by the respondents against the show cause notice dated 28.3.1994 for cancellation of the assignment made in their favour, had itself directed the respondents to submit their explanation to the show cause notice, and had directed the Collector, Rangareddy District, who was arrayed as second respondent in that Writ Petition, to consider and dispose of the explanation, there was no occasion to challenge the action initiated by the Collector at the interlocutory stage. The mandamus which was issued in Writ Petition No.9106/94 consisted of a direction to the respondents to submit their explanation to the show cause notice issued to them for cancellation of the assignment of lands made in their favour and a direction to the Collector, Rangareddy District, to consider and dispose of that explanation. The explanation submitted by the respondents was, however, considered by the District Revenue Officer who was of the view that the assignment of lands, made in favour of the respondents, could not be cancelled and consequently dropped the proceedings. It was, at this stage, that the Collector intervened in the matter vide order dated 3rd of January, 1995 and suspended the operation of the order passed by the District Revenue Officer and proceeded himself to enquire into the matter by writing to the Government on 31st of July, 1995, to ratify his action. As pointed out earlier, the Government, by its order dated 24th of January, 1996, ratified the action of the Collector. It is not disputed that on account of the proceedings, initiated by the respondents in the High Court, the Collector could not complete the proceedings. There has, thus, been a non-compliance of the mandamus issued by the High Court in respondents' own Writ Petition No.9106/94. The High Court in the impugned judgment has observed as under:- "We do not find any infirmity in the reasoning of the learned Single Judge. In any event, the District Revenue Officer was vested with the power underSection 166-Band in exercise of such a power he passed an order recording therein that it will neither be fair nor proper to reopen the issue of assignment which took place three decades back by invoking the provisions ofSection 166-Bof the A.P.(T.A.)Land Revenue Act, 1317Fasli. We also record our concurrence with the observations of the learned Single Judge and record that no exception can be taken to the order of the District Revenue Officer and the order under appeal cannot be said to be suffering from any infirmity. There is no merit in the appeal. As such, this appeal fails and is dismissed. No order as to costs." We cannot subscribe to the view expressed by the High Court in so far as the order passed by the District Revenue Officer is concerned. Since a mandamus was issued to the Collector, Rangareddy District, to hear and dispose of the explanation, which was required to be submitted by the respondents in reply to the show cause notice issued to them, the District Revenue Officer had no jurisdiction to consider the matter in violation of the direction of the High Court. As a matter of fact, the explanation to the show cause notice had to be submitted before the Collector and the Collector alone had to consider and take a final decision in the matter. The action initiated by the Collector and the ratification of his order by the State Government are matters which should have been allowed to take final shape instead of being challenged at the interlocutory stage by the respondents. That being so, there is no necessity of going into the merits of the submissions made by the learned counsel for the parties with regard to the provisions ofSection 166-Band166-Cof the Andhra Pradesh (Telangana Area) Land Revenue Act, 1317 Fasli. We, therefore, dispose of this appeal finally with the direction to the Collector to complete the proceedings, initiated by him by his order dated 3rd of January, 1995 as ratified by the Government by its order dated 24th of January, 1995, at an early date in accordance with law. There shall be no order as to costs.
8fe112b2-30c3-597a-8f48-801a196f7a9b
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Gujarat High CourtBhanumatiben Bhagel & 3 vs State Of Gujarat & on 21 June, 2017Author:A.Y. KogjeBench:A.Y. KogjeR/CR.MA/15118/2010 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD CRIMINAL MISC.APPLICATION (FOR QUASHING & SET ASIDE FIR/ORDER) NO. 15118 of 2010 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE A.Y. KOGJE Sd/- ================================================================ 1 Whether Reporters of Local Papers may be allowed No to see the judgment ? 2 To be referred to the Reporter or not ? No 3 Whether their Lordships wish to see the fair copy of No the judgment ? 4 Whether this case involves a substantial question of No law as to the interpretation of the Constitution of India or any order made thereunder ? ================================================================ BHANUMATIBEN BHAGEL & 3....Applicant(s) Versus STATE OF GUJARAT & 1....Respondent(s) ================================================================ Appearance: MS SANDHYA D NATANI, ADVOCATE for the Applicant(s) No. 1 - 4 MR BHUNESH C RUPERA, ADVOCATE for the Respondent(s) No. 2 MR MM MANDLI, ADVOCATE for the Respondent(s) No. 2 MR HK PATEL, APP for the Respondent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE A.Y. KOGJE Date : 21/06/2017 ORAL JUDGMENT1. This application is filed under Section 482 ofPage 1 of 6HC-NIC Page 1 of 6 Created On Sun Aug 20 01:15:48 IST 2017 R/CR.MA/15118/2010 JUDGMENT theCriminal Procedure Codefor quashing of FIR being CR No.I-262 of 2010 registered with Meghaninagar Police Station, Ahmedabad. The FIR came to be registered at the behest of respondent No.2 - Sumanben for offences underSections 323,294(C),337,452,427and114of the Indian Penal Code. The FIR is filed against five persons, which includes all four applicants herein.1.1 In the FIR, it is alleged that on account of some altercation with applicant No.1-Bhanumatiben in connection with residential premises, an incident in the night of 05.12.2010 to 06.12.2010 took place, where accused Nos.2 to 5 participated in assaulting the complainant and witness Ravindra Ramsevak Pal. On account of such assault, control room was called and the complainant and witness Ravindra Ramsevak Pal were taken to Civil Hospital where they were treated.2. Learned Advocate for the applicants submitted that the present FIR is a counter-blast to the previous application made by applicant No.1 against one Manoj Bhadoriya and S.P.Bhadoriya, both brothers and notorious criminals, who have large number of antecedents. They were indulging in the activity of grabbing of residential premises and are having shop just beneath residence of applicant No.1. Applicant No.1 filed two complaints against Bhadoriya brothers, one on 01.12.2010 and secondPage 2 of 6HC-NIC Page 2 of 6 Created On Sun Aug 20 01:15:48 IST 2017 R/CR.MA/15118/2010 JUDGMENT on 06.12.2010, which subsequently culminated into registration of an FIR NO.3289 of 2010 with Meghaninagar Police Station and therefore, as a counter-blast, on 07.12.2010, the present FIR is filed by respondent No.2, who admittedly is a partner of Bhadoriya brothers and is also operating as an advocate from the same shop belonging to Bhadoriya brothers.2.1 Learned Advocate for the applicants submitted that the allegations levelled in the FIR do not attribute any role to applicant No.1 regarding incident of 06.12.2010, still at the behest of Bhadoriya brothers, name of applicant No.1 is implicated. She submitted that the allegations levelled are so improbable that no reliance can be placed on such allegations. 2.2 She submitted that the only witness-Ravindra Ramsevak Pal has already retracted his statement and in his application to police authority, has stated that he was not even present at the time and place of incident and he has been wrongly cited as a witness. She submitted that the allegations are not substantiated by any medical report.3. Learned APP drew attention of this Court to the report submitted to the office of the Government Pleader by the concerned Investigating Officer and the saidPage 3 of 6HC-NIC Page 3 of 6 Created On Sun Aug 20 01:15:48 IST 2017 R/CR.MA/15118/2010 JUDGMENT report reflects the status of medical certificate which indicates that the medical certificate does not reflect any visible marks of injury insofar as the complainant is concerned and so far as witness Ravindra Ramsevak Pal is concerned, the only complaint of chest pain is reported. 3.1 The report also indicates that several offences are registered against applicant No.2-Dharampal Shrivastav and in one of the cases, the High Court has stayed investigation whereas in another case, reported under Part-II, charge sheet is filed.4. Learned Advocate for respondent No.2-original complainant, relying upon the affidavit filed by the complainant, drew attention of this Court to the antecedents of applicant No.2-Dharampal Shrivastav. He drew attention of this Court to one such FIR and other complaints to the police authorities.4.1 Learned Advocate for respondent No.2- complainant submitted that the allegations made in the FIR are sufficient to attract ingredients of the offence and therefore, investigation is necessary and may not be closed at the threshold.5. Having heard learned Advocate for the parties and having gone through the case papers, it appears that the complainant is admittedly directly related to twoPage 4 of 6HC-NIC Page 4 of 6 Created On Sun Aug 20 01:15:48 IST 2017 R/CR.MA/15118/2010 JUDGMENT Bhadoriya brothers, with whom applicant No.1 had altercation on previous occasion and against whom applicant No.1 has filed an FIR just two days prior to the present FIR.5.1 The record also reflects that Bhadoriya brothers are notorious criminals, against whom several offences have been registered and charge sheeted. 5.2 A perusal of the FIR indicates that the entire narration of incident of 06.12.2010 does not indicate even presence of applicant No.1 and therefore, only inference that can be drawn is that implication of applicant No.1, despite there being no role, is only with a view to overcome the FIR filed by applicant No.1 against two Bhadoriya brothers.5.3 This Court has also taken into consideration the application filed by the sole witness-Ravindra Ramsevak Pal to the police authorities to indicate that he has been wrongly named as a witness. He has also stated that he was actually not the witness and not even present when the alleged incident took place. However, with some oblique motive, he has been named as a witness in this FIR.5.4 This Court has also taken into consideration the document on page - 173, 174 and 175, which indicatesPage 5 of 6HC-NIC Page 5 of 6 Created On Sun Aug 20 01:15:48 IST 2017 R/CR.MA/15118/2010 JUDGMENT that from 2007 to 2011, respondent No.2 has filed not less than 33 complaints against various persons, so as to indicate that respondent No.2 is habitual in filing one complaint or the other. Therefore, it can be inferred that the present FIR is also outcome of one such figment of imagination without there being any factual background.6. In view of the aforesaid, FIR being CR No.I-262 of 2010 registered with Meghaninagar Police Station, Ahmedabad, which does not reflect commission of offence, on the contrary which reflects false implication, unsupported with any medical evidence, deserves to be quashed. The same is accordingly quashed. The application is allowed. Rule is made absolute.(A.Y. KOGJE, J.) SHITOLEPage 6 of 6HC-NIC Page 6 of 6 Created On Sun Aug 20 01:15:48 IST 2017
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Central Information CommissionMrclaudealvares vs Ministry Of Environment & Forests on 26 March, 2015CENTRAL INFORMATION COMMISSION (Room No.315, B­Wing, August Kranti Bhawan, Bhikaji Cama Place, New Delhi 110 066) Prof. M. Sridhar Acharyulu (Madabhushi Sridhar) Information Commissioner CIC/SA/A/2014/901265 (Video Conference) Mr. Claude Alvares v. PIO, M/o Environment & Forest  Important Dates and time taken: RTI:  17.4.2014 Reply: ­­­ Time: ­­­ FAA: 10.5.2014 FAO: ­­­ Time:  SA: 28.7.2014 Hearing:23.3.2015 Decision: 26­03­2015 Result:  Show Cause issued - adjourned  Parties Present:     The appellant is represented by Ms. Pallavi Talware who had personally appeared  before the Commission after the respondent authority, represented by Mr. Sonu Singh and  another, made their submissions and left.   Information sought:2.   Appellant through his RTI application sought for the copy of report prepared by the  Environmental Appraisal Committee constituted on 21.3.2013 to specifically look into issues  related to illegal mining in the state of Goa under the chairmanship of Shri Vishwanath Anand and  a case by case basis of the environment Clearances that were granted or had been applied for by  Project Proponents.CIC/SA/A/2014/901265 Page 1 Ground for First Appeal:3.  No response by the PIO within prescribed time period.Ground For Second Appeal :4.  Non­furnishing of information by the respondent authority.Proceedings Before the Commission:5.    Both the parties made their submissions.  The representative of the appellant, who came late,  submitted that the respondent authority has not supplied the required information so far.  On the  other hand, the respondent officers admitted the delay and requested for some more time for  supplying the information.   The Commission having agreed to give the time to the respondent  authority for 15 days to furnish the information to the appellant, from the date of receipt of this  order, also directs the respondent CPIO to show cause why penalty cannot be imposed on him  for not supplying the information within the prescribed period.  His explanation should reach the  Commission   within   21   days   from   the   date   of   receipt   of   this   order.     The   Commission   orders  accordingly.(M.Sridhar Acharyulu) Information Commissioner  Authenticated true copy (Babu Lal) Deputy Registrar Addresses of the parties:1. The CPIO under theRTI Act, Govt. of India CIC/SA/A/2014/901265 Page 2 Ministry of Environment and Forests, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi-1100032. Shri Claude Alvares G­8, St. Britto's Apartments, Feira Alta Mapusa, Goa­403507 CIC/SA/A/2014/901265 Page 3
362c061d-905e-5e82-8ff0-c837def65d18
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Allahabad High CourtSumit Gupta And 4 Others vs State Of U.P. And 2 Others on 12 February, 2016Bench:Bala Krishna Narayana,Naheed Ara MoonisHIGH COURT OF JUDICATURE AT ALLAHABAD ?Court No. - 40 Case :- CRIMINAL MISC. WRIT PETITION No. - 3108 of 2016 Petitioner :- Sumit Gupta And 4 Others Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Rajesh Kumar Sharma Counsel for Respondent :- G.A. Hon'ble Bala Krishna Narayana,J.Hon'ble Naheed Ara Moonis,J.Learned counsel for the petitioners is permitted to implead S.S.P. Bareilly, as respondent no.4 in the array of the parties.Heard learned counsel for the petitioners and learned A.G.A.This petition has been filed by the petitioners with a prayer that suitable direction may be issued to the authority concerned for ensuring fair investigation of case crime no. 318 of 2015, undersections 498A,304Band3/4Dowry Prohibition Act, Police Station Kila, District Bareilly.From the perusal of the record it reveals that the petitioners are accused of the above mentioned case. In case the petitioners are having any grievance with regard to the investigation of the above mentioned case, the same may be raised before the SSP/SP, Bareilly, who shall look into the matter so that fair and expeditious investigation of the above mentioned case may be ensured.It is further directed that the SSP/SP, Bareilly, shall supervise the investigation and ensure that the same is completed speedily without any undue delay.With the above direction, this petition is finally disposed of.Order Date :- 12.2.2016 RU
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Uttarakhand High CourtPrakash Lal vs Smt. Pramila And Another on 12 September, 2017Author:V.K. BistBench:V.K. BistIN THE HIGH COURT OF UTTARAKHAND AT NAINITAL Criminal Revision No.147 of 2016 Prakash Lal ......Revisionist Versus Smt. Pramila & another ...RespondentsNo representation for the revisionist.Mr Navnish Negi, Advocate for the respondents.Dated: 12.09.2017 Hon'ble V.K. Bist J.Earlier Mr. N.S. Pundir, Advocate appeared on behalf of the revisionist but on two consecutive dates nobody has appeared on behalf of the revisionist. Today case has been revised, but nobody appeared on behalf of the revisionist. The Court proceeded in the matter.2. This revision has been preferred against the judgment and order dated 24.02.2016 passed by Judge Family Court, Pauri Garhwal in Criminal Case No.52 of 2015, Smt. Pramila and another vs. Prakash Lal whereby the learned Judge Family Court, Pauri Garhwal partly allowed the application of the respondents underSection 125Cr.P.C. granting maintenance of `2,000/- per month to respondent no.1-wife and `1,000/- per month to respondent no.2-Master Priyanshu from the date of filing the application and directed the revisionist to pay the entire arrear of maintenance since the date of filing till the date of order within one month and pay `3,000/- per month to the respondents as maintenance.23. The marriage of the revisionist was solemnized on 21.05.2002 at Village Kesunder, Patti Idwalsue, District Pauri Garhwal according to Hindu Rites and Rituals. Out of their wedlock a daughter aged about 11 years and a son aged about 9 years were born. After some time, the behaviour of the revisionist became cruel for respondent no.1. He used to beat her, abuse her and also used to comment on her character. Once the revisionist took her to Delhi. There also she was beaten and abused. On this, respondent no.1 made a complaint at Police Station, New Delhi in which a compromise took place. In December 2006, the revisionist left his job and came back to his village Amoli with his family. On 15.06.2008 he turned out the respondent no.1 and small son from the house. On 21.10.2010 a notice was sent by respondent no.1 to the revisionist. Thereafter the revisionist alongwith his brother and bhabhi came to the house of respondent no.1 and entered into compromise in front of Pradhan and Panchayat. Inspite of the compromise, the revisionist again started beating and abusing the respondent no.1. On 09.05.2015 revisionist turned out respondent no.1 from the house. Thereafter, an application underSection 125Cr.P.C. was filed by the respondent no.1 claiming `15,000/- per month as maintenance for herself as well as for her son. The revisionist filed objection 12 Ka to the said application in which he admitted the marriage and his children but denied the allegations of cruelty. He levelled allegations against respondent no.1 that respondent no.1 is a lady of quarrel mind and she does not want to live in joint family due to which she quarrelled with the revisionist. Further she used to pressurise him for living in her parental house. In the objection, he also stated that he is less educated and is doing farming in his village and there is no source of3income. He used to maintain his family by doing labour work. He stated that he has liability of his daughter and old aged mother.4. The Judge Family Court, Pauri Garhwal, considered the submission of counsel for the revisionist and recorded finding that the behaviour of the revisionist compelled the respondent no.1 to live at her parental house. The court also held that the respondent no.1 has no source of income. As far as the income of revisionist is concerned, the respondents pleaded that the revisionist is working in Tehri Dam and is getting `15,000/-per month and `20,000/-per month from agriculture and contract work. These facts were denied by the revisionist. The Judge Family Court, by considering the fact that revisionist was earlier working in Delhi and also considering the fact that he has not submitted any evidence in support of his income, found the income of the revisionist as `7,000/- and directed him to pay `2,000/- to respondent no.1-wife and `1,000/- to respondent no.2-Master Priyanshu.5. I have considered the submission of learned counsel for the respondents and also gone through the judgment of learned Judge Family Court, Pauri Garhwal. I find that the amount awarded to the respondents is quite reasonable. Therefore, there is nothing on which basis the order passed by the Judge Family Court can be interfered with. The revision is dismissed. [Misc. application no.535 of 2017 stands disposed of.] (V.K.Bist, J.) 12.09.2017 Arti
2a831b1d-bb21-5c45-bcdf-45f97e9808ae
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Gujarat High CourtAssociated Construction And ... vs Dhanlaxmiben And Anr. on 24 April, 1996Equivalent citations: AIR1997GUJ39, (1997)1GLR256, AIR 1997 GUJARAT 39, (1997) 2 CIVLJ 335, (1998) 1 CIVILCOURTC 246, (1996) 2 MAD LJ 505, (1998) 2 BANKCAS 159, (1997) 1 GUJ LH 256JUDGMENT1. The plaintiff firm filed Civil Suit No. 740 of 1975 against the defendants for recovery of Rs. 42,859.64 ps. with costs and interest on following brief facts alleged in the plaint,2. The plaintiff No. 1 is a partnership firm in which plaintiff No. 2 is one of the partners. The defendant No. 1 is the defendant No. 2's wife. The defendants had a plot of land described in the plaint. They wanted to construct building and, therefore, after some amount of communication with the plaintiffs they entered into contract with plaintiffs regarding construction of Bungalow in the said plot of land. All printed quotation/sheet with estimates and quantity as well as rates of different items of construction had been attached with the contract. On February 4, 1975 the plaintiffs sent by Registered Post the bill of cost of construction to the first defendant. The second copy of the bill was sent on February 9, 1975. As per the said bill the cost of construction came to Rs. 63,435.29 ps. However, the items of the compound wall, the construction below the partitions and the items of difference in the value between the cost of send-face plaster and shagol-finishing were not included in those bills, as measurements and calculations of those items were not done by that time. The plaintiffs, therefore, stated to have reserved their right to give supplementary bill for such items. Besides, the building material worth Rs. 8950/- belonging to the plaintiffs were lying at the site of the Suit Bungalow. However, the defendants did not permit them to complete the construction work so that such materials could be used. According to the plaintiffs if the defendants did not pay the cost of construction as and when the construction progressed, the defendant would be liable to pay interest and accordingly a sum of Rupees 424.35 ps, was added as interest. Accordingly as per the bills sent by the plaintiffs and after deduction of the amount paid by the defendants the decree for Rs. 42,859.64 ps. was claimed.3. The defendants filed leave to defend Ex. 9 and treated the same to be their written statement as per Ex. 25. While denying the allegations contained in the plaint the defendants asserted that the plaintiffs included the expenses of constructing privy, drainage, bath-room, etc., although none of such itmes of work had been carried out by the plaintiffs. Even windows were not fixed with shutters and the doors were not polished. According to the defendants the materials were already removed by the plaintiffs, although such materials were purchased by the plaintiffs at the cost of defendants. The defendants therefore prayed for dismissal of the suit and awarding of compensatory cost in the sum of Rs. 1000/-.4. Following issues were framed by the learned Judge of the City Civil Court, Ahmedabad, at Ex. 33 :(1) Whether plaintiff No. (1) is a registered partnership firm and whether the person-suing is or has been shown as a partner in the Register of firms?(2) Whether the plaintiffs prove that the value bf the construction of the property was Rs. 63,435.29?(3) Whether the plaintiffs prove that the defendants paid to them Rs. 21,000/- only towards the value of the construction?(4) Whether the plaintiffs are entitled to get interest? If yes, at what rate, on what amount and how much-amount of interest?(5) Whether the defendants prove that they have paid Rs. 43,750/- to the plaintiffs towards the value of construction of the property?(6) What is due, if any, by the Defendants or any of them, to the plaintiffs?(7) What decree and order?5. The learned trial Judge rendered the following findings:(1) First Part: Yes Second Part: Yes (2) The value of the construction payable by the defendants to the plaintiffs is proved to be Rs. 54,894.67 ps.(3) The payment of Rs. 22,000/- is proved to have been made by the defendants to the plaintiffs.(4) No. They are not entitled to get interest up to the date of the decree.(5) Same as on Issue No. 3(6) As per final decree (7) As per final decree.6. As a result of the aforesaid findings the learned trial Judge passed the following operative order:"The defendants do pay to the plaintiffs and the plaintiffs do recover from the defendants, a sum of Rs. 32,894.67 ps. (Rupees thirty two thousand eight hundred ninety four and paise sixty seven only) with interest thereon at six per cent per annum from the date of this decree till payment. There shall be no order as to costs."7. It is the aforesaid Judgment and Decree dated 18-11-1978 which has been brought under challenge both by the plaintiffs and the defendants in this Appeal and the Cross-Objections respectively;8. I have heard the learned Counsels for the parties. The submissions made by them may be dealt with.9. The learned Counsel for the appellant mainly agitated the interest having not been awarded till up to the date of Decree. He, however, had formally read evidence with regard to the items of claim not allowed by the learned trial Judge and submitted that the learned trial Judge ought to have believed the evidence adduced on behalf of the plaintiff by allowing all the items of the bills. He placed reliance upon Ex. 48 which is a composite bill consisting of two bills/two part of the bills. Therefore, the question with regard to whether the plaintiffs proved all the items of the bill Ex. 48 shall have to be decided in this appeal, over and above the question of interest. The learned Counsel appearing for the defendant replied on all the points, by relying upon the reasonings given by the learned trial Judge. He, however, claimed further reduction in the decretal amount by a sum of Rs. 20,000/-, as according to the defendants the learned trial Judge did not rightly disbelieve the evidence of the defendants with regard to additional payment of Rs. 20,000/-.10. Having heard the learned Counsels for the parties, I find that following points for determination arise in this appeal:1. Whether the plaintiffs have proved their composite bill Ex. 48 entirely?2. Whether the defendants have established their additional payment of Rs. 20,000/-?3. Whether the plaintiffs would be entitled to interest till up to the date of decree?4. What should be the order in this appeal read with cross-objections?11. POINT NO. 1:The first two items which have not been entertained by the learned trial Judge are items Nos. 17and 18 of Bill No. 1. They relate to flooring tiles. The quotation for flooring tiles at item No. 20 in the quotation sheet accompanying the contract Ex. 83 in terms speaks about the tiles of cement mosaic with fixing and polishing with its rate at Rs. 280 per brass i.e. Rs. 280/per 100 sq. ft. Referring to the bills the learned trial Judge has found that the item of flooring tiles and item of flooring tiles with cement mosaic fixing and polishing in white cement has been split up into items Nos. 17 and 18. The learned trial Judge has set out the quantity of the items and has worked out the amount of Rs. 2,458.44 ps. claimed in the bills. The learned trial Judge has then taken up the evidence with regard to these items. The discussion of the evidence with regard to these items has remained unassailable. Accordingly, it would be appropriate to reiterate what the learned trial Judge has said in this regard. The description of the item in the quotation sheet shows that the rate quoted was inclusive of polishing the tiles. It has been admitted by the plaintiff in his deposition and it is also borne out from the Commissioner's report at Ex. 70 that at no place in the bungalow the tiles had been polished by the plaintiffs. Besides, there was a difference in the rates as between the quotation and the bills. In the quotation the rate was Rs. 280/-per 100 sq. ft. whereas in the split up of the items the rate was stated! in the bills at Rs. 325 per 100 sq. ft. Hence, the plaintiffs were certainly not entitled to these items as claimed in the bills. Further reasons for such non-entitlement were : firstly, there is no evidence to show that white cement tiles were used in contrast of any other variety of tiles, secondly there is no evidence to show that the defendant had ever agreed to pay for the tiles of different variety at different rates, and thirdly, the defendant had agreed to pay these items at a flat rate as stated above. On a reference to the Commissioner's Report Ex. 7.0 as was brought from the Civil Suit No. 357/75 which was filed by the defendants against the plaintiffs it has been found that the quantity was also not as claimed in the bills. It was 1521.92 sq. ft. (round figure of 1522 sq. ft.), the price whereof as per the flat rate stated above would come to Rs. 4621.60 ps. The learned Judge has upon appreciation of evidence worked out the amount of items Nos. 17 and 18 to be at Rs. 3886.60 ps. after considering the payment made by the defendants for polishing and other works. Accordingly, the learned trial Judge has held that the first deduction in the bill would, therefore, be of Rs. 1,152.12 ps. This can be seen from the detailed discussion of the items in the context of evidence placed on record in para 18 of the judgment.12. Item No. 19 relates to R.C.C. staircase with regard to which the defendants asserted that the stair case contained only 17 steps and nor 18 steps as shown in the bill. After appreciating the evidence of the parties the learned Judge has believed the story of the defendants and accordingly the amount has been reduced by Rs. 60/- on this item.13. Items Nos. 21 and 22 relate to drainage line and item No. 23 relates to water pipe. According to the plaintiffs they led the water line up to the Bungalow and the drainage line inside the bungalow, whereas according to the defendants the plaintiff did not lay any water pipeline or drainage line as they claimed to have led. The learned trial Judge has upon reading of the evidence and assigning the reasons held that the defendants should succeed in full on these items. The learned trial Judge found that the plaintiffs had not led any drain line in the suit bungalow. The plaintiff were required to adduce satisfactory evidence with regard to these items in the face of clear and emphatic denial of the defendants right from the beginning. No mason, no drain layer and no plumber have been examined by the plaintiffs. No material or evidence to show the purchase of materials for these two lines has been produced by the plaintiffs. The Com-missioner's report/map Ex. 70 does not show laying of such line by the plaintiffs although the plaintiffs' another partner was present at the time of inspection by the Commissioner. Against this the defendants adduced oral evidence of defendant No. 2 saying that the defendants had got led two lines in the bungalow. This evidence has been supported by the Cash Memos and the bills for the purchase of required materials. They were placed in the record at Exs. 97 to 107. Besides, there is a receipt Ex. 96 showing the payment of Rs. 430/- to labourer for laying down the drain line. Repelling the arguments of the learned Counsel for the plaintiff that the defendant had been running the school in the suit bungalow right from June/July, 1974 and the students studying in the school would require to use a bath and lavatory and such use could not have been made unless there was facility of the drainage and waterline. It has been held that the argument was without foundation and that defendant No. 2 had been running the school since June/July 1974, but no further evidence has been adduced to take the fact further. Thus, upon fullest appreciation of evidence the learned trial Judge came to the conclusion that plaintiff would not be entitled to the amount of drainage line and water line and accordingly the defendants would be entitled to a deduction of Rs. 1200/ -. The learned trial Judge has also come to the conclusion that the plaintiffs having removed the water meter could not charge the defendants for the value thereof and, therefore, the claim of Rs. 150/- in that respect was not-grantable.14. Item No. 34 is for fixing the door-frames and in Para 26 of the judgment the learned tral Judge has disallowed this item after referring to the bill and the quotation and comparing the two items in respective documents. The learned Judge has held that if really the plaintiff has to charge extra amount for fixing the door-frame they would never have to mention that fact in the quotation sheet. Hence, the amount of Rs. 370/- in item No. 34 was disallowed.15. At item No. 35 of the first bill, the plaintiffs claimed Rs. 1500/- as charges for preparing the plans, designs, N. A. plans, calculations and for cement permits and for preparing revised plans, etc. Reference was made to the contract between the parties and it was found that the plaintiff would not be entitled to claim such charges, but the defendant No. 2 admitted to have agreed to pay sum of Rs. 500/- for such services. After appreciating the oral evidence of the plaintiffs and the defendants, the learned trial Judge held that he would decree only Rs. 500/-under this head and would reduce the amount of that entry by Rs. 1000/-.16. Then there are two items Nos. 36 and 37 respectively of Rs. 50/- and Rs. 60/- by way of expenses for Khat Mahurat and Vastu Poojan, in respect of which the defendants' evidence was that the expenses were incurred by defendant No. 2 himself for these ceremonies. Accepting this evidence the learned trial Judge disallowed these two items.17. Item No. 38 being the amount of Rs. 165/- as water connection charges is disallowed as part of claim under item No. 23 which has been wholly disallowed.18. The last item of the first bill which has been disallowed is item No. 39 for Rs. 837/-under the head of difference in rate. The learned trial Judge has discussed the evidence on this point and relying upon the admission of the plaintiff in the cross-examination that there was no agreement between the parties for paying the difference in price, this claim has been disallowed.19. The sum total of the hems of first bill of Ex. 48 which have been disallowed may be reproduced from para 30 appearing at page 45 of the judgment:Sr. No. Item No. of Bill No. (1) Amount Disallowed I. 17 &18 Rs. 1,152.12 ps.2.19Rs.60.003.21Rs. 322.00422Rs. 600.005.23Rs. 1,200.006.32Rs. 150.00734Rs. 370.008.35Rs. 1,000.009. 36 & 37 Rs. 110.0010.38Rs. 165.0011.39Rs. 837.00 Rs. 5,966. 12ps.20. As regards the second bill the following items have been allowed to be reduced:(1) Rs. 250/-(2) Rs. 75/-(3) Rs. 832/-(4) Rs. 1417.50 totalling to Rs. 2574.50 leaving the balance of awardable amount to Rs. 5300.50 ps. instead of Rs. 7,875/-. In paras 31 to 33 the learned trial Judge discussed the evidence adduced before him, in respect of the items of supply of door-framing, windows and shutters, door gaps, steel, section windows and supplying of fitting of doors and shutters. Referring to the evidence adduced on this point and appreciating the same in the context of the bills canvassed by the plaintiffs the learned trial Judge has come to the conclusion that the defendant would be entitled to the reduction as aforesaid.21. In para 34 the learned Judge has worked out the amount which could be awarded to the plaintiffs. Such amount of both the bills would come to Rs. 54,894.67 ps.22. I have extensively heard the learned counsel for the appellant on the evidence placed on record, but the learned counsel for the appellant has not been able to show any infirmities in the reasons assigned and the conclusions drawn by the learned trial Judge for the reductions from the bills in question as stated above. The learned trial Judge has seen the parties deposing before him and unless some material is pointed out from their evidence so as to come to the conclusion that particular item is erroneously or wrongly allowed to be deducted it cannot be found that the learned trial Judge has committed any error in making deduction on various items as aforesaid.23. In the result the first point shall have to be answered against the appellants (plaintiffs).24. Although the plaintiffs have not much agitated the question with regard to the payment it has to be stated that upon appreciation of evidence the learned trial Judge has held that only an amount of Rs. 1,000/-should be adjusted against the admitted payment of Rs. 23,000/-.25. That takes the matter to the consideration of the submissions of Mr. R.N. Shah, the learned counsel for the defendant on the cross-objections. The relevant discussion with regard to this point may be noticed from para 37 of the judgment. Accordingly, as per the plaintiffs, the defendants had paid to them only Rs. 23,000/- by borrowing that amount from the Ahmedabad Peoples Cooperative Bank and nothing more, whereas according to the defendants an additional sum of Rs. 20,000/- was paid in cash by four different payments of Rs. 5,000/- on June 2, 1973, August 1, 1973, January 7, 1974 and on February 3, 1974. The learned trial Judge has examined the question, and in my opinion, rightly, from the stand point of the burden of proof being on the defendants. The learned trial Judge has rightly held that the defendants failed to discharge the burden bearing in mind the circumstances that no receipt or writing for each of these documents has been obtained although the defendant No. 2 used to obtain such receipts or writings for payments being made by him and that defendant No. 2 being highly educated person could not have made payment in cash without obtaining receipt or writing for such big sum, particularly when his counter-part did not miss to obtain writing in the matter of small loan of Rs. 750/-. The arguments canvassed on behalf of the defendants were not accepted by the learned trial Judge, and rightly, on account of the aforesaid features of the evidence placed on the record of the case. Hence, this point raised in the cross-objections deserves to be negatived.26. The last question raised by the learned counsel for the appellants pertains to interest up to the date of decree.At first, it was submitted that by virtue of the provisions contained inSection 34of the Code of Civil Procedure, the learned trial Judge had discretion in the matter of rate of interest and not on the question whether to allow or not at all to allow the claim of interest. Reference in this connection was made to a decision of the Hon'ble Supreme Court in the case ofUnion of India v. Watkins Mayor & Co., reported in AIR 1966 SC 275. In para5 of the citation, it has been observed that interest may be awarded for the period prior to the date of the institution of the suit when there is an agreement for the payment of interest at fixed rate or when interest is payable by the usage of trade having the force of law, or under the provisions of any substantive law, as for instance, underSection 80of the Negotiable Instruments Act, 1881, when no rate of interest is specified in the promissory note or bill of exchange, the Court may award interest at the rate of 6 per cent per annum. It is no doubt true that interest may be awarded as per the contract between the parties. In the present case there is no reference to the award of interest from the very inception. This can be seen from the following paragraphs reproduced from the judgment of the learned trial Judge. The question is whether there is discretion in the Court for allowing or not at all allowing interest prior to the date of decree. Reference in this connection has been made toSection 34of the Code of Civil Procedure, which deals with interest from the date of the suit up to and after the date of the decree.Section 34would read as under:34. (1) Where arid in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent per annum as the Court deems reasonable on such principal sum, from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit:[Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may, exceed six per cent per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions.Explanation I: In this sub-section, "nationalised bank" means a corresponding new bank as defined in theBanking Companies (Acquisition and Transfer of Undertakings) Act, 1970(5 of 1970).Explanation II: For the purpose of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability].(2) Where such a decree is silent with respect to the payment of further interest on such principal sum from the date of the decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefor shall not lie.the proviso and the explanations to the proviso were added by the Amendment Act, with effect from 1-1-1997. However, the operative portion of the provisions as contained in Sub-section (1) and Sub-section (2) clearly go to indicate that the discretion in the Court vested under the said provision is not only with regard to the rate of interest, but it is with regard to whether the interest should be awarded or not. The discretion is two fold, the Court may award interest and may award such interest at such rate as the Court feels it reasonable to be awarded on the principal amount adjuged from the date of the suit till the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding 6 per cent per annum as the Court deems it reasonable on such principal sum from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit. Where the interest is not awarded at all subsequent to the date of decree the same shall be deemed to have been refused by the Court as per Sub-section (2). Even the Apex Court has observed in the case ofState of Madhya Pradesh v. Nathabhai Desaibhai Patel, reported in AIR 1972 SC 1545, that the question, whether the interest should be awarded on the principal amount claimed from the date of the suit, is within the discretion of the Court. The submission, therefore, that the Court has to award interest and the discretion is only with regard to rate of interest cannot be accepted.27. It has then been submitted that there was a contract of interest as reflected by the condition in the bills in question and, therefore, the learned trial Judge has erred in not awarding the interest prior to the date of the suit. Here also, in my opinion, the learned trial Judge has given cogent reasons as to why such interest could not be awarded to the plaintiff. It would be useful to reproduce the relevant paragraphs from the judgment of the learned trial Judge on this point also. It has been submitted that the learned trial Judge has erred in not exercising his discretion judicially. In my opinion, the learned trial Judge has quite judicially and appropriately exercised the discretion in not awarding the interest up to the date of decree. The excellence of the reasoning for not awarding the interest prior to the date of decree might be noticed from the portion of the judgment of the learned trial Judge which may now be excerpted:"This then takes me to the question of interest. The agreement or the contract, Ex, 83, says that the defendants would be liable to pay twelve per cent interest on that amount of the bill if the amount of the bill is not paid within fifteen days from the receipt of the Bill. The evidence very clearly shows that the Bill Ex. 48 was, for the first time, received by the defendants on February 12, 1975; but soon after the receipt thereof, on February 21, 1975, the defendants through their Advocate, sent a provisional reply and disputed the correctness of the Bill. It must be remembered that in the bill as was sent by the plaintiffs to the defendants, the plaintiffs had not given credit for the amount of Rs. 23,000/- or even in that matter, the amount of Rs. 21,000/- towards the value of costs of construction and the bill purported to say that the defendants had to pay to the plaintiffs, a total sum of Rs. 63,435.29 ps. This was certainly not the correct statement. Even on the plaintiffs' own showing, on the date the bill was sent, the defendants owed to them, in no case, more than Rs. 43,000/-, and yet, the claim in bill was for Rs. 63,000/- and odd. The defendants were, therefore, not liable to honour the bill or pay the value as stated therein. It was for the first time in their reply dated March 5, 1975 (Exh. 145) that the plaintiffs stated that they were giving credit of Rs. 21,000/ - against the value of the Bill. This, reply dated March 5, 1975, would have reached the defendants, earlier, on March 6, 1975, and, without allowing even a fortnight to pass, the plaintiffs filed the present suit, on March 14, 1975. The plaintiffs, in my opinion, are therefore not entitled to claim any interest prior to the suit on the amount found due to them from the defendant.40. So far as the interest pendente lite is concerned, there also, I think, no interest should be allowed to the plaintiffs. The simple reason is that, as shown earlier, Bill, Ex. 48, is an exaggerated Bill. Though, admittedly, certain items of work had not been executed, e.g. tiles polishing, and such other items, and certain shutter-doors had not been affixed, and, even though in certain area tiles had not been fixed and, yet, in the Bill, Ex 48, charges for alt those items of work had been levied. It is only after the scrutiny by the Court that the correct amount due and payable by the defendants to the plaintiffs could under the circumstances, be ascertained. In that view of the matter, I think, even for pendency of the suit, no interest should be awarded to the plaintiffs, and, on the same line of reasoning, should be decided the question of costs. As the suit claim is an exaggerated claim and is based upon a Bill Which admittedly contained certain wrong items, the parties should be left to bear their own costs. So far as interest, after the date of the decree, I think, the usual rate of six per cent, from the date of decree till payment, should prevail."28. In the result both, the appeal and the cross-objections, should fail. They accordingly stand dismissed with no order as to costs.
f4470646-8b9a-52d6-a251-21c8bab34ebd
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Supreme Court - Daily OrdersDigambar Pandhari Bhise (D) Thr. Lrs. vs Gajanan Maharaj Sansthan, Shegaon on 10 January, 2017Bench:Madan B. Lokur,R.K. AgrawalIN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION REVIEW PETITION (C) NO.3947 OF 2016 IN SPECIAL LEAVE PETITION (C) NO.16104 OF 2016 DIGAMBAR PANDHARI BHISE (D) THR. LRS. ...PETITIONER(S) VERSUS GAJANAN MAHARAJ SANSTHAN, SHEGAON ...RESPONDENT(S) O R D E RDelay condoned.We have carefully gone through the review petition and the connected papers. We find no merit in the review petition and the same is accordingly dismissed..............................J. (MADAN B. LOKUR) .............................J. (R.K. AGRAWAL) NEW DELHI JANUARY 10, 2017Signature Not VerifiedDigitally signed bySANJAY KUMARDate: 2017.01.1117:04:19 ISTReason:CHAMBER MATTER SECTION IX S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS R.P.(C) No. 3947/2016 in SLP(C) No. 16104/2016 DIGAMBAR PANDHARI BHISE (D) THR. LRS. Petitioner(s) VERSUS GAJANAN MAHARAJ SANSTHAN, SHEGAON Respondent(s) (with appln. (s) for c/delay in filing review petition and office report) Date : 10/01/2017 This petition was circulated today. CORAM :HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE R.K. AGRAWAL By Circulation UPON perusing papers the Court made the following O R D E R Delay condoned.The review petition is dismissed in terms of the signed order.(SANJAY KUMAR-I) (JASWINDER KAUR) AR-CUM-PS COURT MASTER(Signed order is placed on the file)
11eded47-ec79-5a85-a136-fbe86ae5160d
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Delhi High CourtHt Media Limited vs Deputy Labour Commissioner & Anr. on 20 February, 2018Author:Vinod GoelBench:Vinod Goel$~41 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Judgment: 20.02.2018 + W.P. (C) 11109/2015 & CM No. 28778/2015 HT MEDIA LIMITED ..... Petitioner Through: Mr.Rajshekhar Rao, Advocate with Mr.Nakul Sachdeva and Mr.Ankit Rajgarhia, Advocates. versus DEPUTY LABOUR COMMISSIONER & ANR... Respondents Through: Mr.Sanjoy Ghose, ASC for R-1 with Ms.Urvi Mohan, Advocate. Mr.Umesh Sharma, Advocate for R-2. CORAM: HON'BLE MR. JUSTICE VINOD GOEL VINOD GOEL, J. (ORAL)1. By this writ petition filed underArticle 226of the Constitution of India, the petitioner, which is a newspaper establishment, seeks quashing of the summon bearing No.18/WJA/DLC/NDD/2015/3452 dated 16.11.2015 issued to them by the Deputy Labour Commissioner/respondent no.1.2. The respondent no.2 had approached the respondent no.1 to give him benefit of Majithia Wage Board AwardW.P (C) 11109/2015 Page 1 of 4recommendations which were accepted by the Central Government on 11.11.2011.3. Learned counsel for the petitioner submits that the petitioner had to invoke the jurisdiction of this court as the petitioner establishment had an apprehension that the respondent no.1 intends to assume the jurisdiction to adjudicate the issue involved between the parties underSection 17 (1)of the Working Journalists & Other Newspaper Employees (Condition of Service and Miscellaneous Provisions) Act, 1955 (in short „Working Journalists Act‟) instead of making a reference by the Government of NCT of Delhi under Section 17 (2) of the Working Journalists Act to the Labour Court in accordance with the law.4. Learned counsel for the petitioner relies upon an order dated 13.10.2017 of the Hon'ble Supreme Court in Contempt Petition (C) 411/2014, wherein the Hon‟ble Supreme Court has passed the following order:-"1. Upon hearing the learned counsel for the applicant we clarify our Judgment dated 19.06.2017 to mean that dispute(s) referred for adjudication underSection 17 (2)of the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 will be disposed of by the concerned Labour Court/Industrial Tribunal as expeditiously as possible, preferably, within six months of the reference being made.2. With the aforesaid clarification the miscellaneous application is disposed of."W.P (C) 11109/2015 Page 2 of 45. He also relies upon another order of the Hon'ble Supreme Court dated 04.10.2016 in the said Contempt Petition No.411/2014 in W.P. (C) 246/2011 and the relevant para of the order reads as under: -"In all cases where there is a dispute with regard to the amount payable, we direct the State Governments to act under the provisions ofSection 17(2)of the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955. The concerned Labour Court will finalize its award expeditiously and send the same to the State Government for due execution."6. Learned counsel for the petitioner submits that the petitioner establishment has been directed by the impugned notice to produce its evidence and documents in support of his defence.7. Per contra, learned counsel for the respondents submit that it was merely a summon on the application by the respondent no.2 and no formal order has been passed by the respondent no.1 hence, the petition is not maintainable merely on the basis of a summon issued by the respondent no.1.8. At this stage, with the consent of the parties, this writ petition is disposed of in the following terms: -(a) that the petitioner shall appear before the Deputy Labour Commissioner under Working Journalists Act with a representation along with the copies of relevant documents within four weeks;W.P (C) 11109/2015 Page 3 of 4(b) The Deputy Labour Commissioner shall decide the grievances/representations of the petitioner in accordance with law expeditiously.9. In view of the above, CM 28778/2015 also stands disposed of.(VINOD GOEL) JUDGE FEBRUARY 20, 2018 "shailendra"W.P (C) 11109/2015 Page 4 of 4
58ff6d44-d270-5c6d-9701-754a59caa809
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Madras High CourtM. Subramanian vs The Management on 25 October, 2010Author:K.ChandruBench:K.ChandruBEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 25/10/2010 CORAM THE HON'BLE MR.JUSTICE K.CHANDRU W.P.(MD)No.14011 of 2009 M. Subramanian ... Petitioner Vs 1. The Management Tamil Nadu Transport Corporation Kumbakonam Division II Collector's Office Road Trichy District 621 001. 2. The Labour Court Trichy District. ... Respondents PRAYER Writ Petition filed underArticle 226of the Constitution of India, praying for the issuance of Writ of certiorarified mandamus to call for the records relating to order passed by the second respondent in I.D.O.P.No. 12 of 2001 on the file of the labour Court, Trichy dated 1/2/2005 and quash the same as illegal and consequentially to direct the respondents to reinstate the petitioner in service with backwages and all attendant benefits. !For Petitioner ... Mr.A.V.Rajasekar ^For Respondents... Mr.P.Thilak Kumar. - - - - - :ORDERThe petitioner has come forward to file the present writ petition, challenging an award passed by the second respondent labour Court, Trichy in I.D.O.P.No. 12 of 2001 dated 1/2/2005.2. By the aforesaid award, the petitioner's claim for reinstatement was negatived by the labour Court. Even though, the award was made as early as February 2005, the petitioner has chosen to challenge the same after the period of four and a half years.3. In the affidavit filed in support of the writ petition, there is no sufficient explanation for the long delay in moving this Court. The averments made in paragraph 8 of the affidavit are not sufficient to explain the delay. In any event, it is seen from the records that the petitioner, who was working as a Conductor in the first respondent/Transport Corporation (subsequently merged with the State own Transport Corporation). He was dismissed from service for the acts of misconduct vide order dated 30/5/1992. Subsequent to the dismissal, he filed an appeal to the Managing Director, who was also rejected on 15/7/1992. After 9 years, the petitioner raised the dispute underSection 2 (A) (2)of the I.D. Act before the Assistant Commissioner of Labour, Trichy. The Conciliation Officer gave a failure report dated 25/1/2001. On the strength of the failure report, he filed a claim statement dated 25/1/2001 before the second respondent labour Court. The labour Court took up the dispute as I.D.O.P.No.12 of 2001 and issued notice to the first respondent.4. The first respondent filed a counter statement dated Nil/December, 2001 before the labour Court. On behalf of the first respondent, sixteen documents were filed and marked as Exs.M.1 to M.16.5. The labour Court framed two issues.(i). The first issue was the charges against the petitioner were proved and(ii). the second issued was whether the punishment of dismissal was grossly disproportionate.6. Beyond the first charge, the labour Court found that both the charges were proved against the petitioner. The passenger of the bus was examined in the enquiry and it was also found that the petitioner had collected the fare and the luggage charges were not marked and there were several erases and corrections in the counter foils and therefore, the Court found that the passenger has clearly stated that there were three luggages but not one luggage as alleged by the petitioner. It also found that the enquiry Officer's finding was proper and it was based on legal evidence. On the proportionality of punishment, the Court found that the nature of misconduct is such that it is materially the quantum of money involved but it goes to the root of the misconduct and therefore, it considered the punishment of dismissal was not disproportionate.7. The contention of the petitioner that there was no evidence cannot be accepted and it is a rare case where the passenger himself was examined who depose against the petitioner. On the disproportionate of the penalty, this Court is not inclined to consider that the labour Court had failed to discharge its power underSection 11 Aof the Industrial Disputes Act.8. Under similar circumstances, the Supreme Court inU.P.SRTC Vs. NANHE LAL KUSHWAHAreported in (2009) 8 SCC - 772, has held as follows:-"15. As the respondent was appointed as a conductor, it isnot the amount which would be very material for the purpose of determining the quantum of punishment. He was chaged for commission of similar misconducts on six occasions; at least misconduct has been found to be proved in respect of two charges even by the labour Court. In that view of the matter, we are of the opinion that the impugned judgment cannot be sustained. It is set aside accordingly."9. In view of the above, the writ petition deserves dismissal and accordingly, the same is dismissed. No costs.mvs.
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Madhya Pradesh High CourtJairam Gaya Prasad Mishra And Anr. vs The State Transport Appellate ... on 18 July, 1977Equivalent citations: AIR1977MP262, AIR 1977 MADHYA PRADESH 262, 1977 MPLJ 716 1978 JABLJ 25, 1978 JABLJ 25JUDGMENT Bajpai, J.1. By this petition, the petitioner, a transport operator, seeks to challenge the validity of the order passed by the State Transport Appellate Tribunal quashing the notification issued by the R.T.A. inviting applications for grant of transport permits.2. The facts relevant are that in June, 1970, two stage carriage permits were granted to certain operators by the R.T.A. for the route Tikamgarh to Bijawar. These grants of permits were challenged before the State Transport Appellate Tribunal and the State Transport Appellate Tribunal set aside the same by its order dated 25-2-75 on the ground that the invitation issued by the R.T.A. for grant of permits and the consequent grant of the permits were all illegal, because there was no previous determination of the scope as contemplated underSection 47 (3)of the Motor Vehicles Act, 1939 (hereinafter referred to as the Act). The case was, therefore, remanded to the R.T.A. for determining the scope and then to proceed further in the matter of grant of permit according to the provisions of theMotor Vehicles Act.3. Thereafter the Regional Transport Authority vide its order dated 21-4-75 (Annexure A) determined the scope on the aforesaid route for two daily return trips and the number of stage carriage buses fixed was two. After determining the scope, a notification (Annexure B) was issued inviting applications for grant of permits accordingly. In the notification, instead of describing the extent of the scope as "two daily return trips by two buses", the R.T.A. used the words '4 trips' and did not specify the number of stage carriages as determined by its order determining the scope.4. The M. P. State Road Transport Corporation filed an application underSection 64-Aof the Motor Vehicles Act challenging the validity of the notification on the ground that by scheme No. 9-M, a part of the route in question was nationalised and the R.T.A. issued the notification inviting applications by overlooking this aspect. The other ground taken for challenging the validity of the notification was that the same was not in accordance with the order determining the scope inasmuch as the number of buses were not stated in the notification and it also did not correctly specify the scope as determined for two daily return trips.5. The State Transport Appellate Tribunal did not deal with the question of the effect of the scheme of nationalisation on a part of the route and left it open. The State Transport Appellate Tribunal, however, quashed the notification only on the ground that the description of the scope as given was not correct and the same did not satisfy the requirements ofSection 47 (3)of the Act inasmuch as the number of stage carriages was not stated. According to the State Transport Appellate Tribunal, it was essential on the part of the Regional Transport Authority to disclose the number of stage carriages as limited by its order determining the scope. This order was passed by the State Transport Appellate Tribunal on 1st of April, 1976. It would be also significant to mention that since the M. P. State Road Transport Corporation challenged the validity of the notification, the Regional Transport Authority alone was impleaded as party to the revision. It appears that the R.T.A. remained ex parte and the State Transport Appellate Tribunal decided the revision after hearing the applicant i. e. M. P. State Road Transport Corporation.6. It would be further significant to mention that despite the fact that the notification was quashed by the State Transport Appellate Tribunal on 1-4-7.6, the R.T.A. proceeded to deal with the applications received in pursuance of the said notification and later on granted permits. The present petitioner is also one of the grantees.7. The petitioner before us challenges the validity of the order made by the State Transport Appellate Tribunal. Shri Y. S. Dharmadhikari, learned counsel, appearing for the petitioner pressed the following grounds in support of his case:(i) That the order made by the Regional Transport Authority determining the scope on a particular route as contemplated underSection 47 (3)of the Act was not revisable by the State Transport Appellate Tribunal underSection 64-Aof the Act.(ii) That even if it was held that a revision was maintainable, the order made by the State Transport Appellate Tribunal was liable to be quashed, because the M. P. State Road Transport Corporation did not implead all such persons who had applied for grant of permit in pursuance of such notification.(iii) That the omission to mention the number of stage carriages while disclosing the scope in the notification was not material inasmuch as no prejudice was caused and that there is no statutory requirement to mention the number of stage carriages while describing the scope in the notification inviting applications for grant of permit and therefore, even on merits, the State Transport Appellate Tribunal was wrong in quashing the notification only on the said technical ground particularly when undisput-edly the order fixing the number of stage carriages for two daily return trips by two buses was on record and the applications were made accordingly and were also considered for two daily return trips by two stage carriages.(iv) That the scheme of nationalisation referred to by the M. P. State Road Transport Corporation was not relevant inasmuch as the operation on the part of the route in question was kept for conjoint operation and was not reserved for exclusive operation by the State Undertaking.8. As regards the first objection regarding the tenability of the revision at the instance of M. P. State Road Transport Corporation challenging the validity of the order underSection 47 (3)of the Act is concerned, it would suffice to observe that the objection is absolutely misconceived in view of the clear language of Section 64-A as reproduced below:"64-A. Revision.--The State Transport Appellate Tribunal may, either on its own motion or on an application made to it, call for the record of any case in "which an order has been made by a State Transport Authority or Regional Transport Authority and in which no appeal lies, and if it appears to the State Transport Appellate Tribunal that the order made by the State Transport Authority or Regional Transport Authority is improper or illegal, the State Transport Appellate Tribunal may pass such order in relation to the case as it deems fit, and every such order shall be final:Provided that the State Transport Appellate Tribunal shall not entertain any application from a person aggrieved by an order of a State Transport Authority or Regional Transport Authority, unless the application is made within thirty days from the date of the order:Provided further that the State Transport Appellate Tribunal shall not pass an order under this section prejudicial to any person without giving him a reasonable opportunity of being heard."From the perusal of the section, it is apparent that the scope of the said section is very wide in terms. The only condition precedent for filing a revision is that the order impugned made by the R.T.A. should be such against which no appeal lies. The word 'order' is wide enough and there is no scope to contend that the same may not include an order made underSection 47 (3)of the Act. It is undisputed that the M. P. State Road Transport Corporation was an existing operator and it could be naturally aggrieved by the said order if it was found to be in contravention of the provisions of law under the facts and circumstances of the case. It is true that there may be some operators who may find even a wrong order underSection 47 (3)of the Act to their advantage and may not challenge the same by filing a revision under Section 64-A. But, if the order, as disclosed by the notification specifying the scope. happens to be prejudicial to the interest of some operator, as in the present case, such operator can approach the State Transport Appellate Tribunal for relief by invoking the jurisdiction underSection 64-Aof the Act. There will be no ground for denying his right to approach the revisional authority. It is true that while proceeding to determine the scope, it is not necessary for the R.T.A. to issue a notice to the operator or to hear them. But once an order is made underSection 47 (3)of the Act, it affects the working and operation on the route and would thereby, in the circumstances of each case, affect the interest of an existing operator. The mere fact, that the existing operators are not entitled for hearing by the Regional Transport Authority at the time of determining the scope and making an order under Section 47 (3), will not take away the right of revision conferred by Section 64-A.9. This legal position is well settled and finds support from the observations made by the Supreme Court in Civil Appeal No. 636 of 1967 decided on 26-9-1967 : (reported in AIR 1968 SC 410) (Laxmi Narain Agarwal v. State Transport Authority, U. P.).10. The second contention regarding the omission to implead the petitioner who had applied for the grant of permit in pursuance of the notification as party to the revision wag, however, not pressed in view of the fact that the petitioner had already been heard on the point involved and the same is being adjudicated by this Court on merits. It is, therefore, not necessary to deal with the question whether in a revision challenging a notification issued in pursuance of the order underSection 47 (3)of the Act, other persons who had subsequently applied for grant of permit in response to the notification are necessary parties.11. As regards the third contention, which relates to the merits of the case, it would suffice to observe that undisputedly there is no statutory form or manner prescribed for inviting applications after determining the scope underSection 47 (3)of the Act. The provisions ofSection 57require the R.T.A. to invite applications after determining the scope. Naturally while doing so it is always desirable to disclose the scope determined, because unless the scope has been determined, there will be no jurisdiction to invite, entertain and consider the applications for grant of permits. Under these circumstances, it is more a matter of substance than of form. If an objection is raised challenging the validity of the decision determining the scope, on a ground relating to the manner of its publication, it will be always necessary to find out whether any prejudice has been caused. It is true that the R.T.A. vide its order dated 21-4-75 limited the stage carriage by fixing the same by two buses for two daily return trips. So far as this order (Annexure A) made by the Regional Transport Authority is concerned, no objection was raised regarding the non-compliance of the provisions ofSection 47 (3)inasmuch as it has limited the number of both i. e. the stage carriage and the trips. The ground urged by the M. P. State Road Transport Corporation for challenging the validity was that the notification, which was issued in pursuance of this order did not mention the number of stage carriages as limited by the Regional Transport Authority and instead of 'two daily return trips', the notification simply stated '4 trips'.12. In our opinion, if the scope has been determined by the R.T.A. in full compliance of the requirement ofSection 47 (3)of the Act, the mere wrong description in the notification issued by the R.T.A., as required bySection 57 (2)of the Act for inviting applications will not vitiate the order determining the scope. It is true that if no such scope has been determined at all or there is no material to infer that the scope has been determined in full compliance of the requirement ofSection 47 (3)of the Act and the notification also does not disclose that the scope has been determined in full compliance of the provisions ofSection 47 (3), thenin that case, it will not be possible to uphold the notification inviting applications as valid because the essential pre-requisite i. e. the determination of the scope as required bySection 47 (3)of the Act will remain unsatisfied. In the present case, it is not so. The order of the R.T.A. (Annexure A) makes it clear that the scope has been determined in the manner required by the provisions ofSection 47 (3). The number of stage carriages has also been limited and fixed. The details of the trips have also been specified. The operators who wanted to apply for grant of permit have accordingly filed the applications. The applications were also considered for grant of two stage carriage permits comprising of two daily return trips. The State Undertaking was neither an applicant nor an objector. There is no mate-rial on record to show that any prejudice was caused by this omission.13. The learned counsel appearing on behalf of the respondent M. P. State State Road Transport Corporation cited an unreported decision of this Court in M. P. No. 1 of 1976 decided on 11-2-1976 (Abdul Raza v. Regional Transport Authority, Ujjain) in support of his contention that the omission to mention the number of buses in the notification was in itself sufficient to quash the notification. We have gone through the aforesaid decision and find that the Division Benchin that casefound the notification inviting applications for grant of permits invalid, because there was no material either in the contents of the notification or otherwise from which it could be inferred that the actual number of stage carriages was limited and fixed while determining the scope. It is true that the notification involved in the said case did not mention the number of stage carriages and the number of additional trips alone was mentioned.By placing reliance on the observations of their Lordships of the Supreme Court inR. Obliswami Naidu v. Additional State Transport Appellate Tribunal, Madras, AIR 1969 SC 1130, the Division Bench was of the opinion that the determination of the number of stage carriages for which the permits may be granted on a particular route, was essential before entertaining the applications for the same. There is no dispute to this well settled legal position. From the observations made at the end of para 7 of the aforesaid decision, it is also clear that there was no material on record except the notification as it stood from which it could not be inferred that the number of stage carriages was fixed by the R.T.A. The Division Bench therefore, concluded that as the R.T.A. failed to determine the number of stage carriages for the route specified in the notification, there was no compliance of the provisions of Sub-section (3) ofSection 47of the Act, and therefore, the notification was invalid. But in the present case, there is specific material on record to show that the number of stage carriages has been fixed for the route specified in the notification. It is also not disputed that the R.T.A. had limited the number of stage carriages to 2 buses vide its order dated 21-4-75 (Annexure A). Thus, under these circumstances, we are of the opinion that there is substantial compliance of the provisions of Sub-section (3) ofSection 47of the Act and the notification in the present case cannot be held to be invalid on the ground of non-compliance of Sub-section (3) ofSection 47. We are fortified by the observations made by their Lordships of the Supreme Court in Gajendra Transport (P.)Ltd. v. The Anamalias Bus Transport (P.) Ltd., AIR 1975 SC 386. It has been observed that if in the record of the R.T.A., there is sufficient material to establish that before the notification was issued, a decision had already been taken by the R.T.A. that certain number of buses should be introduced on the route, the same will amount to substantial compliance and the absence of a formal order will not affect the validity of the proceedings taken by the R.T.A. The unreported decision of the Division Bench of this Court related to a case where there was in fact no compliance of the provisions ofSection 47 (3)and therefore, the notification without any mention of the number of stage carriage in the absence of any other material to establish the said fact was found to be bad, invalid and was set aside. This contention is, therefore, also rejected.14. Now the last contention which remains to be decided related to the objection that a part of the route being covered by the nationalisation scheme (alleged to be scheme No. 9-M), the R.T.A. acted illegally and without jurisdiction in inviting the applications by a notification for grant of permit to private individuals by overlooking the effect of the said nationalisation scheme. Truly speaking, this alone was the objection, if established, could make out a case of grievance and prejudice to the State Transport Undertaking. Unfortunately, this objection was not at all dealt by the State Transport Appellate Tribunal while deciding the revision. The State Transport Appellate Tribunal disposed of the revision on the other ground alone and this objection was left open for being considered by the R.T.A. There is no material before us to enable us to deal and decide this objection.15. Under these circumstances, when the other ground relied by the Tribunal has been found by us to be untenable, there is no other go but to remand the revision to the State Transport Appellate Tribunal for fresh disposal after deciding the second objection relating to the effect of the nationalisation scheme if any covering the route or the part thereof. The first objection raised before the State Transport Appellate Tribunal based on the omission to mention the number of stage carriages in the notification however, stands adjudicated against the M. P. State Road Transport Corporation by this order.16. This petition is, therefore, partly allowed. A writ be issued directing the State Transport Appellate Tribunal to decide the objection about the effect of the nationalisation scheme and dispose of the revision accordingly. In view of the partial success, there will be no order as to costs. Parties will bear their own costs of this petition. The amount of security, if any, be refunded to the petitioner.
285b8a9e-3b19-50c9-bf78-7f629f391f13
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State Consumer Disputes Redressal CommissionMs. Suchir India Developers Pvt. Ltd., ... vs Smt. Y. Srilakshmi, Wife Of Y. Sesha Rao, ... on 17 April, 2017Cause Title/Judgement-Entry STATE CONSUMER DISPUTES REDRESSAL FORUM Telangana   First Appeal No. FA/342/2014 (Arisen out of Order Dated 27/08/2013 in Case No. CC/786/2011 of District Hyderabad-II)   1. Ms. Suchir India Developers Pvt. Ltd., Rep. by its C.E.O. Dr. Y. Kiran Kumar, Office at 301, Lumbini Amrutha Chambers, Nagarjuna Circle, Road No.3, Banjara Hills, Hyderabad ...........Appellant(s) Versus 1. Smt. Y. Srilakshmi, Wife of Y. Sesha Rao, Aged about 70 Years, Occ House wife, R.o. Flat No.2C.604, SMR Vinay Signature, Narendra Garden, Miyapur, Cyberabad, Hyderabad ...........Respondent(s)   BEFORE:     HON'BLE MR. JUSTICE B. N. RAO NALLA PRESIDENT   HON'BLE MR. Sri. PATIL VITHAL RAO JUDICIAL MEMBER   For the Appellant: For the Respondent: Dated : 17 Apr 2017 Final Order / Judgement BEFORE TELANGANA STATE CONSUMER DISPUTES REDRESSAL COMMISSION: AT HYDERABAD   F.A.No. 342 OF 2014 AGAINST C.C.NO.786 OF 2011 DISTRICT CONSUMER FORUM HYDERABAD-II     Between   M/s Suchir India Developers Pvt Ltd., Rep. by is CEO Dr.Y.Kiran Kumar Office at 301, Lumbini Amrutha Chambers                                                       Appellant/opposite party           A N D    Smt Y.Srilakshmi W/o Y.Sesha Rao Agd about 70 years, Occ: Housewife R/o Flat No.2C-604, SMR Vinay Signature Narendra Garden, Miyapur, Cyberabad Hyderabad                                                                    Respodnent/complainant     Counsel for the Appellant                           M/s Gopi Rajesh & Associates Counsel for the Respondent                        Sri GN Satyanarayana   QUORUM             :   HON'BLE SRI JUSTICE B.N.RAO, PRESIDENT & SRI PATIL VITHAL RAO, MEMBERMONDAY THE SEVENTEENTH DAY OF APRIL TWO THOUSAND SEVENTEEN     Oral Order : (per Hon'ble Sri Justice B.N.Rao Nalla, Hon'ble President) ***                 This is an appeal   preferred by the opposite party against the order in C.C.No.786 of 2011 of the District Forum-II, Hyderabad dated 27.08.2013   directing the opposite parties to pay Rs1,10,000/- with interest @ 9% p.a. together with compensation of Rs.10,000/- and costs of Rs.2000/-.2.                The brief facts of the complainant as stated in the complaint are that the opposite party started venture under the name and style of Koral Reef  at Genome Valley , Turkapally Village, Shamirpet  Mandal,  Ranga Reddy District. The complainant joined the scheme on 13.01.2008 and plot no.458 was allotted to him.    The complainant paid  an  amount of Rs.1,10,000/-  to the opposite party and informed them that he was ready to get the registration of the plot by paying the balance amount as and when the opposite party provides amenities and roads at the venture.    The opposite party issued passbook bearing No.KP392 in favour of the complainant.    The complainant got issued legal notice dated 11.12.2010 to the opposite party claiming refund of the amount of Rs.1,10,000/- along with interest on the premise that the opposite party failed to develop the plot or execute sale deed and filed the complaint.3.                Opposite party resisted the case contending that the complainant is not a consumer and the complaint filed is barred by limitation.      The opposite party submitted layouts to the appropriate authority for permission and the project was named and styled as Koral Reef and after obtaining approvals of layouts the process of developmental work will be started.  The complainant has joined as a member and paid initial payment and subsequently failed to pay the instalments of the balance consideration amount to the opposite party.  As per the terms and conditions of the membership form, if a member reserves a plot and committed default in payments, the opposite party has a right to cancel his plot allotment without issuing any notice.  If he regularizes the payment later he has to select another plot from the available vacancies.  That the complainant failed to pay the instalments, his membership was cancelled.    The opposite party has obtained a tentative layout and plot allotted to the complainant could not be carved out.  The opposite party has taken all the steps to develop the project and developments can be taken after approval of final layout from the competent authority.     Hence, there was no deficiency in service and prayed for dismissal of the complaint with costs.During the course of enquiry before the District Forum, in order to prove his case, the Complainant   filed his evidence affidavit  and go Exs.A1 to A6 marked while on behalf of the opposite party, its CEO filed his evidence affidavit and got Exs.B1 to B6.The District Forum after considering the material available on record, allowed the complaint bearing CC No.210 of 2014 by orders dated 21.01.2016  granting the reliefs, as stated in paragraph No.1, supra.8.               Aggrieved by the said decision, the complainant preferred the appeal contending that the Dist. Forum did not appreciate the facts in correct perspective.9.       The point that arises for consideration is whether the impugned orders as passed by the District Forum suffer from any error or irregularity or whether they are liable to be set aside, modified or interfered with, in any manner?  To what relief ?10.              The undisputed facts are that the complainants4.                 The complainant filed his affidavit and the documents,ExA1 to A6 and on behalf of the opposite party its CEO has filed his affidavit and  Exs.B1 to B6.5.               The District Forum allowed the complaint directing opposite party to refund of the amount along with compensation and costs on the premise that the plot was mortgaged to HMDA and also there was no development activity in the venture and the same amounts to deficiency of service.6.                Aggrieved by the said decision the  opposite party  preferred this appeal   contending that the Dist. Forum did not appreciate either the facts or law in correct perspective.   The District Forum has no jurisdiction to entertain and decide the complaint.  The complaint is barred by limitation.   In support of the same, the opposite party cited various decisions which were mentioned in the appeal grounds.  It further relied on the judgments of this Commission wherein this Commission has directed to execute registered sale deed in respect of the plots and the same is applicable to the facts of the present case.   It is contended that  as and when it get the permission from the concerned competent authorities the developmental work would  start  till then the complainant cannot complain about non development of the project.  As the terms and conditions shall govern the whole transaction and if the opposite party acts out of the purview of the terms and conditions then only the purchaser can have a grievance.  The complainant is a defaulter of the instalments of the balance sale consideration.  Hence, the opposite party prayed to allow the appeal.7.                 Both parties have filed their respective written arguments.8.                 The point for consideration is whether the complainant is entitled to refund of the amount paid by him to the appellant?9.                 The opposite party also contended that the District Forum has no jurisdiction to entertain the complaint as land is situated in Ranga Reddy District.Section 11of the Consumer Protection Act, to the extent it is relevant for our purpose reads as under:(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction(a)           The opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain, or;(b)           Any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case either the permission of the District Forum is given or the opposite parties who do not reside, or carry on business or have a branch office, or personally work for gain, as the case may be, acquiesce in such institution, or (c)           The cause of action, wholly or in part, arises.10.               Hence it is very clear that in case where part of cause of action arose the District Forum within that area also is vested with jurisdiction to entertain the complaint. Since the office of the opposite party situated at Banjara Hills, Hyderabad and the payment was made in the said office, the District Forum Hyderabad has got territorial and pecuniary jurisdiction to entertain the complaint.11.               The next contention of the opposite party is that the complaint is barred by limitation since the last payment was made in the year 2008. It is undisputed that the opposite part has collected major part of the amount   but failed to deliver possession of allotted plot and apart from it the opposite party has    issued   notice of cancellation of the plot without any date  it has failed to   insist for payment of the balance of the amount or inform him to get ready to have the plot registered. Where no time is stipulated in the brochure, so also, when time is not the essence of the contract, it cannot be said that the claim is barred by limitation. This aspect was well considered in the decisions of the Apex court reported in 2008 NC Judgments page 13 SC. (1).Bangalore Development Authority VS. Syndicate Bank, (2) Lucknow Development Authority Vs M.K. Gupta1994 (1) SCC page 243. in such circumstances, cause of action continues as has been held by the Honble National Commission in its decision reported in 2005 CPJ 499 = 2005(2) CPR page 91) in whichSec. 24-Aof Consumer Protection Act was also discussed.  In view of the above, the complaint has got toe considered as being  filed  within the period of limitation.12.              Now coming to the deficiency of service on the part of the opposite party,  it stated in its written version that after obtaining tentative layout it had allotted the plot to the complainant by receiving  an amount of Rs.1,10,000/- vide Exs.A2 to A4  on 13.01.2008  and the balance amount to be paid in installments.    After the payment, the complainant visited the site in the month of December 2009 i.e., almost two years late and found that there was no development of the plots in the said venture.  The opposite party filed Ex.B5 letter from HMDA dated 21.01.2010 which clearly shows that the opposite party obtained permission from HMDA in the month of January, 2010 till then there was no development.   Though the HMDA clearly in its letter instructed the opposite party to complete the project work within one year but it did not do so.  The opposite party also not filed any proof to show that there is development work in the said project.13.              As per the promise made by Suchir India at the time of plot booking, the complainant expected the registration to be completed immediately after getting the HMDA approval.   In spite of getting the tentative approval  from HMDA  the opposite party failed to start development work.  Not only that the opposite party obtained the final approval of HMDA on 21.01.2010 wherein the opposite party is directed to complete the development work within a period of one year and submit requisition letter for releasing of mortgaged plots.  The complainant's  plot is also under  mortgage.  As per the final approval the opposite party has to complete the development work  within one year but there is no sign of development work.   Therefore the District Forum rightly ordered   refund of the amount along with compensation and costs.  In our considered opinion    the  order has been passed in  right perspective  and the same does not warrant  any interference as the same deserves to be dismissed.In the result, the appeal is dismissed.  No costs.PRESIDENT                                       MEMBER       Dated:   17.04.2017                                                                                    [HON'BLE MR. JUSTICE B. N. RAO NALLA] PRESIDENT   [HON'BLE MR. Sri. PATIL VITHAL RAO] JUDICIAL MEMBER
1e357472-fa14-5ff6-b167-71ec209ac193
court_cases
Gauhati High CourtAssam Public Works vs The State Of Assam & 7 Ors on 4 April, 2017Author:Manojit BhuyanBench:Manojit BhuyanPIL No. 17 of 2017 BEFORE HON'BLE THE CHIEF JUSTICE MR. AJIT SINGH HON'BLE MR. JUSTICE MANOJIT BHUYAN 04-04-2017 (Ajit Singh, C.J.) Mr CP Sarma, Mr A Chamuah and Mr. U Chamuah, learned counsel for the petitioner. Mr BN Sarma, learned senior Government Advocate, Assam for the respondents.Heard on admission.The competent authority/ District Commissioner, Kamrup vide order 26.4.1985 exempted certain lands covered by Dag Nos. 59, 61 and 532 of K.P. Patta No. 29, 49 and 57 situated at Village Hatigaon, Mouza Beltola measuring 7 Bigha 1 Katha 9 Lecha in favour of M/S Steel Worth Limited underSection 20 (1)(a)of the Urban Land (Ceiling & Regulation) Act, 1976. Later, some of these lands were settled in the name of M/S Buildworth Private Limited on 31.12.2009. Since some mistakes occurred during the settlement operation, Director, M/S Buildworth Private Limited filed a petition before the Deputy Commissioner, Kamrup (Metro) for correction of the mistakes. The Deputy Commissioner vide order dated 12.12.2011 after perusing the records rectified the mistakes.Now when after settlement of land as far back as in the year 2009 in the name of M/S Buildworth Private Limited and rectification of the mistakes in the revenue records vide order dated 12.12.2011, many multistoried buildings have been constructed, the petitioner in the garb of a Public Interest Litigation has filed the present petition challenging the settlementPage 1 of 2of land in the name of M/S Buildworth Private Limited as well as order dated 12.12.2011.After hearing the learned counsel for the parties, we are convinced that this is not a genuine Public Interest Litigation and the same has been filed for extraneous consideration. It is accordingly dismissed summarily.JUDGE CHIEF JUSTICE ISINGHPage 2 of 2
6fc5e9c7-7620-551b-b580-a02588912129
court_cases
Delhi District CourtDistrict Judge­3 East District vs Sh. Nitin Jain on 3 January, 2017IN THE COURT OF MS. NISHA SAXENA, ADDITIONAL  DISTRICT JUDGE­3 EAST DISTRICT, KARKARDOOMA  COURTS, DELHI CS No.1333/16 Smt. Geeta Raheja w/o Shri R.P. Raheja R/o 202, Anand Villa, 5th Road, Near Jain Temple, Khare (West), Mumbai. .... Plaintiff  Vs  Sh. Nitin Jain  S/o Shri A.K. Jain R/o G­35, Preet Vihar, Delhi­110092 .... Defendant  Date of filing of appeal : 20.07.2012 Date when order reserved :03.01.2017 Date of final decision : 03.01.2017 JUDGMENT:­1. The present suit has been filed by the plaintiff for eviction and  mesne profits with respect to suit property bearing No.. G­35, Preet  Vihar,   Delhi­110092,   ad­measuring   180   sq.   yards   comprising   of  ground floor, half portion constructed on the first floor along with  terrace   etc.   (hereinafter   referred   to   as   suit   property)   against   the  defendant.CS NO. 1333/16 1/201.2  The suit was partly decreed for possession on an application  underOrder 12 Rule 6 CPCvide order dated 04.07.2015.PLAINTIFF'S CASE:­2.  The brief facts of the case are that the plaintiff is the owner of  the  suit  property.   In the  month  of  December, 2006, the defendant  approached the plaintiff for taking the suit premises on lease.   The  plaintiff acceded the request of the defendant and accordingly a lease  deed dated 11.12.2006 was executed between the parties for a period of  11 months commencing from 01.12.2006 till 31.12.2007 on a monthly  rent of Rs.10,000/­. After about 11 months, the aforesaid lease deed  was extended and a new lease deed dated 01.11.2008 was executed  between   the   parties   on   the   same   terms   and   conditions   for   further  period of 11 months commencing from 01.11.2008 to 30.09.2009.   It  was mentioned in clause 11 of the said lease deed that on expiry of  lease period, the tenant shall handover vacant and peaceful possession  of   the   demised   premises   to   the   landlord.     However,   the   defendant  failed to vacate the suit  premises even after expiry of period of 11  months i.e. on 30.09.2009.  Several requests were made by the plaintiff  to the defendant to vacate the suit premises, but the defendant did not  adhere to the request of the plaintiff.2.1 It is alleged that as per clause 17 of the lease deed, it was agreed  between the parties that if the tenant defaulted in vacating the leasedCS NO. 1333/16 2/20premises on expiry of the lease period, then he shall be liable to pay  penalty of Rs.500/­ per day over and above the monthly rent to the  landlord. After failure of various attempts, the plaintiff wrote a letter  dated   10.03.2010   to   the   defendant   requesting   thereby   to   vacate   the  leased premises and to handover its peaceful possession to her, but the  defendant failed to vacate the same.   On getting no response to the  repeated requests, the plaintiff sent a legal notice dated 25.01.2011 to  the defendant.  However, despite service of legal notice, the defendant  neither replied to the same nor vacated the suit premises.2.2    The plaintiff has, therefore, prayed:­1)  for a decree of possession in respect of the suit property2)   for   a   decree   thereby   directing   the   defendant   to   pay  Rs.4,18,500/­   i.e.   Rs.1,60,000/­   as   unpaid   rent   and   Rs.2,58,500/­   as  penalty which accured in accordance with provision of clause 17 of the  lease deed dated 01.11.20083)   for   a   decree   of   interest   and   mesne   profits   to   the   tune   of  Rs.24% p.a. from the date of expiry of lease deed till 28.02.2011 i.e.  the date of filing of the present suit DEFENDANT'S CASE:­3.    The defendant has controverted the averments made in the  plaint and raised preliminary objection that the tenanted premises was  not let out for 11 months as alleged in the lease deed.  It is submittedCS NO. 1333/16 3/20that no period of lease was mentioned in the proposed lease and when  the   fair   copy   of   the   lease   deed   was   typed   on   a   stamp­paper,   the  plaintiff   or   his   attorney   seems   to   have   changed   the   proposed   lease  deed, while the defendant signed the lease deed in good faith believing  the attorney of  the plaintiff  that the fair  copy of  the lease was the  correct and true copy of the same.   It is submitted that the earlier lease  deed executed between the parties was a registered document, while  the   present   lease   deed   has   been   fraudulently   and   fabricated   for   11  months in order to escape the registration of the lease deed.  No notice  was served upon the defendant with regard to to the termination lease.3.1 It   is   submitted   that   the   defendant   paid   the   agreed   rent   upto  October, 2013 through account payee cheques to the plaintiff which  stand credited in the account of the plaintiff.     It is alleged that the  plaintiff did not approach the court with clean hands; that the present  suit is without any cause of action and hence, the suit is liable to be  dismissed.3.2        On merits, all the averments made in the plaint have been  denied by the defendant.  However, the landlordship of the plaintiff is  not denied.  It is also not disputed that the suit premises was taken on  rent   by  the  defendant.  However,  the  period  of   lease  deed  has  been  disputed.   It   is   submitted   that   the   defendant   is   not   liable   to   pay  Rs.2,58,000/­   as   penalty   and   hence,   the   present   suit   deserves  dismissal.CS NO. 1333/16 4/20ISSUES:­4.  From the pleadings of the parties, following issues were settled  for trial:­1)  Whether the lease deed in question is forged and fabricated as  alleged by the defendant? OPD.2)  Whether the defendant has paid the agreed rent upto October,  2013, as alleged by the defendant? OPD.3)  Whether the plaintiff is entitled for a sum of Rs.1,60,000/­ as  arrears of rent along with interest, if any, as alleged by the plaintiff?  OPP.4)  Whether the plaintiff is entitled for mesne profits amounting to  Rs.2,58,550/­ as alleged by the plaintiff? OPP.5)  Relief. PLAINTIFF'S WITNESSES:­ PW1 Smt. Geeta Raheja PW2  Shri Lokesh Jain5.  PW1   Smt.   Geeta   Raheja   and   PW2   Shri   Lokesh   Jain   have  examined   themselves   and   proved   their   affidavits   as   Ex.PW1/A   and  Ex.PW2/1.DOCUMENTS RELIED UPON BY THE PLAINTIFF Mark A Certified copy of lease deedCS NO. 1333/16 5/20Mark B Certified   copy   of   lease   deed   dated  01.11.2008 Mark C Certified copy of letter dated 10.03.2010 Mark D Certified   copy   of   legal   notice   dated  25.01.2011 Mark E Certified copy of UPC  Mark F Certified copy of postal receipt  Mark G Copy of courier receipt  Ex.PW2/A Lease   deed   dated   01.11.2008   (also  referred as Ex.PW1/2) DEFENDANT'S WITNESSES DW1 Nitin Jain, the defendant6.  DW1 Nitin Jain has examined himself and proved his affidavit  as Ex.DW1/A.  FINDINGS:­ ISSUE NO.1:­ Whether  the lease  deed in question  is forged  and fabricated as  alleged by the defendant? OPD.7.   In his written statement, the defendant has taken the stand that  the plaintiff played a well calculated fraud upon the defendant.   It is  stated   by   DW1   that   the   plaintiff   fabricated   the   rent   agreement  Ex.PW2/A   as   the   plaintiff   fabricated   the   clause   of   damages   by  addition   of   the   same   in   the   rent   agreement   and   did   not   file   the  proposed   rent   agreement   which   was   approved   by   the   defendantCS NO. 1333/16 6/20wherein no such clause of damages was existing and as such, the rent  agreement is a fabricated document and no reliance can be placed on  the said agreement.7.1   In his cross­examination DW1 Nitin Jain admitted that he had  entered into a lease deed dated 01.11.2008 with the plaintiff. Lokesh  Jain before entering into the lease deed had provided him with the  copy of the proposed lease deed in which there was no clause of 11  months and damages.   He admitted his signatures on the lease deed  dated 01.11.2008 bearing his signatures at point A.  He had not placed  on   record   any   copy   of   the   proposed   lease   deed   as   no   copy   was  supplied to him by Lokesh Jain.   He had signed on all the pages of  lease   deed   dated   01.11.2008.     Before   signing   the   lease   deed   dated  01.11.2008, he had enquired from Lokesh Jain that the lease deed was  according to the proposed lease deed or not, to which he had said 'Yes'.  There was  no  pressure upon  him  from the  side  of   the  plaintiff   for  signing the lease deed dated 01.11.2008.   He stated that the damage  clause was not there in the proposed lease deed nor he was told about  it.  He was told that the lease deed Ex.PW2/A was in accordance with  the proposed lease deed which was discussed with him and therefore,  he signed it without pleading.7.2 DW2 Sh. Vinit Gupta, a friend of the defendant DW1 Nitin Jain is  a   witness   to   the   lease   deed.     He   also   stated   that   the   rent   deed  Ex.PW2/A was not read over or explained to the defendant. Shri Nitin  Jain asked whether the rent deed typed on stamp­paper is the sameCS NO. 1333/16 7/20which was approved by him earlier.  The said rent deed was executed  at Preet Vihar at G­35 at the residence of the defendant.7.3      In his cross­examination, DW2 Vinit Gupta stated that at the  time of signing of the rent agreement he along with Lokesh Jain and  Nitin Jain  were present.   He  had never  seen  any draft deed  before  signing Ex.PW2/A.  He only heard regarding the draft of rent deed.7.4      The onus is upon the defendant to demonstrate that  the lease  deed   Ex.PW2/A   is   forged   and   fabricated.    The   defendant   has  admitted his signatures on the lease deed, but his allegation is that  clause 17 which is as under was added later on."That this lease deed has been granted for a   fixed   period   of   11   (Eleven)   months   and   accordingly   the   tenant   shall   handover   the   vacant  peaceful possession of the demised   premises   to   the   landlord   on   expiry   of   the   lease period.   The tenant shall not ask for   any   extension   of   the   lease   period   for   any   reason   whatsoever.     That   if   the   tenant   defaults   in   vacating   the   demised   premises   on   expiry   of   the   lease   period,     then   the   tenant   shall   pay   to   the   landlord,   besides   monthly   rent,   penalty   @   Rs.500/­   (Five   Hundred) per day.  The payment of the said   penalty by the Tenant shall not be deemed to   have   extended   the   said   lease   period   of   eleven months."7.5   However, the defendant  could not bring any specific evidence  on record to show that he was supplied with the different draft of theCS NO. 1333/16 8/20lease deed.   He has not produced copy of any proposed lease deed.  Except for the bald allegation made by the defendant, there is nothing  to suggest that there was any addition or alteration in the lease deed.  The defendant is an educated person and it was incumbent upon him to  have signed the document only after going through the same.7.6   I may observe here that the stand taken by the plaintiff that there  was no forgery and fabrication in Ex.PW2/A is bolstered by the fact  that   the   previous   lease   deed   Mark   A   which   was   executed   between  Geeta Raheja and Nitin Jain on 11.12.2006 for a period of 11 months is  also containing the same clause as clause 17.  Since the defendant on  an earlier occasion also entered into an agreement in respect of the suit  property on the same terms and conditions, therefore, the allegation  of  the defendant regarding any forgery or fabrication in the lease deed  Ex.PW2/A cannot be accepted.   The testimony of DW2 Vinit Gupta  also   reflects   that   he   is   an   interested   witness   being   friend   of   the  defendant, he has deposed in favour of the defendant.   His statement  does not inspire any confidence.7.7   I place reliance upon the case ofBharat Dharma Syndicate Vs.  Harish   Chandra,   (1937)   39     BOMLR   963,  it   has   been   observed  "where   a   litigant   prefers   the   charges   of   fraud   or   other   improper   conduct against the party, the Court which is called upon to decide   such issues, should compel the litigants to place on record precise and   specific   details   of   these   charges.   Cases   of   such   type   will   be   much   simplified if this practice is strictly observed and insisted upon by theCS NO. 1333/16 9/20Court, even if no objection is taken on behalf of the  parties who are   interested in disproving the accusations".7.8    In view of the above observations, I am of the opinion that the  defendant has miserably failed to discharge the burden of proving that  the   lease   deed   Ex.PW2/A   is   forged   and   fabricated.     Issue   No.1   is,  accordingly,   decided   in   favour   of   the   plaintiff   and   against   the  defendant.ISSUE NO.2, 3 and 4:­ Whether  the  defendant  has  paid  the  agreed  rent   upto  October,  2013, as alleged by the defendant? OPD.Whether   the   plaintiff   is   entitled   for   a   sum   of   Rs.1,60,000/­   as  arrears   of   rent   along   with   interest,   if   any,   as   alleged   by   the  plaintiff? OPP.Whether the plaintiff is entitled for mesne profits amounting to  Rs.2,58,550/­ as alleged by the plaintiff? OPP.8.    Issue   no.2,   3   and   4   are   interlinked   and   involve   common  discussion and therefore, the issues shall be decided conjointly.8.1 One of the arguments raised by Ld. Counsel for the defendant  is that the attorney Lokesh Jain could not have executed lease deed as  an   attorney  of   the   plaintiff   Geeta   Raheja   as   there  is   no    Power   of  Attorney   executed   by   the   plaintiff   Geeta   Raheja   in   favour   of   Sh.  Lokesh Jain. However, I am of the view that this objection cannot be  raised   as   the   defendant   willfully   entered   into   the   agreement   andCS NO. 1333/16 10/20resided in the suit premises on the basis of the lease deed Ex.PW2/A.  This issue is purely between the plaintiff and her attorney and if she  authorized   him   to   enter   into   an   agreement   with   the   defendant  regarding   the   demised   premises   then   no   question   can   be   raised  regarding the validity of the lease deed executed with the defendant by  the attorney of the plaintiff as on the basis of the said lease deed the  defendant lived in the suit property as a tenant.8.2  It has been stated by PW1 that the lease deed was for a period  of  11 months.    Lease deed  Ex.PW2/A dated 01.11.2008 expired on  30.09.2002, but the defendant failed to handover vacant and peaceful  possession of the lease premises to her.  She approached the defendant  on several occasions and requested him to vacate the lease premises,  but the same fell on the deaf ears of the defendant. She wrote a letter  dated 10.03.2010 to the defendant to vacate the lease premises and  handover   its   peaceful   possession   to   her.   A   legal   notice   dated  25.01.2011 was issued to the defendant intimating the defendant of the  already   expired   tenancy   and  of   his   alleged   occupation   of   the   lease  premises and directed the defendant to handover peaceful and vacant  possession of the lease premises within 15 days from the receipt of the  above said legal notice.  The legal notice dated 25.01.2011 is Mark D,  certified copy of UPC is Mark E, certified copy of postal receipt is  Mark F  and photocopy of courier  receipt is Mark G. However, the  originals   of   the   documents   were   never   produced   before   the   court.  Therefore,   in   absence   of   the   production   or   proving   of   original  documents it will be presumed that the legal notice dated 25.01.2011CS NO. 1333/16 11/20Mark D was not duly served.8.3  The lease deed Ex.PW2/A clearly says that the lease deed was  agreed for a fixed period of 11 months commencing from 01.011.2008  and terminating on 30.09.2009.  It also says that on expiry of the lease  period, the tenant shall handover vacant, peaceful possession of the  demised   premises   to   the   landlord   and   clause   17   of   the   lease   deed  clearly specifies that the lease deed has been granted for a fixed period  of 11 (eleven) months  and accordingly, the tenant shall handover the  vacant peaceful possession of the demised premises to the landlord on  expiry of the lease period.8.4Section 111of the Transfer of Property Act, 1882, provides  various modes of determination of lease which includes end by efflux  of time."Section­111­   Determination   of   lease  -   A   lease of immovable property determines(a) by efflux of the time limited thereby;(h) on the expiration of a notice to determine   the lease, or to quit, or of intention to quit, the   property leased; duly given by one party to the   other."8.5    Section 108B (q) deals with the rights and liabilities of the  lessee and it says:­  "(q)   on   the   determination   of   the   lease,   the   lessee is bound to put the lesser into possession   of the property."CS NO. 1333/16 12/208.6   In M/sRaptakos Brett & Co. Ltd. v. Ganesh Property, VII(1998) SLT472,  The Hon'ble Supreme Court held that when a lease  comes to an end by efflux of time, or by notice of termination, or if  there   be   a   breach   and   the   lessee's   rights   are   forfeited,   the   lessee  becomes a tenant at sufferance, and it becomes the duty of the lessee  underSection   108(q)of   the   Transfer   of   Property   Act   to   restore  possession to the lessor forthwith.  The Supreme Court held as under:­ ".....   Under   law   the   erstwhile   landlord   is   entitled   to   restoration   of   possession   by   enforcement   of   statutory   obligation   of   the   erstwhile tenant, as statutorily imposed on him   underSection 108(q)read withSection 111 (a)of the Property Act.......".  (13.1 page 602) 8.7  It is settled proposition of law that when the term of lease has  expired by efflux of time, there is no need for a landlord to determine  the lease by serving quit notice.   Expiry of lease by efflux of time  results in determination of the relationship between the lessor and the  lessee and since  in the instant case  the lease expired by efflux of  time, no notice of determination of lease was required.InAshok  Chopra   vs   Syndicate   Bank,   169   (2010)   DLT   361,  Hon'ble   High  Court of Delhi held as under:­ "17. It is clear that the tenancy had come to an   end by a efflux of time.  Admittedly, there was no   document executed between the parties renewing   the lease.   Tenancy having expired by efflux of   time,no   notice   was   required   to   terminate   the   lease." (13.6  p 603)CS NO. 1333/16 13/208.8     The   mandate   of   clause   (q)Section   108of   the   Transfer   of  Property Act, 1882, is that on the expiry of  the lease the lessee is  bound to handover possession of the lease premises to the lessor and  therefore, the lessor would be entitled to maintain an action to compel  the lessee to abide by the mandate of clause (q) ofSection 108of the  Transfer of Property Act.8.9     The idea of a notice is only to communicate the intention of  the owners and the object of the notice is to give sufficient time to  vacate.  Such notice is to be liberally construed.  The real point is that  the  lessee  or  a  tenant   should  understand  that  his  tenancy  has  been  terminated and he should vacate at the end of period of tenancy.  The  object of a noticeu/s 106of the Transfer of Property Act is to inform  the other party as to the intention of the person issuing the notice that  he   wants   the   premises   back.   It   is   a   mere   communication   to   the  recipients.8.10     Summons of the suit can be treated as notice underSection  106of the Transfer of Property Act, 1882.InNopany Investments  (P) Ltd. v. Santokh Singh (HUF), 1 (2008) DLT 195,  the Hon'ble  Supreme Court held that 'filing of suit is itself a notice to quit on the  tenant   and   therefore,   no   notice   to   quit   underSection   106of   the  Transfer of Property Act is necessary to enable the landlord to get the  decree   of   possession.     The   observations   of   the   Supreme   Court   are  reproduced hereunder:­ "In any view of the matter, it is well settled thatCS NO. 1333/16 14/20filing of an eviction suit under the general law   itself   is   a   notice   to   quit   on   the   tenant.Therefore, we have no hesitation to hold that   no notice to quit was necessary underSection   106of the Transfer of Property Act in order to   enable   the   respondent   to   get   a   decree   of   eviction against the appellant."8.11    In Jeevan Diesels & Electricals Ltd. Vs. M/s Jasbir Singh  Chadha (HUF), 182 (2011) DLT 402, Hon'ble High Court held that  even assuming the notice of termination was not served, the tenancy  shall stand terminated on filing of the suit.8.12     Therefore,   it   is   clear   that   filing   of   a   suit   for   recovery   of  possession in itself a notice to put an end to the tenancy.  There was no  necessity   of   a   notice   to   quit   underSection   106of   the   Transfer   of  Property Act.   The notice of the present suit is a sufficient notice.  Though  the  plaintiff  kept  receiving  rent  from  the   defendant  cannot  renew or create fresh tenancy.8.13       In the instant case the notice of the suit was served upon the  defendant 28.09.2013, therefore, the date of termination of the lease  would   be   taken   as   28.09.2013.     Therefore,   the   defendant   would   be  liable to pay the agreed rent of rent @ Rs.10,000/­ per month to the  plaintiff upto September, 2013.8.14    As already mentioned, the plaintiff filed an application underOrder 12 Rule 6 CPCwhich was allowed by the then Ld. ADJ, ShriCS NO. 1333/16 15/20V.K. Goel, on 04.07.2015 and suit was partly decreed for possession in  respect of the property bearing no. G­35, Preet Vihar, Delhi­110091  ad­measuring 180 sq. yards comprising of ground floor, half portion  constructed   on   first   floor   along   with   terrace   etc.   The   order   was  challenged before the Hon'ble High Court which was upheld by the  Hon'ble High Court vide order dated 15.10.2015.  The plaintiff would  be  entitled  for  arrears  of   rent  @ Rs.10,000/­   per   month  (as  agreed  between the parties vide lease deed Ex.PW2/A) upto September, 2013.8.15    The plaintiff has also claimed mesne profits after termination  of the lease till the date of possession of the suit premises.8.16      The   term   mesne   profits   relates   to   the   damages   or  compensation recoverable from a person who has been in wrongful  possession of immoveable property. The mesne profits are nothing but  a   compensation   that   a   person   in   the   unlawful   possession   of   others  property has to pay for such wrongful occupation to the owner of the  property.  It is settled principle of law that wrongful possession is the  very essence of a claim for mesne profits and the very foundation of  the unlawful possessor's liability.8.17    The main object of awarding mesne profits is to compensate  the actual owner of the property for all the loss he has suffered. In  other words the object of awarding a decree of mesne profits is to  compensate   the   person   who   has   been   kept   out   of   possession   and  deprived of enjoyment of his property even though he was entitled toCS NO. 1333/16 16/20the possession of property and the word compensation would embrace  in its purview any actual loss suffered by a lawful owner. The idea of  granting mesne profits as compensation normally connotes reparation  for some past wrongful act that is unlawful possession.8.18    One broad principle governing the liability of mesne profits is  evident fromSection 2 (12)of CPC which defines 'mesne profits' to  mean   'those   profits   which   the   person   in   wrongful   possession   of  property   actually   received   or   might   with   ordinary   diligence   have  received therefrom together with interest on such profits but shall not  include profits due to improvements made by the persons in wrongful  possession'.   But the Section does not provide any fixed rule for the  assessment  of  such profit.   The  provision  simply states  that  mesne  profits   include   interest   on   such   profits.   And   profits   due   to  improvement   are   excluded   from   the   assessment   of   the   quantum   of  mesne profits.8.19    The determination of quantum of mesne profits is left at the  discretion   of   the   court   and   mesne   profits   being   in   the   nature   of  damages even the court cannot lay down any invariable rule governing  award   and   assessment   of   mesne   profits   in   every   case.   There   is   no  uniform criterion for the assessment of mesne profits and the quatum  would depend upon the facts and surrounding circumstances of each  case.8.20       While assessing the quatum of mesne profits the factors suchCS NO. 1333/16 17/20as   location   of   the   property,   comparative   value   of   the   property,  condition of the property in question, profits that are actually gained or  might have been gained from the reasonable use of such property are  generally taken into consideration by the  courts.    Moreover, it is a  settled principle of law that the criteria for the calculation of mesne  profits is not what the owner looses by the deprivation of possession  but profits should be calculated on the basis of what the person in  wrongful possession namely the defendants had actually received or  might with ordinary diligence have received therefrom.8.21     As far as the question of damages/mesne profit is concerned,  the defendant did not vacate the premises despite termination of the  tenancy.   The defendant has occupied the suit premises without any  authority   of   law   and   therefore   the   plaintiff   is   entitled   to  damages/mesne  profits  at  the  market  rate  provided  the  same  is  not  penal and unconscionable.8.22     InBakshi Sachadev (D) by LRs v/s Concord(i) 1993 RLR  563  it was held that damages and mesne profits can be granted at a  higher rate than the agreed rate of rent after the expiry of the tenancy  andin that caseafter taking judicial notice of the fact of phenomenal  rise in rents in Delhi and particularly in posh colony like where the  property in suit was located, higher rate of damages/mesne profits was  awarded by the court.8.23    The court can take judicial notice of the enormous multifoldCS NO. 1333/16 18/20increase   of   rents   throughout   the   country,   particularly   in   respect   of  commercial property.8.24    In the instant case, clause 17 specifically lays down that if the  tenant defaulted in vacating the demised premises on expiry of the  lease   deed,   then   the   tenant   shall   pay   to   the   landlord   monthly   rent,  penalty   @   Rs.500/­   per   day.     The   payment   of   said   penalty   by   the  tenant shall not be deemed to have extended the said lease period of 11  months.  The damages / mesne profits @ Rs.500/­ per day is deemed  to be conscionable and reasonable considering the size of the demised  premises and the locality.     Therefore, the plaintiff would be entitled  for mesne profits @ Rs.500/­ per day from October, 2013 till the date  of handing over the possession of the demised premises.8.25     Ld.   Counsel   for   the   defendant   filed   on   record   details   of  payment   amounting   to   Rs.3,90,000/­   made   to   the   plaintiff   Geeta  Raheja w.e.f. 09.04.2010 to 13.07.2016, which is marked as Mark A for  the purpose of reference which was admitted by Ld. Counsel for the  plaintiff.  The payment made as per Mark A shall be set off against the  payment due against the defendant and the plaintiff shall be entitled to  recover the remaining amount. However, I am not inclined to grant any  interest upon the arrears of rent due as during the pendency of the suit  the defendant had been depositing some amount in the bank account  of the plaintiff.  Issue No. 2,3 and 4 are accordingly, disposed of.CS NO. 1333/16 19/20ISSUE NO.5 RELIEF:­9.  In view of foregoing discussion, the plaintiff is entitled:­1)  for a decree for arrears of rent @ Rs.10,000/­ per month (as  agreed   between   the   parties   vide   lease   deed   Ex.PW2/A)   upto  September, 2013.2)  for   a   decree   of   mesne   profits   @   Rs.500/­   per   day   from  October,   2013   till   the   date   of   handing   over   the   possession   of   the  demised premises.Decree sheet be prepared accordingly.   File be consigned to  record room.Announced in the open court  (NISHA SAXENA) Dated:03.01.2017     ADDITIONAL DISTRICT JUDGE­03        EAST DISTRICT:     KARKARDOOMA COURTS                        DELHI.CS NO. 1333/16 20/20
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court_cases
Income Tax Appellate Tribunal - HyderabadIncome Tax Officer vs Uppala Venkat Rao on 8 November, 2001Equivalent citations: [2002]83ITD273(HYD)ORDERH.S. Sidhu, J.M.1. The Revenue has filed the present appeal against the order of the CIT(A)-I, Hyderabad, dt. 31st March, 1997, for the asst. yr. 1985-86 on the following grounds :"1. The order of the CIT(A) is erroneous on facts and in law.2. The CIT(A) erred in following the decision of the A.P. High Court in the case of Markapakula Agamma v. CIT (1987) 165 ITR 386 (AP) as the facts of the above case are distinguishable from the present case.3. The CIT(A) ought to have sustained the order of the AO determining the capital gains on sale of lands in view of the fact that there was an element of cost of acquisition of the property, which was missing in the case of Markapakula Agamma (supra) decided by A.P. High Court.4. The CIT(A) ought not have drawn support from the decision of the Supreme Court in the case ofCIT v. B.C. Srinivasa Setty(1981) 128 ITR 294 (SC) as the facts of the case are clearly distinguishable from the present case."2. The assessee has also filed a cross-objection in ITA No. 1178/Hyd/1997, for the asst. yr. 1985-86 on the following grounds :"1. The learned CIT(A) erred in holding that land bearing survey No. 60 sold by the respondent is not an agricultural land. The CIT(A) failed to note that agricultural operations were being carried in the land and various crops were grown and the land was assessed to land revenue, pahanies and certificates of Revenue Department conclusively established the fact that the land was agriculturaland.2. The CIT(A) further erred in not considering the fact that the above agricultural land is situated beyond 8 kms. from the municipal limits and that the above fact was supported with certificates from Government authorities and therefore capital gains on sale of land if any are not liable to tax.3. Without prejudice to the above the respondent contends that investment of Rs. one lakh already made in the specified bonds under Section 54E of the Act and further investment of Rs. 4 lakhs sought in the specified bonds from out of cash seized in search operation be directed to be considered for computation of capital gains, if any.4. The respondent craves leave to file additional grounds before disposal of the appeal.".There were search operations on the residential premises of the assessee on 9th May, 1985. Pursuant to above, the AO made an assessment for the asst. yr. 1985-86 on 28th March, 1995, in which he had determined certain capital gains on sale of land bearing survey No. 60 situated at Sahebnagar Kalan Village, Hayathnagar Mandal, R.R. Distt. It was contended by the assessee that the above land is an Inam land of which he is a Protected Tenant and pursuant to theA.P. (Telangana) Tenancy and Agricultural Lands Act, 1950, the assessee was declared as protected tenantand ownership rights to the extent of 60 per cent of share in the land were, therefore, conferred upon him by virtue of the above enactment without payment of any consideration and in respect of remaining 40 per cent share in the land, the ownership rights were conferred upon him by virtue ofA.P. (Telangana) Abolition of Inams Act, 1955, without payment of any consideration and the amount Rs. 1,272 paid to the RDO in 1983 in terms ofs. 7(3)of the A.P. (Telangana) Abolition of mams Act was to register himself as an occupant of the Inam land as a protected tenantand there being no cost of acquisition, no capital gains have arised for tax purposes.3. Besides the assessee had contended that the land was an agricultural land and assessed to revenue tax, agricultural operations were evidenced by pahanies and certificate from the Revenue authorities and the land is located beyond 8 kms. from the municipal limits of Hyderabad as per the certificates issued by the Government authorities and, therefore, the land is not a capital asset within the meaning ofSection 2(14)(iii)of the IT Act for the purpose of capital gains.4. On appeal, the learned CIT(A) upheld the order of the AO. The learned CIT(A), however, did not give any findings, whether the amount of Rs. 1,272 paid to the RDO would constitute cost for acquisition of land and whether the land is agricultural in character and located beyond 8 kms. from the municipal limits of Hyderabad.5. Aggrieved by the order of the learned CIT(A), the assessee has filed appeal before the Tribunal. While disposing of the appeals in the assessee's own case in ITA Nos. 772 & 773/Hyd/1989, the Tribunal, Hyderabad Bench "A" by its order dt. 26th May, 1994, restored the appeal and directed the learned CIT(A) to determine the nature of land sold whether agriculture or not and that the land is located beyond 8 kms. from the municipal limits of the Hyderabad and whether the amount of Rs. 1,272 paid by the assessee as a protected tenant in respect of the Inam land constituted cost of acquisition of land and determine capital gains.6. Pursuant to the above, the learned CIT(A) by his impugned order dt. 31st March; 1997, disposed off the appeal and held that as far as 60 per cent share in the land is concerned the ownership rights have vested in the assessee without any payment of cost by virtue ofA.P. (Telangana) Tenancy and Agricultural Lands Act, 1950in his status as a protected tenant and no amount can be charged to tax as capital gains by following the decision of the jurisdictional High Court in the case ofCIT v. Markapakula Agamma(supra).7. As regards to the balance of 40 per cent of land is concerned, the learned CIT(A) held that it was a Inam land and 40 per cent ownership rights in the land were vested in the assessee by virtue ofA.P. (Telangana) Abolition of Inams Act, 1955and the payment of Rs. 1,272 was for registration as an occupant of the land and did not partake the character of cost and neither any new asset was acquired on such payment nor new right is created and it was only a pre-existing arid continuous right in the land is accorded formal recognition. The learned CIT(A) further relied upon the observations of the Tribunal in ITA Nos. 772 & 773/Hyd/1989, order dt. 26th May, 1994, of the assessee's own case, in para 17, wherein it was held as under:"Undisputedly the date of vesting of the Inam in the State was 20th July, 1955. The appellant was holding this asset right from the year 1952. In recognition of status as a Protect Tenant, in respect of this land and also in recognition of the right of the appellant underSection 7(1)to get himself registered as occupant of this land, the R.D.O. issued formal proceedings underSection 7(3)directing registration of the appellant as the occupant of the land in the year 1983. It is not as though for the first time the appellant acquired interest in this land. The certificate issued by the R.D.O. was only in recognition of the pre-existing right of the appellant to this land as Protected Tenant."The learned CIT(A) further observed that had the legislature intended to bring in an element of cost or purchase price for the occupancy right, there would have been some stipulation with regard to the modalities for such purchase.Under the A.P. (Telangana) Tenancy and Agricultural Lands Act, 1950, detailed procedure has been prescribed for a protected tenant to purchase the landholder's interest in the land held by him as a Protected Tenant. He had to make an offer to the land holder stating the price which he is prepared to pay. If the landholder refuses or fails to accept the offer and to execute a sale deed within three months from the date of the offer, the protected tenantmay apply to the Tribunal for the determination of the reasonable price of the land, whereupon the Tribunal will determine the reasonable price of the landholder's interest in the land after giving notice to both the parties.Under the A.P. (Telangana) Abolition of Inams Act, 1955, no such procedure has been envisaged. The words like "purchase", "offer", "sale deed" do not figure in theA.P. (Telangana) Abolition of Inams Act, 1955. He is, therefore, of the view that payment of Rs. 1,272 is not for the acquisition of the occupancy right, but for its formal recognition. Moreover, the cost of acquisition has to be fair and just and equitable and should represent the fair market value of the property and in the present case it cannot be argued that Rs. 1,272 represents a fair market value of the property. On the facts and circumstances of the case, the learned CIT(A) held that in the absence of any cost, the assessee would not be liable to pay any tax on capital gains even with regard to 40 per cent of his interest in the land.8. Aggrieved by the order of the learned CIT(A), the Revenue has filed appeal before the Tribunal. As regards to the character of land in question, the learned CIT(A) has agreed with the decision of the AO and held that land in question is a non-agricultural land notwithstanding the fact that no permission was obtained from the Collector for conversion of agricultural land into non-agricultural land and, therefore, distance from municipal limit of Hyderabad becomes an irrelevant. Against this finding of the learned CIT(A), the assessee filed cross-objections.9. The learned Departmental Representative argued that the order passed by the first appellate authority, dt. 31st March, 1997, is against law and on facts on the file and liable to be cancelled on the ground that the learned CIT(A) has wrongly followed the decision of the Hon'ble High Court of Andhra Pradesh in the case of Markapakula Agamma v. CIT (supra), because the facts of the case on hand and the facts of the case cited by the learned CIT(A) are distinguishable. He further argued that the AO has rightly determined the capital gains on the sale of lands in view of the fact that there was an element of cost of acquisition of the property. Therefore, the first appellate authority should uphold the order of the AO. The learned Departmental Representative relied upon the order of the AO and drew our attention at p. 5 in para 3 of the order of the AO and at p. 5 in para 4.2 of the order of the CIT(A) to establish the cost of acquisition of the land in dispute. The learned Departmental Representative also supported the observations regarding the character of land as non-agricultural land, meant for commercial exploitation as house plots. He finally argued that the AO has established that the assessee became the absolute owner of the land in dispute by making payment of premium of Rs. 1,272. This amount, therefore, is a cost of acquisition of the asset in the hands of the assessee.10. As regards the cross-objections filed by the assessee, the learned Departmental Representative relied upon the order passed by the CIT(A) on the issue in dispute in the cross-objections as well as by the AO and stated that there is no reason to allow the cross-objections of the assessee which deserve to be dismissed and the appeal filed by the Revenue may be allowed.11. Shri Kalyandas, the learned chartered accountant appearing for the assessee controverted all the arguments advanced by the learned Departmental Representative and submitted that the agricultural land bearing Survey No. 60 of Sahebnagar, Kalan Village, admeasuring 13 acres 32 guntas came into possession of the assessee in the year 1952 as a tenant under a registered lease deed dt. 15th Feb., 1952, obtained from the legal heirs of late Nawab Salarjung-III and the assessee carried on agricultural operations since then and by virtue ofA.P. (Telangana) Tenancy and Agricultural Lands Act, 1950, the assessee was declared as a protected tenant of the above land and ownership rights to the extent of 60 per cent share in the land were converted upon him without payment of any cost or consideration and that the above land being an Inam land, grant made by the Nizam of Hyderabad Nawab Salarjung-III by virtue ofA.P. Abolition of Inams Act, 1955all the Protected Tenants in the State of the Andhra Pradesh were declared as owners in respect of the remaining 40 per cent share.12.In support of the contentions that where no cost is paid to acquiring ownership rights in an asset, computation of capital gains cannot be made under law, the assessee relied upon the decision of the Supreme Court in the case ofCIT v. B.C. Srinivasa Setty(supra).In the case ofCIT v. H.H. Maharaja Sahib Shri Lokendra Singhji(1986) 162 ITR 93 (UP), wherein their Lordships have held thus ;"The liability to tax on capital gains would arise in respect of only those capital assets in the acquisition of which an element of cost is either actually present or is capable of being reckoned and not in respect of those assets in the acquisition of which the element of cost is altogether inconceivable".Accordingly, their Lordships held, where the Maharaja of Ratlam sold some lands which were part of the property inherited by him from his forefather to whom the property was gifted by the Moghul Emperor. There being no cost for acquisition of land, no capital gains accrued to the assessee. Similar view was expressed by the Ahmedabad Bench of the Tribunal, wherein it was held :"No capital gains can be worked out as the land in question was not purchased by any of his predecessors who were the Rulers of Rajkot State, but was acquired by conquest".Relying upon the decision of the Supreme Court in the case ofB.C. Srinivasa Setty(supra).13. Similar view was expressed by the Chandigarh Bench of the Tribunal in the case ofITO v. Raja Shiv Dev Inder Singh(1986) 19 ITD 213 (CM) wherein it was held that capital gains in respect of an asset acquired by the assessee for nothing, could not be subjected to capital gains tax.Similar view was also expressed by the Hon'ble High Court of Andhra Pradesh in the case ofShri Krishna Dairy & Agricultural Farm v. CIT(1988) 169 ITR 291 (AP).14. Following the catena of the decisions cited above, it was submitted that the assessee got the asset absolutely and free for nothing by virtue of enactment and there being no cost of acquisition, capital gains cannot be constituted for tax purposes. The decision of the Pune Bench of the Tribunal in the case ofG.N. Ghorpade v. Dy. CIT(2001) 70 TTJ (Pune) 919 in the similar facts where the assessee acquired ownership rights in the land under the Bombay Merged Territories Miscellaneous Alienation and Abolition Act, it was held that the land was Inam land and right to occupancy was continued on payment of certain amount and compensation received on acquisition of such land cannot be subjected to capital gains tax.15. It is pertinent to note that the Hyderabad Bench "A" of the Tribunal in the assessee's own case in ITA Nos. 772 and 773/Hyd./1989, dt. 26th May, 1994, in para 17 gave a categorical finding that "in recognition of status as a Protected Tenant, in respect of this land and also in recognition of the right of the appellant underSection 7(1)to get himself registered as occupant of this land, the R.D.O. issued formal proceedings underSection 7(3)directing registration of the appellant as the occupant of the land in the year 1983. It is not as through for the first time the appellant acquired interest in this land. The certificate issued by the R.D.O. was only in recognition of the pre-existing right of the appellant to this land as Protected Tenant". The above finding conclusively establish the facts that the assessee did not pay any cost for acquisition of ownership rights in the land and the finding since has not been challenged by the Revenue in any reference, the Revenue is now estopped from contending in the present appeal that the payment of Rs. 1,272 made to the R.D.O. constituted the cost for acquisition of ownership rights in the land. The certificate issued by the R.D.O. was only in recognition of pre-existing rights of the assessee and, therefore, there is no element of cost involved in acquiring the ownership rights in the land.16. It may also be noted, had the Government required the protected tenant of Inam land to acquire the 40 per cent rights in the land on payment of cost/sale consideration, it would not have used the terms inSection 7(3)of the Act that "no protected tenant shall be entitled to be registered as an occupant under Sub-section (1), unless he pays to the Government as premium" in contrast to the language used underSection 38of the A.P. (Telangana) Tenancy and Agricultural Lands Act which requires the protected tenant to purchase the landlord's interest in the land" (i.e. in respect of remaining 40 per cent right of the land after having acquired 60 per cent ownership right under the Act as a Protected Tenant) and "the Protected Tenant" shall make an offer to the landlord stating the price which he is prepared to pay for the landlord and that "if the landholder refuses or fails to accept the offer and to execute a sale deed within three months from the date of the offer, the protected tenant may apply to the Tribunal for the determination of the reasonable price of the land."17. In the above facts it may be noted that the legislature had used terms under theTenancy Act, protected tenantshall make an offer to the landlord stating the price and the landlord would execute sale deed in favour of the protected tenantand in case of dispute in price, sale price would be determined by the Tribunal. No such language was used inA.P. (Telangana) Abolition of Inams Act, although the legislation was quite aware of its intendments while legislating theTenancy Act. This would establish the fact that the amount of Rs. 1,272 paid by the assessee is only for registering his occupancy rights and not the sale price or to obtain the sale deed and the amount paid being quite meagre, the payment cannot be constituted as cost of acquisition for the purpose of capital gains.18. Regarding the character of land as agriculture emerging from the cross-objections filed by the assessee, it is submitted that the assessee had been carrying on agriculture operations on the above land since 1952 until sale deeds were executed in the year under consideration. In support of the fact that the lands were agriculture in character pahanies for the revenue year 1983-84 and for the earlier years were filed on record. The above pahanies conclusively establish the fact that the land was agriculture in character and agricultural operations were being carried, since earlier years including in the year 1983-84 to the date of sale and Kharif crops like jawar, bajra, etc. are grown therein. There are two wells which served agriculture operations and the land is known as "Chinna Thota Bai". The fact that the agricultural operations were carried and regular irrigation facility was available is also evidenced by the sale agreement dt. 2nd April, 1984, entered by the assessee with Mancha Mallesh Yadav and others.19. Further, the above land was regularly assessed to land revenue tax and pursuant to demand notices, taxes were paid upto the revenue asst. yr. 1982-83 and particulars of tax payments were filed on record. The assessee had also filed certificate, dt. 20th Feb., 1985, from the concerned Mandal Revenue Officer who had certified that the above land is agriculture in character and agricultural operations were being carried on before sale. The assessee did not convert the agriculture land into non-agriculture land before sale. Under the provisions of Hyderabad Land Revenue Act (of VIII of 1317 Fasli) agriculture land cannot be converted into non-agriculture and put to other use unless the required conversion fees is paid to the Revenue Department and written permission is obtained from the concerned Collector. Further, the assessee had not effected division of land as such division required permission under A.P. (Telangana) Prevention of Fragmentation & Consideration of Holdings Act, 1956. The assessee neither paid any such conversion fee nor obtained permission from the District Collector nor it is the case of the AO that such conversion took place and permission was obtained by the assessee. The AO without placing any evidence on record, presumed that the assessee had converted the land into non-agriculture for sale purposes.The assessee although made an application earlier for layout sanction paid the amount of Rs. 11,212 on 27th Nov., 1984, after nine months from the date of sale agreement. Pahanies filed on record, testify the facts that land was never divided into plots and converted into non-agriculture until sale and sale agreement dt. 2nd April, 1984, also states the fact that land was not divided into plots. It is settled law that even temporary suspension of agricultural operations would not vitiate the character of land as agriculture or on character of the land. The decision of the Supreme Court in the case ofSmt. Sarifabibi Mohmed Ibrahim v. CIT(1993) 204 ITR 631 (SC) relied upon by the learned CIT(A) is not applicable to the facts of the case. The assessee carried on agricultural operations till the date of sale and had not given up the agricultural operations. As perthe said decisionof the Supreme Court the factual aspects and circumstances have to be considered while deciding the nature of land whether agriculture or not.In view of the evidence filed on record and having regard to the decision of the Gujarat High Court in the case ofCIT v. Siddharth J. Desai(1983) 139 ITR 628 (Guj) and the decision of the Ahmedabad Bench of the Tribunal in the case of Smt. Shashiben v. WTO (1987) 27 TTJ (Ahd) 131 : (1986) 17 ITD 380 (Ahd) the land under consideration is required to be held as an agriculture land.20. Further, the above lands are located at a distance more than 8 kms. from the municipal limits. In support of the fact that the lands are located beyond 8 kms. distance from the municipal limits, the assessee has filed two certificates (i) from the Asstt. Executive Engineer P.W. (R&B), Hyderabad, dt. 6th Oct., 1986, and the other from the Asstt. Engineer, Sub-Division-II, Construction Division-III, Municipal Corporation, Hyderabad, dt. 11th Aug., 1986. Above certificates establish the fact that the lands are situated beyond 8 kms. distance from the municipal limits. The AO without disputing the certificates arrived at a finding that the lands are situated within a distance of 8 kms. based on the measurement by means of scale in map published by the Urban Development authorities and the fact is also noted in para 11 of its order. Determining the distance based on scale measurement on map is highly illogical and such distance cannot be relied upon.21. In the light of the above evidence, the learned counsel for the assessee has submitted that the lands being agricultural land, located at a distance beyond 8 kms. from the municipal limits, on transfer, tax is not liable on capital gains, as it does not constitute a capital asset within the meaning ofSection 2(14)(iii)(b)of the Act. By considering from any point of view, the learned counsel for the assessee has submitted that capital gains on sale of the land are not taxable.22. The learned Departmental Representative relied upon the order of the AO and drew our attention at p. 5 in para 3 of the order of the AO and at p. 5 in para 4.2 of the learned CIT(A) to establish the cost of acquisition of the land in dispute. The learned Departmental Representative also supported the observation regarding the character of the land as non-agricultural land and is meant for commercial exploitation as house plots. He finally argued that the AO has established that the assessee became the absolute owner of the land in dispute by making payment of premium of Rs. 1,272. This amount is, therefore, a cost of acquisition of the asset in the hands of the assessee.23. As regards the cross-objection filed by the assessee, the learned Departmental Representative relied on the order passed by the learned CIT(A) on the issue in dispute in the cross-objection as well as by the AO and stated that there is no reason to allow the cross-objection of the assessee and it deserves to be dismissed and the appeal filed by the Revenue may be allowed.24. We have heard the learned Departmental Representative and the authorised representative of the assessee. We have also perused the orders passed by the Revenue authorities as well as the relevant records available with us, The authorised representative of the assessee filed a paper book, containing pp. 1 to 72 in which he drew our attention about some notifications regarding the Inam lands in dispute and about some provisions of the relevant Act relating to the matter in dispute. We have also gone through the same.25. After hearing both the parties and perusing the relevant provisions relating to the matter in dispute, we are of the considered opinion that the present appeal filed by the Revenue deserves to be dismissed, because the assessee in the disputed land was protected tenantat the relevant time in pursuant to theA.P. (Telangana) Tenancy and Agricultural Lands Act, 1950, the assessee was declared as a protected tenantand ownership rights to the extent of 60 per cent of share in the land by virtue of the above enactment without payment of any consideration and in respect of the remaining 40 per cent share in the land, the ownership rights were conferred upon him by virtue ofA.P. (Telangana) Abolition of Inams Act, 1955, without payment of any consideration and the amount Rs. 1,272 paid to the R.D.O in 1983 in terms ofSection 7(3)of the AP (Telangana) Abolition of Inams Act, 1955 was to register the assessee as an occupant of the Inam land as a Protected Tenant. Therefore, there is no cost of acquisition of the land in dispute and the question of capital gains does not arise for the purpose of income-tax. In support of this contention we would like to reproduce theA.P. (Telangana) Abolition of Inams Act, 1955:Section 2(1)(c)"Inam means land held under a gift or a grant made by the Nizam or by any Jagirdar, holder of a Samsthan or other competent grantor and continued or confirmed by virtue of a muntakhab or other title deed, with or without the condition of service and coupled with the remission of the whole or part of the land revenue thereon and entered as such in the village records and includes :(i) arazi makhta, arazi agrahar and seri inam; and(ii) lands held as inam by virtue of long possession and entered as inam in the village record :Provided that in, respect of former Jagir areas, the expression inam shall not include such lands as have not been recognised as inams by Government after the abolition of the Jagirs.Section 2(1)(i)'Protected Tenant' means the Protected Tenant as defined in theA.P. (Telangana Area) Tenancy and Agricultural Lands Act, 1950.Section 3Abolition and vesting of inams and consequences thereof.--(1) Notwithstanding anything to the contrary contained in any usage, settlement, contract, grant, sanad, order or other instrument, Act, regulation, rules or order having the force of law and notwithstanding any judgment, decree or order of a civil, revenue or Atiyat Court, and w.e.f. the date of vesting, all inams to which this Act is made applicable under Sub-section (2) ofSection 1of this Act shall be deemed to have been abolished and shall vest in the State.Section 4Registration of inamdars as occupants.--(1) Every inamdar shall, w.e.f. the date of vesting, be entitled to be registered as an occupant of all inam lands other than;Section 7Registration of protected tenants as occupants.--(1) Every protected tenant shall, w.e.f. the date of vesting, be entitled to be registered as an occupant of such inam lands in his possession as may be left over after the allotment underSection 4, which were under his personal cultivation and which, together with any lands he separately owns and cultivates personally, are equal to four and a half times the 'family holding',Section 7(3)No protected tenant shall be entitled to be registered as an occupant under Sub-section (1) unless he pays to the Government as premium an amount equal to forty times the land revenue for dry land and thirteen times for wet land. The amount of premium shall be payable in not more than ten annual instalments along with the annual land revenue and in default of such payment shall be recoverable as arrears of land revenue due on the land in respect of which it is payable."26. After perusing the above said provisions and the impugned order passed by the learned CIT(A) which is on the basis of the decision of the Hyderabad Bench of the Tribunal in ITA. Nos. 772 & 773/Hyd./1989, dt. 26th May, 1994, we are of the considered opinion that the Revenue authority has wrongly determined the capital gains on the sale of land in dispute without any basis, because there is no cost of acquisition of land in dispute. Hence, no interference is called for in the well reasoned order passed by the learned CIT(A). We, therefore, uphold the impugned order and dismiss the appeal filed by the Revenue.27. As regards the cross-objection filed by the assessee, keeping in view the aforesaid order passed by the Hyderabad Bench of the Tribunal in ITA Nos. 772 & 773/Hyd/1998, the cross-objection has become infructuous. We, therefore, dismiss the cross-objection filed by the assessee as infructuous.
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court_cases
Calcutta High Court (Appellete Side)Sri Tufan Chatterjee vs Sri Rangan Dhar on 2 March, 2016Author:Indira BanerjeeBench:Indira BanerjeeIN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION APPELLATE SIDE FMAT No.47 of 2016 + CAN 308 of 2016 Sri Tufan Chatterjee Vs. Sri Rangan Dhar B E F O R E: The Hon'ble Justice INDIRA BANERJEE And The Hon'ble Justice SAHIDULLAH MUNSHI For the appellant : Mr. Jishnu Chowdhury, Mr. Asif Ali For the respondent : Mr. Sabyasachi Bhattacharyya,Ms. Shohini Chakraborty.Judgment on : 02.03.2016 INDIRA BANERJEE, J.: This appeal is against an Order No. 9 dated 5th January, 2016 passed by the Court of the learned District Judge, South 24 Parganas at Alipore, in an application of the appellant for interim relief, underSection 9of the Arbitration and Conciliation Act, 1996, hereinafter referred to as the 1996 Act.The appellant and the respondent carried on business in real estate, as partners of the partnership firm 'Pyramid Construction and Contractors.A Deed of Partnership dated 31 st November 1995 was executed by and between the appellant and the respondent in terms whereof the respondent contributed 100% to the capital of the firm. The petitioner made no contribution.It was, however, agreed that the share of profits and loss of the partnership firm, would be shared between the partners in the proportion of 75 percent and 25 percent, the share of the respondent being 75 percent, and the share of the appellant being 25 percent. The said partnership firm contained a clause for settlement of disputes by arbitration.The partnership firm undertook six construction projects, particulars whereof have been given in the petition. However, disputes and differences arose between the respondent and the petitioner with regard to the partnership business and/or sharing of profits thereof.After the disputes arose, the appellant filed an application in the Court of the learned District Judge, Alipore, underSection 9of the 1996, Act praying for inter alia an order of injunction restraining the respondent, his men, agent, representatives from transferring, alienating or creating rights in favour of third parties in respect of the assets and properties, including bank accounts, investment, securities in the name of the partnership firm, jointly owned by the petitioner and the respondent and other consequential reliefs, including appointment of a receiver.On the said application being moved, the Court of the learned District Judge passed an order restraining the respondent from transferring, alienating, disposing of or parting with possession or creating third party interest in respect of the assets and properties of the partnership firm. After the aforesaid order was passed an Arbitral Tribunal was constituted, and arbitration proceedings commenced.While the arbitration proceedings were pending, Parliament enacted theArbitration and Conciliation (Amendment) Act, 2015, hereinafter referred to as the Amendment Act of 2015, which came into force with retrospective effect from 23rd October, 2013.After the Amendment Act of 2015 was enacted the respondent filed an application seeking dismissal of the application of the appellant underSection 9of the 1996, in view of the amendment ofSection 9of the 1996 Act by the Amendment Act of 2015, by incorporation ofSection 9(3), placing fetters on the power of the Court to entertain an application underSection 9, after the Arbitral Tribunal was constituted. The application of the respondent was heard and disposed of along with the pending application of the appellant underSection 9of the 1996 Act.By the impugned order dated 5 th January, 2016, the learned Court dismissed the application of the appellant underSection 9of the 1996 Act, inter alia observing that since the arbitral proceedings had already been initiated, the Court was no longer authorized to pass any order on an application underSection 9(1)of the 1996 Act.The learned Court, in effect held that, in view of the enactment and enforcement of the Amendment Act of 2015, amendingSections 9and17of the 1996 Act with effect from 23 rd October, 2015, the Court could not pass an order of interim relief underSection 9of the 1996 Act once the Arbitral Tribunal had been constituted.The short question in this appeal is, whether the Court has been denuded of power to grant interim relief to the appellant underSection 9of the 1996 Act, from the date on which the Amendment Act of 2015 came into force, since an Arbitral Tribunal has been constituted, and arbitral proceedings have commenced.Sections 9and17of the 1996 Act as they stood before their amendment by theArbitration and Conciliation Act, 2015are set out hereinbelow:-"9. Interim measures etc. by Court. - A party may, before, or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance withsection 36, apply to a court-i. for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings; or ii. for an interim measure of protection in respect of any of the following matters, namely:-(a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;(b) securing the amount in dispute in the arbitration;(c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;(d) interim injunction or the appointment of a receiver;(e) such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.17. Interim measures ordered by arbitral tribunal.-(1) Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order a party to take any interim measure of protection as the arbitral tribunal may consider necessary in respect of the subject matter of the dispute.(2) The arbitral tribunal may require a party to provide appropriate security in connection with a measure ordered under sub-section (1).Some of the relevant provisions of the Amendment Act of 2015 are set out herein below for convenience:-"5.Section 9of the principal Act shall be renumbered as sub-section (1) thereof, and after sub-section (1) as so renumbered, the following sub-sections shall be inserted, namely:-"(2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determine.(3) Once the arbitral tribunal has been constituted, the Court shall not entertain anapplication under sub-section (1), unless the Court finds that circumstances exist which may not render the remedy provided undersection 17efficacious."10. Forsection 17of the principal Act, the following section shall be substituted, namely:-"17.(1) A party may, during the arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance withsection 36, apply to the arbitral tribunal -(i) For the appointment of a guardian for a minor or person of unsound mind for the purpose of arbitral proceedings; or(ii) For an interim measure of protection in respect of any of the following matters, namely:-(a) The preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;(b) Securing the amount in dispute in the arbitration;(c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in possession of any party, or authorising any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;(d) interim injunction or the appointment of a receiver; (e) such other interim measure of protection as may appear to the arbitral tribunal to be just and convenient,and the arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, and in relation to, any proceedings before it.(2) Subject to any orders passed in an appeal undersection 37, any order issued by the arbitral tribunal under this section shall be deemed to be an order of the Court for all purposes and shall be enforceable underthe Code of Civil Procedure, 1908, in the same manner as if it were an order of the Court."26. Nothing contained in this Act shall apply to the arbitral proceedings commenced, in accordance with the provisions ofsection 21of the principal Act, before the commencement of this Act unless the parties otherwise agree but this Act shall apply in relation to arbitral proceedings commenced on or after the date of commencement of this Act."Section 9(3)incorporated in the 1996 Act, by the Amendment Act of 2015 provides that once the Arbitral Tribunal has been constituted, the Court shall not entertain an application underSection 9(1), unless the Court finds that circumstances exist, which may not render the remedy provided underSection 17efficacious.Section 26 of the Amendment Act of 2015 provides that nothing contained in the said amendment Act is to apply to arbitral proceedings commenced in accordance with the provisions ofSection 21of the principal Act, before the commencement of the Amendment Act of 2015, unless the parties otherwise agree, but the Amendment Act would apply in relation to arbitral proceedings commenced on or after the date of commencement of 2015 Act.Section 21of the 1996 Act provides as follows :"21. Commencement of arbitral proceedings.--Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent."In this case, the application for interim relief underSection 9was moved in the Court in August, 2015 before the Amendment Act of 2015 came into force. While the application was pending, arbitral proceedings commenced underSection 21of the 1996 Act and an arbitral tribunal was constituted.Mr. Jishnu Chowdhury, appearing on behalf of the petitioner drew the attention of this Court to Section 26 of the Amendment Act of 2015 and argued that the Amendment Act of 2015 would not apply to proceedings which had commenced before the said Act came into force.Mr. Chowdhury argued that the proceedings underSection 9of the 1996 Act, had been initiated by the appellant in the Court below, long before the Amendment Act of 2015 came into force.Mr. Chowdhury also argued that the amendments toSection 17of the 1996 Act, by the Amendment Act of 2015, to confer on the learned Tribunal, the same power to grant interim relief, as the Courts, would not apply to the arbitral proceedings in this case, which had commenced long before the Amendment Act of 2015 came into force. Moreover the appellant would not be able to enforce any interim order passed by the Arbitral Tribunal, underthe Code of Civil Procedure, 1908, in the manner as if it were an order of Court.Mr. Sabyasachi Bhattacharya appearing with Mrs. Sohini Chakraborty, however, argued that Section 26 of the Amendment Act of 2015 provides that, nothing contained in the said Amendment Act would apply to arbitral proceedings, commenced in accordance with the provisions ofSection 21of the principal Act, before the commencement of the said Amendment Act, unless the parties agreed otherwise. The provisions of the Amendment Act of 2015, would apply to proceedings initiated in Court.As argued by Mr. Bhattacharya,Section 21of the principal Act, that is, the 1996 Act provides that unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commences on the date on which a request for the reference of dispute to arbitration, is received by the respondent.Arbitral proceedings are proceedings before an Arbitral Tribunal, and no proceedings in Court under the provisions of the 1996 Act.Section 21of the 1996 Act creates a legal fiction by which the arbitral proceedings commence on the date of receipt, by the respondent, of a request to refer the dispute to arbitration. Thus for the purpose inter alia of limitation the Arbitration proceedings commence on the date of receipt of a request by the respondent, to refer the dispute to arbitration, so that a claim is not defeated merely by delaying the reference.Section 32of the 1996 Act provides as follows:-"32. Termination of proceedings.--(1) The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal under sub-section (2).(2) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where--(a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute,(b) the parties agree on the termination of the proceedings, or(c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible.(3) Subject tosection 33and sub-section (4) ofsection 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings."A careful reading of the provisions of the 1996 Act, and in particularSections 21and32thereof, makes it amply clear that the expression 'arbitral proceedings' in Section 26 of the Amendment Act of 2015 cannot be construed to include proceedings in a Court under the provisions of the 1996 Act, and definitely not any proceedings underSection 9of the 1996 Act, instituted in a Court before a request for reference of disputes to arbitration is made.Arbitral proceedings can be said to commence, when a request for reference to arbitration is received by the respondent and/or the authority competent under the arbitration agreement, upon notice to the respondent. The arbitral proceedings, which so commence, terminate with a final award as provided inSection 32(1)of the 1996 Act or with an order underSection 32(2)of the 1996 Act Proceedings in Court under the 1996 Act whether initiated before, during or after the termination of the arbitral proceedings, would not attract Section 26 of the Amendment Act of 2015.The amendment Act of 2015, which came into force with effect from 23rd October, 2015, would apply to arbitral proceedings which commenced after 23rd October, 2015 but not to arbitral proceedings which commenced before 23rd October, 2015. The Amendment Act of 2015 would apply to all Court proceedings on and from 23rd October, 2015.The amendment Act of 2015 has retrospective operation from 23 rd October, 2015. After 23 rd October, 2015, the Court cannot entertain an application for interim relief underSection 9(1)of the 1996 Act, once the arbitral tribunal has been constituted, unless the Court is satisfied that circumstances exist, which may not render the remedy provided underSection 17efficacious.Mr. Chowdhury citedThyssen Stahlunion Gmbh Etc vs. Steel Authority Of India Ltd(supra) reported in (1999) 9 SCC 334 in support of his argument that the Amendment Act of 2015 would have no application to Court proceedings which commenced before the enforcement of the Amendment Act, 2015.InThyssen Stahlunion Gmbh Etc vs. Steel Authority Of India Ltd(supra) the Supreme Court held that where arbitral proceedings had commenced before the enforcement of the 1996 Act, the arbitral award would have to be enforced in accordance withArbitration Act, 1940and not in accordance withSection 36of the 1996 Act.The judgment inThyssen Stahlunion Gmbh Etc vs. Steel Authority Of India Ltd(supra) was rendered in the context ofSection 85(2)(a)of the 1996 Act, which is set out hereinbelow for convenience, along withSection 85(1):85. Repeal and savings.--(1)The Arbitration (Protocol and Convention) Act, 1937(6 of 1937), theArbitration Act, 1940(10 of 1940) and theForeign Awards (Recognition and Enforcement) Act, 1961(45 of 1961) are hereby repealed.(2) Notwithstanding such repeal,--(a) the provisions of the said enactments shall apply in relation to arbitral proceedings which commenced before this Act came into force unless otherwise agreed by the parties but this Act shall apply in relation to arbitral proceedings which commenced on or after this Act comes into force;"There is a significant difference between the language ofSection 86(2)(a)of the 1996 Act and Section 26 of the Amendment Act of 2015. As observed above,Section 85(2)(a)makes the provisions of the repealed enactments applicable "in relation to" arbitral proceedings, whereas Section 26 of the Amendment Act of 2015, which reads "nothing in this Section shall apply to the arbitral proceedings ............", restricts the applicability of the Amendment Act of 2015 to arbitral proceedings which commenced before the commencement of the said Act. The crucial difference is in the words 'in relation to inSection 85(2)(a)of the 1996 Act which are not there in Section 26 of the Amendment Act of 2015.Mr. Chowdhury argued that the bar ofSection 9(3)of the 1996 Act read withSection 26of the said Act would not apply to the application of the appellant underSection 9of the 1996 Act, as the application had been filed in the Court below, and interim orders had also been passed, long before the Amendment Act of 2015 came into force.However, as rightly argued by Mr. Bhattacharya, there is difference between the expressions 'institute' and the expression 'entertain'. The expression 'institute' is not synonymous with the expression 'entertain'. In Martin & Harris Ltd. Vs. 6th Additional District Judge and Ors. reported in (1998) 1 SCC 732 cited by Mr. Bhattacharya, the Supreme Court interpreted the expression 'entertain' in Clause 21(1)(a) of theU.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, to mean entertaining the ground for consideration for the purpose of adjudication on merits and not any stage prior thereto. Unlike the Limitation Act, which bars the institution of a suit after expiry of the period of limitation,Section 26prohibits the Court from entertaining an application underSection 9, except in circumstances specified inSection 9(3), which necessarily means considering application on merits, even at the final stage.After amendment by the Amendment Act of 2015, the scope ofSection 17has considerably been widened and the Arbitral Tribunal has expressly been conferred the same power, as the Court underSection 9. An order of the Tribunal underSection 17is also enforceable in the same manner as an order of Court underSection 9, under the provisions of the Civil Procedure Code.Mr. Chowdhury questioned the power of the Arbitral Tribunal to grant the interim reliefs contemplated inSection 17of the 1996 Act, as amended by the Amendment Act of 2015, in case of arbitral proceedings which had commenced before the Amendment Act of 2015 came into force.Mr. Chowdhury submitted that, since the Amendment Act did not apply to arbitral proceedings that had already commenced before the said Act came into force the arbitral tribunal lacked power to grant those reliefs. The only remedy available to the appellant was to approach Court underSection 9of the 1996 Act.The power of the Arbitral Tribunal underSection 17of the 1996 Act was always of the widest amplitude. From the inception, the Arbitral Tribunal had power under the 1996 Act to order a party to take any interim measure of protection, as the Arbitral Tribunal might consider necessary, in respect of the subject matter of the disputes. The Arbitral Tribunal, therefore, all along had all the powers of Court underSection 9of the 1996 Act. The Amendments toSection 17of the 1996 Act by the Amendment Act of 2015 are only clarifactory. The amendments have possibly been made only by way of abundant caution.It is a cardinal principle of construction that every statute is prospective unless it is expressly or by necessary implication made to have retrospective operation, but the rule in general is applicable when the object of the statute is to affect vested rights or to impose new burdens or to impair existing obligations. Unless there are words in the statute sufficient to show the intention of the legislature to affect existing rights, it is deemed to be prospective only.In contrast to statutes dealing with substantive rights, statutes dealing with merely matters of procedure are presumed to be retrospective, unless such a construction is textually inadmissible. As held by the Supreme Court inAnant Gopal Sheorey Vs. State of Bombayreported in AIR 1958 SC 915 no person has vested right in any course of procedure. He has only the right of prosecution or defence in the manner prescribed for the time being by law in the Court in which the case is pending and if by an Act of Parliament the mode of procedure is altered he has no other right than to proceed according to the altered mode. Law relating to forum is procedural in nature.If, therefore, during the pendency of proceedings in the Civil Court, a new law is enacted, which is worded as to denude the Civil Court of jurisdiction except in specified circumstances, the Civil Court will be debarred from exercising jurisdiction unless the conditions precedent for exercise of jurisdiction by the Civil Court exist. This proposition finds support from the judgment of the Supreme Court inInacio Martines Vs. Narayan Hari Naikreported in AIR 1993 SC 1756.Reference may also be made toUnited Bank of India, Calcutta Vs. Abhijit Tea Co. Pvt. Ltd.reported in AIR 2000 SC 2957.Even though an earlier application for interim relief may have been filed in Court, once arbitral proceedings have commenced and an arbitral tribunal has been appointed, interim relief would have to be sought before the learned Arbitrator. The Court would be denuded of its power to grant interim relief unless the Court is satisfied that circumstances exist, which may not render the remedy provided underSection 17efficacious.In this case there are no such circumstances. However, considering that the application for interim relief had been entertained long before the amendment and an interim order had been in force, the Court might have passed limited interim relief and remitted the parties to proceedings underSection 17before the Arbitral Tribunal.We do not interfere with the order under appeal. We however direct that status quo with regard to the properties and assets in question shall be maintained for a period of six weeks from date or till the application, if any, underSection 17filed by the petitioner, is taken up, whichever is earlier.The appeal and the application are disposed of accordingly. Urgent Photostat certified copy, if applied for, be delivered to the learned counsel for the parties, upon compliance of all usual formalities.( INDIRA BANERJEE, J. ) I Agree ( SAHIDULLAH MUNSHI, J. )
e7302061-975e-5015-94ce-e5c225564194
court_cases
Central Administrative Tribunal - ChandigarhUnknown vs The Chairman & Managing Director on 20 October, 2010CENTRAL ADMINISTRATIVE TRIBUNAL CHANDIGARH BENCH  ORIGINAL APPLICATION NO.732-PB of 2009 Chandigarh, this the 20th day of October, 2010  CORAM:HONBLE MR. JUSTICE S.D.ANAND, MEMBER(J) HONBLE SMT. PROMILLA ISSAR MEMBER(A)  Harjinder Pal Kaur widow of No.9506282, Late Hav Pargat Singh Hothi, aged 57 years, resident K-159 A, Majithia Enclave, Patiala. APPLICANT BY ADVOCATE: SHRI R.K.SHARMA VERSUS 1. The Chairman & Managing Director, Bharat Sanchar Nigam Limited (BSNL), Harish Chandra Mathur Lane, Connaught Place, New Delhi. 2. The Chief General Manager Telecom, Punjab Telecom Circle, Bharat Sanchar Nigam Limited, SCO 101-103, Sector 34, Chandigarh. 3. General manager Telecom, Bharat Sanchar Nigam Limited, Patiala. 4. Communication Accounts Officer (Pension), office of Controller of Communication Accounts, Punjab Teleocm Circle, Madhya Marg, Sector 18-A, Chandigarh 5. Senior Record Officer, Army Education Corp. Records Panchmarhi (M.P. Pin 908777 C/o 56 APO RESPONDENTS BY ADVOCATE: SHRI K.K.THAKUR  For Respondents 1 to 3 SHRI RAKESH VERMA  For Respondent No.4 SHRI DEEPAK AGNIHOTRI  For Respondent No.5 ORDER HONBLE MR. JUSTICE S.D. ANAND, MEMBER(J):-It would be appropriate to indicate the facts in the first instance, in order to enable appropriate appreciation of the controversy.2. Pargat Singh Hothi (hereinafter referred as the employee) joined Indian Army with effect from 23.1.1973. He was discharged from the Army on 31.7.1987. At the time of discharge, he was a member of Education Instruction Group A (Class-I). Pension Payment Order (PPO) No.S/028369/89 (Army) came to be issued in his favour.3. After discharge from Army, he joined re-employment on the civilian side. He died in harness on 22.8.2008, while he was posted as Sub Divisional Engineer, Mandi Gobindgarh, District Fatehgarh Sahib (Punjab). At the time of death, he was in receipt of Army Pension at the rate of Rs.4,124/-.4. Applicant Harjinder Kaur is wife of the employee. She informed the Army authorities that she was desirous of drawing pension from the civil side.5. Initially, the Senior Record Officer in Sena Shiksha Corps Abhilekh Karyalaya, Army Educational Corps Records informed her, vide Annexure A-5 dated 12th October, 2008, that her husband had exercised option to draw family pension from defence side. Accordingly, family pension in your favour has already been notified in PC DA(P), Allahabad vide their Pension Payment Order dated 21.6.1989. and that if she was still desirous to exercise option for drawing of family pension from civil side, she could forward the application through her husbands second employer Pension Sanctioning Authority.6. It is apparent from letter Annexure A-5, that a copy thereof was either forwarded to the Government of India (in the Ministry of Communication and I.T., Department of Telecommunications) or it was handed over in that office by the applicant. In the context of that letter, the Controller of Communication Accounts, Punjab Telecom Circle, informed the applicant that her request could not be granted in view of the fact that Late Ex. Hav Pargat Singh Hothi had exercised the option to draw family pension from defence side which was notified by PCDA(P), Allahabad vide their Pension order No.51028369/89 (Army) dated 21.6.1989.  . However, as per Rule 54 sub Rule 13-A(b) the option once exercised shall be final. In view of this no change in drawl of family pension can be permitted.7. Insofar as Respondents 1 to 3 are concerned, they have taken a pure and simple stance that they have been incorrectly arrayed as parties and that the relief applied for has to be considered by Respondent No.4.8. Respondent No.4 reiterated the stance adopted and drew sustenance, in support thereof, from the provisions of sub-clause (ii)(b) of Rule (13-A) of the CCS (Pension) Rules.9. Interestingly enough, both sides relied upon that very rule. The applicant herein announced that the rule aforementioned warrants the grant of her request; while the contrary stance is indicated by the party opposite. The relevant part of the rule is extracted hereunder:- (13-A) A military pensioner, who on retirement from military service, on retiring pension, service pension or invalid pension is governed for the grant of ordinary family pension by army Instructions 2/S/64 or corresponding Navy or Air Force Instructions and is re-employed in a civil service or civil post before attaining the age of superannuation, shall for the purpose of eligibility for the family pension admissible under this rule or the family pension already authorized under the aforesaid Army/ Navy/ Air Force Instruction, be governed as follows:-(i)If he dies while holding a civil post, his family shall be allowed family pension under these rules or the family pension authorized at the time of retirement or discharge from the military service, whichever is more advantageous to the family;(ii)If he has, on appointment to a civil service or post, opted to retain military pension for the past military service (a)and retires from the civil re-employment without earning any pension therefore, his family shall be entitled to family pension as authorized at the time of his retirement/ discharge from military service;(b)retires from civil re-employment after becoming eligible for pension therefore, he shall exercise an option at the time of applying for pension for civil service either to be governed by family pension under these rules or to avail of family pension benefits as authorized at the time of his retirement/ discharge from military service and the said option once exercised shall be final.(iii) xxx xxx xxx .10. The cue to the controversy is to be found in the portion underlined in the above-quoted rule. It would be apparent therefrom that a defence pensioner shall have the opportunity to make the relevant option (i.e. whether he would like to draw pension from the defence side or the civil side) only after he retires from civil re-employment after becoming eligible for pension.11. In the present case, it is beyond the pale of controversy that the employee joined re-employment on 19.12.1990. The averment made by the applicant in the course of the O.A. to the effect that the employee was due to retire (from the civilian re-employment in the year 2011) has not been denied in the course of the written statement. Even otherwise, there seems to be no controversy that the date of birth of the employee was 3.11.1951. That averment appears in the course of Para 9 of the O.A. It is in the course of that very para that there is a further averment that the employee would have remained in employment upto 2011 and would have become entitled to draw civil pension only thereafter. Those two averments, which have a relevant bearing on the disposal of the controversy in hand, have not been denied in the course of the written statement.12. Thus, in view of the proved position that time really had not come for the employee to exercise option in the relevant behalf, it was illogical for the concerned authorities to hold that once the employee (pensioner) exercised the option, no change thereof is permissible thereafter. In view of the fact that the employee had not retired from civil employment, where after all was the opportunity for him to exercise the option ? The question of exercise of option would arise when both the facets of option were available to him. Insofar as the option exercised by him at the time of his retirement from Army is concerned, he really had no locus or option to say that he would not draw pension from the defence side or he would like to draw it from the civil side. The latter side was not in the picture at all till the time he superannuated from the Army.13. We find that the concerned authority adopted a palpably wrong attitude and exhibited a depleted level of competence in denying legitimate entitlement to a widow. This is surely not the way the way the Army Authorities should be treating a hapless widow of a former Army Officer.14. There are two facets of the system of dispensation of justice, judicial and administrative. The former would pose no difficulty inasmuch as there would always be two parties thereto who shall either assist the Court in person or through their counsel. However, the same may not be true of the administrative justice wherein the authority charged with the responsibility of taking a decision may not necessarily have the affected employee before it. A face-to-face debate may be a phenomenon foreign to the administrative justice. It is only the documentation presented by the employee which is available before the competent authority. In that view of things, it would be expected that the authorities acting on the administrative side are more agile and alive to the grievance canvassed. Though there has to be compulsive compliance of the rules, the authorities must not stick to the formatted approach and should endeavour to be innovative to be able to do practical justice to the employee. While adhering to the rules, human compassion-related quotient cannot altogether be ignored.15. The O.A. shall stand allowed. The impugned order, Annexure A-1 dated 22.7.2009 shall stand invalidated. The applicant herein shall be entitled to draw pension on the civil side. The concerned authorities shall issue the relevant orders in a manner that the applicant is able to draw pension on the civil side in the month of November 2010.16. In view, however, of the fact that the fate of the case turns on an interpretation of a statutory clause, there shall be no order as to the costs of the cause in the circumstances of the case.(PROMILLA ISSAR) (JUSTICE S.D.ANAND) MEMBER(A) MEMBER(J) Dated: October 20 , 2010 `bss8(O.A. No.732-PB/09)
840cf299-a6db-58a8-b1de-2ff7684a889a
court_cases
Patna High Court - OrdersLadly Khatoon vs State Of Bihar & Anr on 4 December, 2018Author:Sudhir SinghBench:Sudhir SinghIN THE HIGH COURT OF JUDICATURE AT PATNA Criminal Miscellaneous No.72290 of 2018 Arising Out of PS. Case No.-570 Year-2016 Thana- Jehanabad Complaint Case District- Jehanabad ====================================================== Ladly Khatoon, W/o Late Ashan, R/o Village-Panch Mahla Tarula, P.S. Jantipura, District-Murabad at Present Panchmahla Bichligali, Churihara Ghat, P.O., P.S. and District-Jehanabad. ... ... Petitioner/s Versus State Of Bihar & Anr ... ... Opposite Party/s ====================================================== Appearance : For the Petitioner/s : Mr. Surendra Kumar Mishra For the Opposite Party/s : Mr. Tarkeshwar Nath Thakur ====================================================== CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH ORAL ORDER 2 04-12-2018Heard learned counsel for the petitioner and learned APP for the State.The petitioner is apprehending her arrest in a case registered underSections 323,498A,504/34of the Indian Penal Code and ¾ ofDowry Prohibition Act.Allegation against the petitioner is of committing torture upon the victim due to non-fulfillment of demand of dowry.It has been submitted on behalf of the petitioner that the petitioner has got no criminal antecedent. There is no allegation of tampering of witnesses alleged against the petitioner. The petitioner has falsely been implicated in the present case due to petty family dispute. The case is triable by the Magistrate. The petitioner has relied upon the judgment of this Court in the case Patna High Court Cr.Misc. No.72290 of 2018(2) dt.04-12-20182/2ofMd. Naimul Haque Ansari @ Naimul Haque Ansari & Ors. Vs. The State of Bihar, reported in 2006(3) PLJR 182.On behalf of the State, it is submitted that the petitioner is named in the Complaint Case/F.I.R.Considering the aforesaid facts and circumstances, let the petitioner, above named, in the event of arrest/surrender before the learned court below within a period of six weeks from today, be released on anticipatory bail on furnishing bail bonds of Rs.10,000/- (Ten thousand) with two sureties of the like amount each to the satisfaction of learned Chief Judicial Magistrate, Jehanabad in connection with Complaint Case No. 570 of 2016, subject to the conditions as laid down underSection 438(2)of the Code of Criminal Procedure.(Sudhir Singh, J) A.K.V.//-U T
bd27fbfe-0007-5f35-acc4-db0539d78324
court_cases
Punjab-Haryana High CourtSonia Sachdeva @ Bharti Sachdeva vs Saroj Bala @ Sudesh Kumari And Others on 7 May, 2018Author:Amit RawalBench:Amit RawalRSA No.307 of 2013 (O&M) {1} IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH RSA No.307 of 2013 (O&M) Date of decision:07.05.2018 Sonia Sachdeva @ Bharti Sachdeva ... Appellant Vs. Saroj Bala @ Sudesh Kumari and others ... Respondents CORAM: HON'BLE MR. JUSTICE AMIT RAWAL Present:- Mr. K.S.Chahal, Advocate for the appellant. Mr. Jagdish Manchanda, Advocate for respondents No.1 and 2. Mr. Amit Sharma, Advocate for respondent No.3. AMIT RAWAL J. (Oral)The appellant-plaintiff is aggrieved of the concurrent findings of facts and law, whereby, suit claiming declaration that she was owner in possession of suit property mentioned as serial numbers (a), (b) and (c) of head note of plaint to the extent of 1/3rd share; with a further prayer for separate possession by way of partition of 1/3rd share out of suit properties, has been dismissed by the trial Court and upheld by the Lower Appellate Court.The suit was contested by defendants No.1 and 2 on the premise that suit was not maintainable as it was barred by law under Order 2 1 of 8::: Downloaded on - 19-05-2018 23:26:20 :::RSA No.307 of 2013 (O&M) {2}Rule 2 CPCread withSection 11CPC and also under Order 23 Rule 1(4)CPC, for, similarly, the suit filed against defendants was dismissed as withdrawn. The plaintiff had not come to the Court with clean hands. The plaintiff has no concern with the family and property of Murari Lal as she was adopted by Brij Lal.Defendant No.3 has also filed separate written statement stating therein that she has purchased house no.13, Adarsh Nagar, Balongi comprised in customer no.16//2(8-0) measuring 0 kanal 5 marlas from defendants no.1 and 2, vide sale deed dated 04.06.2003.Since the parties were at variance, the trial Court framed the following issues including the additional issue:-"1. Whether plaintiff is entitled to declaration as prayed for? OPP2. Whether the plaintiff is entitled to permanent injunction as prayed for? OPP3. Whether the suit is not maintainable? OPD4. Whether the suit is time barred as alleged in a written statement? OPD5. Relief.Additional issue 1-A Whether the GPA dated 14.6.2001 and sale deed on the basis of the GPA in favour of defendant no.3 is null and void and is liable to be set aside? OPP"2 of 8::: Downloaded on - 19-05-2018 23:26:21 :::RSA No.307 of 2013 (O&M) {3} The appellant-plaintiff examined Radhey Sham as PW1, Rajpal Sharma as PW1/A, Krishna Devi as PW1/A, Sunil Pandit as PW3 and plaintiff Sonia Sachdeva herself as PW4 and brought on record the documentary evidence, i.e., Ex.P1, Ex.P2 and Ex.PW2/A. On the other hand, defendants examined Kamlesh Kumar as DW1, Sudesh Sachdeva as DW2, Pankaj Sachdeva as DW3 and brought on record the documentary evidence, i.e., from Ex.D1 to Ex.D25.The trial Court on the basis of evidence dismissed the suit on the premise that plaintiff failed to prove on record that Murari Lal was owner of the property and so was the findings of the Lower Appellate Court.Mr. K.S.Chahal, learned counsel for the appellant-plaintiff submits that there was a categoric admission of defendant no.2-Pankaj Sachdeva, in the cross-examination, that property was owned by father of Murari Lal and on his demise, the property was inherited by defendants No.1 and 2. No explanation has come on record as to why the name of appellant-plaintiff, i.e., daughter has not been mentioned, for, finding with regard to adoption of the plaintiff by Brij Lal has been rendered against the defendants. As regards the other property, the plaintiff had not been able to prove the ownership by staking any claim. The sale deed had been executed during the pendency of the suit in favour of defendant No.3 on 14.06.2001, whereas, the suit was filed on 19.07.2000, therefore, it was hit by doctrine akin to lis pendence and thus, urges this Court for setting aside the judgments and decrees under challenge.3 of 8::: Downloaded on - 19-05-2018 23:26:21 :::RSA No.307 of 2013 (O&M) {4}Mr. Jagdish Manchanda, learned counsel appearing on behalf of respondents No.1 and 2 submits that in the absence of challenge to the findings rendered by the Courts below regarding adoption, the respondents can always take the aid ofOrder 41 Rule 33 CPC, for, the defendants proved on record the adoption of plaintiff by Brij Lal. There is no illegality and perversity in the impugned judgments and decrees under challenge, for, the plaintiff had lost the right in the aforementioned property since birth.Similar arguments have been adopted by Mr. Amit Sharma, learned counsel for respondent No.3.I have heard the learned counsel for the parties, appraised the judgments and decrees of the Courts below and of the view that there is force and merit in the submissions of Mr. Chahal vis-a-vis stake of 1/3rd share in the aforementioned property.The Court is hereby called upon to decide the question with regard to declaration of granting status of 1/3rd share in the property belonging to Murari Lal. It would be apt to reproduce the cross-examination of Pankaj Sachdeva which reads as under:-"My father owned property in village Balongi and Punchkula. The house at Balongi has been sold by us for a sum of Rs.60,000/- about 2-3 years back. I do not remember the name of vendee. Myself and my mother had sold that house. It was mutated in our name after the death of my father was stop the mutation was sanctioned in our name after 2-3 years from the death of my father. My father did not execute any Will in my4 of 8::: Downloaded on - 19-05-2018 23:26:21 :::RSA No.307 of 2013 (O&M) {5} favour. I do not know if any document was executed in the name of my mother will stop the mutation was sanctioned in the name of my mother and myself. It was sanctioned on the basis of natural succession. This mutation was got entered by me. Sonia (plaintiff) was not called at the time as she was not required. We have not told the Patwari that Sony was also my sister, because she is not my sister are all. I did not disclose the Halqa Patwari that the suit qua that property is pending in the Court and similarly nothing was disclosed to AC 2nd Grade at the time of sanctioning of mutation.He further stated 'my father was allotted the flat by the society in respect of which my father was a member. Name of society is Youngman Colony Group Housing Society Ltd. Sector 20 Panchkula'."From the perusal of aforementioned cross-examination of Pankaj Sachdeva, it has come on record that property situated at Balongi was in the name of Murari Lal and on his demise, mutation in question was mutated in the name of Pankaj Sachdeva and his mother. No explanation had come on record as to why plaintiff-Sonia Sachdeva had not been given 1/3rd share being Class-I heir of Murari Lal, for, finding with regard to adoption of the plaintiff by Brij Lal had been rendered against the defendants. The defendants cannot be permitted to raise a plea underOrder 41 Rule 33 CPCas no evidence has been placed on record enabling this Court to form a different opinion than the one arrive at by the Courts below.5 of 8::: Downloaded on - 19-05-2018 23:26:21 :::RSA No.307 of 2013 (O&M) {6}In my view, the Courts below have abdicated in not referring to cross-examination of Pankaj Sachdeva as the admission need not be supported by any other evidence, for, the plaintiff, in my view, has discharged the onus by ascertaining the truth in cross-examination of defendant no.2, thus, there is abdication and perversity in the findings under challenge.No doubt, this Court, on earlier occasions had been framing the substantial questions of law while deciding the appeals but in view of the ratio decidendi culled out by five learned Judges of the Hon'ble Supreme Court in Pankajakshi (dead) through LRs and others Vs. Chandrika and others AIR 2016 SC 1213, wherein the proposition arose as to whether in view of the provisions ofSection 97(1)CPC, provisions ofSection 41of the Punjab Courts Act, 1918 would apply or the appeal i.e. RSA would be filed underSection 100of Code of Civil Procedure and decision thereof could be without framing the substantial questions of law.The Constitutional Bench of Hon'ble Supreme Court held that the decision inKulwant Kaur and others Vs. Gurdial Singh Mann(dead) by LRs and others 2001(4) SCC 262 on applicability ofSection 97(1)of CPC is not a correct law, in essence, the provisions ofSection 41of the Punjab Courts Act, 1918 had been restored back.For the sake of brevity, the relevant portion of the judgment of five learned Judges of the Hon'ble Supreme Court in Pankajakshi 's case (supra) reads thus:-"Since Section 41 of the Punjab Act is expressly in6 of 8::: Downloaded on - 19-05-2018 23:26:21 :::RSA No.307 of 2013 (O&M) {7} conflict with the amending law, viz., Section 100 as amended, it would be deemed to have been repealed. Thus we have no hesitation to hold that the law declared by the Full Bench of the High Court in the case of Ganpat [AIR 1978 P&H 137 :80 Punj LR 1 (FB)] cannot be sustained and is thus overruled." [at paras 27 - 29]""27. Even the reference toArticle 254of the Constitution was not correctly made by this Court in the said decision.Section 41of the Punjab Courts Act is of 1918 vintage. Obviously, therefore, it is not a law made by the Legislature of a State after the Constitution of India has come into force. It is a law made by a Provincial Legislature underSection 80Aof the Government of India Act, 1915, which law was continued, being a law in force in British India, immediately before the commencement of theGovernment of India Act, 1935, by Section 292 thereof. In turn, after the Constitution of India came into force and, byArticle 395, repealed theGovernment of India Act, 1935, thePunjab Courts Actwas continued being a law in force in the territory of India immediately before the commencement of the Constitution of India by virtue ofArticle 372(1)of the Constitution of India. This being the case, Article 254 of the Constitution of India would have no application to such a law for the simple reason that it is not a law made by the Legislature of a State but is an existing law continued by7 of 8::: Downloaded on - 19-05-2018 23:26:21 :::RSA No.307 of 2013 (O&M) {8} virtue ofArticle 372of the Constitution of India. If at all, it isArticle 372(1)alone that would apply to such law which is to continue in force until altered or repealed or amended by a competent Legislature or other competent authority. We have already found that sinceSection 97(1)of the Code of Civil Procedure (Amendment) Act, 1976 has no application toSection 41of the Punjab Courts Act, it would necessarily continue as a law in force."Therefore, I do not intend to frame the substantial questions of law while deciding the appeal aforementioned.In view of the aforementioned observations, judgments and decrees of the trial Court and lower Appellate Court are modified to the extent that plaintiff is accorded declaration of 1/3rd share in the property aforementioned. The revenue officer is directed to get the mutation affected in the name of plaintiff, defendants No.1 and 2 to the extent of 1/3rd share. Liberty is granted to the appellant-plaintiff to seek partition of the property, in accordance with law. The plea of bonafide purchaser is also declined, for, the property has been purchased during the pendency of the suit. Respondent No.3 is also at liberty to buy 1/3rd share in the property.Accordingly, the appeal stands allowed.(AMIT RAWAL) JUDGE May 07, 2018 savita Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No 8 of 8::: Downloaded on - 19-05-2018 23:26:21 :::
92a33acc-6100-5aec-8a14-69ecd85f2867
court_cases
Bombay High CourtDagadu Yadaora Damdhere And Ors. And ... vs Shankar Vithoba Dhavale And Ors. on 17 July, 1980JUDGMENT M.N. Chandurkar, J.1. This Judgment will dispose of Special Civil Application Nos. 5437, 5438 and 5439 of 1976, because the facts relevant for the disposal of these three petitions are the same.2. Field Survey No. 290, area 51 and 21 gunthas of village Talegaon Dhamdhere were admittedly Ramoshi Watan lands. Field Survey No. 290 was cultivated by Dhamdheres who are petitioners in Special Civil Application No. 5437 and 5439 of 1976. Ramoshi Watan came to be abolished by theBombay Inferior Village Watan Abolition Act, 1958(hereinafter referred to as "the Watan Abolition Act"). There does not to be any dispute that these fields were cultivated by Dhamdheres and Dorges, respectively, in 1935 though to one stage as the Watandar did not render service and both the fields were resumed by the State in 1946. Later on the resumption order was withdrawn. On coming into force of the Abolition Act, both these fields were regranted to Kisan Janglu Dhamdhere, subject to certain conditions. Kisan Janglu is respondent No. 5 in all the petitions.3. It appears that Kisan Janglu sought eviction of the petitioners Dhamdheres and Dorges and, therefore, the petitioners filed two separate applications for a declaration that they were tenants of these fields. These applications were originally rejected by the Mamlatdar holding that the lease in favour of the petitioners was unauthorised. These orders were confirmed in appeal, but the Maharashtra Revenue Tribunal in revision Applications field by the petitioners set aside both the orders and held that the petitioners were tenants.4. These orders of the Maharashtra Revenue Tribunal were challenged by Kisan Janglu in Special Civil Application Nos. 1182 and 1183 of 1964. While holding that the petitioners were in unauthorised occupation prior to rights column till such time as they were not declared as purchasers and the date of the regrant in favour of Kisan Janglu, this Court directed that the status of the petitioners after the regrant of the land in favour of Kisan Janglu should be determined. The matter was, therefore, remanded to the Mamlatdar. After remand the Mamlatdar held that the petitioners were tenants of the fields. That order was, however, set aside by the Prant Officer, but finally the order of the Mamlatdar was restored by the Maharashtra Revenue Tribunal at the instance of the present petitioners. It does not appear that order holding that the petitioners were tenants undersection 4of the Bombay Tenancy Act, 1948, was challenged further. In any case, that is the operative order today.5. Present respondents Nos. 1 to 4 who belonged to Dorges' family and probably to the original family of Watandar claimed that they were entitled to the apportionment of the compensation which was to be paid to Kisan Janglu and, therefore, approached the Assistant Collector for apportionment of compensation. In that proceeding Kisan Janglu seems to have remand absent and the Assistant Collector by his order dated 14th January, 1971 seems to have accepted the ex parte evidence of Kashinath Shivram Dhavale and the genealogy produced by him to show that they were also the Watandars of the fields. It was found that one Tulsabai Taba was the original Watandar having 16 annas share in the Ramoshi Watan and on her death, Shivram Krishna, Janglu Rangu and Mahadu Rama were shown as heirs of the deceased Watandar. Respondent Nos. 1 to 4 were thus declared to be the watandars of "the above Ramoshi family of village Talegaon Dhamdhere".6. Basing their claim that their names should be entered as Kabjedars of the fields in question on this order respondent Nos. 1 to 4 made an application to the Talathi. This application was granted. The Dhamdheres and Dorges field two separate appeals challenging these entries before the Prant Officer who confirmed the entries and held that the present petitioners were unauthorised holders.7. The petitioners took the matter in appeal further to the Additional Collector who allowed both the appeals. The Additional Collector observed that the Sub-Divisional Officer did not apply his mind to the question that by merely giving the right of compensation of abolished Watan, no proprietary rights were conferred on the present respondents Nos. 1 to 4. According to the Additional Collector, there was, therefore, no question of taking any mutation entry under section 149 of the Maharashtra Land Revenue Code. The Additional Collector pointed out that the action of the Talathi and the Circle Officer had given rise to unnecessary litigation. While allowing the appeals filed by the present petitioners, the Additional Collector directed that the fields would continue to be in the name of respondent No. 2 before him, namely Kisan Janglu i.e. the person in whose favour the fields were regranted, but that names of tenants would continue to be in the other certificates were not issued to them under the Bombay Tenancy Act. A common order was thus passed in two appeals filed by the two tenants. Against this common order the present respondents Nos. 1 to 4 field a revision application before the Additional Commissioner.8. The second round of litigation which also gave rise to the present petition was commenced at the instance of respondent Nos. 1 to 4 for summary eviction of the petitioners under section 9 of the Watan Abolition Act. That application came to be rejected by the Sub-Divisional Officer, Junnar, holding that the present respondents Nos. 1 to 4 who were the applicants before the Sub-Divisional Officer were not the Watandars and they had, therefore, no locus standi to file an application in respect of the watan lands. This order of the Sub-Divisional Officer rejecting the application for summary eviction was challenged by respondents Nos. 1 to 4 by an appeal before the Additional Commissioner.9. The revision application arising out of the mutation proceedings and the appeal arising out of the proceedings for summary eviction, both of which were filed by respondents Nos. 1 o 4, were disposed of by a common order by the Additional Commissioner. The Additional Commissioner took the view that as the present petitioners were in possession of the lands, those lands were not available for regrant to the Watandars under section 5(1) of the Watan Abolition Act and, therefore, the order of regrant in favour of Kisan Janglu was bad in law and ought to have been set aside. He further held that respondents Nos. 1 to 4 had been declared to be watandars by the order of the Sub-Divisional Officer on 14th January, 1971 and no appeal having been filed against that order, that decision has become final. The Additional Commissioner, therefore, held that as long as the order of 14th January, 1971 remained to be effective, the Additional Commissioner could not cancel the mutation entry. The Additional Commissioner went on further to make an operative order that the order of regrant was set aside and that the High Court had already taken the view that the lands could not be regarded as having been lawfully leased to the present petitioners and, therefore, the Additional Commissioner proceeded to hold that the present petitioners were unauthorised holders. He further directed that proceedings under section 9 of the Watan Abolition Act should be started. This common order is now challenged by the petitioners in these three petitions.10. Special Civil Application No. 5437 of 1976 is directed against the order in the proceedings commenced with the application for summary eviction of the petitioners. The other two petitions are filed to challenge the order of the Additional Commissioner in the mutation entry proceedings.11. Mr. Dalvi, the learned Counsel appearing on behalf of the petitioners, has contended that the Additional Commissioner fell in a serious error when he proceeded to cancel the order of regrant made in favour of Kisan Janglu and further proceeded to hold that the petitioners were in unauthorised occupation. The learned Counsel contended that in a proceedings for correcting mutation entry, the Additional Commissioner could not set at naught the order of regrant made in favour of Kisan Janglu and, according to the learned Counsel, as a long as the order of regrant stood in favour of Kisan Janglu, the petitioners who had already been declared tenants of the lands, could in no way said to be an unauthorised possession.12. Mr. Abhyankar appearing on behalf of the respondents Nos. 1 to 4 has contended that the order of the Maharashtra Revenue Tribunal holding that the present petitioners are tenants would not bind respondents Nos. 1 to 4 because they were not party to the said proceedings. It is contended that even if the order of regrant is in favour of Kisan Janglu, respondents Nos. 1 to 4 being held to be the watandars, they must also be deemed to be the owners of the fields and their names were, therefore, bound to be mutated as Kabjedars of the field in questions.13. Now, we have to see the manner in which the Additional Commissioner has proceeded to set at naught the order of regrant in favour of Kisan Janglu even though that order of regrant was not expressly challenged in other proceedings. The Additional Commissioner seems to have taken the view that at the time when the regrant was made, the petitioners were in possession of the lands and, therefore, the fields could not have been regranted to Kisan Janglu. Having gone through the provision of the Watan Abolition Act, there does not appear to be any bar in eithersection 4or section 6 of the Watan Abolition Act to make an order of regrant in favour of the watandars when the lands are in possession of an authorised holder. Indeed, the indication is to the contrary. There is clear provision in section 9 of the Watan Abolition Act for eviction of unauthorised holder when any land is resumed undersection 4. The only ground on which the Additional Commissioner proceeded to find fault with the legality of the order of regrant was that the petitioners were in possession at the time of regrant and, as already pointed out, that could not create any infirmity in the order of regrant.14. It is also difficult for us to see how the Additional Commissioner call in question the validity of the order of regrant in a proceedings for correction of the mutation entries. Admittedly, the watandar at the material time was Kisan Janglu and it was he who had been granted the lands. No doubt, subsequently respondents Nos. 1 to 4 have been held entitled to a share in the compensation, but it is difficult for us to see how that by itself would enable respondents Nos. 1 to 4 to contend that they were also entitled to regrant of the lands. If respondents Nos. 1 to 4 had any valid claim to have the land regranted to them jointly with Kisan Janglu, they could have agitated their rights in a proper manner and in a proper forum and in a proper proceedings. The order of regrant in favour of Kisan Janglu has not been challenged by respondents Nos. 1 to 4 in the appropriate manner. That could not be said to be an order which was wholly without jurisdiction and it was not open to the revenue authorities to ignore that order of regrant. The Additional Commissioner was, therefore in error in setting aside the order of regrant.15. Now, so far as the status of the present petitioners is concerned, there is no discussion in the order of the Additional Commissioner about the effect of the revenue tribunal's order that the petitioners being in lawful cultivation after the date of regrant, they were entitled to the status of deemed tenants. It is rather surprising that while the learned Additional Commissioner found it necessary to refer to the earlier history of the proceedings arising out of the application filed by the petitioners for a declaration that they were tenants and a reference was made to the order of the High Court holding that the petitioners were in authorised occupation, the Additional Commissioner did not think it worth while to refer to the other operative part of the order of the High Court by which the matter was remanded in order to enable the Tahsildar to decide whether the petitioners were entitled to the status of a tenant after the date of regrant. The State of affairs as it existed on the date of the order of the Additional Commissioner was that there was clear adjudication of the status of the present petitioners by a competent authority under theTenancy Actwhich had exclusive jurisdiction to decide the question relating to tenancy. If those orders have not in any way been set aside, it was not open to the Additional Commissioner to come to the conclusion that the petitioners were in unauthorised occupation.16. On both these issues, therefore, the Additional Commissioner had fallen in a serious error and the order of the Additional Commissioner was, therefore, wholly unsupportable.17. In the view which we have taken, the orders of the Additional Commissioner holding that the petitioners were in unauthorised occupation and further holding that the order of regrant made in favour of Kisan Janglu was bad in law are set aside. The Additional Collector, in our view was clearly right when he held that merely because respondent Nos. 1 to 4 were held to have share in compensation, they could not be said to be the Kabjedars after the regrant of the land in favour of Kisan Janglu. The orders of the Additional Commissioner are thus quashed. Rule absolute in all the three petitions. Respondents Nos. 1 to 4 to pay the costs in Special Civil Application No. 5437 of 1976. No order as to costs in other two petitions.
3e58568e-69a1-5342-8f3f-08cda32828c0
court_cases
Madras High CourtPuthiya Pandikasaliyal Abdulla Koya vs Mavileri Eacharan Nair (Deceased) And ... on 19 December, 1917Equivalent citations: 47IND. CAS.945, (1918)35MLJ405JUDGMENT1. In this case the first defendant as karnavan of the tarwad, granted a melcharth to the 4th defendant whereby he empowered him to recover 2 items of property held under 2 leases, the term of one of which had expired and the term of the other would expire in 2 years. This melcharth has been held by the lower courts to be invalid apparently on two grounds, that is,(1) that 2nd defendant was the de facto karnavan, and (2) that the lease was not beneficial to the tarwad. As regards the first point it is not disputed that 1st defendant was actually karnavan, and consequently, although he may have allowed 2nd defendant to discharge the duties of karnavan, it was open to him to resume the management at any time. On the second point the learned vakil for the appellant argues that a karnavan has absolute powers as regards leases, and leases granted by him cannot be questioned on the ground that they are not beneficial to the tarwad. The karnavan by the grant of a lease does not alienate tarwad property and although the income of the tar wad may be diminished by the, grant of improvident leases, that is mainly a matter which concerns the karnavan alone, for it reduces the income out of which he has to meet liabilities. No doubt if a karnavan habitually grants improvident leases and thereby renders himself unable to fulfill his obligations towards the other members of the tarwad, this would be a ground for removing him from karnavastanam, but we do not think that a particular lease can be declared to be invalid as against the lessee merely because it is not proved to be beneficial to the tarwad. To fetter a karnavan's discretion in this way would be to render his whole management of the property liable to criticism and reversal at any moment.2. It is then argued for the respondent that the grant of this lease 2 years before the expiry of the term under which the land was held is ipso facto invalid and reliance is placed on Cheriya Cheri Kandan v. Krishnan Nambiyar (1912) 27 M.L.J. 690 and Raman Nambiyar v. Raman Nambiyar(1914) 27 M.L.J. 175 and Mohideen Kutti v. Kunhikoyan (1914) 27 M.L.J 691. These cases are however only authority for holding that a melcharth granted by a karnavan before the expiry of the previous term will not bind his successor, and not that such meleharths are necessarily invalid ab initio.3. In this view we think that the decision of the lower courts is wrong and in allowance of the second appeal we dismiss the plaintiff's suit with costs throughout.[This second appeal coming' on for hearing (19 12 17) in pursuance of the order of this Court dated 21st November 1916.]4. The court delivered the following judgment:5. The guardian of 17-19 respondents has now been made a party. Mr. Madhavan Nair on his behalf has nothing new to argue. We therefore for the reasons stated by us on 24th October 1916 allow the second appeal and dismiss plaintiff's suit with costs throughout. A.V.V.
a22193a2-37f4-53b1-a1fd-c7fae96df103
court_cases
Calcutta High Court (Appellete Side)Sisters Of St. Joseph Of Cluny & Anr vs State Of West Bengal & Ors on 26 April, 2010Author:Biswanath SomadderBench:Biswanath Somadder1 26. 4.2010. ap W.P. 4406 (W) of 2010. Sisters of St. Joseph of Cluny & Anr. Vs. State of West Bengal & Ors. Mrs. C. Mukherjee Mr. Sandip Ghosh ... For the petitioner. Mr. Kishore Dutta Mr. Indranil Roy Mr. Arnab Mukherjee ... For the respondent no.3.Mr. Tarun Roy, Sr. Advocate, Mr. Subrata Banerjee ... For the State.Mr. Asish Kumar Das ... For the respondent no.2.with W.P. 5002 (W) of 2010.Governing Body of Cluny Women's College & Ors.Vs. State of West Bengal & Ors.Mr. Kishore Dutta Mr. Indranil Roy Mr. Arnab Mukherjee ... For the petitioners.Mrs. C. Mukherjee Mr. Sandip Ghosh ... For the respondent nos. 4-5.Mr. Tarun Roy, Sr. Advocate, Dr. Sambuddha Chakraborti2Ms. Chhabi Chakraborty ... For the State.Mr. Asish Kumar Das ... For the respondent no.7.On the prayer of the learned advocate appearing on behalf of the State, let the Director of Public Instructions, Government of West Bengal, be added as a respondent in both the writ petitions. The learned advocates on record of the writ petitions are directed to amend the cause-title of the two writ petitions accordingly.After hearing the learned advocates appearing on behalf of the parties and upon perusing both the writ petitions, I am of the view that in the facts and circumstances these matters cannot be disposed of finally, without exchange of affidavits.Accordingly, let affidavit in opposition be filed within a week after the summer vacation. Reply, if any, within a fortnight thereafter.Let both the matters appear under the heading 'For Final Disposal' in the monthly combined list of July.Purely by way of an interim arrangement, which shall subsist till 31st July, 2010, or until further orders, whichever is earlier, the present Governing Body of Cluny Women's College, shall continue to function along with one representative of the Sisters of St. Joseph of Cluny. So far as financial operations through the bank/banks are concerned, the Governing Body of the College shall nominate two persons to operate all such bank accounts, one of whom shall be the nominated member of the Sisters of St. Joseph of Cluny in terms of this order. The Governing Body of the College shall ensure smooth functioning of the College so that the students do not suffer.3In the affidavit in opposition to be filed by the State, the deponent shall specifically state the stand of the State respondents in respect of the order dated 5th November, 2009, passed by the National Commission For Minority Educational Institutions, Government of India, in Case No. 506 of 2007, whereby the National Commission, inter alia, rejected the contention of the Registrar, University of North Bengal regarding cancellation of minority status certificate granted to the College and proceeded to confirm the earlier order passed by the said Commission conferring minority status upon the College.Xerox plain copy of this order, duly countersigned by the Assistant Registrar (Court), be given to the learned advocates for the parties on usual undertakings.(Biswanath Somadder, J.)45
f366734c-8ff9-57d1-9b56-4253adeed290
court_cases
Madras High CourtVenkatasubban Patter And Ors. vs Ayyathurai Alias Ranganatha Sastrigal ... on 19 August, 1919Equivalent citations: (1919)37MLJ554JUDGMENT1. Plaintiffs and the defendants are members of Kuzhalmannam, a Brahmin village in the Palghat Taluk. The suit was brought for a perpetual injunction restraining Defendants 1 to 45 from consecrating a lingam in the Siva temple in the village which, belongs in common to plaintiffs and the defendants without the consent of the community as a whole. It appears that for many years past the village has been divided into two factions, known as the Eastern and the Western factions. Plaintiffs and defendants 45 to 51 belong to the Western faction, Defendants 1 to 44 belong to the Eastern faction and are in a numerical majority. It seems that the Siva lingam was stolen in 1888, and the members of 1st defendant's faction wanted to have it replaced by another. The proposal was opposed by the plaintiff's faction and litigation ensued, and the plaintiff's faction succeeded in obtaining an injunction restraining the defendants from consecrating the particular Lingam in dispute. Plaintiff's case as put forward in the plaint shortly was that in January 1916 some members of the 1st defendant's party sent a notice stating that a meeting of the members of the community should be convened to decide the question of consecrating a new lingam, that a meeting was held but had to be postponed as the leading members of the 1st defendant's faction stayed away, and no definite decision was arrived at, that the limgam which was proposed to be consecrated was not fit to be consecrated, and that they were entitled to a perpetual injunction restraining the defendants' party from performing the linga prathista without consulting the plaintiff's party. The answer of the contesting defendants was that plaintiffs purposely abstained from attending the meeting on January 28th 1916 at which it was resolved that the Kalasom should be performed. The principal issues in the suit were whether there was a valid consultation in regard to the performance Of the linga prathista among the villagers as alleged by defendants 1, 3 and 4 and whether the defendants were entitled to consecrate the lingam without the express consent of the plaintiff's faction in writing according to the custom of the village of the parties. The District Munsif found that the defendants had not proved that there was any consultation among the villagers, and that plaintiffs were entitled to the injunction asked for. On appeal the District Judge in a brief and unsatisfactory judgment without going into the facts or recording findings, on the questions at issue between the parties, viz., whether there had been any consultation among the villagers in regard to the consecration of the lingam, and whether the defendants were entitled to fix the lingam without the consent of the plaintiffs, disposed of the case on the broad ground "that the plaintiffs, were entitled to an injunction restraining the defendants from doing anything in the temple to which they objected unless the defendants could prove that they had constitutional authority for their action." The District Judge refused to accept the defendants contention that the temple should be governed by the will of the majority of the house-holders, and observed that the defendants' only remedy was to apply for a scheme of management. Before dealing with the questions argued before us in the appeal we may mention that the defendants did not object that the plaintiffs were not entitled to bring the suit, and we proceed on the assumption that the suit is maintainable. Mr. Ananthakrishna Aiyar for the appellants contended that, as the plaint temple is admittedly a village temple belonging to the Brahmin village of Kuzhalmannara the lower Court ought to have held that the majority of the householders have the right to resolve upon any act of management relating to the temple and to enforce the same, that the consecration of a new lingam in the temple is a proper and necessary act, and that the plaintiffs' contention that without the consent of the minority there can be no valid acts of management is unsustainable.Mr. Ananthakrishna Aiyar strongly relied upon the decision inYegnarama Dikshitar v. Gopala Pattar and Ors.(1917) 41 I.C. 738 which was affirmed by the Full Bench in (1918) M.W.N.595. In that case the facts were that the inhabitants of a certain village owned a temple in common and the temple owned moveable and immoveable properties. Disputes as to the management of the temple properties were referred to arbitrators who passed an award on which a decree was passed entrusting the management of the temple and its properties to the persons selected by the residents of particular streets. The plaintiffs in the suit who were some of the villagers interested in the communal properties sued to have it declared that a resolution passed by a majority of the villagers at a certain meeting in regard to the future management of the village Devaswom was valid and binding. It was held that the relationship of the inhabitants of a village in respect of a temple and its properties owned and managed by them in common partakes more of the character of a corporation than that which exists among the members of a club or of trustees, public or private and the law regulating the latter does not apply to them. It was further held that when a corporation consists of an indefinite number, the major portion of the members present at a meeting is competent to bind the minority, but where the body is definite there must be a major part of the whole number, and that the rule applies to India which recognises fluctuating communities as legal personae owning property, as for instance the caste and the village, and in matters relating to the management of caste property and the administration of its affairs, the majority of the caste has authority to control the minority.2. We think that the principle of this decision applies to the present case, although it is true that the act complained of viz., the proposed consecration of a lingam in the temple is of a religious nature and not strictly speaking a matter relating to the administration of the affairs of the temple. The right to establish a lingam in the temple is an incident of the management of the temple by its owners. The plaint states that the temple belongs in common to both the factions of Kuzhalmannam village. We think that the proper view to take is that the relationship of the Brahmin householders, an indefinite number of persons, in respect of the plaint temple, and its property is analogous to the case of a corporation which owns properties and that a majority of the members are competent to bind the minority and that the principle which governs the case is thatlaid down inCooper v. Gordon (1869) 8 Eq. 249. In Cooper v. Gordon (1869) 8 Eq. 249 it was laid down that so far as the administration of the affairs of a church was concerned, the appointment of a minister by the majority bound the minority. As observed by Mr. Justice Abdur Rahim in Yegnarama Dikshitar v. Gopala Paltar (1917) 41 I.C. 738 at page 741 with reference to village and caste owning property, "If such an indefinite and fluctuating body had not the inherent powers to provide for the management of their property by means of resolutions which had the approval of the majority and passed at a meeting properly and regularly convened, the business of such communities could not be conducted at all." In this connection we may refer to the pertinent observations of Mr. Justice Farran in Lalji Shamji v. Walji Wardhman (1895) I.L.R. 19 Bom. 507 at page 522: "It is clear upon the authorities that in matters relating to management of caste property and the administration of its affairs, the majority of the caste has authority to control the minority." The learned Judge further observes that in the absence of a written or proved customary constitution, the affairs of a caste could not be administered if the decision of a majority duly arrived at and notified were not binding on the minority. We are altogether unable to agree with the view taken by the District Judge that "it would be unsafe to allow any self-constituted body (whatever that may mean) to do acts which other worshippers profess to find offensive to their scruples and the proper course would be for the defendants to apply for a scheme of management."3. Mr. Ganapathy Aiyar for the respondent endeavoured to support the decision of the lower Appellate Court on the ground that this is a case of a private trust, and contended that the act of the majority of trustees cannot bind a dissenting minority nor the trust estate, and that in order to bind the trust estate there must be the act of all the trustees. The learned vakil cited the following cases. Luke v. South Kensington Hote Company (1879) 11 Ch. D. 121 and Ashtbury v. Ashtbury (1898) 2 Ch. 111. These decisions do not appear to have any bearing on the questions raised by the appeal. No such case was raised on the pleadings or issues. It was never suggested that this was a case of a private trust, and that the plaintiffs and the defendants are trustees. A question of this kind not raised on the pleadings cannot be gone into in second appeal.4. Next it is contended, on behalf of the respondents that the suit is barred as res judicata by reason of the judgment and decree in second appeal No. 1811 of 1897. A suit O.S. No. 148 of 1895 was brought in Temmalprom Munsif's Court by certain members of the Kuzhalmannam village community for a perpetual injunction to restrain the defendants who were members of the same community from establishing a Bana lingam in the plaint temple. It was alleged in the plaint that the Bana lingam was uggra (horrible) and that if established in the temple it would " bring misery and wretchedness to the villagers." The relief asked for was a perpetual injunction restraining the defendants from establishing the said lingam. The issues framed were, (2) "Is the Bana lingam the defendants have and referred to in the plaint a good one ? Will the establishment of the said lingam be detrimental to the interests and welfare of plaintiffs and other members of Kuzhalmannam Brahmin village? (3) Are plaintiffs entitled to the reliefs claimed? "The District Munsif found on the 2nd issue that the Bana lingam which the defendants desired to establish had bad properties and should be rejected as unfit to be established in the temple, and that establishing it in the Siva temple would be against the interests of the villagers, and passed a decree restraining the defendants from establishing the Bana lingam in the Kuzhalmannam temple. On appeal the Subordinate Judge held that the plaintiffs were entitled to the injunction on the ground that they (the defendants) had not shown that in acting as they did they had obtained the consent of plaintiffs' faction, and they were bound not to consecrate the disputed lingam unless and until the same was sanctioned by the entire community. The decree of the District Munsif was, however, varied by adding the words "unless and until they obtain the sanction of the village community as a whole after giving every member a reasonable opportunity of expressing his own opinion and influencing the opinion of the rest in the matter." In Second Appeal No. 1811 of 1897 the learned Judges (Davies and Boddam, JJ.,) observed that the District Munsif had exceeded his jurisdiction in raising and deciding the second issue, and that, if the introduction of an idol was objected to by members of the community to which the temple belonged, the Court would interfere to prevent that being done by granting an injunction. In the result the decree of the Subordinate Judge was modified by striking out that part of the decree which qualified the injunction granted, otherwise the decree was confirmed. To constitute a matter res judicata the matter directly and substantially in issue in the subsequent suit must be the. matter which was directly and substantially in issue either actually or constructively, in the former suit. Whether a matter has been dealt with and adjudicated on is to be determined by a reference to the plaint, the written statement, the issues and the judgment.An issue of law may be res judicata if the cause of action in the subsequent suit is the same as that in the former suit. The operation of a decree as res judicata so far at any rate as the object matter of a direct adjudication contained in the decree is concerned, can in no way be affected, in the absence of fraud or collusion, by the fact that the suit was the result of a mistake of law or that the decree proceeded on such mistake. As between the parties thereto it must be held to be binding and to operate as res judicata.Kaveri Ammal v. Sastri Ramier(1902) I.L.R. 26 M. 104 at p. 109 and 110 . On a reference to the pleadings and judgments in the suits it is clear, we think, that the subject-matter of the former suit was entirely different from the subject-matter of the present one, and that the same questions were not directly and substantially in issue in the two suits. The grievance of the plaintiffs in O.S. No. l98 of 1895 was that Bana lingam which the defendants wanted to establish in the temple was 'uggra', and that if established would bring disaster on the villagers. The District Munsif addressed himself to this particular question as his finding on the second issue shows, and his decree refers to "the Bana lingam." The Subordinate Judge also held that the defendants were not entitled to establish the disputed lingam until it had been sanctioned by the entire community. The effect of the judgment of the High Court was to res tore the decree of the District Munsif. The substantial question in issue in the present is the right of the defendants to perform linga prathista without consulting and obtaining the assent of the plaintiffs' faction. We must therefore hold that the judgment and decree in the former suits do not operate as res judicata.5. In the result we reverse the decrees of the Lower Courts and allow the appeal. We observe that para 11 of the plaint states that the lingam which was proposed to be consecrated was not fit to be consecrated, and, if established, would bring misfortune on the villagers. This is a question of fact which has not been decided by the lower Court but is covered by the 7th additional issue. The case is remanded to the lower Appellate Court for disposal in the light of the above observations on the evidence on record. Costs will abide the result.
0946a54b-5654-5453-99b2-3243d16c7673
court_cases
Rajasthan High CourtPrahlad Sharma vs State Of Rajasthan Through P.P on 9 February, 2010Author:R.S.ChauhanBench:R.S.ChauhanIN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN JAIPUR BENCH, JAIPUR Prahlad Sharma Vs. State of Rajasthan (S.B. Criminal Revision Petition No.1675/2009) S.B. Criminal Revision Petition underSection 397/401of Cr.P.C. against the impugned order dated 29.10.2009 passed by Special Judge, Special Court (Women Atrocities and Dowry Prohibition Cases) Jaipur City, Jaipur in Sessions case No.78/2009 whereby the charges underSection 302read with Section 120-B andSection 201IPC have been framed against the accused petitioner. Date of Order :- February 9th, 2010 PRESENT HON'BLE MR.JUSTICE R.S.CHAUHAN Mr.Ravi Yadav, for the accused-petitioner. Mr.Javed Chaudhary, public prosecutor.Aggrieved by the order dated 29.10.2009 passed by the Special Judge, Special Court (Women Atrocities and Dowry Prohibition Cases) Jaipur City, Jaipur, whereby the learned Judge has framed the charges against the accused-petitioner for offences underSections 302/120-Band201IPC, the accused-petitioner has approached this Court.In brief the case of the prosecution is that on 22.05.2009, a FIR, FIR No.117/2009 was lodged by one Ravinder Kumar, SHO, Bajaj Nagar, Jaipur at Police Station Jyoti Nagar, Jaipur. According to the said FIR, on 21.05.2009, one Dr. Krishan Kumar Mangal had lodged a report about his brother, Mukesh Mangal, who was missing. Subsequently, the body of Mukesh Mangal was discovered in a flat located at Jyoti Nagar, Jaipur. On the basis of the said report, the aforesaid FIR was registered for offences underSections 302/120-Band201IPC. During the course of investigation, one Bajrang Lal was apprehended and was interrogated by the Police. During his interrogation, he revealed that he is the petitioner's servant and servant of his son, Anoop. According to Bajrang Lal, Anoop and Vandna had business rivalry with Mukesh Mangal. Therefore, Anoop, Vandna and Bajrang Lal had conspired to murder Mukesh Mangal. In pursuance of the said conspiracy, Mukeksh Mangal was killed. He further revealed that after the murder, when he called up the petitioner, the petitioner told him to get rid of the dead body. However, the dead body was not sifted out of the flat where the murder had taken place. Besides this interrogation, the Police also discovered that Banjrang Lal had made an extra-judicial confession before one Balchand. Even to Balchand, Bajrang Lal had said that the petitioner had instructed him to get rid of the dead body. On the basis of interrogation and on the basis of the extra-judicial confession, the Police filed the challan against the petitioner for offences underSections 302/120-Band201IPC. Vide order dated 29.10.2009, the learned trial court has framed the charges for the said offences against the petitioner, as mentioned above. Hence, this petition before this Court.Mr. Ravi Yadav, the learned counsel for the petitioner, has vehemently contended that it is a settled principle of law that at the time of framing of the charges, the trial court should not act as a mute witness, or as a mouth-piece of the prosecution. In fact, the trial court is required to assess the evidence to the limited extent of seeing if a strong suspicion exists against the alleged accused or not. However, in the present case, the learned trial court has not sifted through the evidence to examine the extent of suspicion against the present petitioner. Therefore, the trial court has failed to discharge a duty or to invoke a jurisdiction which is clearly vested in it. Secondly, even if the case of the prosecution were taken to be true, even then there is no evidence against the petitioner for offences underSection 302/120-BIPC. Only three pieces of evidence exist against the petitioner : firstly, the statement of Bajrang Lal given during the interrogation; Secondly, the extra-judicial confession made by Bajrang Lal to Balchand; thirdly, the call details which clearly show that the petitioner had spoken to his son, Anoop, and to Bajrang Lal, his servant. However, none of these evidence can create a strong suspicion against the petitioner for offences underSection 302/120-BIPC. For, the interrogation notes of Bajrang Lal cannot be read against the petitioner. Secondly, the extra judicial confession is limited to the point that the petitioner instructed Bajrang Lal to get rid of the body. Thirdly, it is not unusual for a person to speak to his son or to his servant. Therefore, call details discovered by the Police do not unerringly point towards the guilt of the petitioner. Thus, the learned Judge is not justified in framing the charges for offences underSections 302/120-Band201IPC. Lastly, since the body was lying at the scene of the crime, the offence underSection 201IPC is not made out. For, there is no evidence to show that the body was removed and the evidence of offence was destroyed. Therefore, no offence underSection 201IPC is made out against the petitioner.On the other hand, Mr. Javed Chaudhary, the learned public prosecutor, has strenuously, contended that at the stage of framing of the charge, the trial court is concerned only with the existence of a prima facie case against the alleged accused. The trial court, at the initial stage of framing of the charge, cannot scrutinize the evidence. Secondly, although the interrogation of Bajrang Lal cannot be read against the petitioner, but the alleged extra-judicial confession made by Bajrang Lal to Balchand clearly points the needle of suspicion towards the petitioner. Thus, the learned public prosecutor has supported the impugned order.Heard the learned counsel for the parties, perused the impugned order, and examined the charge-sheet filed by the Police.What should be the role of the trial court while framing the charge has elicited a number of responses from the Hon'ble Supreme Court and from this Court :In the case ofUnion of India vs. Prafulla Kumar Samal[(1979) 3 SCC 4] the Apex Court laid down certain principles in the following words:-Thus, on a consideration of the authorities mentioned above, the following principles emerge:(1) That the Judge while considering the question of framing the charges undersection 227of the Code has the undoubted power to sift and weigh the evidence for the limited purpose of finding out whether or not a prima facie case against the accused has been made out:(2) Where the materials placed before the Court disclose grave suspicion against the accused which has not been properly explained the Court will be, fully justified in framing a charge and proceeding with the trial.(3) The test to determine a prima facie case would naturally depend upon the facts of each case and it is difficult to lay down a rule of universal application. By and large however if two views are equally possible and the Judge is satisfied that the evidence produced before him while giving rise to some suspicion but not grave suspicion against the accused, he will be fully within his right to discharge the accused.(4) That in exercising his jurisdiction undersection 227of the Code the Judge which under the present Code is a senior and experienced Judge cannot act merely as a Post office or a mouth-piece of the prosecution, but has to consider the broad probabilities of the case, the total effect of the evidence and the documents produced before the Court, any basic infirmities appearing in the case and so on. This however does not mean that the Judge should make a roving enquiry into the pros and cons of the matter and weigh the evidence as if he was conducting a trial.In the case ofVishwa Kumar Sharma Vs. State of Rajasthan[2006 (2) W. L. C. (Raj.) 268], this court also dealt with the interpretation ofSection 228Cr.P.C. and observed as under:-In the case of discharging the accused or in the case of framing of the charge, the Judge is required to take certain concrete steps: firstly, to consider the record of the case and the documents submitted therewith. Secondly, to hear both the Prosecution and the accused. Thirdly, after hearing both the parties, in case he considers that there is not sufficient ground for proceeding against the accused, then he shall discharge him. Fourthly, in case the accused is to be discharged, the Judge must record reasons for such discharging.But, in case after such consideration and hearing, the Judge is of the opinion that there is ground for presuming that the accused has committed an offence (emphasis added), then he should follow the procedurelaid down inSection 228of the Code. Thus, the Judge must consider if there is sufficient evidence to formulate an opinion that the offence has been committed by the accused. Consideration of the facts has to be a substantial consideration and not an illusionary one. To consider means to examine with judicious mind. The phrase of the opinion has been interpreted to mean to come to a conclusion after weighing the evidence. Of course, at the moment of framing of charge, the Judge should not undertake a meticulous examination of the evidence. But nonetheless, he must sift the evidence to see if there is sufficient evidence to constitute the ingredients of the offence and to connect the accused to the offence. Sufficient has been interpreted to mean the existence of grave suspicion and not merely likelihood or mere suspicion. Since charge is framed after hearing both the parties and after examining the evidence produced by the Investigating Agency, more than mere suspicion should exist in order to warrant the framing of the charge. A grave suspicion should connect the accused to the alleged crime.In the case case ofVishwa Kumar Sharma(supra), this court further differentiate between taking of cognizance and framing of charge and observed as under:-Of course, both the acts require the application of judicious mind. However, the former is done without hearing both the parties. Cognizance is taken without the accused being heard. The latter is done after hearing both the parties. In the former, the Judge examines the evidence to see if an offence has been committed. In the latter, the Judge examines the commission of the alleged crime by the accused. In the former, mere suspicion about the commission of an offence is enough for taking of the cognizance. In the latter, grave suspicion about the commission of the crime by the accused should exist before a charge can be framed. In the former, the Judge is not supposed to sift through the evidence. In the latter, a limited sifting of the evidence is permissible. Therefore, when the phrase prima facie evidence is used, it is used for two different sets of examinations at two different stages of the criminal process. One has to realize that the trial progresses through different stages. Hence, appreciation of evidence has to be of different quality. While at the stage of cognizance it is mere suspicion, at the stage of framing of charge it is grave suspicion, and at the end of trial, it is a critical analysis and a meticulous examination of the entire evidence produced by the Prosecution and the accused. Therefore, the appreciation of evidence at the stage of framing of charges is at micro level; at the end of the trial it is at macro level. Hence, the mental level of appreciation changes at every stage of the criminal process: from a cursory appreciation to a critical one.In the case of Yogesh @ Sachin Jagdish Joshi Vs. State of Maharashtra [JT 2008 (6) SC 299] the Honble Supreme Court has held thus:-15. It is trite that the words "not sufficient ground for proceeding against the accused" appearing in the Section postulate exercise of judicial mind on the part of the Judge to the facts of the case in order to determine whether a case for trial has been made out by the prosecution. However, in assessing this fact, the Judge has the power to sift and weigh the material for the limited purpose of finding out whether or not a prima facie case against the accused has been made out. The test to determine a prima facie case depends upon the facts of each case and in this regard it is neither feasible nor desirable to lay down a rule of universal application. By and large, however, if two views are equally possible and the Judge is satisfied that the evidence produced before him gives rise to suspicion only as distinguished from grave suspicion, he will be fully within his right to discharge the accused. At this stage, he is not to see as to whether the trial will end in conviction or not. The broad test to be applied is whether the materials on record, if unrebutted, makes a conviction reasonably possible.Similar view has been expressed by this Court in the case of Gurmeet Singh Bagga Vs. State of Rajasthan & Anr., in S.B. Criminal Revision Petition No.721/2004 decided on 30th October, 2009.Thus, it is well settled principle of criminal jurisprudence that at the time of framing of the charge, the trial court should not act either as a mute witness or as a post office for the prosecution or as the mouth-piece of the prosecution. At the time of framing of the charge, the trial court has to be aware of the fact that the accused is entitled to a fair trial under the Constitution of India. Thus, in order to ensure fairness, the trial court has to sift the evidence to the limited extent of discovering whether strong suspicion exists against the alleged accused or not ? It is further required to examine the record to see if the ingredients of the alleged offence exist or not ? Lastly, it has to correlate the alleged conduct of the accused to the ingredients of the offence.In the present case, admittedly, Bajrang Lal's interrogation cannot be read against the petitioner. Therefore, the first piece of evidence relied by the Investigating Agency against the petitioner is not available to them.The call details as submitted by the Police are also not helpful, as it is not unusual for a person to speak to his son or to his servant. Merely because the petitioner had called up his son and his servant, would not lead to the conclusion that the petitioner was involved in the alleged murder. After all the contents of the call are unknown. Therefore, what conversation had taken place between the petitioner and his son or servant cannot be deciphered.The only evidence that can be read against the petitioner at this juncture is the alleged extra-judicial confession made by Bajrang Lal to Balchand. According to Balchand Statement recorded underSection 161Cr.P.C., Bajrang Lal had informed him that Mukesh Mangal was killed by Anoop and Vandna and few other persons included Bajrang Lal himself. After the murder, the petitioner had instructed him to get rid of the dead body. Even if this extra-judicial confession were taken to be true, at worse, it would point to disappearing of evidence. Thus, it would point to the commission of offence underSection 201IPC. However, considering the fact that the dead body was not removed from the scene of the crime, at worse, the extra-judicial confession points to an attempt to get rid of the evidence. Thus, the only offence for which a strong suspicion exists against the petitioner is for offences underSection 201read withSection 511IPC. Hence, the learned Judge was not justified in framing of the charges against the petitioner for offences underSections 302/120-Band201IPC.For the reasons stated above, the petition is, hereby, allowed; the impugned order dated 29.10.2009 is, hereby, quashed and set aside. The learned trial Judge is directed to frame the charges against the petitioner for offences underSection 201read withSection 511IPC.However, it is clarified that the observations made above, should not prejudice the decision of the trial court. The trial court is directed to decide the case on its own merit.(R.S.CHAUHAN)J. Manoj Solanki-
da6333e0-2ee3-522e-938b-59a6a9a27e67
court_cases
Lok Sabha DebatesDemand For Regularisation Of Gramin Dak Sevak As Government Employees. on 30 November, 2016Sixteenth Loksabha an> Title : Demand for regularisation of gramin dak sevak as Government Employees.श्रीचन्द्र प्रकाश जोशी(चित्तौड़गढ़) :   अध्यक्ष महोदया, मैं एक महत्वपूर्ण वि­षय प्राचीन संचार और डाक सेवा के संबंध में रखना चाहता हूं। ...(व्यवधान) भारत सरकार ने पहले भी चाहे डाकघरों में एटीएम लगाना हो या कोर बैंकिंग की सेवा शुरू करनी हो, ऐसे महत्वपूर्ण निर्णय संचार और डाक सेवा के संबंध में किये हैं। ...(व्यवधान) लेकिन आजादी के पहले से जो ग्रामीण डाक सेवक है, जो अंतिम कड़ी में जाकर काम करता है, उस डाक सेवक को अभी भी छः हजार रुपये मिलते हैं। ...(व्यवधान)पहले जो तलवार कमेटी बनी, उसकी सिफारिशें पूरी तरह मानी नहीं गयीं। अब माननीय न्यायालय ने भी इसे सिविल सर्वेंट माना है। ...(व्यवधान) इसलिए मेरी सरकार से मांग है कि इन डाक सेवकों को सरकारी कर्मचारी का दर्जा दिया जाए, ताकि वर्षों चली आ रही उनकी मांग की पूर्ति हो सके। धन्यवाद।...(व्यवधान)माननीय अध्यक्ष:श्री भैरों प्रसाद मिश्र, श्री शरद त्रिपाठी, श्री गजेन्द्र सिंह शेखावत, श्री सुधीर गुप्ता, श्री अश्विनी कुमार चौबे, श्री हरीश मीना, श्री बलभद्र माझी, कुँवर पुष्पेन्द्र सिंह चन्देल एवं श्री हरीशचन्द्र उर्फ हरीश द्विवेदी को श्री चन्द्र प्रकाश जोशी द्वारा उठाए गए वि­षय के साथ संबद्ध करने की अनुमति प्रदान की जाती है।…( व्यवधान)
38f9f076-a7f6-503b-bb98-6271e7319604
court_cases
Delhi District CourtThe Management Of vs . on 21 January, 2010IN THE COURT OF MS. RENU BHATNAGAR PRESIDING OFFICER LABOUR COURT­X KARKARDOOMA COURTS, DELHI. LCA No. : 49/09 Date of Institution of the case : 13.12.1995 Date on which reserved for Order : 21.01.2010 Date on which Order is passed : 21.01.2010 Between 1. The Management of State Trading Corporation of India Jawahar Vyapar Bhawan, Janpath New Delhi. & 2. M/s Vanguard Detective & Fire Services C­ 13, 2 FS Apartment Mayur Vihar Delhi ­110099 Vs. Its workmen 1. Ram Chander S/o Sh. Munshi R/o H. No­ 217, Pocket 6­I Rohini, Sector 2 New Delhi­ 110085. 2. Om Prakash S/o Sh. Harnarayan Singh Village & P.O. Nonad Distt. Rohtak (Haryana) 3. Jai Deo Singh S/o Sh. Chater Singh R/o Gali No­ 6, Rohilla Tailar Sankar Garden Bahadurgarh (Hr). 4. Bhopal Singh S/o Sh. Chandru Singh R/o Village & P.O. Kakrouli Distt. Muzafarnagar (UP) 5. Jagjit Singh Sh. Sukh Lal R/o Village & P.O. Khari Jat District Rohtak 6. Suresh Kumar S/o Sh. Surya Singh R/o V. Malhamazar P.O. Chattra Bhadurpur Distt Sonepat (Haryana) 7. Asha Ram S/o Sh. Puttu Lal R/o 24, Rajpura Road Delhi­ 110054 8. Chander Pal S/o Sh. Harbans R/o Village & P.O. Pura District Muzaffarnagar(UP) 9. Sharwan Singh S/o Sh. Nutha Singh R/o H.No. 94, Mandir Wali Gali Kai Pachi Azadpur Delhi­ 110033 10. Mahesh Chand S/o Shri Subadar Singh R/o X­ 1569, Scooter Market Raj Singh Colony Delhi 11. Rattan Lal S/o Sh. Babu Lal R/o H.No. B­ 366, Sector 19 Noida, Ghaziabad (UP) O R D E RThis is an application under section 33­C (2) of theI.D. Actfiled by the workmen against the managements of M/s State Trading Corporation of India and M/s Vanguard Detective & Fire Services. The present application is filed by workman Ram Chander for himself and as attorney for applicants No­ 2 to 11 , it is stated that the Management No­1 is a Government of India undertaking and the primary object of establishing Management No­1 by the Central Government is to channelise a trading in the country; that on 7th September, 1990 Management No­1 entered into an agreement with Management No­2 vide its letter dated 7th September, 1990 for deployment of security services at different branches of STC New Delhi; that the services of the workman were to be retained in view of the temporary stay order from the Hon'ble High Court of Delhi in the year 1989 in Petition No­ CWP 2144/89 against illegal termination of their services and has directed by the Management No­1 to Management No­2; that Management No­1 who are the principal employers are responsible for the payment of wages and other benefits, have been paying wages to the workman through Management No­2; that the management have not paid bonus, leave encashment and terminal benefits to the workman since the date of their joining and that they are legally entitled to the benefits as per the Annexures 'A', hence, the workmen have claimed the amount towards bonus, leave encashment, terminal benefits as per Annexures 'A' said amount along with the interest and cost.Notice of filing of the application was sent to the management who had appeared and contested the application of the workman by filing written statement. In the written statement filed by Management No­1 they have taken the preliminary objection that the workman are the employees of Security Contractor and there is no relationship between the Management No­1 and the workman and as such they cannot claim any benefit from Management No­1 since the bonus and the terminal benefits were to be paid by Management No­2. On merits it is admitted that Management No­2 had entered into the contract on 07.09.1990 but in this regard, it is mentioned that it were the workman of M/s. Management No­2 who approached Hon'ble High Court and filed a petition for regularization of their services in STC/ Management No­1; that in fact Hon'ble High Court had dismissed the petition for regularization of the workmen on 13.09.1995, on the ground that there is no relationship of employer and employees between the workman and Management No­1 whereas as far as the payment of wages and other benefits were given to the contractor and hence the payments were released by the Contractor/Security Agency. It is further stated by the Management No­1 that without prejudice to the above, it is submitted that the contract with Management No­2 has been terminated in pursuance to the order of Hon'ble High Court of Delhi; that the security guards of Management No­2 formed the Association and filed a petition before Hon'ble High Court claiming for their dues and regularization of their services in STC which petition was dismissed by Hon'ble High Court vide order dated 13.09.1995 and against the order of Hon'ble High Court, the Workers Association filed SLP before Hon'ble Supreme court which was also got dismissed; that Management No­1 paid the bonus to the contractor as per the contract and it is the contractor who had to disburse the amount of Rs. 1,48,973/­ and unable to produce the details of balance amount despite request; that the contractor vide letter dated 16.12.1993 mentioned that due to non­ availability of security guards, he could not disburse the balance amount; that further the amount of leave encashment at the rate of 25 per cent has been paid to Management No­2 along with monthly salary bills as per the agreement, hence, it is stated that since the workman are the employees of Management No­2, they are not entitled to any relief.In the Written Statement filed by Management No­2 it is stated that Management No­1 had released bonus for the period of 1st October, 1990 to 31st March, 1991 and 1st April, 1991 to 31st March, 1992 which has been disbursed to the eligible security guards as per their entitlement by Management No­2; that bonus for the period 1st April, 1992 to 30th September, 1996 amounting to Rs. 9,59,000/­ is held by STC, similarly, terminal benefits/gratuity for the period 1st October, 1990 to 30th September, 1996 i.e. for five years amounting of Rs. 10.38 lakhs approximately is also held by Management No­1; that, however, leave encashment in respect of security guards is the responsibility of Management No­2 and Management No­2 shall be paying up to the security guards as per their entitlement as soon as Management No­2 receive the dues from Management No­1; that in this connection Letter No­ VAN/SEC/STC/SCJ dated 18 June, 1996 was sent by Management No­2 to Management No­1 asking to settle the dues;that entitlement of security guards is not denied but the individual entitlement will have to be verified from the records which can be settled only after receiving the payment from Management No­1, hence, it is prayed that the appropriate orders be passed.In rejoinder all the averments to the written statement of the management no­1 are reaffirmed by the workmen and of the written statement of management no. 1 are denied.No rejoinder to the written statement of management no­2 is filed by the workman.On the pleadings of the parties vide order dated 24.10.1996, the then Presiding Officer has framed following issues:­1. Whether there is relationship of employee/ employer between the applicant and Respondent No­1?2. To what amount if any the applicants/each applicant is entitled as his existing right from Respondent No­1 or Respondent no­2?No other issues arose or pressed and the case was adjourned for evidence on behalf of workmen/applicant.In support of his case, workman Ram Chander appeared as WW1 and filed his evidence by way of affidavit Ex. AW1/1 and relied upon the documents Ex. AW1/2 to Ex. AW1/11.After examining WW1, the evidence on behalf of workman was closed.In support of its defence, the management has examined MW1 Sh. Jai Pal Singh, Marketing Manager of the management, who has filed his evidence by way of affidavit Ex. MW1/A. After examining MW1, the management has also closed their evidence.I have heard submissions of AR for the workmen Since management no­2 is ex­parte in this case vide order dated 7.10.09 and none was appearing for management no­ 1, the matter was adjourned for award vide dated 26.11.2009 giving liberty to management no­1 to advance oral arguments or to file written arguments, however, no arguments are advanced by management no­1, hence, I proceed to decide this case on the basis of record since it is very old mater.My issue wise findings as under:­ ISSUE NO.1 So far as this issue is concerned, Learned AR for the workmen has stated that it is held by the court of Sh. N.K. Gupta as well as in the Hon'ble High Court that there is no relationship of employer and employee between the workmen and the management no. 1 and as such she states that she does not press the claim of the workmen against the management no. 1. She has also stated that the similar statement was made by Learned AR for the workmen before the Learned Predecessor Court as reflected in the order sheet dated 01.07.2004. In view of this submission of Learned AR for the workmen, this issue is decided against the workmen and in favour of the management no. 1.ISSUE No. 2Before deciding this issue, it is necessary to know the ambit of provision ofSection 33[c] [2]I.D. Act. The scope of the powers and scope of the court undersection 33 (c) (2)of I.D. Act has been defined by Delhi High Court in the case titledJeet Lal Sharma Vs. Presiding Officer LabourCourt­IV reported as ''2000 LLR 443'' wherein it is held that :­ "INDUSTRIAL DISPUTES ACT, 1947- Section 33­C(2) 'Recovery of money from an employer' - Scope of and the Implications of Apex Court's decision in Municipal Corporation of Delhi v.Ganesh Razak Petitioner, the security supervisor retired from MCD on 30.11.1993 - Filed application undersection 33­C(2) of the Act claiming encashment of leave- Labour Court by an order dt.1.6.1998 dismissed the application in relying upon the judgment in Ganesh Razak - Petitioner filed writ petition in the High Court - Claiming encashment of leave on the basis of service conditions is one of the existing right which entitles the workman to make claim.HELD : If entitlement is based on service conditions, one does not have to take recourse to reference undersection 10of the Act for adjudication of the matter. That situation would have become necessary only if there was a dispute about the entitlement to get the leave encashed. The dispute is not about the entitlement to get the leave encashed but about the number of days to which the petitioner is entitled. Such a question could have been decided by the labour Court in these proceedings. As mentioned above merely because employer disputes this aspect, is no ground to oust the jurisdiction of labour Court undersection 33­C(2). The matter is to be looked into on the basis of claim made by the petitioner in his application and not the reply filed by the management. Once it is accepted that this is one of the service conditions of the workman that he would be entitled to get the leave encashed upto a particular limit, claiming this leave encashment by filing application undersection 33­C (2) would be admissible. If there is a dispute as to how much leave was to credit of petitioner which he could encash, such a dispute can be decided in these proceedings which is incidental to the main issue.Adjudication can be about the entitlement and not when the claim is based on accepted service conditions. The matter was not examined by the Labour Court from this angle at all.B) WORDS & PHRASES ­ 'Entitlement to receive' - Meaning of. HELD - However where the workman claims a benefit flowing from a pre­existing right and approaches the Labour Court undersection 33­C(2) for computation of the right in term of money and the employer disputes the existences of the right, the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence of the right is established than to proceed to compute the benefit flowing therefore in terms of money or on its decisions recovery proceedings can start."So far as the claim against the management no. 1 is concerned, in view of the fact that there is no relationship between the workmen and the management no. 1 and in view of the statement of Learned AR for the workmen wherein the workmen are not pressing any claim against the management no. 1, it is held that the workmen are not entitled to any claim/relief against management no. 1. Qua management no. 2, the workmen have claimed leave encashment, bonus and terminal benefits for the different periods as mentioned in Annexure 'A' attached with the claim. Management No. 2 in the Written statement has admitted the relationship of employer and employee between it and the workmen. He has admitted, his liability towards bonus, leave encashment etc. However it is stated that individual entitlement will have to be verified from the records and further since management no. 1, who was the principal employer has not released the bonus from April, 1992 to September, 1996 and terminal benefits from October 1990 to 30th September, 1996 are also not released by management no. 1, they cannot be paid unless and until released by management no. 1. Similarly the leave encashment will be released after receiving from the management no. 1.In this case only workman Ram Chander has appeared and deposed as General Power of Attorney Holder on behalf of other workmen. The other workmen have not appeared in this case to substantiate the averments of their application nor they were cross examined.In civil matters, the Power of Attorney Holder cannot substantiate the main witnesses as is held in the case titled asJanki Vashdeo Bhojwani Vs. Indusind Bank Ltd.reported as AIR 2005 SC 439, wherein it is held that:­ "A. Civil Procedure Code, Order 3 Rule 1­ Power of Attorney­ Statement and cross­examination of power of attorney on behalf of plaintiff or defendant­ Not permissible­ He cannot be allowed to appear and depose as a witness on behalf of the principal in the matters of his personal knowledge­ He can appear only as a witness in his own capacity to depose with regard to the acts done by him on behalf of the principal -Whether a person was a co­sharer in the property purchased and had the source of income to contribute to its purchase price, are the matter of personal knowledge of such person­ His power of attorney cannot depose in that regard­ If the party does not depose personally and appear for cross­examination, he will be deemed to have failed to prove his case."Since except workman Ram Chander, the other claimants have not appeared to substantiate the facts of their services, which were in their personal knowledge, It is held that they have failed to prove their claims by leading evidence, hence, they are not entitled to any relief.So far as the workman Ram Chander is concerned, he has appeared and substantiated and proved all the averments of his statement of claim. Since management no. 2 has admitted its liability towards the payment of leave encashment, terminal benefits etc. and since management no. 2 has not led any evidence nor specifically pleaded in the Written statement about any specific amount towards these heads, from the statement of workman Ram Chander, it is proved that he is entitled to leave encashment and terminal benefits etc as claimed in Annexure 'A'. The vague reply of management no. 2 to the effect that individual entitlement has to be verified from the record shows that he has not disputed the legal entitlement of the workmen, which is based on the service condition as held inJeet Lal's case (supra).In view of above discussion since the management no. 2 has not disputed the entitlement of the workman to leave encashment and terminal benefits, the workman Ram Chander is entitled to receive the same.So far as the claim for bonus is concerned as per the judgment of Hon'ble Supreme Court, labour courts are not competent to grant any relief of bonus under theBonus Act. It is held by the Hon'ble Supreme Court in case of H.P. State Electricity Board & anothers Vs. Ranjit Singh and others 2008 LLR 765 SC as under :"A. PAYMENT OF BONUS ACT, 1965-Section 22- Reference of industrial dispute for adjudication under the Act - Expression 'Bonus payable' - It cannot be said that it relates to quantum and not payability. Para15. B. INDUSTRIAL DISPUTES ACT, 1947, -Section 33C(2)Recovery of money due from an employer by the workman - Bonus - Entitlement - Could not be decided by Labour Court since such powers are vested with Industrial Tribunal - It can be claimed by a workman - Only he has an existing right.The Labour Court can decide only the matters specified in Second Schedule, of the Industrial Disputes Act, whereas, 'bonus' appears as Item 5 in the Third Schedule which is to be decided by the Industrial Tribunal. The question of entitlement to bonus could not have been decided by the Labour Court as if it is of pre­existing right since there must be an agreement by both sides about existence of such right. If there is dis­agreement by the parties or even by one party, this has to be decided by the competent authority under theIndustrial Disputes Act."In view of above discussion, it is held that workman Ramchandran is entitled to recovery from respondent no­2 of RS, 6490.23 towards leave encashment and Rs. 3862.50 towards terminal benefits along with interest @ 9 % per annum . The other workmen are not entitled to any relief.Application disposed off accordingly. File be consigned to record room.Announced in the open court on 21.01.2010 (Renu Bhatnagar) Presiding Officer Labour Court­X Karkardooma Courts, Delhi LCA­ 49/08 21.01.2010 Present: NoneThe award is passed separately. Ahlmad is directed to send six copies of this award to appropriate Government. The file be consigned to Record Room.(Renu Bhatnagar) POLC­X/ 21.01.2010
47d9e2e5-fac1-50d5-b3c7-d06d3c527771
court_cases
Jharkhand High CourtDhrubashish Bhattacharya ? D. ... vs State Of Jharkhand & Anr on 13 June, 2013Author:R. R. PrasadBench:R. R. PrasadIN THE HIGH COURT OF JHARKHAND, RANCHI Cr. M. P. No. 761 of 2011 1.Dhrubashish Bhattacharya @ D. Bhattacharya 2. Raj Kishore Sharma 3. Abhishek Singh @ Abhisekh Kumar ..... Petitioner(s) Versus 1.The State of Jharkhand 2. Jyotish Prasad Keshari .... Opp. Party(s) CORAM: HON'BLE MR. JUSTICE R. R. PRASAD For the Petitioner(s) : M/s Indrajit Sinha, Raunak Kumar, Kumar Vimal, Ajay Kumar Sah, Advocates. For the State : A.P.P. For the O.P. No.2 : Mr. Satish Kumar Keshari, Advocate. ----- 03 /13.06.2013. Heard learned counsel appearing for the petitioners and learned counsel appearing for the opposite party as well as learned counsel appearing for the State.This application is directed against the order dated 28.01.2011 passed in Complaint Case No.25 of 2008, whereby and whereunder cognizance of the offence punishable underSection 392/34of the Indian Penal Code has been taken as against the petitioners pursuant to the order dated 13.05.2009 passed by the learned District & Sessions Judge, Lohardaga in Criminal Revision No.4 of 2009.It is the case of the complainant that he had taken loan of Rs.7,17,000/- from the petitioner's company for purchasing a truck which he had purchased. In course of time, while the driver was returning to Ranchi after unloading the materials, the petitioners No.2 and 3 intercepted the truck bearing Registration No.JH-08 5765 and forcibly took it away. On the next day, the complainant came to the Finance Company and met with the petitioner No.1 and requested him to release the truck, but he refused to release the said truck.On such allegation, the complaint case was lodged which was registered as Complaint Case No.25 of 008 [T.R. No.599 of 2011]. On such complaint, the Magistrate took cognizance of the offence underSection 323of the Indian Penal Code as against the two persons.Being aggrieved with that order, the complainant moved to the revisional court and the revisional court set aside the order and passed an order for taking cognizance of the offence afresh. Pursuant to that the court took cognizance of the offence underSection 392of the Indian Penal Code which order is under challenge.Mr. Sinha, learned counsel appearing for the petitioners submits that admittedly the case is of hire-purchase agreement. In that event, if the truck on account of non-payment of the premium is repossessed, no offence is made out either of theft or robbery.Further, it was submitted that the matter has been compromised and a joint compromise petition by way of interlocutory application bearing its No.1571 of 2012 has been filed and on this ground also the order taking cognizance is fit to be quashed.Learned counsel appearing for the opposite party No.2 also admitted that the matter has been compromised.Having heard learned counsel appearing for the parties and on perusal of the record it does appear from the complaint petition that the complainant had taken loan for purchasing the truck. Obviously there appears to be a case of hire-purchase contract. According to the petitioners, the truck had been repossessed by the Financier on account of default being made by the complainant and in such situation, if the truck is repossessed, no offence is made out underSection 392of the Indian Penal Code, in view of the decision rendered in a case ofCharanjit Singh Chadha and Ors Vs. Sudhir Mehrareported in 2001[7] SCC 417. Moreover, the parties got the matter compromised,.In that event, the entire criminal proceeding of Complaint Case No.25 of 2008 including the order taking cognizance dated 28.01.2011 is hereby, set aside, so far the above-named petitioners are concerned.In the result, this application stands allowed.Accordingly, I.A. No.1571 of 2012 stands allowed and disposed of,.(R. R. Prasad, J.) Sandeep/
a51b041b-db5a-557e-8c8c-fa43ec7da988
court_cases
Jharkhand High CourtNafil Ansari vs The State Of Jharkhand ..... Opp. Party on 26 September, 2018Author:Anant Bijay SinghBench:Anant Bijay SinghCr. Revision No. 182 of 2003 -------- (Against the judgment dated 21.12.2002 passed by learned Additional District & Sessions Judge, Lohardaga in Cr. Appeal No. 60 of 1998) 1.Nafil Ansari 2.Rojamat Ansari 3.Khairat Ansari 4.Chnu @ Mahiruddin Ansari 5.Ibrahim Ansari 6.Ikbal Ansari ..... Petitioners Versus The State of Jharkhand ..... Opp. Party --------- For the Petitioner : Mr. P.P.N. Roy, Sr. Advocate. Mr. Pandey Ashok Nath Roy, Advocate. For the State : A.P.P. --------- PRESENT HON'BLE MR. JUSTICE ANANT BIJAY SINGH ........ JUDGMENTAnant Bijay Singh, J. Initially, the instant criminal revision was filed on behalf of the eight petitioners, namely, Jahangir Ansari, Nafil Ansari, Jaffar Ali Ansari, Rojamat Ansari, Khairat Ansari, Chnua @ Mahiruddin Ansari, Ibrahim Ansari and Iqbal Ansari, being aggrieved and dissatisfied with the judgment dated 21.12.2002 passed in Cr. Appeal No. 60 of 1998 by Sri B.Z. Ansari, learned Additional District & Sessions Judge, Lohardaga whereby and whererunder the learned Additional District and Sessions Judge, Lohardaga dismissed the appeal preferred by the petitioners and confirmed the judgment of conviction and sentence dated 29.04.1998 passed by Sri Shyam Sundar Ray, learned Assistant Sessions Judge, Lohardaga in S.T. No. 660/1991, T.R. No. 5/1992 whereby the learned Assistant Sessions Judge, Lohardaga had convicted the petitioners undersection 307of the Indian Penal Code and further convicted six petitioners namely, Jahangir Ansari, Nafil Ansari, Jaffar Ali Ansari, Rojamat Ansari, Khairat Ansari and Chnua @ Mahiruddin Ansari undersection 147of the Indian Penal Code and further convicted the petitioners namely Ibrahim Ansari and Ikbal Ansari undersection 148of the Indian Penal Code and undersection 25(1-B) (a) of theArms Act. The learned court below however, sentenced all the petitioners to undergo R/I for 5 years undersection 307of the Indian Penal Code, further, sentenced the petitioners namely Jahangir Ansari, Nafil Ansari, Jaffar Ali Ansari, Rojamat Ansari, Khairat Ansari and Chnua @ Mahiruddin Ansari to undergo R.I for 6 months under-2-section 147I.P.C and two petitioners namely, Ibrahim Ansari and Iqbal Ansari to undergo R.I for 1 year undersection 148of the Indian Penal Code and further sentenced these two petitioners namely, Ibrahim Ansari and Ikbal Ansari to undergo R.I for two years undersection 25(1-B) (a) of theArms Actand all the sentences were directed to run concurrently.This criminal revision has been filed on 27.02.2003 and under order dated 05.03.2003 the criminal revision has been admitted and during pendency of the application, petitioners were admitted on bail and LC.R was called for.It appears that during the pendency of this criminal revision petitioner- Jahangir Ansari has died on 23.03.2005 and petitioner Jaffar Ali Ansari has died on 05.08.2011 thereafter under order dated 21.06.2018 the name of petitioner- Jahangir Anari and petitioner Jaffar Ali Ansari was ordered to be deleted.Now the criminal revision application is confined to the remaining six petitioners.Learned counsel for the petitioners has submitted that that petitioners have been held guilty undersection 307I.P.C simplicitor and sentenced to undergo R.I for five years and this fact is reflected in the evidence of P.W.7 who has received injury, but the trial court did not frame the charge undersection 307/34I.P.C and in alternative undersection 307/149I.P.C and this fact has not been considered either by the trial court or by the appellate Court. Further, it has been submitted that both the courts below have failed to consider the statements of the petitioners recorded undersection 313Cr.P.C. So, considering the aforesaid facts, the conviction is not sustainable and the impugned judgment is liable to be set- aside.Learned counsel for the petitioners further relied on the evidence of P.W.-12 Dr. J.E. Tigga, who has examined the injured Alam Ansari, but he did not found any grievous injury, rather he has found the injury as follows:(i) Slightly restricted movement of neck due to pain. No external injury.(ii) Pain on the occipital region on the head on applying pressure.(iii) Pain all over the back, Restriction of movement of shoulder plate.-3-It is submitted that the cause of injuries is kick and fist blows and the nature of injury was found to be simple. It was submitted that prima facie both the courts have failed to consider the fact that the injuries are simple in nature and not on the vital parts. So offence underSection 307of the I.P.C. is not made out.Learned APP has opposed the prayer and submitted that there is concurrent findings of both the courts below.Learned counsel for the petitioners further submitted that petitioners namely, Ibrahim Ansari and Ikbal Ansari were also held guilty underSections 25(1-B)a of theArms Actfor recovery of one pistol and one cartridge, but no blastic expert has been examined bringing on record the fact of effectiveness of the arms recovered, although prosecution has examined 16 witnesses and this fact has not been controverted by learned APP.After hearing the parties and on careful perusal of the records and evidences, I find considerable force in the submission of the learned counsel for the petitioners that both the courts below have failed to exercise their jurisdiction vested upon them.After scrutiny of the evidence, it transpires that P.W.-12 Doctor, has found the injuries to be simple in nature and not on the vital parts of the injured. Both the courts below have also considered the fact that no expert has been examined in the case to establish the effective working condition of the arms recovered. So the conviction of the petitioners namely, Ibrahim Ansari and Ikbal Ansari cannot sustained.Accordingly, conviction and sentence of all the petitioners underSection 307of the I.P.C. and conviction and sentence of petitioners Ibrahim Ansari and Ikbal Ansari underSections 25(1-B)a of theArms Actare hereby set aside.However, I find that the petitioners namely, Nafil Ansari, Rojamat Ansari, Khairat Ansari and Chnua @ Mahiruddin Ansari have been rightly convicted and sentenced for the offence underSection 147of the I.P.C. and petitioners namely, Ibrahim Ansari and Ikbal Ansari have been rightly convicted and sentenced underSection 148of the I.P.C., by the trial court and upheld by the appellate court. So, the conviction of the petitioners namely, Nafil Ansari, Rojamat Ansari, Khairat Ansari-4-and Chnua @ Mahiruddin Ansari underSection 147of the I.P.C. and conviction of the petitioners namely, Ibrahim Ansari and Ikbal Ansari underSection 148of the I.P.C. are maintained.From perusal of the record, it further transpires that four petitioners namely, Nafil Ansari, Rojamat Ansari, Khairat Ansari and Chnua @ Mahiruddin Ansari have remained in jail custody from 24.04.1991 to 29.04.1991 (11 days), 29.04.1998 to 14.05.1998 (15 days) during trial and from 25.02.2003 to 05.03.2003 (08 days) after conviction i.e. for total 35 days. The petitioner Ibrahim Ansari has remained in jail custody for a total period of 04 months & 5 days and petitioner Ikbal Ansari has remained in jail custody for a total period of 02 months & 05 days and all the petitioners have also suffered the rigours of the trial since 1991 i.e. for about 27 years.So, justice would met, if the sentence of the petitioners is reduced to the period already undergone by them.Under the circumstances, this criminal revision is dismissed with modification in the sentence of the petitioners awarded by the trial court and upheld by the appellate court to the period already undergone by them.The petitioners are discharged from the liabilities of their bail bonds.Let the LCR be transmitted to the court below forthwith.(Anant Bijay Singh, J.) Jharkhand High Court Dated/26/09/2018 Sunil/
6472fc3c-63a7-5b49-9cbe-d636c999830e
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Uttarakhand High CourtHon'Ble Barin Ghosh vs Mr. Hari Mohan Bhatia on 6 October, 2012Author:U.C. DhyaniBench:U.C. DhyaniSPA No. 274 of 2012 With CLMA (Delay Condonation Application) No. 9182 of 2012 CLMA (Stay Application) No. 9183 of 2012 Hon'ble Barin Ghosh, C.J.Hon'ble U.C. Dhyani, J.Mr. Vinay Kumar, Standing Counsel for the State / appellants.Mr. Hari Mohan Bhatia, Advocate for respondent Nos. 1 to 7.Mr. Rajesh Joshi, Advocate for respondent No.8.There has been considerable delay in preferring the appeal. An application for condonation of delay in preferring the appeal has been filed. The reason for preferring the appeal is that the judgment under appeal was passed following a judgment passed in connection with another writ petition. That judgment was appealed against and the Appellate Court has altered the said judgment. That appears to be the reason for preferring the present appeal.We, accordingly, find sufficient reason for the delay in preferring the appeal. We, accordingly, allow the application for condonation of delay in preferring the appeal, to which a formal objection has been filed.The appeal is admitted.Let the appeal be listed on 27th November, 2012. By that time, the State will file an affidavit indicating the position of the respondents / writ petitioners in the altered merit list prepared pursuant to the decision of the Division Bench dated 19th July, 2012.(U.C. Dhyani, J.) (Barin Ghosh, C.J.) 06.10.2012 P. SinghSPA No. 275 of 2012With CLMA (Delay Condonation Application) No. 9186 of 2012 CLMA (Stay Application) No. 9187 of 2012 Hon'ble Barin Ghosh, C.J.Hon'ble U.C. Dhyani, J.Mr. Vinay Kumar, Standing Counsel for the State / appellants.Mr. Hari Mohan Bhatia, Advocate for respondent Nos. 1 and 2.Mr. Rajesh Joshi, Advocate for respondent No.3.There has been considerable delay in preferring the appeal. An application for condonation of delay in preferring the appeal has been filed. The reason for preferring the appeal is that the judgment under appeal was passed following a judgment passed in connection with another writ petition. That judgment was appealed against and the Appellate Court has altered the said judgment. That appears to be the reason for preferring the present appeal.We, accordingly, find sufficient reason for the delay in preferring the appeal. We, accordingly, allow the application for condonation of delay in preferring the appeal, to which a formal objection has been filed.The appeal is admitted.Let the appeal be listed on 27th November, 2012. By that time, the State will file an affidavit indicating the position of the respondents / writ petitioners in the altered merit list prepared pursuant to the decision of the Division Bench dated 19th July, 2012.(U.C. Dhyani, J.) (Barin Ghosh, C.J.) 06.10.2012 P. SinghSPA No. 278 of 2012With CLMA (Delay Condonation Application) No. 9207 of 2012 CLMA (Stay Application) No. 9208 of 2012 Hon'ble Barin Ghosh, C.J.Hon'ble U.C. Dhyani, J.Mr. Vinay Kumar, Standing Counsel for the State / appellants.Mr. Hari Mohan Bhatia, Advocate for respondent No. 1.Mr. Rajesh Joshi, Advocate for respondent No.2.There has been considerable delay in preferring the appeal. An application for condonation of delay in preferring the appeal has been filed. The reason for preferring the appeal is that the judgment under appeal was passed following a judgment passed in connection with another writ petition. That judgment was appealed against and the Appellate Court has altered the said judgment. That appears to be the reason for preferring the present appeal.We, accordingly, find sufficient reason for the delay in preferring the appeal. We, accordingly, allow the application for condonation of delay in preferring the appeal, to which a formal objection has been filed.The appeal is admitted.Let the appeal be listed on 27th November, 2012. By that time, the State will file an affidavit indicating the position of the respondents / writ petitioners in the altered merit list prepared pursuant to the decision of the Division Bench dated 19th July, 2012.(U.C. Dhyani, J.) (Barin Ghosh, C.J.) 06.10.2012 P. SinghSPA No. 279 of 2012With CLMA (Delay Condonation Application) No. 9214 of 2012 CLMA (Stay Application) No. 9215 of 2012 Hon'ble Barin Ghosh, C.J.Hon'ble U.C. Dhyani, J.Mr. Vinay Kumar, Standing Counsel for the State / appellants.Mr. Hari Mohan Bhatia, Advocate for respondent Nos. 1 to 3.Mr. Rajesh Joshi, Advocate for respondent No.4.There has been considerable delay in preferring the appeal. An application for condonation of delay in preferring the appeal has been filed. The reason for preferring the appeal is that the judgment under appeal was passed following a judgment passed in connection with another writ petition. That judgment was appealed against and the Appellate Court has altered the said judgment. That appears to be the reason for preferring the present appeal.We, accordingly, find sufficient reason for the delay in preferring the appeal. We, accordingly, allow the application for condonation of delay in preferring the appeal, to which a formal objection has been filed.The appeal is admitted.Let the appeal be listed on 27th November, 2012. By that time, the State will file an affidavit indicating the position of the respondents / writ petitioners in the altered merit list prepared pursuant to the decision of the Division Bench dated 19th July, 2012.(U.C. Dhyani, J.) (Barin Ghosh, C.J.) 06.10.2012 P. Singh
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State Consumer Disputes Redressal CommissionN.Venkat Rao Son Of Tatabbai Aged About ... vs M.M.R. Realestates And Resort Pvt. ... on 5 June, 2017Cause Title/Judgement-Entry STATE CONSUMER DISPUTES REDRESSAL FORUM Telangana   First Appeal No. A/570/2014 (Arisen out of Order Dated 27/06/2014 in Case No. CC/01/2014 of District Rangareddi)   1. N.Venkat Rao son of Tatabbai Aged about 50 Years, R.o. H.No.12.13.645, Flat No.302, Creative Manners, Nagarajuna Nagar, Tarnaka, Hyderabad 17 ...........Appellant(s) Versus 1. M.M.R. Realestates and Resort Pvt. Ltd., O.o. C.146, SBH Road, Beside Gulkul Nivas, 159 Near Ganesh Temple Vasanthalipuram, Hyderabad 70 Rep. by its Muthyala Bal Reddy Son of Chandra Reddy ...........Respondent(s)   BEFORE:     HON'BLE MR. JUSTICE B. N. RAO NALLA PRESIDENT   HON'BLE MR. Sri. PATIL VITHAL RAO JUDICIAL MEMBER   For the Appellant: For the Respondent: Dated : 05 Jun 2017 Final Order / Judgement BEFORE TELANGANA STATE CONSUMER DISPUTES REDRESSAL COMMISSION: AT HYDERABAD   F.A.No. 570 OF 2014 AGAINST C.C.NO.01 OF 2014 DISTRICT CONSUMER FORUM RANGA REDDY     Between N.Venkat Rao S/o Tatabbai Aged about 50 years, R/o H.No.12-13-645, Flat No.302, Creative Manners, Nagarjuna Nagar Tarnaka, Hyderabad-17                                                                    Appellant/complainant                             A N D   MMR Real Estates & Resort Pvt Ltd., O/c C-146, SBH, Road, Beside Gulkul Nivas 159, Near Ganesh Temple, Vanasthalipuram Hyderabad-70, rep. by its Muthyala Bal Reddy S/o Chandra Reddy                                                                      Respondent/opposite party   Counsel for the Appellant                  Sri Nerusu Srinivasa Rao Counsel for the Respondent              Sri  C.Ramanjaneyulu   QUORUM             : HON'BLE SRI JUSTICE B.N.RAO, PRESIDENT & SRI PATIL VITHAL RAO, MEMBERMONDAY THE FIFTH DAY OF JUNE TWO THOUSAND SEVENTEEN     Oral Order : (per Hon'ble Sri Justice B.N.Rao Nalla, Hon'ble President) ***             This is an appeal filed by the complainant aggrieved by the orders of District Consumer Forum, Ranga Reddy,  dated 27.06.2014 made in CC No.01 of 2014  in  dismissing the complaint.2.                For the sake of convenience, the parties are referred to as arrayed in the complaint.3.               The case of the complainant, in brief, is that the Complainant  purchased a plot admeasuring 218 sq.yds in Saidhamam Venture at Deshmukhi Village of Nalgonda and paid an amount of Rs.1,25,000/-.  The opposite party executed a sale deed on 09.8.01.2004 in favour of the complainant.  While so, the complainant applied for construction of house in the said plot but the officials rejected his application on the ground that the layout was unauthorized.  The bank has also refused to sanction housing loan to the complainant for the same reason.  The complainant through a letter dated 08.05.2013 requested the opposite party for refund   the amount.  The opposite party agreed to pay Rs.3,00,000/- and in the first instance it paid Rs.50,000/- in cash and for the remaining balance amount it issued two postdated cheques of Rs.1,00,000/- each and the remaining balance of Rs.50,000/- would be paid at the time of cancellation of sale deed.  However, when the complainant submitted the cheques in the bank, they were bounced due to insufficient of funds.  Hence, the complaint with the prayer to direct the opposite party to pay Rs.2,50,000/- together with interest @ 24% per annum along with compensation of Rs.80,000/- and costs of Rs.20,000/-.4.                Opposite party resisted the case contending that the District Forum has no territorial jurisdiction to entertain the complaint.  The complainant was aware that the layout was approved by Grampanchayat and had purchased a plot at a very low price of Rs.75,000/- in 2004 and not Rs.1,25,000/- as claimed.  Complainant tried to construct the house after 9 years and was creating problems without consulting proper authority.  Granting of housing loan depends upon the personal earning capacity of the applicant.  Opposite party had never agreed to pay Rs.3,00,000/- and no letter was executed to that effect.  As complainant requested opposite party to purchase back the property due to his personal financial crises the opposite party agreed to pay Rs.1,50,000/- which was double the original price.  An amount of Rs.50,000/- was paid in case and two blank cheques were given with instructions to write Rs.50,000/- on each cheque.  But the complainant presented the cheques by writing as Rs.1,00,000/- with malafide intention and also did not turn up to execute the sale deed.  Hence, it prayed for dismissal of the complaint.5.               During the course of enquiry before the District Forum, in order to prove his case, the Complainant   filed his evidence affidavit and got Exs.A1 to A8 marked while on behalf of the opposite party,  the Managing Director  filed his evidence affidavit and got Ex.B1 marked.6.              The District Forum after considering the material available on record, dismissed the complainant as not maintainable before the Consumer Fora.7.                Aggrieved by the said decision, the complainant preferred the appeal contending that the Dist. Forum did not appreciate the facts in correct perspective.    The complainant contended that the District Forum failed to observe that Ex.A2 payment voucher and Ex.A5 agreement (undertaking) by the opposite party.    Opposite party by misrepresenting that the layout was approved by DTCP sold the plot the complainant which is a consumer dispute.  Hence, he prayed to set aside the orders of the District Forum and allow the appeal.8.                The point that arises for consideration is whether the impugned orders as passed by the District Forum suffer from any error or irregularity or whether they are liable to be set aside, modified or interfered with, in any manner?  To what relief ?9.                While considering the pleading of the complainant and the opposite party   and their contentions it is not in dispute that the complainant was purchased a plot in admeasuring 218 sq.ayds in Saidhamam Venture at Deshmukhi Village of Nalgonda.  It is also not in dispute that the opposite party executed a registered sale deed dated 08.01.2004 in favour of the complainant.   It is disputed by the opposite party regarding payment made by the complainant towards purchase of the plot at Rs.1,25,000/-.  The contention of the opposite party is that the complainant paid Rs.75,000/-only towards the cost of the plot.       The contention of the complainant is that  as he intend to construct a house on the said plot an application was made to the officials and also for the housing loan but they rejected the same on the ground that the layout of unauthorized.10.              Now we see that whether the complainant has   locus standi to seek the remedy before the Consumer Forum or he has to move for specific relief   before the Civil Court.11.               It is the case of the complainant that after registration of plot on 08.01.2004 after 9 years, he intend to construct a house on the said plot, made an application before the competent authority and to the Bank for obtaining housing loan but the said authority and Bank rejected his application on the ground that the layout was unauthorized.  Then the complainant requested the opposite party vide letter dated 08.05.2013 to refund the amount paid by him.  The opposite party agreed to pay Rs.3,00,000/- and paid an amount of Rs.50,000/- towards advance in cash and gave two cheques for Rs.1,00,000/- each.  The remaining balance amount would be paid at the time of cancellation of sale deed.  The complainant when submitted the cheques bounced with  the reason of insufficient funds.  The transaction that took place between the complainant and the opposite party relates to immoveable property and thereby it is clearly proved that this matter relates to the immovable property for which the complainant ought to have approached the Civil Court for proper reliefs and   there was no sale of goods for consideration and the Consumer Forum has no jurisdiction in this regard.12.              As per the details of the complaint, firstly, the opposite party misrepresented that the layout approved by DTCP secondly the cheques that were issued by the opposite party were bounced due to insufficient funds. If the cheques were bounced the remedy to the complainant is not before the Consumer Forum it attractsNI Actwhich he ought to have sought relief before competent court but not consumer Forum.  Because the transaction that took place between the complainant and the opposite party is not relates to the consumer Dispute.    There was no element of service at all as per the definition for service underSec.2(1) (o)where the transaction regarding the immovable property i.e. outright sale is not covered even though housing construction has been included by 1993 amendment and accordingly for the definition for Consumer underSec.2(1)(d)(ii)of the Consumer Protection Act. The irresistible conclusion should be that the complainant is not a consumer and thereby we are not concerned whether the layout was approved by DTCP or Grampanchayat or the cheques were bounced due to insufficient funds which are all subject matter of Civil/Criminal  Courts   not the consumer Forum which can be seen even from the observation of the Apex Court in UTI, Chandigarh Administration Case (II 2009 CPJ 1 (SC)where Their Lordship have observed  "A Consumer Forum will have jurisdiction only when: (i) the complainant is a Consumer as defined in Clause  (d) or a person specified in Clause (b) ofSection 2of the Act; (ii) the respondent is a trader as defined in Clause (q) or a provider of service as defined in Clause (o) ofSection 2of the Act; and (iii) the complaint relates to any of the matters specified in Clause (c) ofSection 2, for obtaining any relief provided by order under the Act. It therefore follows that where the complainant is not a consumer (or a person specified in Clause (b) ofSection 2) or where the respondent is not a trader or service provider or where the complaint does not relate to matters enumerated in Clause (c) ofSection 2of the Act, the Consumer Forum will have no jurisdiction either to entertain any complaint or grant any relief under the Act. The National Commission also had an opportunity to consider this kind of case, wherein it is held that the dispute raised if related to immovable property of the price chargeable was for the property, there could be no consumer dispute since there was no sale of goods or any hiring of service for consideration.   For the above reasons, as rightly stated by the District Forum,   the complainant is not a consumer and there was no service undertaking or contract between the parties.   The finding recorded by the District Forum is just and proper and does not call for any interference by this Commission.  Hence, the point framed at para No.8, supra, is answered accordingly against the appellant/complainant.In the result the appeal is dismissed confirming the orders of the District Forum.  There shall be no order as to costs.  It is left open to the complainant to approach necessary Legal Forum relating to the complaint if so desired.PRESIDENT                                  MEMBER Dated:05.06.2017         [HON'BLE MR. JUSTICE B. N. RAO NALLA] PRESIDENT   [HON'BLE MR. Sri. PATIL VITHAL RAO] JUDICIAL MEMBER
163bc532-e905-51be-b2c1-10cc213c21a6
court_cases
Lok Sabha DebatesRegarding Status Of Implementation Of Recommendations In The 2 Ndreport Of ... on 6 May, 2005Title: Regarding status of implementation of recommendations in the 2ndReport of Standing Committee on Rural Development.१२.०६ hrsग्रामीण विकास मंत्री(डॉ. रघुवंश प्रसाद सिंह) : माननीय लोक सभा अध्यक्ष के निर्देश ७३क, जिसे दिनांक १ सितम्बर, २००४ के लोक सभा बुलेटिन भाग-॥ के द्वारा जारी किया गया था, के अनुसरण में ग्रामीण विकास संबंधी स्थायी समति (2004-05) के दूसरे प्रतिवेदन में नहित सिफारिशों के कार्यान्वयन की स्थिति के संबंध में मैं एक वक्तव्य* दे रहा हूं।ग्रामीण विकास संबंधी स्थायी समति ने वित्तीय वर्ष २००४-०५ के लिए भूमि संसाधन विभाग की अनुदानों की मांगों की जांच की है और इस संबंध में अपना दूसरा प्रतिवेदन लोक सभा में १८ अगस्त, २००४ को प्रस्तुत किया। इस प्रतिवेदन में ४१ सिफारिशें शामिल हैं। विभाग ने इस प्रतिवेदन पर कार्रवाई की है और गई कार्रवाई रिपोर्ट समति को भेजी जा चुकी है। समति ने इस रिपोर्ट की जांच की है और दूसरे प्रतिवेदन में नहित सिफारिशों पर सरकार द्वारा की गयी कार्रवाई की रिपोर्ट के संबंध में पांचवां प्रतिवेदन प्रस्तुत किया है। समति ३४ सिफारिशों के संबंध में की गयी कार्रवाई से संतुष्ट है। इनमें से दो सिफारिशों के बारे में समति ने सरकार के उत्तरों को देखते हुए आगे कार्रवाई किए जाने की इच्छा प्रकट नहीं की है। शेष पांच सिफारिशों के बारे में समति ने अपने विचारों से अवगत कराया है और सरकार इन पर आगे कार्रवाई कर रही है।भूमि संसाधन विभाग तीन क्षेत्र विकास कार्यक्रमों, नामत: समेकित बंजरभूमि विकास कार्यक्रम (आई०डब्ल्यू०डी०पी०) सूखा प्रवण क्षेत्र कार्यक्रम (डी.पी.ए.पी.) तथा मरूभूमि विकास कार्यक्रम (डी०डी०पी०) को कार्यान्वित करता है। इन सभी तीनों कार्यक्रमों को १.४.१९९५ से वाटरशेड विकास संबंधी समान मार्गदर्शी सिद्धान्तों के उपबंधों के अनुसार कार्यान्वित किया जा रहा है। वाटरशेड विकास कार्यक्रमों के कार्यान्वयन में पंचायती राज संस्थाओं को प्रशासनिक तौर पर तथा वित्तीय रूप से अधिकार सम्पन्न बनाने की द्ृष्टि से हरियाली नाम से एक नया कार्यक्रम शुरू किया गया था। इस पहल के अंतर्गत इन तीनों चल रहे कार्यक्रमों को पंचायती राज संस्थाओं के जरिए कार्यान्वित किया जा रहा है। विभाग के १२६१ करोड़ रूपये के कुल बजट में से ८८३ करोड रूपये अर्थात ७० प्रतिशत राशि को इन तीन क्षेत्र *(Also Placed in Library, See No. LT - 2121/2005) विकास कार्यक्रम के लिए आबंटित किया गया है। वर्ष २००४-०५ के दौरान सूखा प्रवण क्षेत्र कार्यक्रम तथा मरुभूमि विकास कार्यक्रम के मामले में १०० प्रतिशत वित्तीय लक्ष्य को तथा समेकित बंजरभूमि विकास कार्यक्रम के मामले में ९१ प्रतिशत वित्तीय लक्ष्य को प्राप्त किया गया था। समेकित बंजरभूमि विकास कार्यक्रम के मामले में कमी पूर्वोत्तर क्षेत्र में कम व्यय किए जाने के कारण थी।भूमि अभिलेखों के कम्प्यूटरीकरण के बारे में शत प्रतिशत केन्द्र प्रयोजित योजना भूमि अभिलेखों को रखने तथा अद्यतन करने की मैनुअल प्रणाली में नहित कठिनाइयों को दूर करने तथा वभिन्न प्रयोक्ता समूहों की आवश्यकताओं को पूरा करने के लिए कार्यान्वित की जा रही है। इस योजना के लिए ५० करोड़ रूपये का परिव्यय रखा गया था। वर्ष २००४-०५ के दौरान इस योजना के अंतर्गत ९१ प्रतिशत वित्तीय उपलब्धि रही है। कर्नाटक, गोवा, पश्चिम बंगाल, मध्य प्रदेश, तमिलनाडु, गुजरात, राजस्थान, महाराष्ट्र, उत्तर प्रदेश, हरियाणा तथा उड़ीसा जैसे राज्यों ने इस योजना के अंतर्गत अच्छा कार्य किया है।भूमि अभिलेखों को अद्यतन करने के कार्य में राज्यों/संघ राज्य क्षेत्रों की सहायता करने की द्ृष्टि से राजस्व प्रशासन को सुद्ृढ़ बनाने तथा भूमि अभिलेखों को अद्यतन करने (एस०आर०ए० एण्ड यू०एल०आर०) के लिए एक केन्द्र द्वारा प्रयोजित योजना भी चल रही है। इसे केन्द्र तथा राज्यों द्वारा ५०:५० के आधार पर वित्तपोषित किया जाता है, तथापि संघ राज्य क्षेत्रों को पूर्ण केन्द्रीय सहायता मुहैया करायी जाती है। वर्ष २००४-०५ के दौरान इस योजना के अंतर्गत ९८ प्रतिशत की वित्तीय उपलब्धि रही है।समति ने यह नोट किया है कि केन्द्र तथा राज्यों के बीच ५०:५० के मौजूदा वित्तपोषण अनुपात को 75:25 के अनुपात में तथा पूर्वोत्तर राज्यों के लिए ९०:१० के अनुपात में संशोधित करने के संबंध में सरकार का एक प्रस्ताव था। समति ने यह भी देखा है कि योजना आयोग उक्त प्रस्ताव से सहमत नहीं था। समति की सिफारिशों को ध्यान में रखते हुए राजस्व प्रशासन को सुद्ृढ़ बनाने तथा भूमि अभिलेखों को अद्यतन करने की योजना के अंतर्गत केन्द्र तथा राज्यों के बीच वित्तीय पद्वति को ५०:५० से बढ़ाकर ७५:२५ करने तथा पूर्वोत्तर राज्यों के लिए 90:10 करने के लिए विभाग के प्रस्ताव पर योजना आयोग से पुन: विचार करने के लिए एक बार फिर अनुरोध किया गया है।स्थायी समति की मुख्य सिफारिशें निम्नानुसार हैं समति ने इस बात पर संतोष प्रकट किया है कि विभाग को दिए गए अतरिक्त दायित्वों को देखते हुए योजना आयोग/वित्त मंत्रालय ने विभाग के आबंटन में पर्याप्त रूप से वृद्धि की है। विभाग के लिए बढ़ाए गए आबंटन की प्रशंसा करते हुए समति ने इस बात पर जोर दिया कि विभाग की प्रत्येक योजना के लिए निर्धारित दुर्लभ संसाधनों का उचित और कारगर रूप से उपयोग किया जाये। सिफारिशों के महत्व को ध्यान में रखते हुए विभाग प्रत्येक योजना के लिए निर्धारित की गयी नधियों का कारगर उपयोग करने के लिए सभी प्रयास कर रहा है। पूर्वोत्तर राज्यों द्वारा नधियों के उपयोग को बढ़ाने के लिए भी सभी प्रयास किए जा रहे हैं।दसवीं योजना के लिए १५ मलियन हैक्टेयर का लक्ष्य रखा गया है। समति ने वित्त मंत्रालय तथा योजना आयोग को इस विभाग को पर्याप्त आबंटन उपलब्ध कराने के लिए राजी करते हुए जोरदार सिफारिश की है, ताकि दसवीं योजना के दौरान यह विभाग निर्धारित किए गए लक्ष्यों को प्राप्त करने में सक्षम हो सके।समति ने यह देखा है कि वाटरशेड परियोजनाओं की मूल्यांकन रिपोर्टों से ईंधन, चारे की उपलब्धता तथा वानस्पतिक आच्छादन में वृद्धि होने और इसके अलावा मजदूरी रोजगार के अवसरों में वृद्धि होने के रूप में सकारात्मक प्रभाव पड़ने का पता चलता है। अध्ययनों से यह भी पता चला है कि वाटरशेड परियोजनाओं के कार्यान्वयन में ६० प्रतिशत व्यय से मजदूरी रोजगार अवसर उपलब्ध होते हैं। समति ने यह भी पाया है कि संयुक्त प्रगतिशील गठबंधन यू०पी०ए० सरकार के न्यूनतम साझा कार्यक्रम के अनुसार परिवार के लिए जीविकोपार्जन करने वाले प्रत्येक व्यक्ति के लिए १०० दिनों की मजदूरी रोजगार का आश्वासन दिया गया है। समति ने उपरोक्त स्थिति से यह निष्कर्ष निकाला है कि बंजरभूमि विकास एक ऐसा विकल्प है, जिससे समाज के गरीब वर्ग को मजदूरी रोजगार उपलब्ध होता है।समति की सिफारिशें कार्य निष्पादन तंत्र की कार्यकुशलता तथा कार्यक्रमों की गुणवत्ता में सुधार लाने के लिए बहुत उपयोगी हैं। सरकार इन सिफारिशों से सहमत है तथा परियोजनाओं को भागीदारी पद्वति के साथ तथा राज्य सरकारों के सहयोग से कारगर रूप से कार्यान्वित करने के लिए सभी प्रयास कर रही है। तथापि, यह भी उल्लेख किया जाता है कि विभाग द्वारा कार्यान्वित किए जा रहे सभी कार्यक्रम राज्यों के विषय हैं और तदनुसार इन कार्यक्रमों के प्रभावी कार्यान्वयन के लिए राज्य सरकारों का पूर्ण सहयोग प्राप्त करने के लिए मंत्रालय द्वारा सभी प्रयास किए जाते हैं।____________
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court_cases
Jharkhand High CourtPrem Chand Gupta vs State Of Jharkhand on 10 May, 2012Author:Jaya RoyBench:Jaya RoyIN THE HIGH COURT OF JHARKHAND AT RANCHI A.B.A. No. 3275 of 2011 Prem Chand Gupta ... ... ... Petitioner                                   Versus 1. The State of Jharkhand 2. Sushma Gupta @ Ruby Kumari  ... ... ...      Opp. Parties    ­­­­­­­­­­­ CORAM : HON'BLE MRS. JUSTICE JAYA ROY     For the Petitioner : Mr. A.K. Das, Advocate For the State : A.P.P. For the O.P. No.2  : Mr. Prabir Chatterjee, Advocate   ­­­­­­­­­­­ 05/10.05.2012Heard     counsel     appearing   for   the   petitioner   and     counsel  appearing for the State.Petitioner is  apprehending  his  arrest   in connection with the  case registered underSection 498Aof the Indian Penal Code andSections  3/4of Dowry Prohibition Act.Counsel   appearing   for   the   petitioner,   Mr.   A.K.   Das   has  submitted that the entire allegation made against the petitioner is false and  concocted. It is further submitted  that the  petitioner  is  ready to keep the  complainant with him with full dignity and he has filed Matrimonial Suit i.e.  Title Matrimonial Suit No. 71 of 2010 underSection 9of Hindu Marriage Act  for   restitution   of   conjugal   right.   It   is   further   submitted   that   as   both   the  parties agreed to settle their dispute, this Court has referred this matter to  the   Conciliator   for   conciliation   proceeding   but   after   having   number   of  sittings before the Conciliator for amicable settlement of the disputes of the  parties, parties could not arrive at mutually, acceptable, amicable resolution  of the dispute, consequently the conciliation proceeding failed.Counsel   appearing   for   the   opposite   party   no.2   has   submitted  that as because petitioner tortured and assaulted the opposite party no.2 in  such a way, she is not ready to stay with her husband. It is also submitted  that  there  is  specific   allegation  regarding  assault and also of  beating and  ultimately driven her out from her matrimonial home.Considering the submissions made by both the parties and as  there is specific allegation of torture against the petitioner, who is husband  of   the   complainant­opposite   party   no.2,   I   am   not   inclined   to   grant  anticipatory bail to the petitioner. Accordingly, the prayer for anticipatory  bail of the petitioner stands rejected.(Jaya Roy, J.) Anit
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court_cases
Gujarat High CourtDinubhai Boghabhai Solanki ­ vs State Of Gujarat & 1 ­ on 18 October, 2012Author:Rajesh H.ShuklaBench:Rajesh H.ShuklaSCR.A/2992/2012 1/1 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CRIMINAL APPLICATION No. 2992 of 2012 =======================================================  DINUBHAI BOGHABHAI SOLANKI ­ Applicant(s) Versus STATE OF GUJARAT & 1 ­ Respondent(s) =======================================================  Appearance : MR AY KOGJE for Applicant(s) : 1, MS AC RAVAL APP for Respondent(s) : 1, None for Respondent(s) : 2, =======================================================  CORAM :  HONOURABLE MR.JUSTICE RAJESH H.SHUKLA Date : 18/10/2012 ORAL ORDERnd  Notice  to   the   respondents   returnable   on  2     November, 2012. Learned APP Mr.H.L. Jani waives service  of notice for respondent no.1­State of Gujarat.(RAJESH H.SHUKLA, J.) /patil HC-NIC Page 1 of 1 Created On Tue Apr 12 02:05:54 IST 2016
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court_cases
Calcutta High Court (Appellete Side)6874/2012 on 14 May, 2012Author:Tapen SenBench:Tapen Sen1 14/05/2012ARDR CRM 6874 of 2012 In Re : Bipad Ghosh @ Huna Ghosh.Re : An application under Section 438 of the Cr. P.C. filed on 23/4/2012, in connection with Dhubulia Police Station Case no. 18/2011 dated 16/1/2011 underSections 341/326/307/379/34of the Indian Penal Code; Mr. Mala Banerjee, ...for the Petitioner.Mr. Ayan Basu, ... for the State.Having heard the submissions of the learned advocate for the petitioner and the learned advocate for the State, and having perused the materials produced before us in the case diary, we are of the considered view that it is a fit case for granting the petitioner an order underSection 438of the Code of Criminal Procedure.Accordingly, we direct that in the event of arrest, the petitioner shall be released on bail upon furnishing a Bond of Rs.10,000/- (Rupees Ten Thousand) with two sureties of the like amount each to the satisfaction of the arresting authority and also, subject to the terms and conditions as laid down underSection 438 (2)of the Code of Criminal Procedure, 1973, with a further condition that the Petitioner shall mark attendance before the concerned Police Station once every fortnight and shall not leave station without prior permission of the learned Trial Court who shall be free to impose such condition or conditions as he may deem fit and proper in the event he is of the opinion that such permission should be granted.This application is, thus, disposed of.(Tapen Sen, J. ) (Dipak Saha Ray, J.)
af40e0ac-2dbb-5e2c-8f65-047a05e6a5e2
court_cases
Jammu & Kashmir High Court - Srinagar BenchIlyas Ali vs State And Ors on 10 December, 2009IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR Swp no. 1566 of 2002 Ilyas Ali Petitioners State and ors Respondents !Mr. Iqbal Dar, Advocate ^Mr. N. H, Advocate Honble Mr. Justice Muzaffar Hussain Attar, Judge Date: 10/12/2009 :J U D G M E N T:Order No. 274 of 2002 dated 14.08.2002, is called in question, in this petition.Petitioner was selected and appointed as constable in J&K Police Department in District Police (Executive) Kargil in special on spot recruitment drive on 28th August 2000 along with many other candidates vide PHQ selection letter No. Onspot/34191-93 dated 01.09.2000. The formal appointment order could not be issued in favour of the petitioner as he was found to be over age. Matter was taken up with the competent authority and sanction was accorded for relaxation of upper age limit by two years seven months and twenty five days in favour of petitioner as on 1st Jan. 2000. The petitioner was, accordingly, appointed as constable in the pay scale of 2750-70-3800-75-4400 vide order dated 22nd March 2001. The petitioner was deputed to Police Training School (PTS) Manigam to undergo nine months Basic Recruitment Training Course (BRTC) and was accordingly relieved from the office of the Superintendent of Police District Kargil on 29th March 2001. The petitioner was reverted back to Kargil for his unauthorized absence from duty from 26th April 2001 by Pr. PTS Manigam vide order dated 15th May 2001. The petitioner/constable reported in the District Police Lines (DPL) Kargil on 18th June 2001 after unauthorized absence of fifty three days. The petitioner was allowed to join PDL Kargil to facilitate conducting of the departmental enquiry. The petitioner again absented himself on the dates shown below:1.04.08.2001 to 07.08.2001 2.08.08.2001 to 15.08.2001 3.28.08.2001 to 10.09.2001 4.06.10.2001 to 23.11.2001 5.25.11.2001 to till date Notice was issued to petitioner informing him to resume his duties and to facilitate conducting of the enquiry. The enquiry, however, could not be conducted and concluded. It appears, the enquiry has not been conducted because of unauthorized absence of the petitioner from duty.After considering all these aspects in the matter the petitioners probation was ordered to be terminated in accordance with the mandate of Rules of 187 of Jammu and Kashmir Police Rules, 1960, ( for short rules of 1960), It is this order which is called in question in this petition.On notice, respondents have filed reply affidavit/objections in which the factual details given in the impugned order have been reiterated and it is said that the order impugned in this petition is legal and valid.Heard ld counsel for parties. Considered the matter.Ld. counsel for the petitioner submitted, that the petitioner fell ill at Srinagar when he was reverted back to parent district but he could not immediately reach there as the road was closed. The ld counsel further submitted that petitioner did not deliberately or intentionally absented from his duty. It is further submitted that after reporting back to DPL Kargil he again fell ill and did not absent himself from duties deliberately.Ld counsel also referred to and relied upon the judgment of Supreme Court reported in AIR 1964 SC 443, 2000(2) Supreme 259 and judgment of this court reported in 2005 (SLJ) 375, and submitted that the impugned order has stigmized the petitioner and it is not the order of discharge simplicitor. It is further submitted by ld counsel for petitioner that as no enquiry has been conducted and no opportunity of hearing was granted to the petitioner, the order is rendered illegal.Mr. N. H. Shah, Dy AG, appearing for the respondents invited the attention of the court to Rule 187 of the of the Rules of 1960, and submitted that in view of the fact situation obtaining in this case, there was no option but to terminate the probation of petitioner and discharge him from service as he was not likely to prove a good police official. Ld counsel further submitted, that there was no requirement of putting petitioner on notice and conducting of an enquiry as the order impugned in the writ petition is the order of discharge simplicitor and has not stigmized the petitioner. Ld counsel, accordingly, prayed for dismissal of the petition.True, it is, that a person who seeks appointment in the police organization, the organization which is charged with the duty of maintaining law and order, dealing with the crime and protecting the life and liberty of citizens of the State, has to prove a good official/officer while being put on probation after his appointment. A person who is appointed in the police force cannot be permitted to play pranks with his duties. If police officer/official while being on probation, is found not fit to prove a good police officer on the basis of his performance which precedes the passing of the discharge order, the competent authority has power to terminate the probation and discharge the official/officer from his services, in accordance with mandate of Rule 187 of the Rules of 1960. Rule 187 of the Rules of 1960, is reproduced as under:-Discharge of inefficient.A constable who is found unlikely to prove an efficient police officer may be discharged by the Superintendent at any time within three years of enrolment. Perusal of the rule reveals that a constable when found unlikely to prove an efficient police official may be discharge by the Superintendent at any time within enrolment of three years. The said power is a drastic power which has the potential of throwing out the police constable from the services without conducting enquiry. This rule, thus, requires to be construed strictly, lest it is misused by the authorities. The more absolute power conferred by rule on authority, the more serious duty is cast on the said authority to be more responsible in dealing with the official in accordance with the said rule. The rule casts serious duty for exercise of power with utmost care and caution as the said rule has the potential of depriving a police constable of his services without conducting an enquiry. A government servant has constitutional protections available to him as enshrined inArticle 311of Constitution of India read with Section 126 of Constitution of Jammu and Kashmir. A person appointed to services in terms of the relevant rules is put on probation so as to adjudge his capacities and to find out whether he is likely to prove an efficient official. The probationer unless his probation is confirmed does not become member of the services and it is how the protections guaranteed underArticle 311of the Constitution of India read with Section 126 of Constitution of Jammu and Kashmir may not be available to the probationer. However, when a probationer is discharged from services and the foundation for such discharge, is, his, alleged misconduct or any act, which would have potential of stigmizing the said officer, in such circumstances the order of discharge from services will not be an order discharge from services simplicitor but would be punitive in nature and consequences would be dismissal of official from services. In such cases, what becomes necessary to ascertain is as to whether, the order of discharge is really an order of discharge simplicitor or the foundation thereof has been the alleged misconduct of the official The petitioner was selected as constable in an on spot recruitment drive. In order to appoint him in police service government accorded sanction for relaxation of upper age limit in his case. The petitioner was ordered to under go nine months BRTC course at PTS Manigam. After joining the PTS Manigam, the petitioner absented and was reverted back to DPL Kargil where he reported on 18th June 2001. The impugned order reveals that the petitioner was allowed to join in DPL Kargil for facing departmental enquiry. The period of his unauthorized absence from services has also been listed in the impugned order. The Superintendent Police District Kargil after giving all the details about the conduct of petitioner in the impugned order recorded a finding, the relevant part of which is reproduced as under :-.On the above grounds it can be presumed that constable is not willing to serve in the police department and also he will not proven to be a responsible police personnel. The respondent No.4 in terms of Rule 187 was duty bound to record a finding that the petitioner was likely to prove inefficient police official. The respondent No.4 has after referring to the conduct of petitioner stated that it can be presumed constable is not willing to serve the department and will not to prove to be a responsible person.The basis for passing the impugned order, has thus, two limbs, one that petitioner is not willing to serve in the department, and second that he will not prove to be a responsible person. If an employee is stated to be not willing to serve the organization, this certainly will come in his way to secure employment some where else as has the effect of declaring him a non serious person, consequently stigmizing him, unless such a finding is recorded on the basis of enquiry conducted in accordance with law, declaring official not willing to serve the department cannot be said to an innocuous allegations leveled against official, such a finding can be recorded only by conducting the enquiry. Declaring an official not willing to serve the department certainly stigmizes the official as this casts a serious reflection on his whole personality and will have adverse effect to deprive the official to seek employment else where. When such a finding becomes basis for passing of order of discharge same does not remain an order of discharge simpliciter merely, but the order becomes punitive in nature. In terms of Rule 187 of Rules of 1960, the Superintendent has to record a finding that the official is unlikely to prove efficient police officer. No such finding is recorded in this case. What is stated, is that, he will not prove to be a responsible person. There is certainly difference between expression efficient and responsible. Petitioner may be inefficient in one service but he can prove efficient for other services, but when the order is passed on the ground that he will not prove to be a responsible person, it casts aspersions on official as he is declared irresponsible. Holding the petitioner to be not a responsible person has also stigmized him.The impugned order in these circumstances is held to stigmize the petitioner and is punitive in character, such order could not be passed unless after conducting enquiry and putting the petitioner on notice. Neither any enquiry has been conducted nor the petitioner has been put on notice For the above stated reasons this petition succeeds and is allowed. By issuance of writ of certiorari, impugned order No. 247 of 2002 dated 14.08.2002, is quashed.The quashment of the impugned order shall not prevent the respondents to initiate an enquiry against the petitioner, if so advised. The intervening period will be also decided by the authorities in accordance with the Rules of 1960.(Muzaffar Hussain Attar) Judge Srinagar 10.12.2009 Ayaz
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Madhya Pradesh High CourtGyan Prakash vs Shri P. Ramajayam Judgement Given By on 20 March, 2014Conc No.301/2011, W.P. Nos.7007/2006, 12203/2006, 8385/2008, Cont. No. 1055/2008, W.P. Nos. 1372/2009, 19578/2012, 2289/2013, 6631/2013 and 17886/2013 20.03.2014 Petitioner - Gyan Prakash appears in person in Conc. No.301/2011. Shri Aditya Sanghi, Advocate for petitioners in WP Nos.19578/2012 and 2289/2013 . Shri MPS Raghuvanshi, Additional Advocate General and Shri Samdarshi Tiwari, Government Advocate for respondent/State.Shri Mohan Sausarkar, Advocate for the respondents/ Union of India.Shri A. Zargar, Advocate for the respondent No.11 in W.P. No.12203/2006.Shri K.N.Pethia, Advocate for the respondent No.3 in W.P. No.2289/2013 and for respondent No.1 in W.P. No.19578/2012.Shri R.S. Jaiswal, Sr. Advocate with Shri A.S. Husain, Advocate for respondent No.14 in W.P. No.8385/2008 and for respondent No.1 in Cont. No.1055/2008.Shri Rajendra Tiwari, learned senior advocate as amicus curiae.These matters are de-linked as the issue involved is concerning overloading of vehicles plied on the National and State highways.These matters will be heard separately on 2nd April, 2014. Ordered accordingly.We invite attention of the respondents/contemnors to order dated 2.4.2013 and hope that appropriate response will be filed by them on or before 29th March, 2014.(A.M.Khanwilkar) (K.K.Trivedi) S/ Chief Justice Judge
2f43aa8b-17b8-5b71-96f0-bb78ad328d4e
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State Consumer Disputes Redressal CommissionSeema Sharma vs Oriental Insurance Company Limited on 26 November, 2013H.P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION, SHIMLA. First Appeal No.215/2013 Date of Presentation: 16.08.2013 Date of Decision: 26.11.2013 ................................................................................. Seema Sharma, W/o Sh. Harish Sharma, R/o C-47, Flat No.10, Vikas Nagar, Shimla-9, H.P. .......... Appellant Versus Oriental Insurance Company Limited, Mythe Estate, Kaithu, Shimla-3, H.P., Through its Divisional Manager. .......... Respondent .......................................................................................... Coram Hon'ble Mr. Justice (Retd.) Surjit Singh, President Hon'ble Mr. Chander Shekhar Sharma, Member Hon'ble Mrs. Prem Chauhan, Member Whether approved for reporting?1 For the Appellant: Mr. Peeyush Verma, Advocate For the Respondent: Mr. Deepak Bhasin, Advocate .......................................................................................... O R D E R:Justice (Retd.) Surjit Singh, President (Oral) Appellant has assailed the order dated 15.07.2013, of learned District Consumer Disputes Redressal Forum, Shimla, whereby her complaint, underSection 12of the Consumer Protection Act, 1986, has been dismissed, by means of the present appeal, underSection 15of the Consumer Protection Act, 1986.2. Appellant owned a transport vehicle, which was insured with the respondent for a sum of `1.40 lacs on the1Whether Reporters of the local papers may be allowed to see the order?Seema Sharma vs. Oriental Insurance Co. Ltd.(F.A. No.215/2013) ________________________________________________________ _____ basis of Insured Declared Value. During the validity of the insurance policy, vehicle met with an accident on 30.03.2008 and was completely damaged. Intimation of accident was given to the respondent. When the respondent did not settle the claim, appellant wrote to the Banking Ombudsman, who directed the respondent to settle the claim, observing that the respondent could even repudiate the claim because the person, who was driving the vehicle at the time of the accident, possessed two licences. Thereafter, the claim was repudiated by the respondent and, therefore, the appellant filed a complaint, underSection 12of the Consumer Protection Act, 1986, seeking issuance of a direction to the respondent to pay the insurance money with interest and also to pay compensation and costs.3. Complaint was contested by the respondent on the ground that Manoj Kumar, who was driving the vehicle at the relevant time and died in the accident, possessed two licences and that the licence, upon which reliance had been placed by the appellant, had been obtained in the year 2003, when Manoj Kumar was just sixteen years of age and hence, not even eligible to possess a licence.2Seema Sharma vs. Oriental Insurance Co. Ltd.(F.A. No.215/2013) ________________________________________________________ _____4. Learned District Forum, vide impugned order, has held that the licence, which authorised the driver of the vehicle to drive a transport vehicle, was issued in the year 2003, while year of birth of the driver was 1987 and, hence, the said licence was invalid. The second licence, which was obtained in the year 2007, did not authorize the driver to drive a transport vehicle. With this finding, the complaint has been dismissed.5. We have heard learned counsel for the parties and gone through the record.6. Licence, which was relied upon by the appellant to support her claim that the deceased driver was authorized to drive the transport vehicle, purports to have been issued by Licensing Authority, Motor Vehicle Department, Mathura. Copy of the licence is Annexure R-3. In this licence, date of birth of the licence holder is written as 12.10.85. Licence bears an endorsement made in May, 2006 that the holder was authorized to drive transport vehicle. The second licence, which has been produced by the respondent, is Ex OP1. This is issued by Registration & Licensing Authority (Rural), Shimla on 25.09.2007 and in this licence, date of birth of the licence holder is written as 12.10.1987. The particulars of the3Seema Sharma vs. Oriental Insurance Co. Ltd.(F.A. No.215/2013) ________________________________________________________ _____ person in Ex OP1 and Annexure R-3 are the same. Photographs also appear to be of the same person. Respondent also placed on record copy of Matriculation Examination Certificate of the licence holder, which is Ex OP2, per which the date of birth of the licence holder is 12.10.87.7. Undoubtedly, on the basis of the aforesaid documents, it can be said that the person, who was driving the vehicle at the relevant time, held two licences and his date of birth was 12.10.87 and not 12.10.85, as mentioned in licence, Annexure R-3, issued by Licensing Authority, Motor Vehicle Department, Mathura and relied upon by the appellant. This, however, does not mean that the appellant is guilty of breach of any condition of the policy, the reason being that the appellant had employed licence holder to drive the vehicle and the licence, which was shown to her, was Annexure R-3.8. Above stated position apart, endorsement authorizing the licence holder to drive transport vehicle was made on 17.05.2006, by which date the licence holder had become eligible (age-wise) to get a licence. Therefore, in our considered view, the man on wheel of the accidented4Seema Sharma vs. Oriental Insurance Co. Ltd.(F.A. No.215/2013) ________________________________________________________ _____ vehicle, at the relevant time, possessed a valid licence to drive a transport vehicle, at least in the bonafide belief of the appellant, which she can legitimately be presumed to have formed on the basis of licence, Annexure R-3.9. Learned counsel representing respondent submits that learned District Forum obtained a report from Mathura and as per that report, Annexure RX, licence bearing No. 2215/MTR/03, valid from 19.02.2003 to 18.02.2023, had been issued in favour of some Udai Singh, S/o Shri Tej Singh and not in the name of Manoj Kumar, S/o Virender Sharma, in whose name Annexure R-3 is issued. The report is issued by Assistant Departmental Transport Officer (Admn.), Mathura, while licence, Annexure R-3, purports to be issued by Licensing Authority, Motor Vehicle Department, Mathura. Thus, the report, Annexure RX, is irrelevant.10. As regards Annexure R-3, respondent itself got its validity verified by approaching one Loss Assessor by the name of Atul Misra. Said Atul Misra submitted a report given by Licensing Authority, Motor Vehicle Department, Mathura, per which the licence had been issued in the name of Manoj, S/o Virender Sharma. The particulars of the licence are the same as those mentioned in report, Annexure R-3.5Seema Sharma vs. Oriental Insurance Co. Ltd.(F.A. No.215/2013) ________________________________________________________ _____11. Plea that the driver of the vehicle was having two licences should also not come in the way of indemnification of the appellant. Appellant was not aware that the driver was holding two licences. Of course,Section 6of the Motor Vehicles Act prohibits the possession of more than one driving licence, but the appellant cannot be penalized for this unlawful act of the holder of licences, particularly when there is no evidence that she was aware of this fact.12. In view of the above stated position, we allow the appeal and set aside the impugned order passed by the learned District Forum, Shimla. Consequently, the complaint is allowed and the respondent is ordered to pay a sum of `1.25 lacs, with interest at the rate of 9% per annum, from the date of the complaint, to the date of payment of aforesaid amount of money, by way of insurance money.Instead of directing the respondent to pay `1.40 lacs, for which sum the vehicle was insured, we have passed the direction for payment of `1.25 lacs only because appellant gave a written consent to the surveyor that the amount of money would be acceptable to her and also for the reason that probably the consent was taken from the appellant with6Seema Sharma vs. Oriental Insurance Co. Ltd.(F.A. No.215/2013) ________________________________________________________ _____ the impression that the salvage was to be retained by her. Further, we direct the respondent to pay `10,000/- as compensation and `5,000/- on account of costs of litigation.13. A copy of this order be sent to each of the parties, free of cost, as per Rules.(Justice Surjit Singh) President (Chander Shekhar Sharma) Member (Prem Chauhan) Member November 26, 2013 DC Dhiman)7
1d0306f6-0791-5d54-affe-9e9e61ebd6af
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Customs, Excise and Gold Tribunal - CalcuttaIndian Oil Corporation vs Commissioner Of Central Excise on 9 July, 2003Equivalent citations: 2003(159)ELT933(TRI-KOLKATA)ORDER Archana Wadhwa, Member (J)1. After hearing Shri P.K. Das, ld. Advocate for the appellant and Shri A.K. Mondal, ld. SDR for the Revenue we take up the appeal itself with the consent of both the sides.2. The duty for the first time was made on the basis of the assessable value in respect of the appellants' products w.e.f. 1-3-1994. The dispute involved in the present appeal relates to the inclusion or exclusion of notional railway freight charges in the assessable value. As per the appellants they were showing the said notional railway freight charges in the invoices being issued by them, which invoices were also being supplied to the Revenue. However, no duty was being paid on the said notional railway freight paid under the impression that the same do not form a part of the assessable value.3. Shri P.K. Das, ld. Advocate submits that the period in the present case relates to 1-3-94 to 27-9-96 and the show cause notice has been issued on 11-2-99. He submits that the dispute about the inclusion of the said notional railway freight in the assessable value of the appellants' products was resolved by the Board by way of issuance of a circular dated 21-6-96 and thereafter the Ministry of Petroleum and Natural Gases issued another circular dated 28-9-96 directing the appellant to pay duty on the assessable value inclusive of such notional railway freight. Thereafter the appellants started paying duty.4. Shri Das does not dispute the duty demand on merits but submits that the entire demand is hopelessly barred by limitation. He submits that for the same period they were issued earlier a show cause notice on 18-3-97 which was adjudicated by the Deputy Commissioner on 2-9-98. In that show cause notice the demand of duty was raised for the period 1-3-94 to 7-1-97. While adjudicating, Deputy Commissioner observed that there was no suppression on the part of the assessee regarding the realisation of the charges from their depots and as such the extended period was not available and the duty can be confirmed only for a period of six months from the date of show cause notice. As per Shri Das the said order was not appealed against by the Revenue and was accepted. Thereafter surprisingly they received another show cause notice on 11-2-99 raising demand of duty on identical grounds for the same period, which was covered by the earlier order of the Deputy Commissioner. He submits that when this fact was brought to the notice of the Commissioner during the course of adjudication, he has observed in his impugned order that the dispute in that case was for different period and the entire demand was not dropped as time barred. However, we find that the above observations made by the Commissioner are not correct inasmuch as the dispute in his impugned order is for the period 1-3-94 to 27-9-96 whereas the dispute in the order of the Deputy Commissioner was for the period 1-3-94 to 7-1-97. As such it is seen that the entire disputed period present in the impugned order of the Commissioner was covered by the period in the order of the Deputy Commissioner. It is very unfortunate that the Commissioner instead of verifying the facts and appreciating the appellants' contention on the above point has lightly dismissed the same by giving an observation on wrong facts that the dispute was for a different period, in his anxiety to confirm the demand against the appellant. If the department was not happy with the order of the Deputy Commissioner dropping the demand as time barred, they were at liberty to challenge the same before the higher authorities instead of issuing another show cause notice after a long gap to them raising the demand on the same issue and in respect of the same period.5. In view of the foregoing we allow the stay petition unconditionally and set aside the impugned order with consequential relief to the appellants.
448691a4-8d74-5631-9191-9cbed06e05e3
court_cases
Central Information CommissionMr.R K Jain vs Ministry Of Personnel, Public ... on 21 December, 2012Central Information Commission, New Delhi File No.CIC/SM/A/2012/000784 & 786Right to Information Act­2005­Under Section  (19) Date of hearing : 21 December 2012 Date of decision : 21 December 2012 Name of the Appellant : Shri R K Jain, 1512­B, Bhishm Pitamah Marg, Wazir Nagar, New Delhi - 110 003. Name of the Public Authority   : CPIO, Department of Personnel and  Training, North Block, New Delhi. CPIO, Cabinet Secretariat, Rashtrapati Bhawan, New Delhi. The Appellant was present in person. On behalf of the Respondent, the following were present:­(i) Smt. Anuradha S. Chagti, Director, DoPT (ii) Shri R.K. Girdhar, US, DoPT (iii) Shri Rajesh, US, Cabinet Secretariat Chief Information Commissioner : Shri Satyananda Mishra2. Both   the   parties   were   present   during   the   hearing.   We   heard   their  submissions.CIC/SM/A/2012/000784 & 7863. The Appellant had filed two separate RTI applications. In one of these  applications, he had wanted the details of all the files in the possession of the  Department on the subject of Right to Information, appointment of the CIC and  Information   Commissioners,   sanction   of   staff   for   the   CIC   including   an  independent Pay and Accounts Officer, the amount of money collected in all  these years by way of RTI fees and penalty imposed and recovered. In the  other application,  he had requested for the copy of the order/notification by  which   the   Search   Committee   was   constituted   for   shortlisting   candidates  for  appointment as Information Commissioners in the  CIC. In this,  he had also  wanted to know about the next date of the meeting of the Search Committee. In  both   these  applications,  he   had  requested  for  permission  to   inspect  all   the  relevant files. In respect of his first application, the CPIO had offered the copies  of   the   correspondence   part   of   two   of   the   relevant   files   on   payment   of  photocopying charges. However, in respect of the remaining information, he  had   not   provided   any   information   on   the   ground   that   the   collection   of   the  information   would   disproportionately   divert   their   resources.   In   regard   to   his  second application, the CPIO had observed that since the Search Committee  had been constituted by the Cabinet Secretariat, his RTI application was being  transferred under thesection 6(3)of the Right to Information (RTI) Act. The  Appellate Authority had endorsed the response of the CPIO in both the cases.4. The Appellant had serious objections to the response of the CPIO in  both   the   cases.   He   was   also   very   dissatisfied   with   the   way   the   Appellate  Authority   had   disposed   of   the   appeals   filed   by   him.   In   a   detailed   written  submission supported by extensive oral submissions, he argued that he had  documentary evidence, received from the Department itself through a separate  CIC/SM/A/2012/000784 & 786 RTI,   to   show   that   the   desired   information   regarding   the   constitution   of   the  Search   Committee   for   shortlisting   of   candidates  for   the   post   of   Information  Commissioners in the CIC was available in the Department at the time of his  RTI   application   but,   even   then,   the   CPIO   had   chosen   to   transfer   the   RTI  application to the Cabinet Secretariat for the latter only to send it back. He also  complained the CPIO did not produce all the relevant files before him for his  inspection and did not even facilitate the inspection of whatever files he had  himself   placed   before   him.   He   had   major  complaints   against   the   Appellate  Authority  also.  He  alleged  that  the   Appellate  Authority  had  disposed  of  the  appeals   without   much   application   of   mind   and   by   merely   endorsing   the  response of the CPIO. He demanded that not only the desired information be  provided to him with permission to inspect the relevant files but the CIC should  also impose penalty on the CPIO and propose disciplinary action against the  Appellate Authority.5. In response, both the CPIO and the Appellate Authority submitted that  they   had   been   always   cooperating   with   the   Appellant   and   allowing   him   to  inspect whatever files he had been demanding from time to time. In the present  case   itself,   they   contended   that   all   the   files   had   been   placed   before   the  Appellant  for   his   inspection,  which  he   did   on  two   occasions.  About  the   file  relating to the constitution of the Search Committee, they submitted that it was  the Cabinet Secretariat which had constituted this Committee and had marked  all   the   papers   confidential   while   sending   it   to   the   Department,   the   precise  reason why the CPIO had thought it necessary to transfer the RTI application to  the Cabinet Secretariat. They further submitted that the sheer number of RTI  applications and appeals handled in their division was so voluminous and huge  CIC/SM/A/2012/000784 & 786 that it was almost impossible for the CPIO or the Appellate Authority to manage  it within the time lines prescribed under theRight to Information (RTI) Act.6. We have carefully gone through the facts of both these cases. We have  also considered the submissions made before us. Even if it is admitted that the  total information sought by the Appellant was rather very large in its scope,  ranging over a long period of time, we do not approve of the manner in which  the CPIO had approached his RTI applications. In the first case, in which the  Appellant had sought the details of all the files on a variety of subjects with a  further   request   to   inspect   those   files,   the   CPIO   could   have   given   a   more  detailed response justifying his conclusion that providing of such information  would disproportionately divert the resources of the Department by stating the  exact number of files in question and likely man­hours required to assemble  those and for making arrangements for their inspection. It is not enough to refer  tosection 7(9)of the RTI Act.7. In the second case relating to the constitution of the Search Committee  for the appointment of the Information Commissioners in the CIC, the CPIO was  totally wrong in transferring the RTI application to the Cabinet Secretariat as the  entire   information   was  available   in   the   Department  itself.   Just   because  the  Cabinet Secretariat had marked these papers confidential, there was no need  to transfer the RTI application. At the most, the CPIO could have followed thesection 11procedure before deciding on the disclosure of these papers. By not  doing   so   and   by   not   providing   the   information   when   demanded,   he   has  rendered   himself   liable   for   imposition   of   penalty   as   per   the   provisions   of  subsection 1 ofsection 20of the RTI Act. We would like him to show cause why  such penalty should not be imposed on him. He is directed to appear before us  CIC/SM/A/2012/000784 & 786 on 5 February 2013 at 10.00 a.m. and offer his explanation.8. We also direct the CPIO to provide to the Appellant within 15 working  days of receiving this order the remaining information including the file noting,  wherever applicable. He shall also invite the Appellant to inspect the relevant  file (s) within this period.9. We would like the Appellate Authority to be more careful in future in  dealing with appeals filed before her. It is not enough to reproduce the contents  of the RTI application and the reply of the CPIO; the Appellate Authority must  pass   a   speaking   order   justifying   her   decision   in   each   case.   Wherever   the  Appellant wants personal hearing, he should be given that opportunity. In the  present two cases, the Appellate Authority has not acquitted herself justifiably.10. This particular division of the DoPT deals with the right to information.  There is a continuous demand from the citizens to know about all developments  taking place in the area of right to information including any amendment to the  Act or the Rules, appointment of the Information Commissioners and the CIC  and the provision of staff and other infrastructure facilities to the CIC. Therefore,  it  will  be  prudent  to   disclose  all   this  information  through  the  website  of  the  Department on a monthly basis rather than having to respond to hundreds of  individual RTI applications. If all the files generated in this division are scanned  and uploaded in the website of the Department, from time to time, such as, on a  monthly   basis,   preferably,   under   subject   headings,   the   number   of   RTI  applications seeking such information would automatically come down. It would  save the CPIO and the Appellate Authority considerable bother and hardship  apart from bringing in a lot of transparency in this area. We would like the CPIO  CIC/SM/A/2012/000784 & 786 to bring this to the notice of the Secretary of the Department for his orders.11. The appeals are disposed off accordingly.12. Copies of this order be given free of cost to the parties.(Satyananda Mishra) Chief Information Commissioner Authenticated true copy.  Additional copies of orders shall be supplied against  application and payment of the charges prescribed under the Act to the CPIO of this  Commission.(Vijay Bhalla) Deputy Registrar CIC/SM/A/2012/000784 & 786
b31aa804-6b28-52f5-b8ad-34775264e17f
court_cases
Central Information CommissionSatya Vijay Singh vs Railway Board on 27 September, 2017क य सूचना आयोग CENTRAL INFORMATION COMMISSION लब बि डंग (पो ट ऑ फस केपास) Club Building (Near Post Office) ओ ड जेन यू कपस, नई !द ल -110067 Old JNU Campus, New Delhi-110067 Tel: +91-11-26182593/26182594 Email:[email protected]File No.: CIC/RAILB/A/2016/304375-AB In the matter of: Satya Vijay Singh, ...Appellant VS DPG & CPIO, RTI Cell Room No-507, 5th floor, Railway Board, New Delhi-110001 ...Respondent Dates RTI application : 05.05.2016 CPIO reply : 20.06.2016 First Appeal : 10.07.2016 FAA Order : 21.07.2016 Second Appeal : 25.08.2016 Date of hearing : 20.09.2017 Facts:The appellant vide RTI application dated 05.05.2016 sought information on 4 points; rules relating to the accommodation of retired employees while travelling to out stations, rules relating to TA bill for the same, rules according to which they can avail the facility of railway rest houses after retirement etc. The CPIO replied on 20.06.2016. The appellant being aggrieved filed first appeal on 10.07.2016. The First Appellate Authority (FAA) disposed of the first appeal on 21.07.2016. The appellant being aggrieved filed second appeal before this Commission on 25.08.2016.1Grounds for Second Appeal The CPIO did not provide the desired information.Order Appellant : Present Respondent : CPIO, Ms. Priya Sudarshini, Joint Director(F)During the hearing the respondent CPIO submitted that they had provided the requisite information vide their letters dated 13.06.2016(on point no. 3), 20.06.2016 (along with annexures) and 14.09.2017 which are just and proper and the case should be dismissed. The appellant submitted that most of the replies were not provided to him by the respondent.The respondent was directed to resend the replies to the appellant within 03 days of the receipt of the order under intimation to the Commission.On perusal of the case record, it was seen that proper reply was not provided. A more comprehensive reply should have been provided to the appellant.Be that as it may, since no proper information was provided to the appellant till date, the respondent CPIO is directed to provide point wise reply complete in all respects to the appellant as available on record in the form of certified true copies of the documents e.g. note sheet, letters, correspondence, e- mail free of chargeu/s 7(6)of the RTI Act within 15 days of the receipt of the order.2The respondent CPIO is further directed to send a report containing the copy of the revised reply and the date of despatch of the same to the RTI appellant within 07 days thereafter to the Commission for record.With the above direction, the appeal is disposed of.Copies of the order be sent to both the parties free of cost.[Amitava Bhattacharyya] Information Commissioner Authenticated true copy (A.K.Talapatra) Dy. Registrar3
e8a3f16f-3edf-5df1-88eb-a19eaafa160a
court_cases
Allahabad High CourtHanoman Loniya vs State Of U.P. on 22 August, 2017Author:Sheo Kumar Singh-IBench:Sheo Kumar Singh-IHIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH Reserved Case :- CRIMINAL APPEAL No. - 90 of 1999 Appellant :- Hanoman Loniya Respondent :- State Of U.P. Counsel for Appellant :- Anil Srivastava Counsel for Respondent :- Government Advocate And Case :- CRIMINAL APPEAL No. - 91 of 1999 Appellant :- Dileep Verma Respondent :- State Of U.P. Counsel for Appellant :- Suresh Singh,Akhter Abbas Counsel for Respondent :- Government Advocate Hon'ble Sheo Kumar Singh-I,J.1. Since both these criminal appeals arise out of a common order, they are being decided by a common order.2. The aforesaid criminal appeals have been filed against the judgment and order dated 24.02.1999 passed by Special Judge (SC/ST Act), Barabanki, in Sessions Trial No.42 of 1994 arising out of case Crime No.83 of 1994, Police Station Safdarganj, District Barabani, whereby and whereunder the appellants Hanoman Loniya and Dileep Verma were found guilty and sentenced as under:-I. Hanoman Loniya U/s 366IPC- 3 years' RI with fine of Rs.200/-with default stipulation of one month's rigorous imprisonment.U/s 376IPC- 7 years' RI with fine of Rs.500/- with default stipulation of one month's rigorous imprisonment.U/s 3 (1) (x) SC/ST Act - 1 year's RI with fine of Rs.200/- with default stipulation of one month's rigorous imprisonment.II Dileep Verma U/s 363IPC- 3 years' RI with fine of Rs.200/- with default stipulation of one month's rigorous imprisonment.U/s 366IPC- 3 years' RI with fine of Rs.200/- with default stipulation of one month's rigorous imprisonment.U/s 376IPC- 7 years' RI with fine of Rs.500/- with default stipulation of two months' rigorous imprisonment.U/s 3 (1) (x) SC/ST Act - 1 year's RI with fine of Rs.200/- with default stipulation of one month's rigorous imprisonment.3. The prosecution story reveals that on 02.05.1994 at about 07.00 AM Bhabhuti son of Jagannath (informant) was cutting the crops in the fields of Chhotey Lal. In the meantime, Dileep, Rampal, Mahadeo, Chhotey Lal - all residents of Mahmoodpur, Bhondu, Harish Chandra Yadav - residents of Mahuwari, Majeed, Ram Sagar - residents of Saifpur came there and called the son and daughter in law of the complainant and after scolding the son Bhabhuti, directed him to go away from there. After that, all these persons with daughter in law of the complainant went somewhere. This fact was communicated to the police station by means of Ext. Ka-1 on 11.05.1994 at about 08.35 AM and was registered as first information report. The matter was investigated and after spot inspection and preparation of map, the charge sheet Ext. Ka-3 was submitted before the Court. Learned Chief Judicial Magistrate took the cognizance and committed the case to the Court of Sessions for trial. The charge sheet was submitted against accused Dileep Verma and Hanoman Loniya. They were summoned by the Court and charges underSections 363,366,376and3(1)(x)of SC/ST Act were framed for which they pleaded not guilty and claimed for trial.4. In order to prove the prosecution case, PW-1 Smt. Shiv Kumari, PW-2 Jagannath, PW-3 Bhabhuti, PW-4 Mangulal, PW-5 Hublal and PW-6 S.I. Kailash Yadav were examined. It is noteworthy that PW-3 Bhabhuti is husband of the prosecutrix and PW-2 Jagannath is father-in-law of the prosecutrix. PW-4 Mangulal and PW-Hublal stood signatory of the recovery. In the statement underSection 313Cr.P.C. the appellants have stated that they have been falsely implicated in this case due to inimical relations with the complainant. Learned trial court after hearing the prosecution as well as defence concluded and found the appellants guilty and sentenced them as above. Aggrieved by the order, the appellants by filing the aforesaid criminal appeals have submitted that:-I. the trial court has erred in believing the prosecution evidence on record;II. the trial court has erred in disbelieving the defence version of the case which is more probable and reliable than the prosecution version;III. there is inordinate delay in lodging the first information report for which no satisfactory explanation has been given by the prosecution;IV. in the first information report the complainant has alleged that in all eight named accused persons including appellant Dileep Verma had forcibly taken away the prosecutrix while she was working with her husband in the fields but later on the witness had not named rest of the seven persons in the statement;V. the prosecutrix has not stated anything which is coming within the purview of offence as charged because there was free consent of the prosecutrix, and VI. there are material contradictions in the statements of the prosecution witnesses.5. Before proceeding with the case, it will be just and proper to give brief of the facts as stated on oath by the prosecutrix who was examined before the Court as PW-1. In her statement she had stated that while she was working in the fields with her husband only Dileep came there and none of the accused persons were there nor called her nor were present there. Thus, the theory of the prosecution as narrated in the first information report that all eight accused persons were there and taken away the prosecutrix with use of force is not tenable and has not been corroborated by the evidence of the prosecutrix. Further she had stated that she had her son whose age was about one year and she left her son on culvert (Pulia). The version of leaving her one year old son is highly improbable if it was forcible taking away of that lady. She had further stated that appellant Dileep took her to Ayodhya then Barabanki, then came to bus stand and then to the court where another accused appellant Hanoman Loniya met her from where she went to his Sasural. The story as narrated above reveals that the prosecutrix had never made any loud or never made any resistance or never tried to flew away or never stated in her statement that any kind of force was used on her to restrain her. She had further stated that she remained with appellant Dileep for more than one month and never asked to him as to why he took her and never narrated to anybody else or any passerby or any person where she was residing and further stated that she stayed in a hut where there was no door at all and the appellant Dileep used to go out of there for some time or throughout the day and she never tried to come out of that situation and further during visit towards Bababanki with bus there were so many passengers but she never told that she has been kidnapped or abducted or she remained for one night at Ayodhya railway station and never stated to anybody or even police personnel or the statement that the appellant never threatened or scolded at any point of time or never restrained her or she remained in the house of the appellant for one month or she used to visit with one of the relatives of the appellant towards the field for natures call or the fact that the residential accommodation hut or house in which she was kept was never closed or never stated to the appellant she may be left to her husband's house or the fact that she was never subjected to any kind of torture or the fact that until the period she was with the appellant she was very happy. All these facts reveal that there was a free consent and there was no force at all used by the appellants.6. In the first information report, eight persons were named while in the charge sheet only two persons were named to commit the present offence. Further the incident is said to have taken place on 02.05.1994 and the story reveals that the son of the complainant was present there and in spite of these facts the first information report was not lodged upto 11.05.1994 and the story of prosecution reveals that the complainant and his family were searching the prosecutrix. PW-2 Jagannath had simply lodged the first information report about the fact and PW-3 Bhabhuti had stated that the named persons were instrumental in kidnapping her wife but there was no resistance by PW-3. PW-4 Mangulal and PW-5 Hublal are the witnesses of Fard Baramadgi where after recovery of the prosecutrix she was given to the custody of her husband and father in law. Rest of the witnesses are formal in nature where the Investigating Officer in his statement had stated that the prosecutrix was recovered from a place or hut where there was no gate at all and further she never tried to come out of that situation.7. Learned counsel for the appellants has submitted that the case of kidnapping or abduction has not been proved by the prosecution and before proceeding to analyze the offence mentioned underSection 376IPC there must be cogent and reliable evidence to rely the case of kidnapping from lawful guardianship by the accused appellants.8. So far as offences punishable underSections 363and366, IPC are concerned, it is necessary to note their essential ingredients.Section 363provides for punishment in case of kidnapping of any person from India or from lawful guardianship. Kidnapping from lawful guardianship has been defined inSection 361. Essential ingredients of the said section are four in number, i.e., (i) taking or enticing away a minor or a person of unsound mind; (ii) such minor must be under sixteen years of age, if a male, or under eighteen years of age if a female; (iii) the taking or enticing must be out of the keeping of the lawful guardian of such minor or person of unsound mind; (iv) such taking or enticing must be without the consent of such guardian. If the girl is less than 18 years of age, it is immaterial whether the girl consents or not. The taking need not be by force, actual or constructive. There must be a taking of the child out of the possession of the guardian. The Explanation toSection 361provides that the words 'lawful guardian' in the said section include any person lawfully entrusted with the care or custody of such minor or other person. The word 'take' means to cause to go, to escort or to get into possession. It implies want of wish and absence of desire of the person taken. There is, however, a distinction between taking and allowing a minor to accompany a person.9. The word 'entice' involves an idea of inducement or allurement by exciting hope or desire in the other. The inducement or allurement may take many forms, difficult to visualise and describe exhaustively; some of them may be quite subtle, depending for their success, on the mental state of the person at the time when the inducement is intended to operate. This may work immediately or it may create continuous and gradual, but imperceptible , impression culminating, after some time, in achievement of its ultimate purpose of successful inducement. The offence of kidnapping from lawful guardianship is complete when the minor is actually taken from lawful guardianship. The act of taking is not in the proper sense of the term a continuous act; when once the boy or girl has been actually taken out of the keeping, the act is a completed one. Enticement is an act of the accused by which the person kidnapped is induced of his or her own accord to go to the kidnapper. It is not necessary that the taking or enticing should be shown to have been by means of force or fraud. Enticement need not be confined to any single form of allurement. Anything which is like to allure the minor girl would be sufficient. Where the minor kidnapped is a girl under eighteen years of age, it is no defence that the accused did not know the girl to be under eighteen, or that from her appearance or conduct she appeared to have attained the age of eighteen. There is an essential distinction between taking and enticing. The mental attitude of the minor is immaterial in the case of taking when an accused takes a minor with him, whether he or she is willing or not, the act of taking is complete and the condition is satisfied. But the word 'entice' involves an idea of inducement or allurement. One does not entice another unless the latter attempts to do a thing which she or he would not otherwise do.10. Significantly the word 'possession' has not been used in theIPC, but the language used is 'out of the keeping, of the lawful guardian'. The word 'keeping' connotes the fact that it is compatible with independence of action and movement in the object kept. It implies neither apprehension nor detention but rather maintenance, protection and control, manifested not by continual action but as available on necessity arising. The word 'lawful' has been deliberately used in its wider connotation, and it is distinguishable from the word 'legal'. That has necessitated insertion of the Explanation.11. So far asSection 366is concerned, the essential ingredients are : (i) kidnapping or abducting any woman; (ii) such kidnapping or abducting must be (a) with intent that she may be compelled or knowing it to be likely that she will be compelled to marry any person against her will; or (b) in order that she may be forced or seduced to illicit intercourse or knowing it to be likely that she will be forced or seduced to illicit intercourse. The second part of the section requires two things. (1) By criminal intimidation or abuse of authority or by compulsion inducing any woman to go from any place; and (2) such going must be with intent that she may be, or with knowledge that it is likely that she will be, forced or seduced to illicit intercourse, with some person. The word 'woman' has been defined inSection 10. It includes a minor female. If the girl was eighteen or over, she could only be abducted and not kidnapped, but if she was under eighteen she could kidnapped as well as abducted if the taking was by force or the taking or enticing was by deceitful means. The intention of the accused is the basis and the grave men of offence underSection 366. The volition, the intention and the conduct of the woman do not determine the offence; they can only bear upon the intent with which the accused kidnapped or abducted any woman and the intent of the accused is the vital question for determination in each case. Kidnapping and abduction are two distinct offences. The ingredients of the two offences are entirely different. Kidnapping except kidnapping from India is an offence against guardianship. It consists of enticing or removing a girl from the keeping of the lawful guardian without her consent. Abduction is an offence as defined inSection 362when a person is by force compelled or by deceitful means induced to go from any place. In abduction the person abducted may be a minor or a major. Kidnapping is punishable per se in terms ofSection 363. Abduction on the other hand is not punishable per se, and is punishable only when accompanied by a particular purpose as contemplated insections 364to366. But as kidnapping also may be for the same purposes,Sections 364to366deal with both kidnapping and abduction for the purposes stated therein and prescribe the punishments.12. I have heard the learned Counsel for the parties and also gone through the record of the case carefully. The learned Counsel for the accused has contended that since there was not cogent and satisfactory evidence on record the conviction of the accused qua the offences in question was not sustainable. The learned Counsel for the respondent on the other hand controverted this contention. Since the fate of this case hinges mainly upon the evidence on record, it would be but proper to take reappraisal of this evidence, as discussed above.13. It may well be to recall, at this stage, the age old axioms which run like a golden thread through our criminal jurisprudence. They are that the accused is presumed to be innocent unless proved guilty, the quality of proof must be beyond any reasonable doubt, the Court must be morally certain of the guilt of the accused before recording conviction of the accused and in case any doubt remains lurking in the mind of the Court in this behalf, the benefit thereof must go to the accused. In the second place the burden to prove the guilt of the accused beyond all doubt rests on the prosecution and it never shifts.14. The basic idea behind these principles is that the liberty of an individual is a most valuable and fundamental right which inheres in him and it should never be jeopardised unless the court, after bringing its judicial experience and acumen to bear upon the facts placed before it, comes to an inescapable conclusion that the guilt against the accused before him has been proved beyond all reasonable doubt. No doubt in the present times there has been certain amount of relaxation and latitude in the manner of proof qua certain type of offence like sexual offence against females or cruelty to them in the matrimonial home etc. but all the same the foregoing principles stand unabridged and unscathed like beacon light for the judicial courts.15. Now looking on the facts of the case in hand in the light of the above foregoing principles, I feel that the conviction of the accused is not sustainable. In fact this Court is constrained to observe that the trial court has not cared to use his judicial acumen and experience while appreciating the evidence on record. It is clear that in order to hold a person guilty of an offence underSection 363of the Indian Penal Code it must be proved that the accused played an active part in taking away a female out of the keeping of her guardian without the consent of the guardian either prior to, or at the time of her taking away out of such guardianship by either directly using force or threat against the female or injecting into her mind some irresistible allurements or temptations which may impel her to leave or forsake the custody of her guardian.16. Learned counsel for the State has submitted that the victim was below 16 years of age at the time of occurrence while learned counsel for the appellants has submitted that she was about 24 years of age or more than 20 years. The prosecutrix while stating on oath before the Court had herself stated her age as 25 years. She is married one and had one male issue. In light of above facts, she was major at the time of occurrence. Learned court below has also found that the prosecutrix was major at the time of occurrence.17. This Court is also not unmindful of the observations made by the Apex Court in Sadashiv Ramrao Hadbe v. State of Maharashtra MANU/SC/0607/2006: (2006) 10 SCC 92, wherein it has been observed that it is true that in a rape case the accused could be convicted on the sole testimony of the prosecutrix if it is capable of inspiring confidence in the mind of the Court and if the version given by the prosecutrix is supported by medical evidence and the whole surrounding circumstances makes the case set up by the prosecutrix highly probable and believable. Therein it is also observed that the Court shall be extremely careful in accepting the sole testimony of the prosecutrix when the entire case is improbable and unlikely to happen.18. Considering the questionable propensity of the prosecutrix, I am tempted to refer to the case ofMoinul Hoque and Ors. v. State of Assam(2001) 1 GLR 516. In paragraph 16 of the judgment it is held as under:"It is true that a Court has to take seriously the cases relating to violence against woman. Simultaneously, the Court has a duty to guard itself against false charges of rape. The narration of the prosecution case is full of vital omissions and contradictions and it raises strong doubt which over-shadows the genesis of the prosecution case. In my opinion, it would be unsafe to sustain the conviction in this case relying upon the testimony of the prosecutrix alone. Dignity of woman will have to be protected, but without aid of emotion. This is undoubtedly not a case where the prosecutrix has the last 'say'."19. Having considered the whole prosecution and defence version, it is found that the prosecution was a consenting party and willingly went with one of the appellants. The manner in which the story has been picturized by the prosecution witnesses whereby in the first information report eight persons had been named, in spite of that PW-3 was there, he failed to lodge the first information report immediately. All these lead the Court to hold the prosecution case totally manured, manipulated and far from truth. Through the corroboration of the prosecutrix statement is not required when her statement is trustworthy but if the statements of the prosecutrix is not found to be trustworthy and she is found to be consenting and willing party then the corroboration from the independent witnesses and circumstantial evidence is required to convict the accused persons. To bring home the guilt of the offence of rape, the prosecution is required to prove beyond reasonable doubt that the accused persons have committed rape upon the prosecutrix without her consent and against her will. The duty is cast upon the prosecution to prove the alleged offence. In the absence of a woman's consent the essential feature of actus reus is rape, which is totally wanting in the instant case. The statements of the prosecution and prosecutrix do not inspire confidence. In light of the material contradictions and inconsistencies creeping in the statements of the prosecution witnesses, the defence version seems to be just and reasonable.20. The Supreme Court in S. Varadarajan v. State of Madras MANU/SC/0081/1964: 1965CriLJ33 has ruled :"... But when the girl (who though a minor had attained the age of discretion and is on the verge of attaining majority and is a senior college student) from the house of the relative of the father where she is kept, herself telephones the accused to meet her at a certain place, and goes there to meet him and finding him waiting with his car gets into that car of her own accord, and the accused takes her to various places ultimately to the Sub-Registrar's office where they get an agreement to marry registered, and there is no suggestion that this was one by force or blandishment or anything like that on the part of the accused but it is clear from the evidence that the insistence of marriage came from her side, the accused by complying with her wishes can by no stretch of imagination be said to have 'taken' her out of the keeping of her lawful guardianship, that is, the father.The fact of her accompanying the accused all along is quite consistent with her own , desire to be the wife of the accused in which the desire of accompanying him wherever he went is of course implicit. Under these circumstances no inference can be drawn that the accused is guilty of taking away the girl out of the keeping of her father. She had willingly accompanied him and the law does not cast upon him the duty of taking her back to her father's house or even of telling her not to accompany him.x x x x x x x Where the minor leaves her father's protection knowing and having capacity to know the full import of what she is doing, voluntarily joins the accused person, the accused cannot be said to have taken her away from the keeping of her lawful guardian. Something more has to be shown in a case of | this kind and that is some kind of inducement held out by the accused person or an active participation by him in the formation of the intention of the minor to leave the house of the guardian.x x x x x x x It would, however, be sufficient if the prosecution establishes that though immediately prior to the minor leaving the father's protection no active part was played by the accused, he had at some earlier stage solicited or persuaded the minor to do so. If evidence to establish one of those things is lacking it would not be legitimate to infer that the accused is guilty of taking the minor out of the keeping of the lawful guardian merely because after she has actually left her guardian's house or a house where her guardian had kept her, joined the accused and the accused helped her in her design not to return to her guardian's house by taking her along with him from place to place. No doubt, the part played by the accused could be regarded as facilitating the fulfilment of the intention of the girl. But that part falls short of an inducement to the minor to slip out of the keeping of her lawful guardian and is, therefore, not tantamount to 'taking'."21. Now once it is held that the preponderance of probabilities is that the prosecutrix had voluntarily gone with the accused appellants without the accused playing any overt or covert role therein, no offence underSection 363of the Indian Penal Code can be said to have been proved against the accused and once this Court reaches this conclusion the offence underSection 366automatically falls to the ground.22. As regards the offence underSection 376of the Indian Penal Code, this Court has no doubt on the basis of evidence and the statement of the prosecutrix that she remained with the one of the accused appellants for more than one month voluntarily with her free will and consent to follow and to reside and never objected, the question is as to whether in case she was major the offence underSection 376of the Indian Penal Code is found proved or not. The answer to this poser must be in the negative. In the first place, as I have already held, it has not been proved by the prosecution that at the time of this incident the age of the prosecutrix was below 16 years. In fact the evidence is that she was above 20 years or about 24 years of age at that time. Then there is also no doubt that on the facts and in the circumstances of the case the prosecutrix was a willing party to this carnal intercourse. Any way by no stretch of imagination can it be said that this sexual intercourse between her and the accused was under circumstances to which any of the five situations or ingredients set out underSection 375of the I.P.C. are attracted and as such the appellants are not guilty of the offence of rape either.23. In view of the above discussion, the appeals are accepted. The conviction and sentence passed against the accused appellants underSections 363,366and376of the Indian Penal Code andSection 3(1) (x)of the SC/ST Act is set aside and the appellants are acquitted on all counts. The fine, if realised, be refunded to them forthwith. If the appellants are in imprisonment they are liable to be set at liberty at once if not required in any other criminal case and in case they are on bail they need not surrender to their bail and the bail bonds are discharged. The case property shall be dealt with in a manner as directed by the trial court.24. Lower Court's record be sent back.Order Date :- 22.8.2017 A. Katiyar
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Gujarat High CourtEmmuanuel Chibubem Anthony vs State Of Gujarat on 22 April, 2016Author:A.J.DesaiBench:A.J.DesaiR/CR.MA/7925/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD CRIMINAL MISC.APPLICATION (FOR REGULAR BAIL) NO.7925 of 2016 ========================================= EMMUANUEL CHIBUBEM ANTHONY....Applicant Versus STATE OF GUJARAT....Respondent ========================================= Appearance : MR JR DAVE, ADVOCATE for the Applicant. MR L.B. DABHI, APP for the Respondent. ========================================= CORAM : HONOURABLE MR.JUSTICE A.J.DESAI Date : 22/04/2016 ORAL ORDER1. This successive application is filed underSection 439of the Code of Criminal Procedure for regular bail in connection with F.I.R. registered at C.R. No.I - 06 of 2016 with Ahmedabad Railway Police Station, District Ahmedabad, for the offences punishable underSections 420,465,468,471,120 (B)of the Indian Penal Code andSection 66 (D)of the Information Technology Act, 2000.2. Learned advocate for the applicant submits that considering the nature of offence, the applicant may be enlarged on regular bail by imposing suitable conditions.3. The learned APP opposes the grant of bail looking to the nature and gravity of offences.4. Learned advocates appearing on behalf of the respective parties do not press for further reasoned order.5. I have heard learned advocates appearing for the parties.Considering the offence as alleged in the FIR and alsoPage 1 of 3HC-NIC Page 1 of 3 Created On Tue Apr 26 02:05:05 IST 2016 R/CR.MA/7925/2016 ORDER considering the nature of allegations made in the FIR and considering the fact that investigation is over and charge- sheet is filed and the offences are triable by the learned Magistrate, I am of the opinion that this is a fit case to exercise the discretion to enlarge the applicant on bail. Hence, the application is allowed and the applicant is ordered to be released on bail in connection with C.R. No.I - 06 of 2016 with Ahmedabad Railway Police Station, District Ahmedabad, on executing a bond of Rs.25,000/- (Rupees Twenty Five Thousand only) with one local surety of the like amount to the satisfaction of the trial Court and subject to the conditions that he shall;[a] not take undue advantage of liberty or misuse liberty;[b] not act in a manner injuries to the interest of the prosecution;[c] surrender passport, if any, to the lower court within a week;[d] not leave the State of Gujarat without prior permission of the Sessions Judge concerned;[e] mark presence at the concerned Police Station on every Monday of each English Calendar month for a period of six months and thereafter any day of the first week of every English calendar month for a period of one year, between 11.00 a.m. and 2.00 p.m.;[f] furnish the present address of residence to the I.O. and also to the Court at the time of execution of the bond and shall not change the residence without prior permission of this Court;6. The Authorities will release the applicant only if he is not required in connection with any other offence for the time being. If breach of any of the above conditions is committed, the Sessions Judge concerned will be free to issue warrant or take appropriate action in the matter. Bail bond to be executed before the lower court having jurisdiction to try thePage 2 of 3HC-NIC Page 2 of 3 Created On Tue Apr 26 02:05:05 IST 2016 R/CR.MA/7925/2016 ORDER case. It will be open for the concerned Court to delete, modify and/or relax any of the above conditions in accordance with law. At the trial, the trial court shall not be influenced by the observations of preliminary nature, qua the evidence at this stage, made by this Court while enlarging the applicant on bail.7. Rule made absolute to the aforesaid extent. Direct service is permitted.(A.J.DESAI, J.) SavariyaPage 3 of 3HC-NIC Page 3 of 3 Created On Tue Apr 26 02:05:05 IST 2016
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Punjab-Haryana High CourtMohan Singh Chaudhari vs Divisional Personnel Officer, ... on 17 May, 1957Equivalent citations: AIR1959P&H37, AIR 1959 PUNJAB 37, ILR (1957) PUNJ 1833JUDGMENT Bishan Narain, J.1. Mohan Singh was a temporary clerk in the employment of the Northern Railway, and by order dated 30-5-1956 of the Divisional Personnel Officer, Northern Railway, Fezorepore Cantonment, he has been dismissed. His appeal has also been dismissed by the Divisional Superintendent, Ferozepore Cantonment. He has filed the present petition underArticle 226of the Constitution challenging the validity of the order of dismissal passed against him.2. The facts leading to the dismissal of the petitioner may be briefly stated. Mohan Singh was appointed on 3-6-1944 as a temporary clerk. After partition he joined the office of the Divisional Superintendent (Eastern Punjab Railway) Ferozepore on 1-9-1947. On 17-3-1949 a charge-sheet was served on him and after enquiry he was dismissed by the Divisional Personnel Officer, Northern Railway, Ferozepore Cantonment on 4-5-1949. This led Mohan Singh to file a suit on 3-7-1952 for a declaration that his dismissal from service was illegal and inoperative and that he continued to be a clerk in Commercial Section, Divisional Superintendent's office, Ferozepore, despite this order. One of the grounds taken in the suit against the validity of his dismissal was that he had been appointed hy the General Manager and could not be dismissed by the Divisional Personnel Officer who is lower in rank than the General Manager.This ground was contested by the Railway authorities. The trial Court, however, found on the evidence produced before it that the plaintiff was appointed by the General Manager. Other objections were also dealt with by the trial Court and the suit was ultimately decreed on 27-2-1953. The Railway authorities filed an appeal, but that appeal was dismissed by the Senior Sub-Judge on 12-10-1933. The Senior Sub-Judge also, after going into the evidence, affirmed the finding of the trial Court that Mohan Singh was appointed by the General Manager and it was also pointed out in his judgment that there was no evidence that the General Manager had delegated his powers to appoint a clerk under rule 135(d) of the Indian Railway Establishment Code, Volume J, to any other person. The Railway authorities then reinstated Mohan Singh on 8-7-1954, and about a month later an order was made for a fresh enquiry against the petitioner's conduct and the petitioner was suspended on 24-2-1956. The Divisional Personnel Officer held an enquiry ex parte into the conduct of Mohan Singli on 3-4-1956 and served a show-cause notice against the proposed dismissal on the petitioner on 4-4-1956. Thereatter on 30-5-1956 the Divisional Personnel Officer removed the petitioner from service. Mohan Singh appealed to the Divisional Superintendent, Ferozepore, mainly on the ground that in view of the finding of the civil Courts he could not be dismissed by the Divisional Personnel Officer. This plea, however, did not prevail and his appeal was dismissed on 19-9-1956. The present petition was filed on 9-1-1957.3. It appears to me that this petition must be accepted. In the civil suit both the Courts came to the conclusion that Mohan Singh had been appointed by the General Manager. If this decision is binding on the parties which obviously is, then admittedly he could not be dismissed by the Divisional Personnel Officer who is lower in rank than the General Manager. Shri Kundan Lal Cosain has strenuously urged before me that the decision of the Civil Courts does not bind this Court when it is exercising jurisdiction underArticle 228of the Constitution. The learned counsel has argued that at the time when the civil suit was pending the Railway records wore not available and on account of the absence of the Railway records the civil Courts came to the conclusion that the General Manager had appointed Mohan Singh. According to the learned counsel, now that the record is available should decide this matter on merits after considering the documents produced in these proceedings.I cannot see my way to accede to the request of the learned counsel. It is well recognized and, well established that a decision ortce rendered by a competent authority on a matter in issue between the parties after a full enquiry should not be permitted to be reagitated. This principle is founded on sound public policy and is of universal application: videBurn and Co. v. Their Employees, (S) AIR 1957 SC 38 (A). There is no reason whatsoever for departing from this salutary principle of law The rule of res judicata is intended not only to prevent a new and possibly conflicting decision but also to prevent a new investigation so that a person may not he harassed over & over again to establish the same fact or right. This is exactly what the Railway authorities have done in the present case by ignoring the decision of the Civil Courts and by allowing the Divisional Personnel Officer to hold an enquiry and order the petitioner's dismissel. This attitude towards the decision of the civil Courts by a public authority is improper and must be deprecated. As long as the decision of the civil Courts stands it is binding on the parties till it is set aside in accordance with law. A decision of the civil Courts can be got set aside bv processes known to law, but in the present case admittedly no such efforts have been made by the Railwav authorities.The excuse taken for this extraordinary attitude is that the Railway authorities have received some documents from Pakistan which were not available to them at that time and that from these documents the contention raised is that it is clear that the petitioner was not appointed by the General Manager but by the Assistant Secretary to the General Manager, and therefore the dismissal by the Divisional Personnel Officer was correct. Even if this contention be considered to be correct, the Railway authorities should have moved to get the order of the civil Court set aside in accordance with law and should not have taken proceedings on the assumption that the decision of the civil Court is not binding on them. The attitude taken savours almost affront to civil Courts.I have no hesitation in holding that it is not open to the Railway authorities, in the face of the decision of the civil Courts that the petitioner was appointed by the General Manager, to argue in these proceedings that the appointing authority was not the General Manager. In this connection it must be remembered that the petitioner has a right to file a suit for a declaration that his dismissal by the Divisional Personnel Officer is invalid and that suit must be decreed by the civil Court in view of its previous decision even if this petition underArticle 226of the Constitution is dismissed. There is, however, no reason why this plea should not be allowed to prevail in these proceedings and the petitioner should be compelled to file a suit. In any opinion the petitioner is within his rights to avail of the remedy which is cheaper ana much more expeditious than the remedy of filing a suit in a civil Court.4. Moreover, rule 135 (d) of the Indian Railway Establishment Code lays down that the appointment to non-gazetted post in the Indian Railways is to be made by the General Manager or lower authority to whom he may delegate the power. In the civil suit the Railway authorities did not produce any evidence showing delegation of power to the Divisional Personnel Officer to appoint clerks. No attempt has been made in these proceedings also to produce any such evidence or even to allege that such a delegation had taken place. It cannot therefore be assumed that the Divisional Personnel Officer acted in the exercise of delegated powers in appointing Mohan Singh as a temporary clerk. Shri Kundan Lal Gasain then prayed that the case may be adjourned for producing this evidence. I, however, see no ground for adjourning this case at this late stage:5. Even on the merits I would not be inclined to accept the letter produced by the Railway authorities in proof of the fact that Mohan Singh was appointed by the Divisional Personnel Officer. That is a letter dated 31-5-1944 which had been issued by the Assistant Secretary to the General Manager, N.W.R. Lahore, to Mohan Singh. It says that the addressee was offered employment as a temporary clerk and he was called upon to attend the office on or before the 30th of June 1944 if the offer is acceptable to him. The letter further goes on to say that on appointment he will be required to sign an agreement of temporary service.This letter therefore cannot be said to be a letter of appointment. In any case this is not a letter by the Divisional Personnel Officer as such but by the Assistant Secretary to the General Manager. If the letter of appointment had been produced and if that had been signed by the Divisional Personnel Officer, then some argument may have been built up on the basis of that letter of appointment that it was not an appointment by the General Manager. There is no such evidence on this record.6. For all these reasons I hold that Mohan Singh, the petitioner, was appointed by the General Manager N.W.R., as temporary clerk. He has been dismissed by the Divisional Personnel Officer who is admittedly subordinate to the General Manager.Article 311(1)of the Constitution lays down that j no person who is employed in Civil Service of the Union shall be dismissed or removed by an autho-rity subordinate to that by which he was appointed. That being so, the dismissal of Mohan Singh by the Divisional Personnel Officer contravenes the provisions ofArticle 311(1).of the Constitution and is therefore invalid.7. The result is that this petition succeeds.Accordingly I hold that the dismissal of Mohan Singh on 30-5-1936 was illegal and of no effect and ho shall be deemed to continue in service.The petitioner is entitled to have his costs from the respondents. Counsel's fee Rs. 100.
248a3209-4085-5a97-9f80-a23273b7ab59
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Custom, Excise & Service Tax TribunalM/S. Ace Glass Containers Ltd vs Cce, Delhi on 9 July, 2009IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, WEST BLOCK NO. 2, R.K. PURAM, NEW DELHI COURT  III EXCISE APPEAL NO. 754-763 OF 2008-SM [Arising out of Order-in-Appeal No. 155-164/AND/GGN/2008 dated 29.7.2008 passed by the Commissioner of Central Excise (Appeals), Delhi-III, Gurgaon] For approval and signature: Honble Mr. P.K. Das, Member (Judicial) 1. Whether Press Reporters may be allowed to see the order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3. Whether their Lordships wish to see the fair copy of the order? 4. Whether order is to be circulated to the Departmental authorities? M/s. ACE Glass Containers Ltd., M/s. Hindustan Glass & Inds. Ltd., Appellants Vs. CCE, Delhi RespondentAppearance:Shri Prabjyoti K. Chadha, Advocate for the appellants; Shri R.K. Verma, D.R. for the Revenue Coram:Honble Mr. P.K. Das, Member (Judicial), Date of hearing/decision: 9th July, 2009 FINAL ORDER NO._________________ dated __________ Per P.K. Das:All these appeals are arising out of common order and, therefore, all are being taken up together for disposal.2. After hearing both sides and on perusal of the records, it is seen that refund claims filed by the appellants were rejected on the ground of unjust enrichment. Commissioner (Appeals) observed that the appellants failed to produce any evidence and mere submission of C.A. certificate is not sufficient. The learned Advocate on behalf of the appellants submits that they produced balance sheet in support of C.A. certificate. In this context, he drew the attention of the Bench to the relevant schedule of Balance Sheet.3. After considering the facts and circumstances of the case, I find that to meet the ends of justice, C.A. certificate along with balance sheet are required to be examined by the original authority. As such the impugned orders are set aside. The matters are remanded back to the original authority to decide afresh on the basis of evidences produced by the appellants. Needless to say that the original authority shall provide proper opportunity of hearing before the decision. All the appeals are allowed by way of remand.(Dictated & pronounced in the Open Court.) (P.K. DAS) MEMBER (JUDICIAL) RK
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Lok Sabha DebatesThe Minister Of State Of The Ministry Of Development Of North Eastern Region And ... on 2 May, 2013> Title: The Minister of State of the Ministry of Development of North Eastern Region and Minister of State in the Ministry of Parliamentary Affairs laid a statement regarding status of implementation of the recommendations contained in the 237th Report of the Standing Committee on Science and Technology, Environment and Forests on Demands for Grants (2012-13), pertaining to the Department of Scientific and Industrial Research, Ministry of Science and Technology.THE MINISTER OF STATE OF THE MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI PABAN SINGH GHATOWAR): Madam, on behalf of Shri S. Jaipal Reddy, I beg to lay the statement in pursuance of Direction No. 73A of the Hon'ble Speaker, Lok Sabha issued vide Lok Sabha Bulletin, Part II, dated 1st September, 2004 to inform the esteemed House about the status of implementation of recommendations contained in Two Hundred Thirty Seventh Report on the recommendations made by Department- related Parliamentary Standing Committee on Science and Technology, Environment & Forests on Action taken by the Department on the recommendations contained in 227th Report of the Committee on Demands for Grants (2012-2013) of Department of Scientific & Industrial Research.The Committee, while reviewing the working and considering the detailed Demands for Grants of DSIR, analyzed the same with reference to the aims, objectives and achievements of the Department and presented the 227th Report thereon to both the Houses on 18th May, 2012. There were 26 recommendations in 227th Report of the Committee. Majority of them were advisory and appreciative in nature. The Department has furnished a detailed Action Taken Note on these recommendations to the Committee on 29.08.2012.The Committee presented its 237th Report on the Action Taken by the Department on the recommendations contained in the 227th Report and presented to both the Houses of Parliament on 20th December, 2012.Some of the most significant recommendations are reproduced below:• 'Mechanism to Monitor and Review the Ongoing Schemes'- The Committee notes the reply given by the Department and hopes   that in the years to come the Department would not only maintain its good performance on Result Framework Document (RFD) but would further improve it;•       'Performance in the Eleventh Five Year Plan'- The Department has not furnished any reason for reduction of its allocation at Budgetary Estimate (B.E) stage. The Committee, however, hopes that the Department would make optimum utilisation of funds allocated to it. The Committee desires that the Department should take up the issue of huge cut in Plan outlays with the Planning Commission and impress upon the Commission to realistically view the requirement of the Department in the Twelfth Five Year Plan and bring the concern expressed by the Committee to the notice of the Planning Commission;•       'Achievements of CSIR'- The Committee notes the reply but would like CSIR scientists to win prestigious international awards and help Indian Industry to develop globally competitive products on a regular basis. The Committee further observes that steps being taken in this regard should have been spelt out in its Action Taken Note.•       'Technopreneur Promotion Programme - The Committee is happy to note the expansion of Technopreneur Promotion Programme and hopes that Department would ensure that the programme achieves its goal of making India a technology and innovation driven society;•       'Outlay Proposed and Allocation approved for 2012-13'- The Committee hopes that the Department will take up the matter with the Planning Commission/Ministry of Finance for restoration of funds at Revised Estimates stage. The Committee notes the reply of the Department and hopes that Central Electronics Limited (CEL) would make available cost effective Solar Photovoltaic Modules to Indian consumers in a fixed time frame;•       'Programmes of CSIR- National Laboratories Scheme'- The Committee notes the initiative taken by the CSIR to explore and to further enhance its capabilities by incorporating a company named 'CSIR Tech Private Limited (CTPL) and hopes that this new venture would result in effective commercialization of CSIR technologies;•       'Programmes of CSIR- National S&T Human Resource Development scheme'- The Committee is pleased to note that the Department has agreed to the proposal of the Committee to widen the ambit of its 250 CSIR handholding scholarships to the students suffering from other serious physical disabilities; and •       Interaction between industry and CSIR- The Committee notes the reply of the Department and hopes that CSIR would soon be able to work in partnership with other big industrial players in its endeavour to increase the share of private funds for Research & Development activities.The copy of the Action Taken Note on 237th Report, which was forwarded to Rajya Sabha Secretariat on 19.03.2013, is laid on the Table.… (Interruptions)
190818bc-772c-5042-8dd9-bff7faa83264
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Patna High Court - OrdersPrem Nath Chaudhary vs The State Of Bihar on 13 August, 2015Author:Gopal PrasadBench:Gopal PrasadIN THE HIGH COURT OF JUDICATURE AT PATNA Criminal Miscellaneous No. 16684 of 2015 Arising out of P. S. Case No. - 22 Year - 2013 Thana - MAHISI District - SAHARSA ====================================================== Prem Nath Chaudhary, Son of Late Gauri Shankar Chaudhary, resident of village - Bara, P.S. - Bihra, District - Saharsa, the then Branch Manager, Gramin Bank, Mahishi, P.S. - Mahishi, District - Saharsa .... .... Petitioner Versus The State of Bihar .... .... Opposite Party ====================================================== Appearance : For the Petitioner : Mr. For the Opposite Party/s : Mr. ====================================================== CORAM: HONOURABLE MR. JUSTICE GOPAL PRASAD ORAL ORDER 3 13-08-2015Heard learned counsel for the petitioner and learned counsel for the State.This is a petition for grant of regular bail in a case underSections 406,420,323,504,120B/34,467,468,469and471of the Indian Penal Code.It is alleged that in four cases in the name of other beneficiaries, the money of Indera Awas Yojna has been illegally withdrawn by the petitioner.Learned counsel for the petitioner submits that the petitioner is in jail custody since 11.03.2015.Hence, having regard to the facts and circumstances of the case, the petitioner, above named, is ordered to be released on provisional bail for one month on furnishing bail bond ofPatna High Court Cr.Misc. No.16684 of 2015 (3) dt.13-08-2015 2Rs.20,000/- (twenty thousand) with two sureties of the like amount each to the satisfaction of learned Chief Judicial Magistrate, Saharsa in connection with Mahishi P.S. Case No. 22 of 2013, subject to the condition that after release of the petitioner, he shall deposit Rs.50,000/- in the Court below within one month which amount shall be kept in the fixed deposit and on being satisfied the Court below shall confirm the bail bond of the petitioner. The said amount shall be subject to the result of the trial.(Gopal Prasad, J.) Kundan U T
ce27eaec-473d-557a-b44d-7e4e3dabb2c6
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Supreme Court of IndiaPanchraj Tiwari vs M.P.State Electricity Board & Ors on 4 March, 2014Equivalent citations: 2014 LAB IC 2660, 2014 AIR SCW 3303, 2014 (5) SCC 101, (2014) 2 MAD LJ 764, (2014) 2 SCT 332, (2014) 141 FACLR 288, (2014) 3 LAB LN 310, (2014) 6 SERVLR 227, (2014) 3 ALLMR 430 (SC), (2014) 3 SCALE 401, (2014) 1 ESC 110, (2014) 2 JCR 312 (SC), (2014) 3 MPHT 117, (2014) 2 SERVLJ 117, (2014) 3 ALL WC 2386, 2014 (3) ADJ 23 NOCBench:Kurian Joseph,H. L. GokhaleIN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 4371 OF 2008 Panchraj Tiwari … Appellant (s) Versus M. P. State Electricity Board and others … Respondent (s) J U D G M E N TKURIAN, J.:1. Whether on integration/merger/amalgamation, is it permissible to have complete denial of promotion forever in the integrated service, is the short question arising for consideration in this case.2. Appellant a graduate started his career as junior engineer on 23.09.1986 in the Rural Electricity Cooperative Society, Rewa. During 1995, it appears a policy decision was taken by the State Government to dissolve all such societies and merge the same with Madhya Pradesh State Electricity Board (hereinafter referred to as ‘MPSEB’). Accordingly, the Managing Committee of the Rural Electricity Cooperative Society, Rewa was superseded in May, 1995 and a Superintending Engineer of the MPSEB was appointed as Officer In-charge. However, it took a few years to complete the formalities of the merger. Finally the Rural Electricity Cooperative Society, Rewa was completely merged with the MPSEB w.e.f. 15.03.2002.3. The principles of merger were clarified by the MPSEB after prolonged correspondence as per Annexure P-12 dated 15.06.2004. For the purpose of ready reference, we shall extract the contents:“Please refer to this office order cited under reference. It is requested to issue necessary orders for absorption of employees of REC societies falling under your area of jurisdiction on the same terms & conditions of the societies. The terms & conditions of the societies may be obtained from DE (STC), Jabalpur.Further other terms & conditions of which employees can be absorbed:-1. The regular employees of the above societies shall be taken over on the same terms & conditions as existing in the Society except that no deputation allowance shall be paid.2. Their pay scale will be the same which they were getting before the absorption.3. The above employees may not be transferred out of the circle concerned, so that no anomaly arises.4. Their age of superannuation will be the same as applicable in the societies.5. Pension/gratuity will be payable to the employees absorbed in the Board as per the rules/regulation of the concerned society.6. Their designation will be maintained as it was in the society.” (Emphasis supplied)4. The principles of absorption as extracted above would clearly show that the employees of the society have been taken over and absorbed in the MPSEB. However, their pay-scale on the date of absorption was protected, their designation was maintained as it was in the society at the time of absorption and the age of superannuation, pension and gratuity of such employees were to be governed by the rules/bylaws of the society concerned.5. Though it may appear that there are some conditions which are normally not found in the principles of integration, the fact remains that the employees of the erstwhile society which merged with the MPSEB, have been absorbed in the service of MPSEB.6. Integration/merger of services means creation of a homogenous service by the merger of service personnel belonging to different services. Though it is difficult to have a perfect coalescence of the services on such merger, the principle of equivalence is to be followed while absorbing the employees, to the extent possible.7. Though integration of services thus postulates equation of posts, it is not invariably necessary to prepare the seniority list on the basis of the pay drawn by the incumbent in the equated category. It is always open to the authority concerned to adopt a just and the equitable principle on fixation of seniority.8. Once a service is merged with another service, the merged service gets its birth in the integrated service and loses its original identity.There cannot be a situation, where even after merger, absorption or integration, such services which were merged or absorbed, still retain their original status. If so, it is not an absorption or merger or integration, it will only be a working arrangement without any functional integration.9. In the instant case, the undisputed factual and legal position is that there is absorption of the employees of the Rural Electricity Cooperative Society, Rewa with the MPSEB. The Society has been deregistered, there is only one service thereafter and thus there is functional integration. On the basis of the protection of the designation and pay-scale, the employees have to be posted in the equivalent category. Since it is not specifically provided as to the position of such employees in the integrated service, it is a settled equitable principle that such employees are placed as junior to the junior-most officer of the category concerned in the MPSEB on the date of absorption, viz., 15.03.2002.10. It is provided in the conditions of service of the MPSEB as per Circular dated 15.11.1990 that a graduate Junior Engineer having satisfactory service of four years of regular service can be considered for promotion to the post of Assistant Engineer after appropriate training. The appellant started his career as a graduate engineer in the Rural Electricity Cooperative Society, Rewa in 1986. He also claimed promotion on the basis of such circular. The Board of Directors of the appellant’s society passed a Resolution on 27.12.1994 for his promotion as Assistant Engineer. By that time the steps for dissolution of society, it appears had already started. The Board of Directors was dissolved in May, 1995 and a Superintending Engineer of the MPSEB was appointed as Officer In-charge of the society. The said officer forwarded the proposal of promotion of the appellant as an Assistant Engineer to the MPSEB.11. It appears, the Registrar of the Cooperative Societies as well as MPSEB have taken the stand that the appellant had not been duly selected for promotion as Assistant Engineer in terms of Rule 18 of the Society. The Rule reads as follows:“18. SELECTION AND APPOINTMENT The selection of suitable candidate for filling-up a post in the society as well as for making selection for promotion of eligible candidates shall be made by a selection committee to be constituted by the Board, consisting of the Chairman, a member of the Board to be elected by the Board, divisional Deputy Registrar of Cooperative Society, Divisional Engineer, M.P. Electricity Board and the Managing Director of the Society.Dearness allowances to employees borne on regular establishment shall be admissible as applicable to the employees of M.P.E.B. from time to time with previous approved of the Registrar Cooperative societies M.P. Dearness allowances to employees borne on regular estt. shall be admissible as sanctioned by the M.P.E.B. to the similar categories of employees.” (Emphasis supplied)12. It is the case of the appellant that since the Board of Governors had already been dissolved and since it had been decided to absorb the employees of the society in the Board, there was no point in following the process of selection in terms of the regulations of the society. Thus, the rejection was challenged before the High Court.13. Learned Single Judge dismissed the writ petition on the ground that writ against a cooperative society was not maintainable. However, in appeal, it was admitted by the Board that the society had already merged with the Electricity Board and, hence, case was heard on merits before the Division Bench. It is the stand of the High Court in appeal that the principles of integration, as extracted above, cast no obligation on the Electricity Board to give promotion to the appellant. The obligation was only to absorb the appellant by protecting the designation and pay-scale and continue as such. In other words, since the appellant was absorbed as a Junior Engineer, he should continue forever as Junior Engineer till his retirement. We are afraid that the stand cannot be justified.14. As held by this Court inR.S. Makashi and others v. I. M. Menon and others[1], the courts will not interfere with the decision and principles of integration unless it is shown that they are arbitrary, unreasonable or unfair. No doubt, there is no vested right for an employee to have a particular position in the integrated or merged service.On equitable considerations, it is always open to the authorities concerned to lay down the principles with regard to the fixation of seniority as held by this Court inS. S. Bola and others v. B.D. Sardana and others[2] andPrafulla Kumar Das and others v. State of Orissa and others[3]. However, in the instant case, equivalence has been decided since designation and pay-scale was protected. What remains is only the seniority.15. It is open to the authority concerned to lay down equitable principles with regard to fixation of seniority in the merged cadre. Once a service gets merged with another service, the employee concerned has a right to get positioned appropriately in the merged service. That is the plain meaning of ‘absorption’. The MPSEB, having absorbed the appellant and other employees, cannot maintain a stand that even after absorption they will retain a distinct identity in the equated cadre without any promotion as enjoyed by their compeers in the parent service. That is a plain infraction of the equity clause guaranteed underArticles 14and16of the Constitution of India.16. Chances of promotion are not conditions of service, but negation of even the chance of promotion certainly amounts to variation in the conditions of service attracting infraction ofArticles 14and16of the Constitution of India. No employee has a right to particular position in the seniority list but all employees have a right to seniority since the same forms the basis of promotion.17. An employee has always an interest to seniority and a right to be considered for promotion. If after integration, only the chances of promotion are affected, it would have been only a case of heartburn of an individual or a few individuals which is only to be ignored, as held by this Court in Tamil Nadu Education Department Ministerial and General Subordinate Services Association and others v. State of Tamil Nadu and others[4].18. Instant is a case where there is complete denial of promotion forever which cannot be comprehended under the constitutional scheme ofArticles 14and16of the Constitution of India.In this context, we shall refer to a beautiful discussion on this aspect inS. S. Bolacase (supra) at paragraph 153. The relevant portion reads as follows:“153. xxx xxx xxx xxx AB. A distinction between right to be considered for promotion and an interest to be considered for promotion has always been maintained. Seniority is a facet of interest. The rules prescribe the method of recruitment/selection. Seniority is governed by the rules existing as on the date of consideration for promotion. Seniority is required to be worked out according to the existing rules. No one has a vested right to promotion or seniority. But an officer has an interest to seniority acquired by working out the rules. The seniority should be taken away only by operation of valid law. Right to be considered for promotion is a rule prescribed by conditions of service. A rule which affects chances of promotion of a person relates to conditions of service. The rule/provision in an Act merely affecting the chances of promotion would not be regarded as varying the conditions of service. The chances of promotion are not conditions of service. A rule which merely affects the chances of promotion does not amount to change in the conditions of service. However, once a declaration of law, on the basis of existing rules, is made by a constitutional court and a mandamus is issued or direction given for its enforcement by preparing the seniority list, operation of the declaration of law and the mandamus and directions issued by the Court is the result of the declaration of law but not the operation of the rules per se.” (Emphasis supplied)19. In the above circumstances, we set aside the judgment in appeal. The absorbed employees of the Rural Electricity Cooperative Societies, having due regard to their date of appointment/promotion in each category in the respective societies, shall be placed with effect from the date of absorption, viz., 15.03.2002 as juniors to the junior-most employee of the Electricity Board in the respective category. Thereafter, they shall be considered for further promotions as per the rules/regulations of the MPSEB. All other principles/conditions of absorption shall remain as such. However, it is made clear that on such promotions, in the exigencies of service, the employee concerned would also be liable to be transferred out of the circle, if so required.20. The appellant accordingly shall be entitled to retrospective promotions at par with and with effect from the dates on which the junior-most graduate engineer in the parent service on the date of absorption obtained such promotions. However, we make it clear that benefits till date need to be worked out only notionally.21. The appeal is allowed as above. There is no order as to costs...…….…..…………J. (H. L. GOKHALE) ..……………………J. (KURIAN JOSEPH) New Delhi;March 4, 2014.-----------------------[1] (1982) 1 SCC 379 [2] (1997) 8 SCC 522 [3] (2003) 11 SCC 614 [4] (1980) 3 SCC 97 ----------------------- REPORTABLE -----------------------10
c0192a4f-0186-5d75-83fc-be745efb8471
court_cases
Income Tax Appellate Tribunal - DelhiMesse Dusseldorf India (P) Ltd., New ... vs Department Of Income Tax on 25 March, 2015IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ' E', NEW DELHI) BEFORE SHRI G. C. GUPTA, HON'BLE VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. No.2642 /Del/2013 Assessment year : 2009-10 DCIT, Circle 6(1), Vs. Messe Dusseldorf India (P) Ltd. New Delhi 1, Commercial Complex, Pocket H & J, Sarita Vihar, New Delhi GIR / PAN: AABCC4880E (Appellant) (Respondent) Appellant by : Shri Piyush Kaushik, Adv. Respondent by : Shri P Dam Kanunjha, Sr. DR Date of hearing : 16.03.2015 Date of pronouncement : 25.03.2015 ORDER PER T.S. KAPOOR, AM:This is an appeal filed by Revenue against the order of Ld. CIT(A) dated 21.12.2011. The only grievance raised by Revenue was against action by Ld. CIT(A) by which he has allowed claim of brought forward of unabsorbed depreciation.2. At the outset, the Ld. D.R. invited our attention to assessment order and submitted that the assessee had already exhausted the carry forward losses and moreover, there was change in shareholding and therefore, the claim of brought forward loss was not allowedu/s 79of the I. T. Act, 1961.3. Ld. A.R. on the other hand invited our attention to the relevant finding of Ld. CIT(A) and submitted that brought forward losses were due to2 ITA No.2642/Del/2013unabsorbed depreciation and were not carry forward losses and, therefore, Section 79 was not applicable. It was submitted that Hon'ble Supreme Court in the case ofCIT Vs Shubh Laxmi Mills Ltd.249 ITR 795 S.C. has clearly held that Section 79 applies only to carry forward of set off of losses and does not include carry forward of depreciation and unabsorbed depreciation. Ld. A.R. submitted that various High Courts including Kerala and Madras High Courts have followed Hon'ble Supreme Court's order and in this respect our attention was invited to paper book pages 3-17.4. We have hard rival parties and have gone through the material placed on record. We find that Ld. CIT(A) had called for report for Assessment Year 2009-10 and from the records he found that assessee had claimed set off of depreciation for the income and its brought forward claimed were not on account of business losses. The Hon'ble Supreme Court in the case ofCIT Vs Subhlaxmi Mills Ltd.(supra) has held as under:"So far as question No.2 is concerned, the question is whether in applyingsection 79of the Act, only the business loss should be taken into account and not the unabsorbed depreciation or unabsorbed development rebate. The High Court has answered the question saying that when section 79 speaks of loss, it does not include unabsorbed depreciation or unabsorbed development rebate. We agree with the High Court."5. Ld. CIT(A) has already looked into the case law relied by assessee and for the sake of convenience, findings of Ld. CIT(A) are reproduced below:"4. Before the undersigned the appellant has submitted:"The assessee has thus claimed set off from brought forward "unabsorbed depreciation" only as noted by the AO itself in its order. The year wise details of "unabsorbed depreciation" of RS.6,236,736/- were duly stated in the Return of Income being in record of the AO.3 ITA No.2642/Del/2013Computation forming part of Return of Income for A.Y. 2009-10 enclosed. From the said computation forming part of return of income it is thus abundantly clear that the assessee has claimed set off in respect of "unabsorbed depreciation" only without claiming any set off in respect of losses". From the extract of Tax audit report filed before the AO being Annexure 4 of the letter dated 24.10.11 before the AD it is clear that even though the asses e - w s having brought forward balance of "business losses" also, however the assessee has claimed set off in respect of "unabsorbed depreciation" only which is abundantly clear from theReturn of Income(supra) and this fact has itself been admitted by the AO in the first line of its order. The assessee has thus not claimed any set off on account of "business losses" as a matter of fact and record. In the process of disallowance (as aforesaid) by the AO, the AO fails to take a note of the legal position as to whether "unabsorbed depreciation" being a item distinct from losses can at all fall under the clutches of section 79. In the present case the assessee has claimed set off in respect of "unabsorbed depreciation" only as a matter of fact as admitted by the AO itself in the first line of its order. No set off was claimed in respect of "business losses". It is a settled legal position that even in those cases where the provisions of section 79 are held to be applicable the disallowance will be confined to "business losses" only and will not extend to "unabsorbed depreciation".The decision of Hon'ble Supreme Court in the case ofCIT Vs Subhulaxmi Mills Ltd.249 ITR 795 SC (pages 17-18 paper book): The Hon'ble Supreme Court in this case very clearly held as under:"So far as question No. 2 is concerned, the question is whether in applyingsection 79of the Act, only the business loss should be taken into account and not the unabsorbed depreciation or unabsorbed development rebate. The High Court has answered the question saying that when section 79 speaks of loss, it does not include unabsorbed depreciation or unabsorbed development rebate. We agree with the High Court".5. The records of the appellant for A.Y. 2009-10 were called for. From the record, it is seen that in the computation of total income filed by the appellant it has claimed brought forward and set off of depreciation of RS.62,36,736/- from the income of Rs.93,25,494/- as shown in the P&L account. It has returned the gross total income of Rs.30,88,758/-. The ITR 6 on the file shows in the Schedule BFLA,4 ITA No.2642/Del/2013(giving details of income after set off of brought forward losses of earlier years) that the appellant had not claimed brought forward loss set off, in fact it had claimed brought forward depreciation set off of Rs.62,36,736/-. In reply to noticeu/s 143(2)/142(1)of the Act dated 21.07.2011 the assessee had replied to the AO on 24.08.2011 stating clearly at point 4 "clause 18 of your notice: There in no loss carried forward for the A.Y. 2009-10."6. The legal proposition in the case ofCIT Vs Subhulaxmi Mills Ltd.249 ITR 795 (SC) states that section 79 applies only to carry forward and set off of losses in the case of certain companies and does not apply to the case of carry forward / unabsorbed depreciation. In the present case, the assessee is not carrying forward and setting off any loss but has unabsorbed depreciation, which is guided by the provisions ofsection 32(2)and not section 79. In view of the factual position on record of the AO, the submissions made before the undersigned and in view of theratiolaid down inthe case of Subhulaxmi Mills Ltd. by the Hon'ble Supreme Court the grounds of appeal are allowed. The AO is directed to allow the appellant the claim of set off of carried forward "unabsorbed depreciation" of Rs.62,36,736/-."6. We find that Ld. CIT(A) has duly verified the facts and had arrived at the conclusion that the carry forward loss was on account of unabsorbed depreciation only and therefore, as decided by Hon'ble Supreme Court in the case ofCIT Vs. Shubhlaxmi Mills Ltd., Section79 was not applicable and in view of the above, we do not find any infirmity in the order of Ld. CIT(A), therefore, appeal filed by Revenue is dismissed.7. Order pronounced in the open court on 25th March, 2015.Sd./- Sd./- ( G. C. GUPTA) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER Date: 25th March, 2015 Sp5 ITA No.2642/Del/2013Copy forwarded to:- 1. The appellant 2. The respondent 3. The CIT 4. The CIT (A)-, New Delhi.5. The DR, ITAT, Loknayak Bhawan, Khan Market, New Delhi.True copy. By Order (ITAT, New Delhi). S.No. Details Date Initials Designation 1 Draft dictated on 18/3 Sr. PS/PS 2 Draft placed before author 19,23,24 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS 25/3 Sr. PS/PS 6 Kept for pronouncement 25/3 Sr. PS/PS 7 File sent to Bench Clerk 25/3 Sr. PS/PS Date on which the file goes to Head8Clerk 9 Date on which file goes to A.R. 10 Date of Dispatch of order
2b8be6df-d451-5473-a7c8-ae3b5c01865f
court_cases
Andhra High CourtNizams Religious Endowment Trust vs Commissioner Of Income-Tax, Andhra ... on 14 September, 1962Equivalent citations: [1963]48ITR992(AP)JUDGMENTSESHACHELAPATHI J. - This is a case referred to the High Court undersection 66(1)of the Indian Income-tax Act (Xl of 1922). The question formulated for decision is :"Whether the income arising from property settled upon trust under the deed of settlement, dated September 14, 1950, or any part thereof is exempt from tax undersection 4(3)(i)of the Indian Income-tax Act, 1922 ?"By an indenture made at Hyderabad on September 14, 1950, H. E. H. the Nizam of Hyderabad settled upon two trustees, Nawab Zain Yar Jung and Shavax Ardshir Lal, certain securities of the value of Rs. 40,00,000, more particularly described in the first schedule annexed thereto upon trust for applying the income thereof for religious and charitable purposes and objects, in the manner appearing in the instrument of trust and settlement. In schedule 2 annexed to the indenture, the particulars of the sacred buildings which are directed to be maintained, are set out. The provisions of the indenture relevant for the present case are as follows :"2. This trust shall be called H. E. H. the Nizams Religious Endowment Trust.3. The trustees shall hold and stand possessed of the trust fund UPON TRUST -(a) To manage the trust fund and to recover the interest and other income thereof.(b) To pay and discharge out of the income of the trust fund all expenses and charges for collecting and recovering the income of the trust fund and all other costs, charges, expenses and outgoings of and incidental to the administration thereof.(c) During the lifetime of the settlor the balance of the income shall be accumulated and shall be added to the corpus of the trust fund.(d) On and after the death of the settlor the trustees shall hold the accumulated corpus of the trust fund upon trust to spend the income thereof for any one or more of the following religious or charitable objects in such shares and proportions and in such manner as the trustees shall in their absolute discretion deem proper.(i) For annual religious offerings to the sacred places of the Muslims outside India, in Hedjaz and Iraq, viz., Mecca, Madina, Najaf, Karbala, Kazamain, Sirraman Raa and Mashad (in Iran) and Baghdad and Basra.(ii) For help, either in lump sum or by way of monthly allowances, to the Khuddam or the servants who are looking after the sacred shrines, and also by way of charity to pious people residing at these holy places.(iii) For the upkeep of the sacred buildings constructed in the lifetime of the settlor, such as, Masjids (mosques), Azakhana (mourning house built to commemorate the name of His Exalted Highness late mother), two Ashurkhanas (where the Alam sits inside the City Palace during Moharram and Ramzan), and the Maqbaras (tombs) and particularly mentioned in the second schedule hereunder written.(iv) For the annual expenditure during the mourning period of Moharram and Safar and also during other religious months, when different kinds of ceremonies, religious discourses (Tazreers) Id Taqreebs, etc., are performed, including the annual religious offerings to the sacred Shrines at Ajmer and Gulbarga.(v) It is the desire of the settlor that the income of the trust shall, as far as possible, be spent equally for the above-mentioned four religious and charitable objects and purposes and in the event of there being any surplus then the same may be spent by the trustees for any other religious and charitable objects for the benefit of Sunni Mohammedans with liberty to the trustees in their absolute discretion to accumulate the surplus, if any, for any year or years and utilize the same for the purposes in this clause provided for any subsequent year or years."For the assessment years 1952-53 and 1953-54 the "H. E. H. the Nizams religious trust fund "claimed that the income arising from the properties settled upon trust in and by the indenture dated September 14, 1950, was exempt from tax undersection 4(3)(i)of the Indian Income-tax Act. That claim was rejected by the Assessing Officer, the Appellate Assistant Commissioner and, eventually, by the Income-tax Appellate Tribunal (Hyderabad Bench).The question we have to decide in this reference is whether the income from the trust fund is entitled to exemption undersection 4(3)(i)of the Act. The relevant portion of thesection 4(3)(i)of the Act reads as follows :"Any income, profits or gains falling within the following clauses shall not be included in the total income of the person receiving them :(i) Subject to the provisions of clause (c) of sub-section (1) ofsection 16, any income derived from property held under trust or other legal obligation wholly for religious or charitable purposes, in so far as such income is applied or accumulated for application to such religious or charitable purposes as relate to anything done within the taxable territories, and in the case of property so held in part only for such purposes, the income applied or finally set apart for application thereto :Provided that such income shall be included in the total income -(a) if it is applied to religious or charitable purposes without the taxable territories, but in the following cases, namely :(i) where the property is held under trust or other legal obligation created before the commencement of the Indian Income-tax (Amendment) Act, 1953 (XXV of 1953), and the income therefrom is applied to such purposes without the taxable territories; and(ii) where the property is held under trust or other legal obligation created after such commencement, and the income therefrom is applied without the taxable territories to charitable purposes which tend to promote international welfare in which India is interested, the Central Board of Revenue may, be general or special order, direct that it shall not be included in the total income."The present clause (i) ofsection 4(3)of the Act was introduced by the Indian Income-tax (Amendment) Act (XXV of 1953), which is deemed to have come into force on 1st April, 1952. The assessments for the two years in question, i.e., 1952-53 and 1953-54 are governed by the amended provision, which is above extracted.Section 3of the Act is the charging section. It provides that income-tax shall be levied on individual, Hindu undivided family company, etc., on the total income at the rates prescribed by theFinance Actevery year.Section 4defines and limits the nature of the income that may be included in the total income of the previous year.Section 4(3)provides for the exclusion of certain classes of income from the total income, as defined insection 2(15)of the Act, liable to the charge of the income-tax. Certain categories of income are totally exempt.There is a clear and well-marked distinction between cases where income is absolutely exempt from income-tax and where such an exemption can be claimed and allowed only if certain conditions are satisfied. In Commissioner of Income-tax v. S. L. Mathias the Judicial Committee of the Privy Council observed that there is a distinction between exempting a class of income in some events and exempting it in all events.For example, in the case of agricultural income,section 4(3)(viii), as pointed out by Lord Macmillan inCommissioner of Income-tax v. Maharajadhiraja of Dharbhanga:"The exemption is conferred, and conferred indelibly on a particular kind of income and does not depend on the character of the Recipient....."But, immunity from tax in respect of income arising from properties impressed with the trust or other legal obligation for the effectuation of religious or charitable purposes is not absolute, but conditional upon the fulfilment of the requirements of the statutory provisions. It is elementary that in cases where an assessee claims exemption, the onus is on him to make good the claim.In order to successfully claim exemption undersection 4(3)(i)of the Act, the assessee must show that the following conditions are satisfied :(1) that the property from which the income is derived is impressed with and held under a trust or other legal obligation, (2) that the property so held is wholly for the effectuation of religious and charitable purposes, (3) that the income from the properties so held is applied or accumulated for application to religious or charitable objects as relate to anything done within the taxable territories, and (4) that in the case of property held under trust or other legal obligation in part only for religious or charitable purposes, the exemption is confined only to the income so applied or finally set apart for application thereto.We are not concerned here with the last condition, as the securities referred to in the schedule to the instrument of trust, are wholly for religious and charitable purposes. There is no question of the properties being held in part only for such religious and charitable purposes. Nor are we concerned with the terms of sub-clauses (i) and (ii) of clause (a) of the proviso tosection 4(3)(i)of the Act, as they refer only to a case where the income is in fact applied for charitable and religious objects outside the taxable territories.We are primarily concerned with the first three conditions set out supra as emerging from the language ofsection 4(3)(i)of the Act. The terms of the indenture of trust dated September 14, 1950, clearly constitute a trust with respect to the securities described in schedule I attached thereto. The first condition, therefore, is satisfied. As regards the second condition, there can be no controversy - and in fact there has been none before us-that the purposes and objects enumerated in sub-clauses (i), (ii), (iii) and (iv) of clause (d) of paragraph (3) of the indenture are religious and charitable in character. It is not also in dispute that the religious charities referred to in sub-clauses (i) and (ii) of clause (d) of paragraph (3) of the indenture have to be effectuated in sacred places of the Muslims outside India and, therefore, without the taxable territories. Sub-clauses (iii) and (iv) alone provide for the expenditure of income on religious and charitable objects, within the taxable territories.The controversy in this case centres round the question whether, in view of the provisions in the trust deed for the expenditure of income, from the trust fund for religious and charitable purposes, admittedly outside the taxable territories, the assessee can claim the benefit of the exemption from tax.In the course of an able argument, Mr. Anwarulla Pasha, the learned counsel for the trust fund, contended that under the terms of the trust deed, the trustees have to accumulate the income of the trust fund during the lifetime of the settlor, and that, therefore, the question of its application to one or more of the four religious objects enumerated in the trust deed, two of which are admittedly to be effectuated outside the taxable territories, can arise only on and from the death of the settlor. It is further contended that, even when the time for application of the income arrives, inasmuch as the trustees have been given absolute discretion to apply the income to one or more of the four categories of religious purposes, it cannot be predicated that they (the trustees) will expend moneys, at all, for religious and charitable purposes outside India. Upon the premises, it is argued that the income of the trust fund, which is now being accumulated, for purposes which are clearly religious and charitable in character, is entitled to the exemption undersection 4(3)(i)of the Act.In support of the contention, the learned counsel placed strong reliance upon the decision of the Bombay High Court inCommissioner of Income-tax v. Walchand Diamond Jubilee Trust. The facts of that case are briefly these : An industrialist of Bombay created a trust in a sum of over Rs. 4,11,111 for certain charitable objects, and providing, inter alia, that the trust fund should be invested in the Premier Construction Company Ltd., and that on the expiry of a period of eighteen years from the date of the indenture, the income should be applied for giving scholarships, medical relief, monetary help to the poor and the needy and relief of the poor and distressed in times of famines, cyclones, floods, earthquakes, etc. There was a direction in the deed of trust that, in giving the bounty, the trustees may give preference to the employees of the Premier Construction Company Ltd., past and present. The question for decision was whether the income for the assessment year 1949-50, which fell within the period of accumulation as directed by the maker of the trust, was entitled to exemption from tax undersection 4(3)(i)of the Indian Income-tax Act. Chagla C.J. who spoke for the Division Bench, held, firstly, that during the period of accumulation, the fund continues to be charitable in character and, therefore, exempt from tax; and, secondly, that, even though there was a direction to prefer the employees of the Premier Construction Company Ltd., inasmuch as the trustees were not bound to do so in the exercise of their discretion, the trust fell within the ambit ofsection 4(3)(i)of the Act.In support of his contention that, during the period of accumulation, the income of the trust fund is entitled to exemption from income-tax, Mr. Anwarulla Pasha, the learned counsel, placed particular reliance on a passage in the judgment of Chagla C.J., which is as follows :"So long as the income from the trust property is not spent on any non-charitable object and it is saved, as it were, or set apart or accumulated for the ultimate object of carrying out the charitable purpose, then even in the intervening period the trust continues to be a charitable trust, the property is held on a charitable trust and the income from the trust is exempt from tax."We are of opinion that the above observations of the learned Chief Justice do not really advance the case of the learned counsel. In the case cited above, there was no question at all of any of the charitable purposes having to be effectuated outside the taxable territories. The question we have to decide in this case is not whether accumulation of the income, with a view to its ultimate expenditure for religious and charitable purposes, is exempt from tax. But, what we have to decide is whether if some of the purposes for which the income is being accumulated are admittedly to be applied for religious and charitable purpose outside the taxable territories, the income can nevertheless be exempted from tax. Upon that point, the decision of Chagla C.J. has no bearing.It is next contended by the learned counsel that, even though two of the four charities have to be effectuated outside the taxable territories, the trustees are not bound to apply the income for such purpose, and, therefore, it cannot be said that the income is now being accumulated for the effectuation of the purpose outside the taxable territories.In support of that contention, reliance was placed upon some observations of Chagla C.J. in the case cited above. In that case, the trustees were empowered to give preference to the employees of the Premier Construction Company Ltd. It was contended for the revenue that that provision was a device really to help the employees of the Premier Construction Company Ltd., in which case, of course, the trust would not be a charitable trust within the meaning ofsection 4(3)(i). That argument was not accepted by Chagla C.J. upon the ground that the trustees were not bound to select the employees in preference to the general class of beneficiaries and, therefore, it cannot be said that the trust was not a charitable trust. In the trust deed, which fell to be construedin that case, the employees of the Premier Construction Company Ltd. were not the direct recipients of the bounty. All that was provided for was, in giving benefit to the four classes enumerated, preference may be given to the employees. In such a situation, it cannot be said that the direction to give preference to the employees of the Premier Construction Company Ltd. affects its character as a charitable trust.In a recent case inThe Trustees of the Charity Fund v. Income-taxtheir Lordship of the Supreme Court held that where the charitable gift is to benefit a primary class, which would constitute a religious and charitable purpose, the fact that the trustees, in their discretion, have been given a power to select the objects of bounty from that primary class, would not render the trust any the less charitable in character. The decision of Chagla C.J., therefore, is, if we may say so respectfully, correct on the that case.There is nothing in the judgment of the learned Chief justice, however, to lend support to the contention of Mr. Anwarulla Pasha that, even though one of the purposes of the trust is clearly not religious or charitable in character, nevertheless, the entire income is entitled to exemption because the trustees, in their discretion, may or may not employ the income for purposes which are not religious or charitable. Such a view, in our judgment, is opposed to principle and authority.In Lokamanya Tilak Jubilee National Trust Fund, Bombay, In re : a trust was created for effectuating the four purposes. It was held therein :"That the objects specified in the sub-clauses (of the trust deed) being distributive (in their character). the whole of the trust fund could be applied for any one or more of the objects specified, and if any of those objects did not fall within the definition of charity, the trust could not be regarded as a good charitable trust."In Mercantile Bank of India (Agency) Ltd., In re it was held that where one of the objects was not clearly a charitable purpose, the trust cannot be said to be wholly a charitable trust. These two cases establish the principle that if there is plurality of objects, and the trustees are given the unfettered discretion to apply fund for an object which is not a charitable purpose, then the entire fund is outside the scope ofsection 4(3)(i)of the Act. Applying that principle to the present case, it must be held that so long as there is a possibility of the trustees, in their discretion, applying the fund for purposes outside the taxable territories, the income does not fall clearly within the scope ofsection 4(3)(i)of the Act.In cases where the income is actually expended outside the taxable territories, there can be no question of exemptions except in circumstances and to the extent referred to in proviso tosection 4(3). We are not concerned in this case with proviso, for the stage of application of the income had not yet been reached. We are concerned only with accumulation of income. In our view, the words "to such religious or charitable purposes as relate to anything done within the taxable territories" occurring insection 4(3)(i)must govern both the actual application of the income and accumulation thereof for its eventual application. The same considerations, as relate to the application of the income, must also govern its accumulation.Accumulation is a process ancillary to the application. It is a mode of investment. It is not an end. It is a means to an end, the end being its application to religious and charitable objects within the taxable territories. So long as it cannot be predicated with certainty that the income is wholly to be applied for religious or charitable purposes within the taxable territories, the accumulation of the income for such application cannot fall within the ambit ofsection 4(3)(i)of the Act.It is then contended that in construing a fiscal enactment, in all cases of doubt, that construction should be preferred, which is favourable to the assessee. In Inland Revenue Commissioners v. Bladnoch Distillery Company Ltd. Lord Thankerton observed :"... counsel are apt to use the adjective penal in describing the harsh consequences of taxing provision, but, if the meaning of the provision is reasonably clear, the court have no jurisdiction to mitigate such harshness. On the other hand, if the provision is reasonably capable of two alternative meanings the courts will prefer the meaning more favourable to the subject."InC. A. Abraham v. Income-tax Officer, Kottayamtheir Lordships of the Supreme Court have observed :"In interpreting a fiscal statute, the court cannot proceed to make good deficiencies, if there be any; the court must interpret the statute as it stands and in case of doubt in a manner favourable to the taxpayer."This proposition of law is, no doubt, well settled. But the invocation of this principle can arise, only in cases where there is an ambiguity in the language of the statutory provision. We cannot agree that there is any ambiguity in the language of the section.We have reached the conclusion that, on the terms ofsection 4(3)(i)of the Indian Income-tax Act, the trust is not entitled to the exemption. It is unnecessary to refer to the decision cited by the learned counsel for the revenue that in cases of immunity from taxation, the statute must be strictly construed, a proposition which, it is only fair to add, Mr. Anwarulla Pasha does not contest.We, therefore, answer the question submitted to us in the negative. The Commissioner of Income-tax, Hyderabad, will have his costs. Advocates fee Rs. 250.Question answered in the negative.
a5e8ee79-1a01-55e6-9997-12acbce506d2
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State Consumer Disputes Redressal CommissionM/S. Kirloskar Electric Co. Ltd. vs M/S Ap Motronix Private Limited, on 11 September, 2013BEFORE THE A.P STATE CONSUMER DISPUTES REDRESSAL COMMISSION AT HYDERABAD.   FAIA 1980 of 2013 in FASR 4798/2013 against CC 125/2012, Dist. Forum, Ranga Reddy   Between:   M/s. Kirloskar Electric Co. Ltd. Rep. by its Director Unit No. XXV, P.B. Road Gabbur, Hubli Karnataka-580 028. *** Petitioner/ Appellant/ O.P. No. 2 And   1.     M/s AP Motronix Private Limited, # 3-18-3, Pragathi Nagar, Ramanthapur, Hyderabad, Rep. by its Managing Director D.Prashanth Reddy.   2.     M/s Dumpala Engineering Company, # 3-18-3, Pragathi Nagar, Ramanthapur, Hyderabad, Rep. by its Proprietrix Smt D.Swaroopa Reddy. *** Respondents/ Complainants 3.     M/s Kadevi Industries Limited, A1-A2, Electronic Complex, Kushaiguda, Hyderabad 500 062. Rep. by General Manager, Business Development (Generators Division) *** Respondent/ O.P. No. 1 Counsel for the Petitioner : M/s. Devashish Dash Counsel for the Respondent: Admission Stage   CORAM: SMT. M. SHREESHA, PRESIDING MEMBER & SRI S. BHUJANGA RAO, MEMBER WEDNESDAY, THE ELEVENTH DAY OF SEPTEMBER TWO THOUSAND THIRTEEN   ORAL ORDER:(Per Smt. M. Shreesha, Member)   ***1) Aggrieved by the order in CC No. 125/2012 on the file of the Dist. Forum, Ranga Reddy, the opposite party No. 2 preferred this appeal and along with it the above application to condone delay of 225 days in filing the appeal on the ground that they did not receive order copy of the Dist. Forum and they came to learn about the ex-parte order through R3/Op1 on 23.7.2013 and on being advised they immediately preferred this appeal after obtaining certified copies through their Regional Office at Bangalore. In the process a delay of 225 days had occasioned. The delay is neither wilful nor wanton but for the aforementioned reasons, and therefore prayed that the delay may be condoned.2) In the light of the fact that delay was whopping 225 days without any material whatsoever to substantiate the delay, we do not wish to order any notice to the respondent as no improvement could be made by the petitioner/appellant in regard to the plea urged. The provisions of Civil Procedure Code or provisions ofLimitation Actdo not apply to the proceedings under theConsumer Protection Actto order notice before resolving the issue. The matters have to be resolved by applying principles of natural justice, equity, and good conscience etc.3) As there is inordinate delay of 225 days, this delay cannot be condoned in the light of the following judgment passed by the Honble Apex Court.In R.B. Ramlingam Vs. R.B. Bhavaneshwari 2009 (2) Scale 108, it has been observed:We hold that in each and every case the Court has to examine whether delay in filing the special appeal leave petitions stands properly explained. This is the basic test which needs to be applied. The true guide is whether the petitioner has acted with reasonable diligence in the prosecution of his appeal/petition.In Ram Lal and Ors. Vs. Rewa Coalfields Ltd., AIR 1962 Supreme Court 361, it has been observed;It is, however, necessary to emphasize that even after sufficient cause has been shown a party is not entitled to the condonation of delay in question as a matter of right. The proof of a sufficient cause is a discretionary jurisdiction vested in the Court byS.5. If sufficient cause is not proved nothing further has to be done; the application for condonation has to be dismissed on that ground alone. If sufficient cause is shown then the Court has to enquire whether in its discretion it should condone the delay. This aspect of the matter naturally introduces the consideration of all relevant facts and it is at this stage that diligence of the party or its bona fides may fall for consideration; but the scope of the enquiry while exercising the discretionary power after sufficient cause is shown would naturally be limited only to such facts as the Court may regard as relevant.Honble Supreme Court after exhaustively considering the case law on the aspect of condonation of delay observed in Oriental Aroma Chemical Industries Ltd. Vs. Gujarat Industrial Development Corporation reported in (2010) 5 SCC 459 as under;We have considered the respective submissions. The law of limitation is founded on public policy. The legislature does not prescribe limitation with the object of destroying the rights of the parties but to ensure that they do not resort to dilatory tactics and seek remedy without delay. The idea is that every legal remedy must be kept alive for a period fixed by the legislature. To put it differently, the law of limitation prescribes a period within which legal remedy can be availed for redress of the legal injury. At the same time, the courts are bestowed with the power to condone the delay, if sufficient cause is shown for not availing the remedy within the stipulated time.Honble Apex Court in (2012) 3 SCC 563 Post Master General & Ors. Vs. Living Media India Ltd. and Anr.has not condoned delay in filing appeal even by Government department and further observed that condonation of delay is an exception and should not be used as an anticipated benefit for the Government departments.. Honble Apex Court in 2012 (2)CPC3 (SC) Anshul Aggarwal Vs. New Okhla Industrial Development Authority observed as under:It is also apposite to observe that while deciding an application filed in such cases for condonation of delay, the Court has to keep in mind that the special period of limitation has been prescribed under theConsumer Protection Act, 1986, for filing appeals and revisions in Consumer matters and the object of expeditious adjudication of the Consumer disputes will get defeated, if this Court was to entertain highly belated petitions filed against the orders of the Consumer Foras.The Honble Apex Court inCicily Kallarackal Vs. Vehicle Factoryreported in IV (2012) CPJ 1 (SC) 1 reiterated that:condoning such an inordinate delay without any sufficient cause would amount to substituting the period of limitation by this Court in place of period prescribed by Legislator for filing SLP. Therefore we do not see any cogent reason to condone delay.In the same judgement the Honble Supreme Court also observed:7. While declining to interfere in the present Special Leave Petition preferred against the order passed by the High Court in exercise of its extraordinary jurisdiction underArticle 226of the Constitution of India, we hereby make it clear that the order of the Commission are incapable of being questioned under the writ jurisdiction of the High Court, as a statutory appeal in terms ofSection 27A(1)(c) lies to this Court. Therefore, we have no hesitation in issuing a direction of caution that it will not be proper exercise of jurisdiction by the High Courts to entertain writ petitions against such orders of the Commission.A copy of this order may be sent to the Registrar General of all the High Courts, for bringing the same to the notice of Hon'ble the Chief Justices and Hon'ble Judges of the respective High Courts.Thus, it becomes clear that there is no reasonable explanation at all for condonation of inordinate delay of 225 days. Appeal is liable to be dismissed on the ground of delay alone.4) Even on merits, we do not find any reason to interfere with the order of the Dist. Forum as the appellant has failed to contest the matter despite service of notice and was set-exparte. When notice was served a duty is cast on them to file their written version and contest the matter. When they did not choose to participate in the proceedings they have to bear the resultant consequences.5) In the light of facts and circumstances of the case and in the light of judgements of the Apex Court, we are of the considered opinion that this petition is liable to be dismissed.6) In the result this petition is dismissed. Consequently the appeal is rejected. No costs. Time for compliance four weeks.1) _______________________________ PRESIDING MEMBER2)           ________________________________ MEMBER   *pnr 11/09/2013                               UP LOAD O.K.
d960dc35-908d-56fb-9b20-30739112daf3
court_cases
Patna High Court - OrdersShambhu Chaudhary & Ors vs The State Of Bihar on 17 October, 2016Author:Sharan SinghBench:Sharan SinghIN THE HIGH COURT OF JUDICATURE AT PATNA Criminal Miscellaneous No.42476 of 2016 Arising Out of P.S. Case No. -113 Year- 2016 Thana -MANIYARI District- MUZAFFARPUR ===================================== 1. Shambhu Chaudhary, Son of Late Laxmi Chaudhary. 2. Guddu Baitha @ Arvind Kumar, Son of Ram Datt Baitha @ Ram Dev Baitha. 3. Vivek Kumar, Son of Harendra Sah @ Amrendra Sah. 4. Munna Kumar, Son of Ram Prasad Sah @ Ram Prasad Mahto. 5. Rajan Kumar, Son of Ram Prasad Sah @ Ram Prasad Mahto. 6. Santosh Ram, Son of Late Ramesh Ram. 7. Girinder Rai @ Girinder Kumar, Son of Heera Rai @ Hira Lal Rai. 8. Raj Kumar, Son of Ram Chandra Ram. 9. Shambhu Paswan, Son of Heera Paswan. 10. Binod kumar @ Binod Sah, Son of Late Asharfi Sah. 11. Malti Devi, Wife of Shambhu Paswan. 12. Ravindra Rai @ Ravindra Kumar Rai, Son of Heera Lal Rai. 13. Munna Mahto @ Avinash Kumar, Son of Shiv Nandan Mahto. 14. Arun Paswan, son of Parori Paswan. 15. Kaleshwar Manjhi, Son of Mangal Manjhi. 16. Umesh Sah, Son of Jaga Sah. 17. Fakira Pattay, Son of Late Shivjee Patty. 18. Ram Nath Paswan, Son of Devi Paswan. All Resident of Village - Baghi, P.S. - Maniyari, District - Muzaffarpur. .... .... Petitioner/s Versus Patna High Court Cr.Misc. No.42476 of 2016 (2) dt.17-10-2016 2/3 1. The State of Bihar. .... .... Opposite Party/s ===================================== Appearance : For the Petitioner/s : Mr. Vasant Vikas, Adv. For the Opposite Party/s : Mr. Ajit Kumar, APP ===================================== CORAM: HONOURABLE MR. JUSTICE CHAKRADHARI SHARAN SINGH ORAL ORDER 2 17-10-2016Heard the parties.This application, for grant of anticipatory bail, arises out of Maniyari P.S. Case No. 113 of 2016, disclosing offences underSections 147,149,341,342,323,332,353,427,435,307,504and506of the Indian Penal Code andSections 5and6of the Essential Services Maintenance Act.Learned counsel, appearing on behalf of the petitioners, has submitted that there is general and omnibus allegation against 29 persons named and 500-600 unnamed in the F.I.R. of creating disturbance near a branch of North Bihar Gramin Bank and brick-batting on police party when they tried to intercede into the matter in order to pacify the situation.Learned counsel, appearing on behalf of the petitioners, appears to be correct in his submission that thePatna High Court Cr.Misc. No.42476 of 2016 (2) dt.17-10-20163/3allegations are general and vague.Considering the submission, as above, this application is allowed. Let the petitioners, above named, in the event of their arrest or surrender before the court below within six weeks, be released on bail on furnishing bail bonds of Rs. 10,000/- (Rupees Ten Thousand) each with two sureties of the like amount each to the satisfaction of learned Chief Judicial Magistrate, Muzaffarpur, in connection with Maniyari P.S. Case No. 113 of 2016, subject to the condition laid down underSection 438 (2)of the Code of Criminal Procedure.This is subject to the condition that the petitioners shall present themselves before the police/Court, as the case may be, as and when required and in the event of failure on their part to appear before the Court on two consecutive occasions, their bail bonds shall be liable to be cancelled.(Chakradhari Sharan Singh, J.) Praveen-II/-c U T
a42cfeea-1e5c-50aa-819e-0ea266232cca
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Delhi District CourtMs. Vidya Devi vs 2 on 11 December, 20081 IN THE COURT OF MS.SWARANA KANTA SHARMA: JUDGE MACT : DELHI SUIT NO 626/08 1.Ms. Vidya Devi W/o. Late Sh. Kishori Lal. 2.Sh. Arun Kumar S/o. Late Sh. Kishori Lal. 3. Mrs. Shashi Kala, W/o. Sh. Dinesh Kumar. 4. Mrs. Prem Lata, W/o. Kuldeep 5. Miss Krishna, D/o. Late Sh. Kishori Lal. 6. Mr. Hemant Kumar S/o. Late Sh. Kishori Lal. All are resident of 67/5322, Regarpura, Karol Bagh, New Delhi. ......... Petitioners Versus 2 1.Sh. Shish Ram Gurjar, S/o. Sh. Khyali Ram Gurjar, R/o. Morda, Kutputli, Jaipur, Rajasthan. (Driver) 2.The Oriental Insurance Company Limited, 88, Janpath, New Delhi - 110001. (Insurer) ........ Respondents DATE OF INSTITUTION : 23.04.2007 DATE OF DECISION: 11.12.2008 JUDGMENT1. The present claim petition has been filed undersection 163 Aof the M.V. Act.2. The brief facts giving rise to the present petition are that on 15.2.2007 between 10 to 11 PM, an accident had taken place at Babra, Bankipur, under P.S. Farukh Nagar, Gurgaon with Truck Trolla bearing registration no. HR-66/3248 owned by respondent3no. 1 which had resulted into death of the deceased.3. Written statement was filed by Respondent no.2, Oriental Insurance Company Limited wherein it is stated that petition does not disclose any cause of action. However, it is admitted that vehicle bearing registration no. HR-66/3248, Tata Tractor was insured with respondent no. 1 vide policy no. 241100/2007/3868 in the name of Sh. Shish Ram Gurjar, respondent no.1 and the insurance policy was valid from 17.11.2006 to 16.11.2007.4. During the course of proceedings, the respondent no. 1 was proceeded ex-parte vide order dated 16.11.2007.5. On the basis of the pleadings of the parties, the following issues were framed during the course of trial:-(i) Whether death of Sh. Kishori Lal arise out of use of Truck Trolla No. HR-66/3248?(ii) To what amount of compensation the claimants are4entitled to and from whom.(iii) Relief.6. The petitioner in support of their claim have examined only one witness.7. PW-1 Smt. Vidya Devi, who is the petitioner, tendered her evidence by way of affidavit Ex.PW1/X stated therein that the deceased Sh. Kishori Lal was her husband who was aged about 62 years at the time of accident. He had met with an accident and had died. She stated that her husband was in private service and was earning Rs. 3,300/- per month. She also stated that the petitioners are the only legal heirs of the deceased.On being cross-examined by Ld counsel for insurance company she stated that in the ration card the date of birth of her husband has been shown as 1945.Certified copies of the challan were also filed which are Ex. P1.58. Thereafter petitioner's evidence was closed9. The respondent insurance company did not lead any evidence in respect of the case.10. I have heard arguments and I have gone through the case file and accordingly I record my findings on issues as follows:-11.Issue No.1:Whether death of Sh. Kishori Lal arise out of use of Truck Trolla No. HR-66/3248?Petitioner has stated in her statement that she had been informed through the police that her husband had died in an accident with a vehicle i.e. Truck Trolla owned by respondent no. 1 bearing registration no. HR-66/3248 which had taken place at Babra, Bankipur, under P.S. Farukh Nagar, Gurgaon on 15.2.2007 between 10 to 11 PM.A perusal of the FIR regarding the present accident and the6challan has also been concluded that the deceased had died due to use and involvement of Truck Trolla bearing registration no. HR- 66/3248 .A perusal of the post mortem report also shows that the cause of death has been given as crush injury leading to death which could have been caused by a road traffic accident.It is, therefore, proved that the deceased had died due to use and involvement of vehicle bearing registration no. HR- 66/3248. Therefore, issue no. 1 is decided in favour of the petitioners.16. Issue No. 2:To what amount of compensation the claimants are entitled to and from whom.Since, issue no.1 has been decided in favour of the petitioner that the deceased had died due to the injuries sustained in the accident with the offending vehicle and no contrary evidence has been brought on record; the petitioners are entitled to7compensation under theMotor Vehicle Act.18. LOSS OF DEPENDENCY.The petitioner has stated in her statement that the deceased was earning Rs. 3,300/- per month and was contributing the entire salary towards his household expenses. No contrary evidence has been brought on record. However, in her cross- examination, the petitioner has admitted that the date of birth of her husband has been shown as 1945 in the ration card. There is no other proof of date of birth of the deceased. Therefore, I consider the date of birth of the deceased to be 1945. Therefore, his age at the time of accident will be 62 years.The case has been filed undersection 163Aof Motor Vehicle Act. As per Schedule 2 of 163A Motor Vehicle Act, the multiplier of 5 has to be taken.It is well settled principle of law that the deceased would have been spending 1/3 of his income on himself.8Therefore, total loss of dependency would be Rs.3,300x5x12x2/3 which comes to Rs. 1,32,000/-. Therefore petitioner is entitled to a sum of Rs.1,32,000/- towards loss of dependency.19. LOSS OF LOVE AND AFFECTION.Petitioners have lost their father and petitioner no. 1 has lost her husband in the present accident. Money cannot compensate the loss of affection that they had lost due to the accident. I, however, considering the overall facts and circumstances of the case, award a sum of Rs. 30,000/- to petitioners towards loss of love and affection.20. FUNERAL EXPENSES.Rs.5,000/- is awarded on account of funeral expenses.21. LOSS TO ESTATE.I award Rs 5,000/- on account of loss to estate to petitioner.922. RELIEF In view of my findings on issues no. 1 and 2 the petitioners are entitled to the following compensation in the present claim petitioner Loss of dependency : Rs. 1,32,000 Loss of Love and affection :Rs.30,000/-Funeral Expenses :Rs.5,000/- Loss to estate :Rs.5,000/- Total compensation : Rs. 1,72,000/-23. Therefore total compensation is Rs. 1,72,000/-. Petitioners are also entitled to the interest at the rate of 7.5% per annum from the date of filing of petition i.e. 23.4.2007 till its realization.24. Petitioner no. 1 Ms. Vidya Devi is the wife of the deceased. Petitioner no. 2 Sh. Arun Kumar is the son of the deceased and10has been shown to be 33 years of age. Petitioner no. 3 Ms. Shashi Kala and petitioner no. 4 Mrs. Prem Lata are the married daughters of the deceased. Petitioner no. 5 Miss Krishna, aged 25 years and petitioner no. 6 Mr. Hemant Kumar, aged 23 years are the unmarried daughter and unmarried son of the deceased respectively. It is, therefore, cleared that petitioner no. 2,3 and 4 were not financially dependent on the deceased.25. Vide judgment dated 04.11.2008 "United India Insurance Co. Ltd. Vs. Smt Reeta Devi & Ors." the Hon'ble High Court has been pleased to issue directions that the formula mentioned in this judgment will be followed for disbursement of the award amount. Applying the same formula aslaid down inthe said judgmentthe disbursement of award will be as follows :26. Since deceased was earning Rs. 3,300/- per month and was contributing about Rs. 2,200/- p.m. towards his family members who are the present claimants, the share of each of11claimant under these circumstances, is assessed as under:1. Ms. Vidya Devi Rs. 15,00/- p.m.2. Miss Krishna Rs. 350/- p.m.3. Mr. Hemant Kumar Rs. 350/- p.m.27. The present claim petition was filed on 23.4.2007. Now, the claim petition is being decided in December, 2008. By this date about 20 months would have passed. So, for these 20 months, claimants are entitled to compensation @ Rs. 3,300/- p.m. and accordingly for this period, the amount comes to Rs. 3,300 x 20 = 66,000/- Out of Rs. 66,000/-, Rs. 40,000/- be paid to the petitioner no. 1, Ms. Vidya Devi while Rs. 13,000/- each be paid to petitioner no. 5 Miss Krishna and petitioner no. 6 Mr. Hemant Kumar who re the unmarried daughter and unmarried son of the deceased.28. As far as compensation for future period is concerned, i.e. from 1.1.2009 onwards, petitioner no. 1, Ms. Vidya Devi shall be paid Rs. 1,500/- p.m. till she is alive.1229. Petitioner no. 5, Miss Krishna will be paid monthly payment of Rs. 350/- till she gets married.30. Petitioner no. 6, Mr. Hemant Kumar will be paid monthly payment of Rs. 350/- till he gets married.31. All the three claimants shall have to furnish "Life Certificate"to the Oriental Insurance company Limited once in a year i.e. in the month of January every year. However, Miss Krishna and Mr. Hemant Kumar shall have to furnish a certificate to this effect also that they have not married. These certificates are to be submitted to the Insurance Company in January, 2009 and thereafter every year.32. Further, keeping in view the run-away inflation and price rise and the fact that deceased's salary would have increased with the passage of time, the Claimants shall be entitled to increase in13compensation by 25% after every 5 years on their monthly compensation i.e. the claimants shall get 25% increase in the monthly compensation with effect from January 2014 and second increase w.e.f. 2019 and so on, subject to the abovesaid limitation in respect of getting married by petitioner no. 5 and petitioner no. 6, Miss Krishna and Mr. Hemant Kumar and subject to petitioner no. 1, Ms. Vidya Devi till she is alive.33. The Oriental Insurance Company shall sent the respective share of monthly payment to the calimants by way of crossed cheques by 10th of every month at the addresses mentioned in the memo of the parties or at any other address to be furnished by the claimants to the Insurance Company directly.34. In case, there is any default on the part of the insurance company in making payment in time, the claimants shall be entitled to interest at the rate of 10% (ten per cent) per annum for the delayed payment.1435. As far as compensation from the date of filing of the petition i.e. from 23.4.2007 till December, 2008 is concerned, this amount of compensation i.e. Rs. 66,000/- as already stated above, shall be deposited by respondents within a period of two months from today failing which appellant shall be liable to pay interest @ 10% p.a. from the date of this judgment till realization.36. Out of this, Rs. 40,000/- being the share of petitioner no.1 and Rs. 13,000/- each being the share of petitioner no. 5 and 6 be paid to them by way of 'Account Payee' cheque in their name.37. Respondent no. 1 and respondent no. 2 being driver and owner of the offending vehicle are jointly and severally liable to pay the amount of compensation to petitioners.38. Therefore Respondent no.1 being driver and respondent no. 2 being insurer of the offending vehicle are jointly and severally15liable to make the payment of compensation to petitioners.39. Respondent no 2 is directed to place on record the cheque of compensation within 30 days. File be consigned to Record Room. Copy of the order be given dasti to retainer of insurance company for compliance.Announced in open court (SWARANA KANTA SHARMA) on 11.12.2008 JUDGE : MACT : DELHI
458197a1-c229-52aa-b16a-18d4cb1a8379
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Appellate Tribunal For ElectricityM.P. Power Management Co. Ltd vs Madhya Pradesh Electricity Regulatory ... on 17 May, 2013Before the Appellate Tribunal for Electricity (Appellate Jurisdiction) Appeal No. 188 of 2012 Dated : 17th May, 2013 Present: Hon'ble Mr. Justice M. Karpaga Vinayagam, Chairperson Hon'ble Mr. V.J. Talwar, Technical Member M.P. Power Management Co. Ltd. ....... Appellant(s) Versus Madhya Pradesh Electricity Regulatory Commission & Ors. ....... Respondent(s) Counsel for the Appellant(s): Mr. G. Umapathy Ms. R. Mekhala Counsel for the Respondent(s): Mr. C.K. Rai for MPERC Mr. Sanjay Sen, Sr. Adv. & Mr. Anurag Sharma R-2 ORDERWe have heard Mr. G. Umapathy, Learned Counsel appearing for the Appellant, Mr. Sanjay Sen, Learned Senior Counsel for the Respondent and Mr. C.K. Rai, Learned Counsel for the State Commission.There is no dispute in the fact that the impugned order is a provisional order which was passed on 24th July, 2012. Now, it is pointed out that the proceedings is to be initiated for passing of the final tariff order and we are told that the petition alongwith audited report would be filed by the end of June, 2013.Contd....2..1(2)Though we find force in the contentions urged by the Learned Counsel for the Appellant as well as the Respondents, we do not like to go into the merits of the matter since, we deem it appropriate to direct the State Commission to pass a final tariff order after allowing the Appellant to raise all the contentions raised in this Appeal as well as the Reply filed by the Respondents.We also think it proper to direct the State Commission to dispose of the matter by passing a final tariff order in the proceedings after hearing the parties concerned within a period of three months from the date of the admission of the petition.Accordingly, the State Commission is directed to hear the parties and pass the final tariff order in accordance with law uninfluenced by any of findings in the impugned provisional tariff order passed by the Chairman as well as Member of the Commission.With these observations the Appeal is disposed of.(V.J. Talwar) (Justice M. Karpaga Vinayagam) Technical Member Chairperson rkt/vt2
61fdc213-5e8e-5642-b6c3-05179b428e73
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Gujarat High CourtThe vs Mayank on 7 May, 2007CR.MA/935/2007 1/ 1 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD CRIMINAL MISC.APPLICATION No. 935 of 2007 In CRIMINAL REVISION APPLICATION No. 661 of 2006 ========================================================= THE STATE OF GUJARAT - Applicant(s) Versus MAYANK JITENDRABHAI SHAH - Respondent(s) ========================================================= Appearance : MR SUNIT SHAH, PUBLIC PROSECUTOR for Applicant(s) : 1, None for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE K.M.MEHTA Date : 07/05/2007 ORAL ORDERNotice returnable on 18th June 2007.(K.M.Mehta, J.) Sreeram.
aa4cc64e-6b55-57a8-87e7-77b9f16b3641
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Allahabad High CourtHind Lamps Ltd. vs State Of U.P. And Ors. on 12 December, 2003Equivalent citations: 2005(1)ESC526Author:V.K. ShuklaBench:V.K. ShuklaJUDGMENT V.K. Shukla, J.1. Petitioner, Hind Lamps Limited, is a company registered under theIndian Companies Act, situated at Shikohabad, through its General Manager, has approached this Court for quashing of the award of the Industrial Tribunal IVth Agra dated 7.5.1985 (Annexure 1 to the writ petition) to the extent house rent allowance has been allowed to the worker of the aforementioned establishment, who have not been provided the house accommodation with effect from 31.3.1980.2. Brief background of the case, as mentioned in the writ petition, is that the petitioner, which is a public limited company having its registered office at Shikohabad is carrying on the business of manufacturing electric lamps, tubes and miniature lamps in its factory at Shikohabad and there are 1700 employees working in the aforementioned establishment. In the year 1976 there existed only one Union of the workmen, which was known by the name of Indicate Shramik Sangh, which was registered trade Union and which was recognised by the petitioner. Primarily 90% workmen were its members. In the year 1977 another worker's Union, namely Hind Lamps Shramik Sangh, respondent No. 3 came into existence. This particular union gathered support initially and was recognised by the petitioner as the majority union. Subsequently however, respondent No. 3 led strike in the year 1978, which came to an end after two months on account of which the aforementioned union lost a lot of its support and Indicate Shramik Sangh again become majority union of the petitioner Unit. As Indicate Shramik Sangh, had an overwhelming majority of workmen as its member the petitioner entered into long-term settlements with aforementioned Union from time to time. Earlier on 9.8.1973, settlement was arrived at between the petitioner and the Union, which continued to remain in force till 30.4.1976, when it was terminated by the workmen as well as by the employers. In this agreement a scheme for good attendance leave was provided which remained in force for a period of three years after termination of the aforesaid agreement, Indicate Shramik Sangh had submitted a charter of demand dated 12.10.1976, which included the demands for Holiday Allowance, House and Cycle Allowance. These demands were settled by means of settlement deed dated 18.4.1977, which was duly registered by the Labour Authorities. According to this settlement all the demands stood fully settled which were raised in the demands in the year 1976. During this period the respondent No. 3 came into existence and at one stage was recognised by the petitioner, the respondent No. 3 placed a charter of demands through letter dated 8.9.1977 and settlement again arrived at on 13.1.1978 and all the demands, including good attendance leave were finally settled. The respondent No. 3 again submitted statement of demand vide letter dated 21.10.1978, in which apart from other demands, the workers claimed House /Rent Allowance at the rate of 15%. Pursuant to aforementioned demands made by the workers, the workers went on strike which continued upto 15.12.1978. At that point of time, a large number of workers left the fold of the respondent No. 3 and Joined their duties on 15.12.1978, at the call of Indicate Shramik Sangh. On 3.1.1979, the then Chief Minister of the Government of U.P. called a meeting of the Management and the workmen in which representatives of both the unions and Labour Authorities participated and thereafter on 11.1.1979, settlement was arrived at and this was based on the agreement reached before the Chief Minister. It was made clear in the meeting with the Chief Minister, that the matter of wages, dearness allowance etc. would be negotiated with Indicate Shramik Sangh, under the mediation of the Labour Commissioner separately. By way of abundant caution, the management further issued notice to all workmen stating therein that it was open to workmen to collect the benefits under the settlement dated 11.1.1979 and it was mentioned therein such workmen who accepted the benefits thereunder would also be bound by it and same would amount to acceptance of the settlement dated 11.1.1979, which was duly registered by the Labour Authorities. It was agreed that the settlement would be signed by the Indicate Shramik Sangh the settlement provided for good attendance leave and other benefits. It was also agreed in the aforementioned agreement that the matter of wages, dearness allowance, bonus etc. would be negotiated with Indicate Shramik Sangh under the mediation of the Labour Commissioner and this was duly settled by settlement dated 20.7.1979, which was also registered under theU.P. Industrial Disputes Act. The settlement dated 20.7.1979 was applicable from 1.1.1979 for the period of four years. The aforementioned settlement was by way of package deal, which was finally put to rest, all the demands made by the workmen vide notice and demand dated 21.10.1978. After the settlement there remained no dispute between the petitioner and the workmen in terms of Clause 13 of the aforementioned settlement. This settlement to bind all the workmen in the establishment with settlement entered into between the petitioner and the Indicate Shramik Sangh on 20.7.1979. The petitioner had issued notice stating that it was open to all workmen to accept payment under the settlement and acceptance of payment would imply the acceptance of the settlement. Pursuant to the aforementioned agreement workmen received all the benefits arrived at in the settlement dated 20.7.1979 and thus demands which were raised in the settlement of demand dated 21.10.1978 especially the demand of house rent allowance and other demands were fully complied with and only four workmen who were in fact office-bearers of the respondent No. 3 did not accept payment under the settlement dated 20.7.1979. On 22.11.1982 the Indicate Shramik Sangh which enjoyed support of majority of 90% of workmen in the petitioner's establishment raised demand in which apart from other demands, the demand of House Rent Allowance, good attendance leave, head allowance and holiday allowance was raised. On the basis of the statement of demands which was made, settlement was arrived at wherein an ad hoc increase of Rs. 40 and other benefits was to be given to all the workers in their wages and there package deal considering all the demands raised in their demand. Apart from this ad-hoc increase of Rs. 40/-, other allowance such as production bonus, good attendance leave were given under this agreement which was duly registered on 2.7.1983. In paragraph-16 of the aforesaid settlement specific condition has been incorporated that the said agreement dated 14.6.1983 settled all the demands raised in the demand dated 22.11.1982. This agreement dated 14.6.1983 was applicable from 1.1.1983 for a period of three years i.e. upto 31.12.1985. Pursuant to the settlement dated 14.6.1983, the petitioner issued a notice dated 4.7.1983 to all the workers stating that the settlement dated 14.6.1983 had been registered and in accordance with the terms of the settlement, the workers could collect the arrears of their wages and other benefits but that it must be clearly understood that by accepting payment of arrears of wages, it would amount to acceptance of the terms and conditions of the agreement dated 14.6.1983. Even though the demand raised by respondent No. 3 vide its demand notice dated 21.10.1978 have been duly settled by the intervention of the Chief Minister of the State, but State Government had referred industrial dispute between the petitioner and its workmen by exercising its power underSection 4-Kof the U.P. Industrial Disputes Act, 1947. Aforementioned reference has been made and the same was registered as Adjudication Case No. 40 of 1984. In pursuance of the aforesaid Reference Order, notice were issued to the parties for filing their statement. From the side of respondent No. 3 written statement had been filed on 15.5.1981 and from the side of the petitioner written statement had been filed on 16.9.1980. In the written statement filed by the petitioner precise plea has been taken to the effect that reference was illegal because the dispute referred for adjudication no longer existed as the said dispute has already been settled by the agreement dated 20.7.1979. From both side rejoinder statement had been filed and from the side of the petitioner, it has been stated in the rejoinder statement that the reference was not valid as the settlement had already been arrived at and settled which was for a period of 4 years i.e. upto 31.12.1982. Thereafter, there was no justification for awarding the House Rent Allowance. During the pendency of the aforesaid reference, four workmen, namely, the office-bearers of respondent No. 3, who had earlier refused to accept also took benefit under settlement dated 20.7.1979, they drew all the benefits thereunder retrospectively. Thus, each and every single workman had accepted the settlement dated 20.7.1979. Thereafter the petitioner moved an application before Industrial Tribunal incorporating the aforesaid pleading before it. The Union objected to the aforementioned application and against aforementioned objection additional rejoinder statement was filed. On behalf of the petitioner two witnesses, namely, Shri K.H. Masand, Deputy Manager (Personnel) and Sri S.K. Sinha Roy, Manager, Plant Engineering Department were examined and thereafter Labour Court has passed the award by means of which Holiday Allowance has been proved and further House Rent Allowance has been provided.3. At this juncture present writ petition has been filed. On the presentation of the writ petition, this Court on 8.8.1985, stayed the operation of the award to the extent it directed payment in respect to grant of House Rent Allowance and realisation of the amount was also stayed.4. To this writ petition, counter affidavit has been filed on behalf of the Union and it has been mentioned in Para-4 of the counter-affidavit that the Indicate Shramik Sangh, was a minority Union and could not act on behalf of the workmen and further submitted that respondent No. 3, still represented the union of the Company workmen. It has further been contended that Indicate Shramik Sangh was a pro-employer union and had made illegal and unauthorised settlements with the employers and it being minority Union had got no support of the workmen of the company. It has further been contended that demands were raised by the respondent No. 3 on 8.9.1977, and the same was settled between the employer and respondent No. 3. It has further been mentioned that at the point of time after the intervention of the Chief Minister of the State the matter was not finally decided and that is why State Government referred the dispute to the Industrial Tribunal underSection 4-Kof U.P. Industrial Disputes Act, 1947. Further it has been stated that Indicate Shramik Sangh neither raised any demand nor participated and Indicate Shramik Sangh has no right to enter any settlement. It has further been alleged that settlement between the petitioner and Indicate Shramik Sangh will make no difference qua Hind Lamp Shramik Sangh is concerned. It has been further alleged that settlement made by Indicate Shramik Sangh, is not at all binding and further order passed by the Industrial Tribunal is justifiable and the petitioner cannot be permitted to adopt pick and chose policy in providing residential accommodation to the workmen and in this background prayer has been in the counter affidavit that the petition be dismissed.5. To this counter affidavit, rejoinder affidavit has been filed and therein it has been stated that Indicate Shramik Sangh, is the majority Union and in this connection, it has also been submitted that election which was held on 18.2.1985 therein out of 1561 members of the Union 1319 has participated and it is a majority Union. It has further been contended that petitioner have provided residential accommodation to some of their workmen, supervisors and officers in the colony built inside the factory premises in pursuance of Clause 34 of the Standing orders of the company. The residential quarters were provided to those persons who were required to be in the close vicinity of the factory and who were further required for essential services for running the factory and who could be called in case of emergency. It was for these essential services that petitioner had provided housing facilities to the workmen for the benefit of proper running of the factory.6. A supplementary affidavit has been filed and therein it has been mentioned that the petitioner has been paying dearness allowance to its work force which is calculated as per settled norms on the basis of Consumer Price Index (CPI), compiled and notified by Labour Bureau of Shimla for industrial workers from time to time known as Shimla series which is an agency recognised throughout the country with regard to the dearness allowance to the industrial work force which function under the Ministry of Labour Government of India. The methodology and norms compiling the Consumer Price Index for payment of Dearness Allowance, therein House Rent Allowance is included and is a component of Dearness allowance. While calculating the dearness allowance weightage and consideration for various goods and services is taken care of which includes housing and thus in the D.A., items of housing is also included which is paid by the petitioner company. It has further been asserted therein that no Industrial Unit in the Region of Shikohabad where the factory is situate, is paying HRA to its work force and on, the principle of Industry cum Region basis no direction can be issued against the petitioner's company to pay House Rent Allowance to its work force. It has further been stated that the petitioner have already suffered an accumulated loss to the tune of Rs. 10.97 cores by the year 2001-2002, and for the purpose of rehabilitation and survival the matter was referred to BIFR under theSick Industrial Companies (Special Provision) Act, 1985and the reference has been registered as Case No. 9 of 2002. Thereafter proceedings underSection 15for enquiry and underSections 16,17and18towards the rehabilitation process is going on. It has further been contended that the Unit in question is established in the remote rural backward area of U.P. State Shikohabad and its work force now approximately is 1400 and if House Rent Allowance is paid as per direction of the award the cost of production will become so high that it will be impossible for the petitioner to survive in open market when large number of units and big sectors operate in the field. Lastly, it has been contended that the petitioner is breathing and fighting for its survival and, as such, liability which is sought to be imposed is liable to be quashed.7. To this supplementary affidavit, supplementary counter-affidavit has been filed and therein it has been mentioned that the Dearness Allowance is fixed, keeping in view the various factors, but on that basis of House Rent Allowance/City Compensatory Allowance and all other allowance cannot be denied. In para-6 of the supplementary counter affidavit it has been mentioned that various industries pay house rent allowance to their employees for a long period and further Industrial Adjudication has been defeated on account of pending litigation for last more than 18 years.8. After the pleadings have been completed, the matter has been taken up for hearing with the consent of the parties.9. On behalf of the petitioner Sri Vijay Bahadur Singh Senior Advocate along with Sri Vijay Sinha have appeared and for the respondent-workman and Indicate Shramik Sangh, Sri B.N. Singh Advocate has appeared and argued the matter.10. Sri V.B. Singh has assailed the validity of the award primarily on the ground that reasoning which has been given for allowing House Rent Allowance is totally unjustifiable and the Presiding Officer of the Industrial Tribunal U.P. Agra has passed award which on the face of it not at all justifiable. In this connection he has referred to Issue No. IV of the award which deals with House Rent Allowance and there in purported reasoning which has come forward on the basis of which House Rent Allowance has been awarded is (i) there should not be any discrimination in the matter of housing accommodation and in case employer gives house accommodation at cheaper rates to some employees then they should give House Rent Allowance to their employees to whom the employers do not provide houses and (ii) U.P. Government gives house rent allowance to its employees. These are two reasons, which has weight with Industrial Tribunal for passing of the award for payment of House Rent Allowance. Relevant Para of the award is being quoted below :(i) In the matter of housing accommodation, the employers should make any discrimination. In case the employers give house accommodation at cheaper rates (as in this case) to some employees, then they should give house rent allowance to the employees to whom the employers do not provide house.(ii) The U.P. Government give house rent allowance to their employees. I take judicial notice of this fact."11. Sri Singh submits that these two grounds on the face of it are wholly unjustifiable and arbitrary ground, inasmuch as, discrimination cannot be made foundation and basis for making award of HRA, especially when services are governed by Standing Orders and Clause 34 of the Standing Order deals with providing of houses and contains condition that quarter will be allotted to operatives by the Manager whenever available either on payment of rent fixed by the company or free in case the Manager feels the necessity of providing an operative with a quarter for efficient conduct of the business of the company. Notice for such allotment will be given in writing to the operative concerned indicating whether a quarter is allotted only for himself or also for its family. It is also provided that operatives occupying a company's quarters shall abide by all the rules and regulations of house licence issued for the purpose and by conditions laid down in Standing Order. In respect to second ground he submits that no parity can be claimed with the State Government employees, inasmuch as, State Government employees are concerned, they are governed by certain service conditions, rules and regulations and parity could have taken only with these Government industries which are situated in the region and engaged in similar activity. It has also been contended that Industrial Tribunal grossly violated principles of natural justice, inasmuch as, during the course of the argument at no point of time it had been indicated that Industrial Tribunal was taking notice of this fact, and as such opportunity ought to have been afforded to the incumbent in order to rebut presumption which was sought to be drawn.12. Sri B.N. Singh, on the other hand submits that under industrial law pick and chose policy is treated as unfair labour practice. One section of workmen has been provided house and similarly situated workmen were discriminated as such Industrial Tribunal has rightly redressed the aforementioned grievance and has rightly passed the award in favour of the workmen and same warrants no interference by this Court underArticle 226of the Constitution of India, inasmuch as, social justice has been advanced by passing aforementioned award.13. In order to appreciate the contention of the respective parties, pleadings of the parties has to be seen which clearly reflects that in respect to House Rent Allowance demand had been raised on 21.10.1978 and therein at item 10 precise demand was in regard to House Rent Allowance, this particular demand was later on accepted by means of settlement dated 11.1.1979 and it contained categorical condition therein that the same was applicable for a period of four years and under the aforementioned award various benefits had been extended. In the present case, pursuant to aforementioned agreement, all the workmen accepted the benefit as indicated in paragraph 15 of the writ petition, wherein it has categorically stated that except for four workmen, each and every workmen have accepted benefits under the aforementioned settlement. This statement of fact stated in paragraph 15 of the writ petition has not been disputed. In paragraph 16 of the counter-affidavit, it has been mentioned that it will make no difference as far as the demand raised by the Hind Lamp Shramik Sangh is concerned.14. At this juncture, it has to be seen that once settlement had been arrived at and benefits have been received then whether the same can be re-agitated. While passing the award, House Rent Allowance has been directed to be paid from the date of reference dated 31.3.1980. The settlement dated 20.7.1979 was applicable from 11.1.1979 for the period of four years and thus, on the date of reference settlement was in operation and benefits of the same had already been accepted by the concerned workmen, which has not at all been disputed by the respondent. Under the Industrial Law, settlement has to be preferred over adjudication. A settlement of dispute between the parties themselves is to be preferred, where it could be arrived at, to industrial adjudication, as the settlement is likely to lead to more lasting peace than an award. Settlement is arrived at by the free will of the parties and is a pointer to there being goodwill between them and underlying assumption that the settlement reached with the help of Conciliation Officer is fair and reasonable when the settlement has been arrived at. Settlement on behalf of workers' union is based on the principle of collective bargaining for resolving industrial disputes and for maintaining industrial peace. Hon'ble Supreme Court in the case ofNational Engineering Industries Ltd. v. State of Rajasthan and Ors., AIR 2000 SC 469, has taken aforementioned view, and has been held that reference made during the subsistence of settlement, is not justifiable and the same reflects non-application of mind by State Government in making the reference.15. Here, in the present case, it is clearly reflected that settlement existed between the parties, and benefit out of the said settlement had been accepted by each and every workmen except four workmen, who also later on accepted the same. Thus, on the date, when the reference has been made, agreement was subsisting and this shows reference itself was made in the most casual and mechanical manner. This question as to whether having accepted various benefits under the settlement the workers union is precluded from questioning the validity of portion of the settlement is also subject of debate. The Madras High Court in the case ofIndian Overseas Bank Officer's Union, Madras v. Indian Overseas Bank, Central Office, Madras, 1994(I) CLR 378, has considered this aspect of the matter and following the principleslaid down inthe case ofHebertsons Limited v. Workmen, AIR 1977 SC 322, it has been held by His Lordship A.R. Lakshmanan as he then was that the settlement has to be accepted or rejected as a whole and there cannot be mid way exercise. Once it is accepted, then no further grievance could have been made. Relevant paragraphs 13, 14, 15, are being quoted below :"13. It cannot be gainsaid that the employees of E.B.O.T. including the members of the writ petition (in W.P. No. 3834 of 1992) have accepted the various benefits provided under the Settlement dated 12.11.1990. The writ petitioner (in writ petition No. 3834 of 1992) Which represents hardly 10 per cent of the employees of E.B.O.T. have confined their challenge only to Clause 5 (a) of the Settlement. As I have already referred, the said settlement was one reached underSection 18 (1)of the Industrial Disputes Act. At this stage, it is useful to refer to the decision inHebertsons Limited v. Workmen, AIR 1977 SC 322, where in paragraph 27 it has been held as follows :'It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad. Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other advantages gained the Court will be slow to hold a settlement as unfair and unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust.'14. Applying the aboveratiolaid down inthe said decisionto the facts and circumstances of the present case, it has to be held that there is no merit at all in the contention of Mr. K.V. Ananthakrishnan learned counsel appearing for the petitioner that Clause 5 (a) of the settlement dated 12.11.1990 is unfair and illegal. Having accepted the various benefits under the settlement the petitioner is precluded from questioning the validity of Clause 5 (A) of the settlement. Therefore, there is no merit in the contention that the said Clause 5(a) of the settlement is contrary to the Scheme of amalgamation framed underSection 45of the Banking Regulation Act. Clause 11 of the Scheme of Amalgamation reads as follows :'11. The transferee (IOB) Bank shall, on the expiry of a period not longer than three years from the date on which this scheme is sanctioned, pay or grant to the employees of the transferor Bank the same remuneration and the same terms and conditions of services as are applicable to the employees of the corresponding rank or status of the transferee bank subject to the qualifications and experience of the said employees of the transferor bank being the same as or equivalent to those or such other employees of the transferee bank :Provided that if any doubt or difference arises as to whether the qualifications or experience of any of the said employees are the same or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee bank or as to the procedure or principles to be adopted for the fixation of the pay of the employees in the scale of pay of the transferee bank, the doubt or difference shall be referred to the Reserve Bank of India whose decision shall be final.' Therefore, the said Clause 11 of the Scheme of Amalgamation does not provide for the same terms and conditions of service to the E.B.O.T. amalgamated with Indian Overseas Bank. There is a clause, which says that is subject to qualification and experience. The said clause states that the transferee bank shall grant the same remuneration and same terms and conditions of service as are applicable to the employees of the corresponding rank or status of the transferee Bank subject to the qualification and experience of the said employees of the transferor Bank being the same as or equivalent to those of such other employees of the transferee bank. Having regard to all these facts, a provision was also made in the Settlement dated 12.11.1990, in Clause 5 under which the parties have inter alia agreed that the services of the workmen of E.B.O.T. for the purpose of arriving seniority, promotion entrustment of minor supervisory duties etc, will only be in the ratio of 2:1. The parties to the said Settlement have also agreed upon that clause having due regard to the qualifications and experience of the employees of the E.B.O.T. vis-a-vis the qualifications and experience of the employees of the respondent Bank. Such a clause entered into between parties after negotiation and deliberation cannot be by no stretch of imagination be characterised as unreasonable, unfair and discriminatory. Equally, untenable is the contention of the learned counsel appearing for the petitioner that the employees of the E.B.O.T. to have the same terms and conditions of service of the employees of the respondent Bank.15. I am also of the view that since the majority of the employees of the E.B.O.T. have accepted the above settlement in toto, it is not open to the petitioner's union representing 10 per cent of the employees of E.B.O.T. to challenge the validity of a portion of the said settlement. What is good for the majority is good for the minority and that is the Rule of democracy. The petitioner cannot be permitted to tear the settlement dated 12.11.1990, in bits and pieces. The settlement has to be accepted or rejected as whole. There cannot be mid way exercise. That is precisely what the Supreme Court has depreciated inHebertsons Limited v. Workmen, AIR 1977 SC 322, casereferred to above."16. On these principles, which have been narrated above, it is clear that since House Rent Allowance was one of the demands raised and thereafter when the settlement was arrived at the aforementioned benefit was not made an issue, and finally the settlement had taken place. Of the aforementioned settlement, each and every workmen had taken benefit, and it was not at all open to the union to raise industrial dispute in this respect. When there was settlement in between the parties then issue of HRA had been raised in the demand, but when the settlement had been arrived at, then it is understood that the same has been given away and package, has been accepted in the lieu of same. The settlement has to be taken as package. The aforementioned settlement is to be breached, then industrial pieces would be completely broken. Thus, having accepted the settlement package, demand of House Rent Allowance could not have been made.17. Even otherwise in the present case, the first ground which has been mentioned for awarding of House Rent Allowance is discrimination vis-a-vis other employees. This ground is totally fallacious and incorrect. In view of specific provision in Clause 34 of the Standing Order which clearly provides that quarter will be allotted to operatives whenever available either on payment of rent fixed by the company or free in case the Manager feels the necessity of providing an operative with a quarter for efficient conduct of the business of the company. The provisions contained under Clause 34 of the Certified Standing Order are treated as service condition of the employees. Thus, discretion has been vested in the Manager to make allotment of quarters either on payment of rent or free in case he feels the necessity of providing quarter for efficient conduct of the business of company. Here in the present case Industrial Tribunal has not at all cared to consider the provisions as contained in Clause 34 of the Standing Order and that House Rent Allowance was not the right of the workmen and further discrimination, which had been alleged, was totally in the teeth of the provisions as contained under Clause 34 of the Standing Order. Observation, which has been made by the Industrial Tribunal makes Clause 34 of the Standing Order redundant. The first ground of discrimination falls when there being merely of the same thus, to the ground. Further second ground which has been taken by the Industrial Tribunal in allowing the House Rent Allowance is payment to State Government employees. Notice of fact that State Government employees are getting House Rent Allowance, has been taken without there being any foundation or basis and in fact same has been unnecessarily extended without assigning any reason. For the purposes of fixation or revision of scales or wages, pays or dearness allowance, principle of industry-cum-region is followed. The principle of industry-cum-region is that unfair completion may not result between an establishment and another in the region. In other words, comparable units may be compared, but not units which are dissimilar. [See Kamani Metals and Alloy's Ltd. v. Workmen, AIR 1976 SC 1175]. Here in the present case, comparison has been made to U.P. Government employees. This was totally unequal comparison could have been made with the petitioner's unit with the unit similarly placed in the aforementioned region. Comparison could have been made amongst similar units but the Industrial Tribunal without applying its mind to this aspect of the matter in most arbitrary without affording any opportunity to the petitioner has drawn unwarranted presumption of parity with the State Government employees and passed aforementioned award. The second ground for passing the aforementioned award is totally unwarranted and unjust and totally against the principle of industry-cum-region which is well accepted principle for fixation or revision of scales or wages, pays or dearness allowance. Here, comparison has been done which is totally dissimilar. In this view of the fact second ground is unsustainable.18. Apart from this Hon'ble the Supreme Court in the case ofPatna Electric Supply Company Ltd. v. Patna Electric Supply Worker's Union, [Civil Appeal No. 227 of 1958, dated 23rd April, 1959], wherein it has been held that the Industrial Tribunal have consistently taken the view that in the present economic condition of industries it would be inexpedient on the employers the obligation to provide housing accommodation. It has also mentioned therein that scheme of wages properly fixed necessarily takes into account house-rent amongst other relevant facts and under a proper scheme of dearness allowance adjustments can be made when necessary from time to time so as to take into account an appreciable rise in the rents which industrial labour may have to pay and this fact has also been mentioned that this is the reason that Industrial Tribunal did not entertain employees' claim for housing and do not even allow a separate demand for house rent allowance as such. Relevant paragraphs are being quoted below :"But assuming that the tribunal had jurisdiction to entertain the dispute the question still remains whether, apart from the agreement on which the tribunals have based their decision, the award under appeal can be justified on general grounds. In our opinion, under the present conditions the answer to this question has to be in favour of the appellant and against the respondent. Industrial tribunal have consistently taken the view that housing accommodation of industrial labour is the primary responsibility of the State; and there has also been no difference of opinion on the point that in the present economic condition of our industries it would be inexpedient to impose on the employers the obligation to provide housing accommodation for their employees. Besides a scheme of wages properly fixed necessarily taken into account house-rent amongst other relevant facts; and under a proper scheme of dearness allowance adjustments can be made when necessary from time to time so as to take into account an appreciable rise in the rents which industrial labour may have to pay. That is why usually tribunals do not entertain employees' claim for housing and do not even allow a separate demand for house allowance as such. This position is not disputed before us by the respondent.We may, however, refer to a few typical decisions of the industrial tribunals on this point.InEastern Plywood Manufacturing Company Ltd. v. Their Workers, (1949 LLJ 291), the Industrial Tribunal rejected the workmen's claim for housing accommodation or in the alternative for house-rent allowance of Rs. 10 per month on the ground that the obligation for housing labour in an urban area is not really on the employer, and that the tribunal had already considered in the issues on basic pay and dearness allowance as to how much the company should be directed to pay in emoluments to its workmen. The tribunal thought that it would not be reasonable to saddle the company with any further financial commitments in the shape of house-rent allowance.In Mahomad Rai Akbarali Khan v. Associated Cement Companies Ltd., 1953 (II) LLJ 845, the Labour Appellate Tribunal has considered this problem. It was urged by the employees before the Appellate Tribunal that the employers should either provide quarters or pay house-rent allowance, whereas the company contended that it was not the function of the management to provide accommodation for its employees. The Appellate Tribunal, however, took the view that the employers' contention should be accepted subject to considerable qualifications in certain cases; and it proceeded to consider the special features of the problem presented by the employers' factory at Sevalia. Sevalia was a village until the employer went there to start its factory which needed the services of a large contingent of workers."When an industrial concern like this." Observed the Appellate Tribunal, "bursts upon a rural area, there is very considerable nearby join the factory as well as those living further away; there is also an influx of persons from outside; in short it means that accommodation becomes scarce and expensive; and if a workman has to go further a field for his accommodation, he is put to considerable physical fatigue and inconvenience. In such circumstances it has not been the policy of the tribunals to ignore a claim for house-rent allowance."After making these observations, the Appellate Tribunal proceeded to readjust the dearness allowance payable to the employees after taking into account the increased house-rent which they had to pay for their housing accommodation in Sevalia; and having thus readjusted the dearness allowance the Appellate Tribunal held that no separate order as to house-rent allowance was necessary. Industrial Tribunal appears that in that case the industrial tribunal had taken the view that the problem was not likely to be solved by granting house-rent allowance to the employees and that the only practical course, therefore, was that the company should either help the workers in building their houses or that the company itself should construct quarters. That is why it had rejected the employees' demand for house-rent allowance but had recommended to the concern to undertake building operations. The Labour Appellate Tribunal reversed this conclusion and took a more practical and a wise course by readjusting the dearness allowance so as to grant adequate relief to the employees' in that behalf. It would thus be seen that even where the employer had started its factory at a small village like Sevalia the Appellate Tribunal did not accept the employees demand for housing accommodation and did not also think it proper to ask the employer to pay to its employees any separate special house-rent allowance.InSamastipur Central Sugar Company Ltd. v. Their Workmen, [1955 (II) L.L.J. 727, 730], the Labour Appellate Tribunal had occasion to consider this question once again.In dealing with the merits of the problem, it accepted the decision of the Appellate Tribunal in Mahomed Rai Akbarali Khan v. Associated Cement Company Ltd., (supra) and observed that :'where the basic wage and dearness allowance are consolidated, house-rent at the normal time and the subsequent rise must be presumed to have been taken into account when the total consolidated amount was fixed.' The same view was taken by the Labour Appellate Tribunal in National Carbon Company (India) Ltd. v. National Carbon Company Mazdoor Union, Calcutta, 1956 L.A.C. 660. In that case the tribunal had directed the employer to pay his workmen house-rent allowance because it had taken the view that in making the said order it was granting a relief lesser than granting free quarters which the employees had claimed and that the lesser was involved in the greater relief and could be granted by it. On the evidence adduced in the said proceedings the Labour Appellate Tribunal did not agree with this view. It held that :'Provisions for free quarters by constructing house cannot permit of comparison with payment of house-rent allowance in money month after month to determine which is greater and which is smaller than the relief of providing free quarters.' On this view the Labour Appellate Tribunal have consistently refused to entertain a claim for housing accommodation or for the grant of a special and separate housing allowance against their employers. That is why in making the award under appeal the tribunals below were at pains to emphasise the fact that the scheme sanctioned by the Bihar Government made the position substantially different so far as Bihar was concerned.The problem housing industrial labour has been the subject-matter of some legislative enactments. As regards the workers employed in plantations.The Plantations Labour Act, 1951(69 of 1951), provides that it shall be duty of every employer to construct and maintain for every worker and his family residing in the plantation necessary housing accommodation subject to the other provisions of the Act. Housing Boards have also been established in different States to tackle the larger problem of housing in general. The Bombay Housing Board Act, 1948 (Bom. 69 of 1948), the Mysore Labour Housing Act, 1949 (Mys. 28 of 1949), the Madhya Pradesh Housing Board Act, 1950 (Madhya Pradesh 43 of 1950), the Hyderabad Labour Housing Act, 1952 (Hyd. 36 of 1952), the Saurashtra Housing Act, 1954 (Saurashtra 32 of 1954) and theU.P. Industrial Housing Act, 1955(U.P. 32 of 1955), are attempts made by the respective States to meet their responsibility in the matter of providing housing accommodation to its citizens in general and to industrial labour in particular.This problem appears to have been considered by the Planning Commission in its report on the Second Five-Year Plan. Chapter 26 of the report deals with the general problem of housing and Chap. 27 deals with labour policy and programmes. The discussion of the problem in these two chapters shows that housing shortage can be conquered only by sustained and well-planned efforts made by the States and the industry together. It is a very big problem and involves the expenditure of a huge amount. Efforts are being made by the Central Government to invite the co-operation of industrial employers to tackle this problem with the progressively increasing financial and other assistance offered by the State Government. But it is obvious that his problem cannot at present be tackled in isolation by industrial tribunals in dealing with housing demands made by employees' individual cases. In the present economic conditions of our industries it would be inexpedient to impose this additional burden on the employers. Such an imposition may retard the progress of our industrial development and production and thereby prejudicially affect the national economy. Besides, such an imposition on the employers would ultimately be passed by them to the consumers and that may result in an increase in prices which is not desirable from a national point of view. It is true that the concept of social justice is not static and may expand with the growth and prosperity of our industries and a rise in our production and national income; but so far as the present state of our national economy and the general financial condition of our industry are concerned, it would be undesirable to think of introducing such an obligation on the employers today. That is why we think the industrial tribunals have very wisely refused to entertain pleas for housing accommodation made by workmen from time to time against their employers.In the present case, it is clear that the question about the financial ability of the appellant to meet the additional burden imposed by the award has not been considered at all. In fact the tribunals below seem to have taken the view that since the appellant is bound by the scheme. It is immaterial, if not irrelevant, to enquire whether the appellant would be able to meet the expenses involved in the construction of quarters as directed by the award. It is obvious that such a view proceeds on purely theoretical considerations which have no relation to existing facts in regard to the financial position of the industry or the state of national economy. In fairness to the tribunals we ought to add that if the tribunals had not taken an erroneous view about the effect of the scheme sanctioned by the Bihar Government, they would not have granted the demand made by the respondent for housing accommodation."19. In this case also, it has been stated that D.A. which is being paid to the workforce which is calculated as per settled norms on the basis of Consumer Price Index (CPI), compiled and notified by Labour Bureau of Shimla for industrial workers from time to time know as Shimla series which is an agency recognised throughout the country with regard to the dearness allowance to the industrial work force which functions under the Ministry of Labour, Government of India. In the norms for compiling the Consumer Price Index for payment of Dearness Allowance, House Rent Allowance is one of the components of Dearness Allowance. While calculating the dearness allowance weightage and consideration for various goods and services is taken of which is inclusive of housing also. This particular statement of fact has not been disputed in paragraph-5 of the supplementary counter affidavit and therein it has been mentioned that House Rent Allowance cannot be denied to the workman and thus, this fact has been accepted by the respondent union that Dearness Allowance includes in itself with housing as one of component as per the judgment of Hon'ble the Supreme Court in case ofPatna Electric Supply Company Ltd. v. Patna Electric Supply Worker's Union. In this background, no House Rent Allowance was made admissible and thus, in this view of the fact also award was not at all just.20. In the fact and circumstance of the case, one more point which has been contended is that the financial condition of the company is not good and it is suffering loss. The Industrial Tribunal accepted this factual position, but ignoring the same has proceed by mentioning that the concern is still running and it has not been closed because of loss. All these fact clearly shows that most relevant factor in respect to financial status of the establishment has been totally ignored as to whether establishment in question is in a position to bear aforementioned burden or not. The award of Industrial Tribunal in this respect also is totally whimsical as per the judgment of Hon'ble the Supreme Court in the case ofPatna Electric Supply Company Ltd. v. Patna Electric Supply Workers' Union(supra) it is duty cast upon the Industrial Tribunal to see whether the employer would be able to meet the expenses involved in the construction of quarters or it can meet expenses directed towards the House Rent Allowance.21. For the reasons stated above, the impugned award passed by the Industrial Tribunal being unjust on the face of it, it liable to be quashed. Consequently, the writ petition succeeds and is allowed. The award, dated 7.3.1985, is quashed to the extent it allows House Rent Allowance.
5021d3e5-e738-5311-9a13-76fb117c873f
court_cases
Uttarakhand High CourtCRLR--231/2013 on 29 August, 2013Author:Alok SinghBench:Alok SinghCRLR No. 231 of 2013 Hon'ble Alok Singh, J.Mr. Sandeep Kothari, Advocate for the revisionist.Mr. Suhail Siddiqui, AGA for the State. Present revision is filed assailing the judgment and order dated 16.08.2013 passed by Sessions Judge, Uttarkashi in Criminal Appeal No. 43 of 2010 whereby judgment of acquittal dated 11.05.2010 passed by Chief Judicial Magistrate, Uttarkashi was set aside and Appellate Court was pleased to convict the revisionist for the offence punishable underSection 420,467IPC.Admit the revision.Summon the lower court record.List thereafter.Considering the fact that revisionist was on bail during the pendency of appeal and he was acquitted by the trial court and order of acquittal was reversed by the Appellate Court and revision is not likely to be heard at the earliest, bail application no. 1261 of 2013 is allowed.Let the revisionist be enlarged on bail, on his furnishing a personal bond and two sureties, each of the like amount, to the satisfaction of Chief Judicial Magistrate, Uttarkashi.(Alok Singh, J.) 29.08.2013 SKS
d9fb468d-7cd9-53cf-b5a6-823c178a925a
court_cases
Gujarat High CourtCommissioner vs Larsen And Toubro Ltd....Opponent(S) on 30 June, 2016Author:Akil KureshiBench:Akil Kureshi,A.J. ShastriO/TAXAP/42/2013 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 42 of 2013 With TAX APPEAL NO. 43 of 2013 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE A.J. SHASTRI ========================================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ========================================================== COMMISSIONER....Appellant(s) Versus LARSEN AND TOUBRO LTD....Opponent(s) ========================================================== Appearance: MR YN RAVANI, ADVOCATE for the Appellant(s) No. 1 MR PK SAHU WITH MR NITIN K MEHTA, ADVOCATE for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE A.J. SHASTRI Page 1 of 17 HC-NIC Page 1 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT Date : 30th June & 1st July 2016 ORAL JUDGMENT(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)1. These   tax   appeals   have   been   filed   by   the   department  challenging   the   judgement   of   Customs,   Excise   &   Service  Tax Appellate Tribunal ("CESTAT" for short).2. Facts are noted from Tax Appeal No.42/2013. At the time  of admission  of appeal,  following  substantial  questions  of  law were framed :"(I)   Whether,   against   the   impugned   judgement   and   order  passed   by   the   Customs,   Excise   &   Service   Tax   Appellate  Tribunal,   present   appeal   before   this   Court   would   be  maintainable  or not and/or  whether  the appeal  would lie  before   the   Honble   Supreme   Court   as   provided   under  section 35(L) of the Act?(II) If the Question No.(I) is answered in affirmative and it is  held   that   the   appeal   would   be   maintainable   before   this  Court, in that case, to consider the following question :(i)   Whether   the   Honble   CESTAT   Bench,   Ahmedabad   has  erred in holding that for the purpose of levy of Service Tax,  the Respondent and L&T­EPC unit as a single legal entity  in   the   fact   and   circumstances   of   the   case,   and   hence  Respondent is not liable to pay Service Tax?"3. With regard to question no.1 pertaining to maintainability  of the appeals before the High Court, a Division Bench by a  detailed   judgement   dated   25.9.2014   disposed   of   thePage 2 of 17HC-NIC Page 2 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT question and held that the appeals  would be maintainable  before   the   High   Court   in   terms   ofsection   35Fof   the  Central   Excise   Act,   1994("the   Act"   for   short).   The   sole  surviving question therefore, is whether the Tribunal erred  in holding that the respondent was not liable to pay service  tax. This question arises in the following background :4. The   respondent   is   a   company   registered   under   theCompanies   Actand   has   various   units   established   in   the  country.   One   of   its     units   is   situated   in   the   Special  Economic   Zone("SEZ"   for   short).   This   Special   Economic  Zone   unit   had   carried   out   project   management   activities  including planning and controls, technical support, supply  chain   management.   contracts   management,   engineering  and design and back operations for finance and accounts  and   human   resources   functions   and   such   services   were  availed   by   units   of   assessee   situated   in   Domestic   Tariff  area("DTA" for short). These were in the nature of business  support   services   and   were   taxable   services   under   theFinance   Act,   1994.   The   adjudicating   authority   therefore,  issued   a   show   cause   notice   why   service   tax   on   such  services provided by the assessee should not be levied with  penalty and interest. The assessee opposed such proposal  mainly on the ground that one unit of a company cannot  provide service to another unit since for providing taxable  service,  it is necessary  that there  should  be two separate  entities.   The   assessee   pressed   in   service   the   principle   of  mutuality and contended that there cannot be any service  tax on such activities. The adjudicating authority however,  was   of   the   opinion   that   the   SEZ   and   DTA   units   of   the  assessee   company   were   separate   and   distinct   units.   HePage 3 of 17HC-NIC Page 3 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT referred to rule 4 of  Service Tax Rules, 1994  which refers  to registration,  sub­rule(3A)  of which  provides  that  where  an assessee is providing taxable service of more than one  premises   or   offices   and   does   not   have   any   centralized  billing systems or centralized accounting systems,  he shall  make   separate   applications   for   registration   in   respect   of  each of such premises or offices. He also referred to sub­ rule(7)   of   rule   19   of    the   Special   Economic   Zones   Rules,  2006,(here­in­after   referred   to   as   "the   Rules   of   2006")  which provides that if an enterprise is operating both as a  Domestic   Tariff   area   unit   as   well   as   a   Special   Economic  Zone   Unit,   it   shall   have   two   distinct   identities   with  separate  books of accounts,  but it shall not be necessary  for the Special Economic Zone unit to be a separate legal  entity. He recorded that assessee's SEZ and DTA units are  maintaining   separate   books   of   accounts,   are   separately  and   independently   registered   commercial   organisations,  have   separate   manpower,   distinct   identity,   separate  objectives  and expertise. SEZ unit had raised invoices for  covering   the   charges   for   providing   project   management  services  month­wise and such transactions were recorded  in their books. He referred to definition of term "person" insection   2(v)of   the     Special   Economic   Zones   Act,   2005  which   is   an   inclusive   definition   and   includes   within   its  sweep   an   individual,   a   Hindu   Undivided   Family,     a  cooperative   society,   a   company   or   even   a   proprietary  concern or an association of person or body of individuals,  a local authority and any agency office or branch owned or  controlled  by such individual,  HUF etc. He was therefore,  of the opinion that the respondent  assessee had not paid  service tax though liable. He also  held that the respondentPage 4 of 17HC-NIC Page 4 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT assessee  had breached relevant provisions of the  Finance  Act,   1944.   He   therefore,   ordered   recovery   of   service   tax  with interest and also imposed penalties.5. This order was carried in appeal by the assessee before the  Tribunal. The Tribunal by the impugned judgement dated  22.10.2010  allowed  the appeal  and set aside the order of  the   adjudicating   authority.   The   Tribunal   held   that   SEZ  unit and DTA unit of the assessee cannot be considered as  separate   persons.   Merely   because   they   are   required   to  maintain separate books of account in terms of rule 19(7)  of the Special Economic Zones Rules, would not mean they  are separate entities. The Tribunal was of the opinion that  service   tax   would   be   levied   on   a   transaction   between   a  person   and   another   person   and   levy   of   service   tax  therefore,   would   require   a   transaction   between   two  persons. It is against this judgement that the department  has filed the present appeals.6. Learned   counsel   for   the   department   contended   that   the  Tribunal committed an error in interpreting the provisions  of   theFinance   Act,   1994.   SEZ   unit   was   distinct   and  separate entity and provided taxable service to DTA unit of  the   same   company.   Merely   because   both   the   units   were  under   the   same   company,   would   not   mean   that   the  services   provided   is   not   taxable.   He   submitted   that   the  principle   of   mutuality   would   not   apply   and   was   wrongly  applied   by   the   Tribunal.   He   invited   our   attention   to   rule  19(7) of the Special Economic Zone Rules to contend that  SEZ unit is a distinct and separate entity from other units  of the same company situated outside the said SEZ area.Page 5 of 17HC-NIC Page 5 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENTCounsel relied on decision of Division Bench of this Court  in   case   ofSintex   Industries   Ltd.   v.   Commissioner   of  Central   Excisereported   in   2013(287)   ELT   281   in   which  the   assessee   had   two   units   within   a   common   boundary  wall,   having   two   separate   central   excise   registration.   In  such   background,   the   Court   observed   that   the   assessee  having   obtained   separate   registration   was   estopped   from  contending   that   the   two   were   not     separate   factories,  simply   because   they   were   situated   within   a   common  boundary wall.7. On   the   other   hand,   learned   counsel   for   the   respondent  opposed   the   appeals   contending   that   the   assessee  company   conducted   various   promotional   activities   and  services for the purpose and benefit of the entire company.  Only   for   convenience,   the   expenses   of   services   were  apportioned to the SEZ unit. In any case, one unit of the  company   cannot   provide   any   taxable   service   to   another  unit. On the principle of mutuality therefore, no service tax  can be levied. Counsel relied on the following decisions :1)     In   case   of  Commr.   of   Cus.   &   C.   Ex.,   Meerut­I   v.Janardan Plywood Industries Ltd.  reported  in 2015(323)  ELT   46   (Uttarakhand),   in   which   it   was   found   that   the  company had two manufacturing units. In context of small  scale   industries   exemption,   it   was   held   that   the  manufacturer of both the units is a single legal entity and,  therefore,  aggregate  value  of  clearances  of both  the  units  must be taken into account for determining the eligibility of  SSI exemption.Page 6 of 17HC-NIC Page 6 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT2)  In case of Sahney Steel and Press worksLimited and  another v. Commercial Tax Officer and othersreported  in   (1985)   4   Supreme   Court   Cases   173,   in   which   in   the  context   ofSales   Tax   Act,   it   was   noticed   that   the  manufacturer   had   sent   goods   to   the   branch   office   for  supplying to the buyer. It was observed that in such a case  the branch office merely acted as a conduit through which  the   goods   passed   on   their   way   to   the   buyer.   Both   the  registered   office   and   the   branch   office   are   offices   of   the  same company and that what in effect did take place was  that  the  company   from  its  registered  office  in  Hyderabad  took  the goods  to its  branch  office  outside  the  State  and  arranged to deliver them to the buyer.3)     In   case   ofUP   State   Cement   Corporation   Ltd.   v.  Commissioner of Sales Tax, UPreported in 1979 (43) STC  475 (ALL), it was noticed that UP Government  owned two  cement   factories.   One   supplied   cement   to   another   for  which it was also billed. In context of liability to pay sales  tax, it was observed that before a transaction can be taxed  and included in the turnover of a dealer, it has to be a sale.  In order  to  constitute  sales   within  the  definition  ofSales  Tax   Act,   there   must   be   two   different   persons   in   the  ordinary sense of the term 'person'.4) In case of  Commissioner of Income­tax v. Prabhukunj  Co­op Housing Society Ltd. reported in 377 ITR 13 (Guj),  in   which   the   principle   of   mutuality,   the   members   of   a  cooperative housing society and its members, was applied  in   the   context   of   a   part   of   the   surplus   retained   by   the  society from the sale of a plot by its member.Page 7 of 17HC-NIC Page 7 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT8. Having   heard   learned   counsel   for   the   parties   and   having  perused   the   materials   on   record,   we   may   refer   to   the  relevant   statutory   provisions.Section   66of   the   Finance  Act,1994   pertains   to   charge   of   service   tax   and   provides  that there shall be levied a tax referred to as the service tax  at the rate of 12 per cent of the value of taxable services  referred   in     clauses   (a)   to   (zzzzw)   in   sub­section(105)   ofsection   65and   collected   in   such   manner   as   may   be  prescribed.Section   65(105)defines   various   taxable  services. Clause (zzzq)  thereof pertains to service provided  to any person  by any other person  in relation  to support  services of business or commerce in any manner.Section  65(104c)defines support services of business or commerce  as under :"Support   Services   of   Business   or   Commerce"  means  services provided in relation to business or commerce and  includes   evaluation   of   prospective   customers,  telemarketing,   processing   of   purchase   orders   and  fulfilment   services,   information   and   tracking   of   delivery  schedules,   managing   distribution   and   logistics,   customer  relationship   management   services,   accounting   and  processing   of   transactions,   [operational   or   administrative  assistance in any manner], formulation of customer service  and   pricing   policies,   infrastructural   support   services   and  other transaction processing.Explanation  ­For   the   purposes   of   this   clause,   the  expression   "infrastructural   support   services"   includes  providing office along with office utilities, lounge, reception  with competent personnel to handle messages, secretarial  services,   internet   and   telecom   facilities,   pantry   and  security;Page 8 of 17HC-NIC Page 8 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT9. In   terms   of   these   provisions,   therefore,   in   ordinary  circumstances,   it   is   not   even   the   case   of   the   respondent  that   the   services   provided   by   the   SEZ   unit   not   in   the  nature of support services of business or that for any other  reason, they are not taxable services.10.Section   2(za)of   the   Special   Economic   Zones   Act,  2005 defines Special Economic Zone as to mean a Special  Economic Zone notified under the proviso to sub­section(4)  ofsection 3and sub­section(1) ofsection 4.Section 2(zc)defines unit to mean a unit set up by an entrepreneur in a  Special Economic Zone and would include an existing unit.Section 7of the Special Economic Zones Act, 2005 pertains  to exemption from taxes, duties or cess and provides that  any goods or services exported out of, or imported into, or  procured   from   the   Domestic   Tariff   Area   by   a   unit   in   a  Special   Economic   Zone   or   a   developer,   shall   subject   to  such   terms,   conditions   and   limitations   as   may   be  prescribed, be exempt from the payment of taxes, duties or  cess under all enactments specified in the First Schedule.Section 30of the Special Economic Zones Act, 2005 reads  as under :"Domestic   clearance   by   Units.--Subject   to   the   conditions  specified in the rules made by the Central Government in  this behalf:--(a) any goods removed from a Special Economic Zone to the  Domestic   Tariff   Area   shall   be   chargeable   to   duties   of  customs   including   anti­dumping,   countervailing   and  safeguard duties under theCustoms Tariff Act, 1975(51 of  1975),  where  applicable,  as leviable  on  such  goods  when  imported; andPage 9 of 17HC-NIC Page 9 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT(b) the rate of duty and tariff valuation, if any, applicable to  goods removed from a Special  Economic  Zone shall be at  the rate and tariff valuation in force as on the date of such  removal, and where such date is not ascertainable, on the  date of payment of duty."11. Undersection   30of   this   Act,   therefore,   any   goods  removed   from   a   Special   Economic   Zone   to   the   Domestic  Tariff   Area   would   be   chargeable   to   duties   of   customs  including   anti­dumping,   countervailing   and   safeguard  duties  under  theCustoms  Tariff  Act,  as leviable  on such  goods when imported.12. In   exercise   of   powers   conferred   under   theSpecial  Economic   Zones   Act,   2005,   the   Central   Government   has  framed the Special  Economic Zones Rules, 2006. Rule 19  thereof pertains to letter of approval to a unit and provides  for various details that the letter of approval granted to a  unit of manufacturing  specified  project  in the  SEZ units.  Sub­rule(7) thereof reads as under :"(7) If an enterprise is operating both as a Domestic Tariff  Area unit as well as a Special Economic Zone Unit, it shall  have   two   distinct   identities   with   separate   books   of  accounts,   but   it   shall   not   be   necessary   for   the   Special  Economic Zone unit to be a separate legal entity:Provided   that   foreign   companies   can   also   set   up  manufacturing   units   as   their   branch   operations   in   the  Special Economic Zones in accordance with the provisions  of Foreign Exchange Management (Establishment in India  of branch or office or other place of business) Regulations,  2000 as amended from time to time."Page 10 of 17HC-NIC Page 10 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT13. Rule 22 of the Rules of 2006 pertains to terms  and  conditions   for   availing   exemptions,   drawbacks   and  concessions   to   every   developer   and   entrepreneur   for  authorised   operations.   Sub­rules   (2)   and   (3)   read   as  under :"(2)   Every   Unit   and   Developer   shall   maintain   proper  accounts,   financial   yearwise,   and   such   accounts   which  should clearly indicate in value terms the goods imported  or   procured   from   Domestic   Tariff   Area,   consumption   or  utilization   of   goods,   production   of   goods,   including   by­ products,   waste   or   scrap   or   remnants,   disposal   of   goods  manufactured   or   produced,   by   way   of   exports,   sales   or  supplies  in the domestic  tariff  area or transfer  to Special  Economic   Zone   or   Export   Oriented   Unit   or   Electronic  Hardware   Technology   Park   or   Software   Technology   Park  Units or Bio­technology Park Unit, as the case may be, and  balance in stock:Provided   that   unit   and   developer   shall   maintain   such  records for a period of seven years from the end of relevant  financial year:Provided further that the unit engaged in both trading and  manufacturing   activities   shall   maintain   separate   records  for trading and manufacturing activities.(3) The Unit shall submit Annual  Performance Reports in  the   Form   I,   to   the   Development   Commissioner   and   the  Development   Commissioner   shall   place   the   same   before  the Approval Committee for consideration.01.07.201614. From these statutory provisions, it can be seen that  upon the support services of business being provided by aPage 11 of 17HC-NIC Page 11 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT service provider, service tax at the prescribed rates would  be levied. In view of materials on record, we have proceeded  on the  basis  that  the  respondent  company  SEZ  unit  had  provided such services to its DTA unit. We may notice that  theSpecial Economic  Zones Actwas enacted to provide for  the   establishment,   development   and   management   of   the  Special  Economic  Zones for the promotion of exports and  for matters connected therewith or incidental thereto.This  Actmakes   special   provisions   for   the   units   situated   in  Special   Economic   Zones   to   be   notified   and   established.  Undersection 7of the Special Economic Zones Act, 2005,  any goods or services exported out of, or imported into, or  procured   from   the   Domestic   Tariff   Area   by   a   unit   in   a  Special Economic Zone or a developer, would be subject to  such terms and conditions  as may be prescribed,  exempt  from   the   payment   of   taxes,   duties   or   cess   under   all  enactments  specified  in the  First  Schedule.  Thus,  for the  purpose   of   taxation   of   various   kinds   within   the   unit  situated  in the Special  Economic  Zones,  receive  a special  consideration.   It is because of these concessions granted  to   such   units   that   undersection   30of   the     Special  Economic Zones Act, 2005, it is provided that in cases of  goods   removed   from   a   Special   Economic   Zone   to   the  Domestic   Tariff   Area,   the   same   would   be   chargeable   to  duties  of  customs   including   anti­dumping,  countervailing  and   safeguard   duties   under   theCustoms   Tariff   Act,   as  applicable, leviable on such goods when imported. In view  of   such   special   status   and   in   order   to   enable   a   unit   to  claim such exemption, drawbacks and concession,   under  sub­rule(2)   of   Rule   22   of   the   Special   Economic   Zones  Rules,  2006,  it is provided  that  every  unit  and   developerPage 12 of 17HC-NIC Page 12 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT has   to   maintain   proper   accounts   financial   year­wise,  clearly   indicating   in   value   terms   the   goods   imported   or  procured   from   Domestic   Tariff   Area,   consumption   or  utilization   of   goods,   production   of   goods,etc.   Under   sub­ rule(3),  a unit would  have to submit Annual  Performance  Reports which shall have to be placed before the Approval  Committee  for consideration.  Like­wise,  under  sub­rule(7)  of Rule 19 it is provided that if an enterprise is operating  both   Domestic   Tariff   Area   unit   as   well   as   a   Special  Economic   Zone   Unit,   it   shall   have   two   distinct   identities  with   separate   books   of   accounts,   but   it   shall   not   be  necessary   for   the   Special   Economic   Zone   unit   to   be   a  separate legal entity.15. All   these   statutory   provisions   indicate   separate   and  artificially created independent existence of a SEZ unit of a  company whether it has another unit situated in Domestic  Tariff Area or not. In particular, Rule 19(7) of the   Special  Economic   Zones   Rules,   2006   while   recognising   that   the  same   legal   entity   may   have   two   units,   one   in   SEZ   and  another in DTA, mandates that the two would have distinct  identities with separate books of accounts. It is because of  the   special   concessions   in   taxation,   including   duty  drawbacks and other exemptions that the SEZ unit has to  maintain   scrupulously   accounts   of   all   imports   and  procurements from  Domestic Tariff Area. It also has to pay  customs duty on goods cleared to Domestic Tariff areas as  if such goods were imported into India. Sub­rule(7) of Rule  19   clarifies   that   in   case   of   an   enterprise   which   has   unit  both   situated   in   SEZ   as   well   as   in   Domestic   Tariff   Area,  the two would  have distinct identities with separate booksPage 13 of 17HC-NIC Page 13 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT of accounts, but it would not be necessary for the Special  Economic Zone unit to be a separate legal entity.16. For   various   purposes,   thus   a   SEZ   unit   of   an  enterprise  which  also has an additional  unit  in Domestic  Tariff Area, therefore, has a distinct identity. Its accounts  are   separate,   its   accounting   would   be   separate.   This  artificial   creation   of   separate   accounting   of   a   unit   or   an  industry  of  a common  enterprise  or  a company,  is  not  a  new or unknown  phenomena.  In number  of cases,  whereIncome   Tax  Actprovides   profit  linked  incentives   such   as  deductions under sections 80HHC, 80­I, 80­IA, 80IB, etc.,  the  industry  or  unit  engaged  in  such  eligible  business  is  treated separate and distinct for the purpose of accounting  so   that   deductions   of   the   assessee   out   of   its   eligible  business can be separately worked out. Similar principles  would apply in other special deductions also whether area  based or investment based. It may be that while assessing  the company, its total income would have to be computed  and the income of the assessee from such eligible business  after deductions,   would also form part of the total income.  Nevertheless, for the purpose of accounting, the particular  industry   eligible   for   deduction   would   be   treated   separate  from other units.17. Under the circumstances, in view of statutory scheme  noticed   in   theFinance   Act,   1994andSpecial   Economic  Zones   Act,   2005,   the   contention   of   the   respondent  company   that   on   the   principle   of   mutuality,   the   services  rendered   by   its   SEZ   unit   to   a   Domestic   Tariff   Area   unit,  would not be chargeable to service tax, cannot be accepted.Page 14 of 17HC-NIC Page 14 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENTIf   this   principle   is   applied,   the   very   artificial   creation   of  treating  a SEZ  unit  separate  and distinct  for accounting,  consumption   of   raw   materials,   production   and   clearance  purposes   would   shatter.   The   concept   of   mutuality   is  essentially   based   on   the   principle   that   where   certain  services   or   facilities   are   created   by   group   of   persons   for  themselves,   as   in   the   case   of   a   club   for   recreation,   any  excess  or residue,  from  out  of  the  funds  collected,  would  not become the income of the club chargeable to tax.18. The question of charging service tax however, needs  to be looked  from a slightly  different  angle.Section  66of  the  Finance Act, 1994, as noted, provides for levy of taxes  at the rate of prescribed percentage of the value of taxable  services  referred  to in various  clauses  of sub­section(105)  of   Section   65.   For   applicability   of   this   charging   section,  therefore,   what   is   needed   is   to   ascertain   the   value   of  taxable  service.  In  other  words,  service  tax  can  be  levied  only   if   the   service   is   provided,   even   if   it   is   other­wise,   a  taxable   service,   carries   a   certain   value.   If   the   value   of  service   provided   is   nil,   there   would   be   no   occasion   for  charging the service tax. In essence, thus section 66 aims  at collecting service tax when a certain service is provided  for   a   value.   To   put   it   conversely,   when   the   service   is  provided but no value thereof is charged, there would be no  question   of   collecting   service   tax.   No   provision   has   been  brought   to   our   notice   in   theFinance   Act,   1994under  which   though   the   service   provider   has   not   charged   any  value for service, service tax thereon still can be levied on  its deemed value, be it market value or fair value. It is a  different   matter   altogether   if   the   departmental   authorityPage 15 of 17HC-NIC Page 15 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT disbelieves that though service was provided but no charge  was collected and in such a case, the authority would have  ample   power   to   inquire   into   the   matter   and   come   to  appropriate conclusion  on the basis of available materials  on   record.   However,   if   the   department   proceeds   on   the  premise that  a certain service though other­wise a taxable  service, the service provider did not collect any charge for  the   same   from   the   service   recipient,   in   our   opinion,   it  would   simply   not   be   possible   for   the   authority   to   collect  any service tax on such service.19. We may notice that explanation to section 65 states  as under :"For the purposes of this section, taxable service includes  any   taxable   service   provided   or   to   be   provided   by   any  unincorporated   association   or   body   of   persons,   to   a  member  thereof,  for cash,  deferred  payment  or any  other  valuable consideration."20. Thus the term taxable service has a direct relation to  the consideration either paid in cash or by way of deferred  payment   or   by   mentioning   of   any   other   valuable  consideration. This would reinforce our belief that when no  charge was collected for providing the service, there would  be   no   question   of   applying   a   rate   of   tax   on   the   value   of  such service.21. In   this   context,   we   may   recall,   according   to   the  assessee,   providing  of  service   by  its   SEZ   unit  to  its   DTA  unit was merely  for the  purpose  of convenience  and SEZ  unit had not collected any charge for such service from itsPage 16 of 17HC-NIC Page 16 of 17 Created On Wed Jul 06 00:44:35 IST 2016 O/TAXAP/42/2013 JUDGMENT DTA  unit.   Though  the  Assessing   Officer  in  his   order  has  made   a   brief   reference   to   the   SEZ   unit   receiving  consideration for such service, we do not find any basis for  such a conclusion.  In fact,  the case of assessee  all along  has been that invoices were raised for such services merely  for   the   purpose   of   convenience   and   in   fact,   since  promotional   programmes   were   being   organised,   which  would  benefit  the  entire  company  and  its  different  units,  there was no question of charging a particular unit by SEZ  unit   for   such   service   and   that   raising   of   invoices   was  merely for the purpose of convenience. If that be so, in our  opinion, no service tax could be levied not on the principle  of   mutuality   but,   as   noted,   on   the   ground   that   service  provided carried no actual value.22. For   such   reasons,   while   therefore,   dismissing   the  Revenue's appeal against the judgement of the Tribunal, on  the grounds different from which appealed to the Tribunal,  we answer the question clarifying that in the present case,  no   service   tax   was   leviable   since   the   SEZ   unit   of  respondent   assessee   had   not   charged   for   the   services  provided to its DTA unit.23. Tax appeals are dismissed.(AKIL KURESHI, J.) (A.J. SHASTRI, J.) raghuPage 17 of 17HC-NIC Page 17 of 17 Created On Wed Jul 06 00:44:35 IST 2016
68d07524-29cb-5409-996e-756644ddd010
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Calcutta High CourtMt. Latifa Khatun And Anr. vs Tofer Ali And Ors. on 2 June, 1927Equivalent citations: AIR1927CAL902, AIR 1927 CALCUTTA 902JUDGMENT Mukerji, J.1. (After stating the facts his Lordship proceeded.) The substance of: the plaintiffs' claim was that Ali Hossain or Abdul Karitn Choudhuri did not take the settlement of the lands of Soh. 1 or possess or pay rent for the same, but that Gholam Ali took it in their names; that if this benami nature of the transaction was not proved, then the Government had no right to settle the said lands with Ali Hossain or Abdul Karim Choudhuri as the lands were accretion to the lands of Schedules 2 and 3 of which Gholarn Ali had already obtained settlement in 1901-02 and 1904-05 respectively; and that the plaintiff having acquired Gholam Ali's interest in the original holding as wall as the Schedules 2 and 3 lands, his title to the lands of Schedule 1 should also be declared and his possession therein confirmed.2. The plaintiff and defendant 12, Abdul Karim Choudhuri, settled the dispute between them on compromise. The defence of the heirs of Ali Hossain was, besides a denial of the plaintiff's title under his purchase, that; Gholam Ali did not take the settlement of the disputed lands in the name of Ali Hossain, that Ali Hossain had taken settlement from Government on his own account and had been in possession for upwards of 20 years. The position taken up by the Secretary of State was that the lands of Schedule 1 were accretion to those of Schedule 3 which again were accretions to the lands of Schedule 2, but that, when the lands of Schedules 2 and 3 were settled, the settlements were not made of all the lands that had accreted, but because an intervening strip of land between the lands settled and the river was left unsettled, Gholam Ali was not entitled to have the settlement of the land of Schedule 1, and consequently the plaintiffs had no title to the same.3. The Munsif decreed the suit. Prom this decision appeals were preferred by some of the heirs of Ali Hossain and by the Secretary of State for India in Council. The Subordinate Judge who lealt with the appeals, allowed the same, and reversing the Munsif's decision dismissed the suit. The plaintiffs have thereupon appealed to this Court.4. The Subordinate Judge, has, in effect, upheld the contention of the Government, and held that because in the settlements of 1901-02 and 1904-05 all the lands up to the river had not been settled with Gholam Ali, but a strip of land by the side of the river was left unsettled, Gholam Ali was not entitled to claim the lands of Schedule 1 as accretions 2 and 3. He has also held that the suit is barred as being governed byArticle 45,Limitation Act. Both these grounds have been challenged before us as unsound.5. So far as the question of limitation is concerned, it appears from the written statement filed on behalf of the heirs of Ali Hossain that the limitation pleaded therein was 12 years from the date of the auction-sale, or three years from the date of the settlement with Ali Hossain or two years from Ali Hossain's taking possession. The only case as to limitation that appears to have been sought to be made out in the trial Court wasArticle 142orArticle 144of theLimitation Act, and the finding of that Court on this question was:the statement of the defendant 4 and those of his witnesses regarding the alleged possession of the disputed land for 20 or 25 years is absolutely unreliable...It is sufficiently clear from the evidence that the plaintiffs are in possession of the land for five or six years, From all these facts and circumstances of the case I hold that the suit is not barred by limitation6. These findings do not appear to have been challenged before the appellate Court. At any rate they have not been reversed by that Court. The foundation of a case as to limitation tinderArticle 45was laid in the written statement, but it is conceded that there are absolutely no materials on which such a case may be supported. It is well settled that the "award" contemplate, byArticle 45Limitation Act, presupposes a contest, between the parties and a decision after proper investigation into the points at issue: see Nubo Kishen Roy v. Gobind Chunder Sein 6 W.R. 817; Radha Pershad Singh v. Ram Jeewan Singh 11 W.R. 389; and Kristo Moni Gupta v. Secretary of State (1899) 3 C.W.N. 99. There is nothing to indicate in the present case that there was any contest or a decision on any investigation.Moreover, as pointed out in the case ofMidnapur Zamindari Co. Ltd. v. Naresh Narain Roy A.I.R.1922 Cal. 345, there was no necessity for the-plaintiff in a case like this to sue to set aside the award, if any, by the revenue authorities. The object of the present suit being that the plaintiffs may be confirmed in their possession of the lands, if they succeed in it the settlement made by the revenue authorities, in so far as it determines the amount of the revenue payable in respect of the disputed property, will in no way be affected, the only result being that the plaintiffs will,in that case, obtain the benefit of the settlement which Ali Hossain obtained from the Government. The decision of the Subordinate Judge on the question of limitation cannot be upheld.7. On the question of Gholam Ali's title to the lands of Schedule 1 also, the view taken by the learned Judge, in my opinion, is erroneous. The true view of the law of alluvion (Section 4ofRegulation 11, 1825) is that physically laud is added to land; in point of right, the right to the new land is accretio to the right to the old; per Rankin. J., inSaudamini Dassya v. Secretary of State.8. The fact that no settlement of revenue is made of a portion such as there was in the present case, cannot affect this accretio to the rights, unless any question of limitation or adverse possession arises.In the present case there was no refusal to take settlement on the part of Gholam Ali or of the plaintiff or his vendor or an abandonment of proprietary rights in lieu of malikhana such as arose in the case ofSaudamini Dassya v. Secretary of State. Gholam Ali was, therefore, entitled to the lands of Schedule. 1 as soon as they accreted and the plaintiff too was similarly entitled. In my judgment the Subordinate Judge's decision cannot be supported. The appeal must, therefore, be allowed, the judgment of the Subordinate Judge set aside and that of the trial Court restored with costs of this Court as well as of the lower appellate Court.Cuming, J.9. I agree.
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court_cases
Income Tax Appellate Tribunal - DelhiMarine Logistics Solutions Llc, ... vs Assessee on 20 September, 2010IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH "E" NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI K.D. RANJAN ITA No. 5939/Del/2010 Asstt. Yr: 2007-08 Marine Logistics Solutions LLC Vs. Addl. Director of Income-tax, C/o Hemant Arora & Co., International Taxation, 1, Tyagi Road, Dehradun. Dehradun. PAN/GIR No. AAECM6941K (Appellant ) ( Respondent ) Appellant by : None Respondent by : Sh. Dev Jyoti Dass CIT(DR) ORDER PER R.P. TOLANI, J.M :This is assessee's appeal against the direction dated 20-9-2010, passed by the DRP-II, New Delhi, relating to A.Y. 2007-08.2. None put in appearance on behalf of the assessee at the hearing fixed for 07-03- 2012 despite issue of notice for hearing through registered post. The postal envelope containing the notice of hearing has not been returned unserved. Thus, it can safely be presumed that assessee has been served with notice of hearing. No request for adjournment of hearing has been received from assessee. It gives an impression that the assessee is not interested in pursuing its appeal. We, therefore, have no option but to dismiss the appeal preferred by the assessee, placing reliance on the ratio of decisions in the following cases:CIT Vs. Multiplan (India) Pvt. Ltd.38 ITD 320 (Del.); and Late Tukoji Rao Holkar 223 ITR 480 (MP).3. Assessee's appeal stands dismissed.Order pronounced in open court on 07-03-2012.( K.D. RANJAN ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 07-03-2012. MP Copy to : 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR
85607706-ce30-5ced-9ea5-78308411b514
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Kerala High CourtKalamani vs M.Muraleedharan on 22 July, 2011Author:C.K.Abdul RehimBench:C.K.Abdul RehimIN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM & THE HONOURABLE MR. JUSTICE K.RAMAKRISHNAN TUESDAY, THE 14TH DAY OF JULY 2015/23RD ASHADHA, 1937 Mat.Appeal.No. 754 of 2011 ( ) -------------------------- AGAINST THE JUDGMENT IN OP 358/2010 of FAMILY COURT, PALAKKAD, DATED 22-07-2011 APPELLANT(S)/PETITIONER: ------------------------ KALAMANI, W/O.M.MURALEEDHARAN, DEEPIKKA, KODIYIL VEEDU, PARALI P.O., PALAKKAD. BY ADV. SRI.A.R.GANGADAS RESPONDENT(S)/RESPONDENT: ------------------------ M.MURALEEDHARAN, S/O.SATHYABHAMA, SREENILAYAM, PALASSERY, ODANOOR, PARALI P.O., PALAKKAD DISTRICT-678 612. THIS MATRIMONIAL APPEAL HAVING BEEN FINALLY HEARD ON 14-07-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ss C.K. ABDUL REHIM & K. RAMAKRISHNAN, JJ. -------------------------------------------------------------------------------- Mat. Appeal No.754 of 2011 ------------------------------------------------------------------------ Dated this the 14th day of July, 2015 JUDGMENTK. Ramakrishnan, J Petitioner in O.P.No.358/2010 on the file of the Family Court, Palakkad, is the appellant herein. The petition was filed by the petitioner herein for dissolution of marriage under Section 13(1-A) [Section was wrongly quoted as 13(1-a)] ofHindu Marriage Act.2. It is alleged in the petition that the respondent married the petitioner on 06.04.1984 at Guruvayoor Temple and lived as husband and wife. Thereafter they started residing separately. So respondent filed O.P.No.46/1984 before the Sub Court, Palakkad, underSection 10of the Hindu Marriage Act for a decree for judicial separation. The application was allowed and a decree for judicial separation was passed between the petitioner and respondent on 10.07.1986. They wereMat. Appeal No.754 of 20112residing separately even prior to the petition for judicial separation. There has been no resumption of co-habitation between the petitioner and respondent for a period of one year prior and after the decree for judicial separation till the date of filing of the petition for divorce. So the petitioner is entitled to get the marriage dissolved, solemnized between them on 06.04.1984.3. Though respondent was served with notice, he did not appear in the proceedings. The petitioner was examined as PW1 and Ext.P1 was marked on her side and she filed proof affidavit also reiterating the averments mentioned in the petition. After considering the evidence, court below dismissed the application on the ground that, the delay in filing the application has not been explained. Aggrieved by the same, the present appeal has been preferred by the appellant / petitioner before the court below.4. Though notice was served on the respondent, he did not appear in the case.Mat. Appeal No.754 of 201135. Heard the counsel for the appellant.6. The counsel for the appellant submitted that the decree for judicial separation was passed as early as on 10.07.1986 and thereafter there is no co-habitation and they were living separately even prior to that. If there is no co- habitation between the petitioner and the respondent even after one year of passing of the decree for judicial separation, that is a ground for granting divorce. The delay in filing the application is not a ground for rejecting the application. So the court below ought to have allowed the application.7. It is an admitted fact that the marriage between the appellant and respondent was solemnized on 06.04.1984 from Guruvayoor Temple and thereafter they were living together as husband and wife. It is also an admitted fact that, respondent herein who is the husband of the appellant filed O.P.No.46/1984 before the Sub Court, Palakkad, underSection 10of the Hindu Marriage Act for a decree for judicial separation and the Sub Court had passedMat. Appeal No.754 of 20114a decree for judicial separation between the petitioner and respondent on 10.07.1986. It is also mentioned in the petition itself that, even prior to the petition in that case they were living separately and even after the disposal of the case, there was no co-habitation between them and the separation continued till the filing of the present petition. The fact that the respondent did not appear in that case also will go to show that, he does not want to resume co- habitation with the petitioner.8.Section 13(1-A) of Hindu Marriage Actreads as follows:[(1A) Either party to a marriage, whether solemnised before or after the commencement of this Act, may also present a petition for the dissolution of the marriage by a decree of divorce on the ground-(i) that there has been no resumption of cohabitation as between the parties to the marriage for a period of [one year] or upwards after the passing of a decree for judicial separation in a proceeding to which they were parties; or(ii) that there has been no restitution of conjugal rights as between the parties to the marriage for a period of [one year] or upwards after the passing of a decree for restitution of conjugal rights in a proceeding to which they were parties.] (2) A wife may also present a petition for the dissolution of her marriage by a decree of divorce on the ground,-(i) in the case of any marriage solemnised before the commencement of this Act, that the husbandMat. Appeal No.754 of 20115had married again before such commencement or that any other wife of the husband married before such commencement was alive at the time of the solemnisation of the marriage of the petitioner.(ii) that the husband has, since the solemnisation of the marriage, been guilty of rape, sodomy or [bestiality;or](iii) that in a suit under section 18 of the Hindu Adoptions and Maintenance Act, 1956 (78 of 1956), or in a proceeding under section 125 of the Code of Criminal Procedure, 1973 (2 of 1974) [or under the corresponding section 488 of the Code of Criminal Procedure, 1898 (5 of 1898)], a decree or order, as the case may be, has been passed against the husband awarding maintenance to the wife notwithstanding that she was living apart and that since the passing of such decree or order, cohabitation between the parties has not been resumed for one year or upwards; or(iv) that her marriage (whether consummated or not) was solemnised before she attained the age of fifteen years and she has repudiated the marriage after attaining that age but before attaining the age of eighteen years]9. If there is no resumption of co-habitation between the parties for a period of one year or upwards after the passing of the decree for judicial separation, then that itself is a ground for dissolving the marriage between the parties under that Section. Mere delay in filing the application is not a ground to dismiss the application. So the court below had erred in dismissing the application for dissolution of the marriage on the ground that the delay inMat. Appeal No.754 of 20116filing the application for divorce, though the decree for judicial separation was passed in the year 1986 is unsustainable in law and the same is liable to be set aside and the petitioner is entitled to get a decree for dissolution of marriage between the petitioner and the respondent solemnized on 06.04.1984.So the appeal is allowed, the decree and judgment passed by the court below, dismissing the application is set aside and the O.P. is allowed dissolving the marriage between the appellant and respondent solemnized on 06.04.1984 at Guruvayoor Temple.Sd/-C.K. Abdul Rehim, Judge Sd/-K. Ramakrishnan, Judge // True Copy// P.A. to Judge ss
8f912dd3-4e7f-5773-aac8-5866fe2e85c3
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Calcutta High Court (Appellete Side)Balai Chandra Pramanik vs Smt. Shila Halder & Ors on 31 March, 20161 34. 31.03.2016 mb In the High Court At Calcutta Civil Appellate Jurisdiction Appellate Side S.A. 528 of 1994 With C.A.N. 727 of 2016 Balai Chandra Pramanik Vs. Smt. Shila Halder & Ors. Mr. Jayanta Samanta .....for the respondents-applicantsMr. Dipak Das ......for the appellant In Re.: C.A.N. 727 of 2016 Although, this is an application at the instance of the respondents in the second appeal for amending the memorandum of appeal filed in the second appeal, but no ground was disclosed for allowing the respondents to amend the memorandum of appeal. Accordingly, the application, being C.A.N. 727 of 2016, stands dismissed as not maintainable.Let the appeal appear in the monthly list of April, 2016 under the heading "Hearing".(Ashis Kumar Chakraborty, J.)
2d3c96d7-f6ad-54f9-bcbf-a6222552e3d0
court_cases
Jharkhand High CourtBijay Kumar Mehta vs State Of Jharkhand on 12 September, 2011Author:R.K. MerathiaBench:R.K. MerathiaCr. Appeal No. 342 of 2011 Against the Judgment of conviction and order of Sentence dated 25.3.2011 and 26.3.2011 respectively, passed by learned Additional Sessions Judge, FTC-II, Hazaribagh, in Sessions Trial No. 211 of 2006. Bijay Kumar Mehta .....Appellant Versus The State of Jharkhand ..........Respondent For the Appellant : Mr. Anil Kumar, Advocate For the State : Mr. A.B. Mahato, APP ------ PRESENT The Hon'ble Mr. Justice R.K. Merathia -------- By Court. This appeal is directed against the Judgment of conviction and order of sentence dated 25.3.2011 and 26.3.2011 respectively, passed by learned Additional Sessions Judge, FTC-II, Hazaribagh, in Sessions Trial No. 211 of 2006, convicting the appellant undersection 376of the Indian Penal Code and sentencing him to R.I. for seven years and also fine of Rs.2,000/-. In case fine is not paid, a further imprisonment of six months was imposed. 2. The prosecution case in short is that the informant-Veena kumari lodged the First Information Report on 24.1.2005 inter alia alleging that she was aged about 17 years. The appellant used to visit her house. One day finding her alone, he committed rape on her on the fear of weapon and then continued sexual exploitation on the pretext of marriage. On 23.11.2004, the appellant took her on some pretext. On 24.11.2004, he took her to Hazaribagh court and got certain documents signed by her for solemnizing marriage. Thereafter, the informant and the appellant started living in the house of the sister of the informant. The other accused persons came and threatened her with dire consequences when the appellant said that he has to do what his family members direct. Then a demand of Rs.1 lac and one Hero Honda Motorcycle was made by the accused persons for solemnizing marriage and they took the appellant from the house of her sister. The appellant expressed fear that the accused persons may cause loss of life and property to her and her family members, therefore a request was made to take proper action. 3. The learned court below framed charges undersections 366A,376and109of the Indian Penal Code andSection 4of the Dowry Prohibition Act. The trial court has convicted the appellant only undersection 376IPC and has acquitted him on other charges. 4. Mr. Anil Kumar, learned counsel for the appellant, submitted that ingredients ofSection 376IPC are not made out at all. Whereas Mr. A.B. Mahato, learned counsel for the State, supported the impugned judgement. 5. It appears that the trial court found that the informant-Veena Kumari was major. Only on the basis of the informant's version that when the appellant made physical contact with her on the first occasion, it was done on threat and on fear and against her will, the appellant has been convicted undersection 376IPC. Admittedly, the informant lodged the First Information Report after about 4 months of such first occurrence. It appears that after an application was made for registration of marriage, ( Ext-A), the appellant and the informant started living in her sister's house and continued physical relations. It also appears that dispute arose between the family members of the appellant and the informant, allegedly for demand of dowry. 6. After hearing the parties and going through the records, in my opinion, the conviction undersection 376IPC cannot be sustained. 7. In the result, the impugned judgement of conviction and order of sentence dated 25.3.2011 and 26.3.2011 respectively, passed by learned Additional Sessions Judge, FTC-II, Hazaribagh, in Sessions Trial No. 211 of 2006, is set aside. This appeal is allowed. The appellant is directed to be released forthwith, if not wanted in any other case. ( R.K. Merathia, J) Jharkhand High Court, Ranchi Dated the 12th September, 2011Rakesh/NAFR
9ea3a2cf-5ae4-5534-962d-607ead1eb499
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Karnataka High CourtS.B. Javaregowda vs Lakkigowda And Ors. on 30 October, 1957Equivalent citations: AIR1958KANT73, AIR1958MYS73, AIR 1958 MYSORE 73Author:K.S. HegdeBench:K.S. HegdeJUDGMENT K.S. Hegde, J.1. The appellant before us was the respondent in Miscellaneous Case No. 54 of 1956 on the file of the Subordinate Judge, Mysore, who tried this case as Election Commissioner under Section 20 of the Mysore Town Municipalities Act, 1551 (Act XXII of 1951). The said petition was filed by the respondents who claimed to be persons qualified to vote at the election held on 8-3-1956 to the Saligrama Town Municipality. The respondent in that petition and the appellant herein was declared elected to the VIIth Division of the said Municipality. The election was duly notified in the Mysore Gazette on 10-5-1956.2. The validity of the election of the appellant was challenged on as many as 7 grounds. The learned Election Commissioner rejected 6 out of the 7 grounds urged but set aside the election on the ground that the appellant was riot duly qualified to be a voter and as such could not validly offer himself as a candidate m the said election. The appellant questions the correctness of this decision. From the arguments advanced in the course of the hearing three points emerge for consideration:(1) Whether on the facts found by the learned Election Commissioner it is established that the appellant was not duly qualified to be a voter for want of necessary residential qualification as required by Section 12(2) of the Mysore Town Municipalities Act which will hereinafter be called the Act.(2) Is the electoral roll as finally published final and conclusive, and not open for examination and scrutiny by the Election Commissioner.(3) Whether on a proper reading of Section 14 and Section 20 of the Act, the only grounds on which an election could be set aside by the Election Commissioner are those mentioned in Section 20(4) of the Act.First Point:3. The appellant contends before us that the findings of the Commissioner are not sufficient to hold that he did not possess the residential qualification required by Section 12(2) of the Act to be enrolled as a voter in Exhibit P-6. Section 12(2) of the Act is as follows:"No person shall be included in such electoral roll as qualified to vote at such election unless he has resided_in_such division for one hundred and eighty days in the aggregate in the official year preceding' that in which the electoral roll is published," (the underlining (here into ' ' is mine).The words "Official year" are defined in Section 3(14) as meaning the year commencing on the 1st day of April. We have to consider whether the findings of the learned Election Commissioner are sufficient to come to the conclusion that the appellant had not resided in the division in question for 180 days in the aggregate in the official year preceding that in which the electoral roll is published.Nowhere in his order the learned Election Commissioner comes to the conclusion as to what exactly is the official year preceding nor does he arrive at the conclusion that the appellant had not resided in the division for 180 days in the aggregate in the said year. The learned Election Commissioner never directed his enquiry to these questions. On a reading of the order, it is clear that the oral evidence adduced by the respondents in this appeal did not commend itself to the learned Election Commissioner but he based his conclusions mainly on the documents produced before him. From these documents his conclusions are as follows:"The above documentary evidence unmistakably indicates that the respondent is in fact residing at Hosa Agrahara long prior to the relevant period".This finding is certainly insufficient to hold that the appellant was not residing in the division in question for 180 days in the aggregate in the official year preceding that in which the electoral roll is published. It is not impossible for a person to reside in more places than one. More than that what is required to be considered is whether in the aggregate he resided in the division for 180 days in the official year preceding that in which the electoral roll is published.The learned Election Commissioner had not placed before himself the requirements of the section and consequently he totally missed the point that he had to decide. No doubt in a general way he found that the appellant was not residing in the Saligrama Town during the relevant period. But there was no finding as to what was the relevant period. The appellant is not a stranger to this Town is clear from the fact that he was the President of the said Municipality during the term preceding to the election in dispute.It is true that this Court cannot go into the correctness or otherwise of the finding of the learned Election Commissioner on a question of fact; but it is open to us to consider whether the finding arrived at is sufficient to meet the requirements of law. I have examined the documents produced in this case on which the learned Election Commissioner has placed reliance. These documents are insufficient to establish that at the material time the appellant did not reside in the division in question for the required period to be entitled to be enrolled in Exhibit P-6. Second Point:4. The second contention of the appellant is that the learned Election Commissioner had no jurisdiction to consider the Question whether he had been properly enrolled as voter in Exhibit P-6 or not. According to him the electoral roll is not open to scrutiny by the Tribunal which enquires into the election petition. In order to properly appreciate this contention, it is necessary to place before ourselves certain provisions of the Act and the Rules framed thereunder.Section 11 of the Act makes provision for carving out the territorial divisions of the Municipality. Section 12 lays down the qualification for enrolment in the electoral roll. Section 13 stipulates the period during which the electoral roll will be in operation. Section 12 reads as follows:12(1) Every person of either sex who has attained the age of 21 years in the official year preceding that in which the electoral roll is published and who is not otherwise disqualified under this Act shall be included in the electoral roll as qualified to vote at the election for any of the divisions referred to in Sub-section (1) of Section 11.(2) No person shall be included in such electoral roll as qualified to vote at such election unless he has resided in such division for one hundred and eighty days in the aggregate in the official year preceding that in which the electoral roll is published:Provided that a person shall not be deemed to be disqualified under this sub-section if he is employed in the town municipality and non-residence in the division for the period aforesaid is due to his absence on leave out of the State. Explanation: For the purpose of this sub-section, no person shall be deemed to reside in more than one division. Section 13 reads as follows:(1) When, in accordance with the rules made under Clause (b) of Sub-section (2) of Section 208, a list of voters has been prepared or revised, a copy thereof signed by such person as may be designated in this behalf in the rules aforesaid, shall be the municipal electoral roll. The electoral roll shall come into force from the "date of its publication and shall continue in force for a period of four years or for such less period, if any, as the Government may by order direct in any case, and after the expiration of such period, a new electoral roll shall be published: Provided that:(a) in the case of an election held after an electoral roll has ceased to have force and before the publication of the new electoral roll, the old electoral roll shall continue to operate as the electoral roll;(b) at any time any person whose name is not in the electoral roll and who claims to have it enrolled may apply to the prescribed authority to enter his name therein and the prescribed authority shall enter in the electoral roll the name of every such person whose claim is proved to its satisfaction;(c) the prescribed authority shall at any time expunge from the electoral roll the name of every person proved to its satisfaction to be dead or no longer to possess the qualification of a voter and may likewise correct any clerical error or omission in the electoral roll after affording the person affected an opportunity of being heard:(d) no change in the electoral roll shall be made under provisions (b) and (c) within one month preceding the date fixed for an election.(2) At every election of councillors, every person enrolled in the municipal electoral roll as for the time being in operation under subsection (1), shall be deemed to be entitled to vote, and every person not so enrolled shall be deemed to be not entitled to vote.(3) A person shall not be qualified to be elected as councillor unless he is enrolled in the municipal electoral roll and a person who is already a councillor shall not be qualified to be a candidate at a bye-election held before his term of office as councillor, expires.5. Section 14 sets out certain disqualifications for becoming a councillor. The disqualifications so enumerated make no reference to residential qualification. The only qualification laid down in the said Act is that he should have been enrolled as a voter in the Municipal Electoral Roll.6. Rules have been framed providing for the preparation of the electoral rolls. The relevant rules are: Rule 6 to R. 10. These Rules have been published on 25-9-1951. Rule 6 lays down that the electoral roll shall be published at the Municipal Office, in the Taluk Office and in such other conspicuous places in each division as the Returning Officer may deem fit.Rule 7 says that any person whose name is not entered in the roll or is entered in an incorrect place or manner or with incorrect particulars, or any person whose name is entered in the roll and who objects to the inclusion of his own name or the name of any other person in the roll, may prefer a claim or objections to the Returning Officer. Sub-rule (2) of rule 1 provides that all such claims and objections shall be made in writing and not later than three O' clock in the afternoon of the 14th day from the date of publication of the electoral roll; claims and objections received after that time shall be rejected by the Returning Officer. Sub-rule (3) provides for the production of the documents on which the claimant or objector relies. Rule 8 provides for enquiry into claims and objections. I shall quote in detail Rules 8 to 10 as they are important for the decision of this case.Rule: 8(1) The Returning Officer shall hold a summary enquiry into the claims or objections preferred and shall record his decision in writing.(2) For the purpose of the Returning Offi-cer's enquiry, the roll as published, shall be pre-sumed to be correct and complete until the con-trary proved.(3) No party shall be represented by any legal practitioner at any proceeding under the provisions of this rule.(9) The Returning Officer shall amend the roll in accordance with his decisions on all claims and objections. He may also on his own motion order the correction of any clerical error or printing mistakes therein.(10) The orders passed by the Returning Officer under Rule 8 and 9 shall be final. The finality provided under Rule 10 does not merely relate to the decision arrived at by the Returning Officer on a summary enquiry into the claims and objections preferred; it includes all orders passed under Rule 8 and 9.7. In the light of the above provisions we have to consider whether the Election Tribunal has jurisdiction to go behind the electoral roll and decide whether the particular voter has been validly enrolled or not.8. The findings of the learned Election Commissioner on this point are lacking in clarity. He says "that so far as this aspect is concerned, even at the outset it can safely be stated that according to law on the point when once the name of a person is on the roll and the Returning Officer has accepted it there could be no revision by him or any other authority so far as the said inclusion is concerned.In other words the decision of the Returning Officer with regard to the inclusion of the name of the person in the concerned voters' list has to be deemed as final and conclusive. The authorities even go to the extent of pointing out that even in cases where there is improper acceptance of the nomination of the candidate, the inclusion of his name in the electoral roll that by itself will not be sufficient to make the election void on the said ground.But in the present case it is contended that the respondent has a fundamental disability to stand as a candidate for the election that is, on account of his non-residence in the locality." From the foregoing I take it that the learned Election Commissioner opines that though the electoral roll qua electoral roll is final and conclusive yet the person who intends to be a candidate should possess in addition to his name being in the electoral roll the residential qualification required by the Act. If this is the view of the learned Election Commissioner, it is certainly incorrect.The only qualification that is required by the Act and the Rules framed thereunder is the one laid clown in Section 13(3) i.e. to be enrolled in the Municipal Electoral Roll. The want of residential Qualification is not made a disqualification under Section 14 of the Act. Hence if the electoral roll is final qua electoral roll and if the appellant's name has been entered in that roll rightly or wrongly, he could be duly nominated as a candidate and he is qualified to be elected as councillor unless he possesses or incurs any of the disqualifications set out in Section 14 of the Act.9. The learned Election Commissioner's view that the Election Tribunal has jurisdiction to examine the correctness or otherwise of the Electoral Roll for the purpose of deciding whether the person is duly nominated or not is unsustainable. From the scheme of the Act and Rules as set out hereinabove, it is clear that there are two clear stages in an election proceeding.First there is the preparation of the electoral roll. On a proper reading of Sections 12 to 14 and Rules 6 to 10 it is clear that the Legislature intended that the preparation of the electoral roll should be made final and conclusive before the elections are held. The second stage is the stage of filing nominations and holding of the elections. Jurisdiction of the Election Tribunal at best extends to the consideration of the validity or otherwise (a) of the acceptance or rejection of the nomination and (b) of the holding of the election. It does not extend to a consideration of the correctness or otherwise of the electoral roll.10. Rule 10 is not happily worded. It would have been better to "state that the electoral roll finally published is final and conclusive. But I have no doubt in my mind that this was the intention of the Legislature. The Act and the Rules that we are called upon to consider bear substantial resemblance to the corresponding Acts and Rules in the other States. Decisions under those Acts have also taken the view that the correctness of the electoral roll does not come up for consideration in an election petition.11. On behalf of the respondents reliance has been placed on a number of decisions to show that the Election Tribunal can go behind the electoral rolls and examine its correctness. Before I consider these decisions it is necessary to emphasize that in an election petition the parties are not agitating a common law right nor is it an action in equity.The rights of the parties are those conferred by the concerned statutes, nothing more or nothing less. Hence cases arising under some what different statutes will not be of substantial assistance unless the relevant provisions are in pari materia with the provisions with which we are concerned.12. Reliance was placed on the decision of the Supreme Court in the case reported inDurga Shankar Mehta v. Raghuraj Singh, (A). This case was cited as an authority for the proposition that the Election Tribunal ought to consider whether the candidate nominated possessed the qualification required by the statute.In that case their Lordships were considering the scope ofSection 100 (2) (c)of the Representation of the People Act. They came to the conclusion that as per that section the possessing of the qualification prescribed by the Constitution is a necessary pre-requisites otherwise the election is liable to be set aside. But no such qualification is prescribed by the Act nor is there any provision in the Act or the Rules corresponding to Section 100(2) (c). Hence the decision in the said case is of no assistance to the respondents.13. The next case on which reliance was placed by the learned Advocate for the respondent is the case ofVinayak Vasudeo v. Gopal Chimnaji, AIR 1938 Bom 377 (B). But the relevant provisions of the Bombay Local Boards Act are somewhat different. His Lordship in his judgment has clearly brought out the distinguishable features. His Lordship at page 380 says:"It has been conceded by the learned Counsel on behalf of the appellant that there is no express provision in this or any other Section of the Act according to which the names of the persons appearing in the list are to be treated as conclusive in the sense that they cannot be challenged after there has been a final publication of the list of voters; and it is contended that looking to the scheme of the Act as a whole, that must be the intention of the Legislature. All that I can say is that, even if that was the intention of the Legislature, the words of the relevant Sections from which alone it is to be gathered, are entirely inadequate to convey such intention, and that it could have been positively expressed by the provision, as we find in some other Acts relating to elections of public bodies, that once the final list of voters was published after the objections are duly heard, it is to be treated as final and conclusive, and that it was not open to any person to challenge it thereafter. But I do not find any such intention even by implication in these Sections."In my judgment, the provisions of the Mysore Town Municipalities Act do afford material to come to the conclusion that the Legislature intended the list to be final and conclusive.14. Both the lower Court as well as the learned counsel for the respondent placed certain reliance on the decision of the Election Tribunal in the case of Sir K.G.M. Faroqui v. Mohammad Habib Ullah, as reported in 2 Dhobia's Indian Election Cases 24 (C). This case does not help the respondent. The Tribunal in that case held that one of the qualifications required by a candidate is that he should be entitled to vote. That was the required qualification. The Tribunal interpreted these words "as being lawfully entitled to vote".In the present case the only qualification required as I have said before is that the candldate's name should be in the Electoral roll. Each case will have to be decided on the basis of the relevant statute. The conclusion that I have arrived at though based on the relevant provisions of the Act and the Rules framed thereunder, find support from the decision of the Madras High Court in case reported inR.V. Palanisami Pillai v. R. Srinivasarangachariar, AIR 1925 Mad 160 (D) and of the Nagpur High Court in the case reported in Vithaldas Kunwarji v. Sadanand, AIR 1957 Nag 63 (E).Third point:--15. It is urged on behalf of the appellant that on a proper reading ofSection 14andSection 20of the Act the only ground on which the election can be set aside by the Election Commissioner is that mentioned inSection 20 (4)of the Act. The arguments proceed thus:Section 14 (1)enumerates disqualifications which debar a person from seeking election.Section 14 (2)details the disqualifications which may be incurred during the terms for which the candidate has been elected or appointed. Section 14(1) and (2) further provide that whether a person is disqualified from seeking election or incurs disqualification after election his seat shall be cither deemed to be vacant or shall become vacant as the case may be.Section 14 (3)requires that if any question or dispute arises whether a vacancy has occurred under this Section, the orders of the Government shall be final for the purpose of deciding such question or dispute. From the wording of this sub-section we are asked to conclude that all questions relating to the disqualifications are matters for determination by the Government under Sub-section (3) ofSection 14and none of them are matters for adjudication by the Tribunal enquiring underSection 20.It is further contended that the Election Commissioner's jurisdiction is limited to enquiring into the corrupt practices set out underSection 20 (4).In support of this argument reliance is placed on the decision of the Supreme Court in the caseRavanna Subbanna v. G.S. Kaggeerappa, (F).In that case their Lordships had to consider the scope ofSection 14andSection 20of the Act. Undoubtedly the observations of his Lordship B.K. Mukherjea J. (as he then was) is of great assistance to the appellant but it must not be overlooked that weighty as these observations are his Lordship very specifically said that it would not be necessary for him to give any final opinion on the relative scope ofSection 14(3)andSection 20 (5).On behalf of the respondents it is urged that thoughSections 14and20are not happily worded.Section 20(5)read with explanation confers on the Tribunal power to investigate into all disqualifications falling underSection 14 (1). The learned Counsel contends that the scope of Sub-section 3ofSection 14must be limited to the disqualifications incurred under Sub-section (2) of Section (14) & should not be extended to disqualifications possessed under Sub-section (1) ofSection 14.Otherwise according to him Sub-section (5) ofSection 20would become meaningless. He relies on the decision of this High Court reported inNarasingappa v. Siddappa, AIR 1957 Mys 87 (G). Their Lordships in the said case consider-ed the respective scope ofSection 14(3)andSection 20(5).They had before them the observations of their Lordships of the Supreme Court inRavanna's case (F).They held, that on reading ofSections 14and20together the Election Commissioner has jurisdiction to investigation into the alleged disqualification falling underSection 14 (1). All that I need say is that the question is not free from difficulty and sooner the Legislature clarifies its intention the better it is.16. In the light of my findings on points one and two this appeal is allowed and the order of the lower Court setting aside the election is reversed and the Election Petition is dismissed with cost throughout. (Advocate's fee Rs. 100).Somnath Iyer, J.17. I agree.18. Appeal allowed.
78b4fa91-9d83-5a58-b764-9e2fd2cd45bb
court_cases
Bombay High CourtBalu S/O Bhausaheb Kothule vs The State Of Maharashtra on 15 July, 20111 cra103.11 IN THE HIGH COURT OF JUDICATURE AT BOMBAY, AURANGABAD BENCH, AURANGABAD CRIMINAL APPEAL NO. 103 OF 2011 Balu s/o Bhausaheb Kothule, age 41 years, occ. Tractor Driver, R/o Khadki, Tq. Nagar, District Ahmednagar ig ...Appellant (Original Accused) VERSUS The State of Maharashtra, through Nagar Taluka police station ...Respondent ..... Ms. Monika Purnapatre, advocate appointed for appellant Shri V.D.Rakh, A.P.P. for the respondent ..... CORAM : SHRIHARI P.DAVARE, J. DATED : 15th July, 2011 ORAL JUDGMENT :1 Challenge in this appeal is to the conviction and sentence imposed upon the appellant (original accused) by way of judgment and order, dated 12.1.2011. It appears that the::: Downloaded on - 09/06/2013 17:30:51 :::2 cra103.11 appellant herein faced the trial for the offence punishable underSections 376,354,323,504and506of the Indian Penal Code under Sessions Case No. 136 of 2010 and was convicted therefor, excepting for the offence punishable underSection 504of the Indian Penal Code and was sentenced to suffer R.I. for the period of ten years and to pay fine of Rs. 10,000/-, in default of payment of fine to suffer R.I. for six months for the offence punishable underSection 376of the Indian Penal Code; and was also sentenced to suffer R.I. for two months and to pay fine of Rs. 5,000/-, in default of payment of fine to suffer R.I. for three months for the offence punishable underSection 354of the Indian Penal Code; and was further sentenced to suffer R.I. for the period of one year and to pay fine of Rs. 1,000/-, in default of payment of fine to suffer R.I. for one month for the offence punishable underSection 323of the Indian Penal Code; as well as was sentenced to suffer R.I. for the period of two years and to pay fine of Rs. 1,000/-, in default of payment of fine to suffer R.I. for one month for the offence punishable underSection 506of the Indian Penal Code; and it was also directed that the afore said substantive sentences to run concurrently, by way of judgment and order, dated::: Downloaded on - 09/06/2013 17:30:51 :::3 cra103.11 12.1.2011, rendered by the learned District Judge-6 and Assistant Sessions Judge, Ahmednagar.2 The factual matrix and the events leading to the present appeal are as follows :-The prosecutrix Nilima lodged the complaint against her father i.e. appellant herein with the Ahmednagar Taluka police station and reported that the appellant herein, namely Balu @ Balasaheb Bhausaheb Kothule i.e. father of the prosecutrix outraged her modesty and also two months prior to 5.4.2010 raped upon her for two times, as well as raped upon her during night of 5.4.2010 when she was residing along with the appellant and her grand father, namely Bhausaheb Kothule and sister Nikita in the house at Khadki, Taluka and District th Ahmednagar. She also alleged that she was the student of 8 standard in Tuljabhavani High School at Khadki and her father Balasaheb had married to one Kamalabai and initially they were residing at Kalewadi, Pimpri-Chinchwad, District Pune, but about one year back her mother died due to heart attack, and hence, the appellant, prosecutrix and her sister Nikita shifted to the house of her grand parents, namely Bhausaheb and::: Downloaded on - 09/06/2013 17:30:51 :::4 cra103.11 Babaibai Kothule at Khadki. It is also alleged that the appellant was the driver by profession on a dumper at Khandala and used to leave his house at about 7.00 a.m. with the tifin and used to return back at about 8.00 p.m. It is also alleged that about two months prior to the incident of rape i.e. 5.4.2010, the appellant picked up a quarrel with his mother Babaibai and drove her out of the house, and therefore, she took the shelter of house of her daughter Saina Vitthal Gadhave in the same village at Khadki.3 It is the case of the prosecutrix that on 5.4.2010 the prosecutrix returned to the house after giving the examination paper and prepared food at about 9.00 p.m. At this juncture, the appellant came to the house in drunken condition. The prosecutrix served him food. After the dinner, the appellant went out of the house. Thereafter, the prosecutrix, her sister Nikita and grand father Bhausaheb also took their dinner and went to sleep in the court yard of the house. The appellant returned home at about 11.00 p.m. It is alleged that the prosecutrix woke up when her legs were pulled by the appellant father and the appellant skidded her inside of the house from::: Downloaded on - 09/06/2013 17:30:51 :::5 cra103.11 the court yard. Thereupon, the prosecutrix cried, but the appellant gave threat to kill her, and hence, prosecutrix remained silent. After taking inside the house, the appellant removed her salvar, kurta, petty coat and nicker. The prosecutrix was beseeching "No, No" and started weeping.However, the appellant ignored her weeping and started rubbing her chest. Then, the accused removed his clothes and laid the prosecutrix on the cot and divided her legs opposite to each other and laid on the person of the prosecutrix and committed the sexual intercourse with her like husband and wife. The appellant also gagged her mouth by one hand. It is further alleged that there was pain to her urinating place and she became unconscious. It is further alleged that on the next day morning, the appellant kicked the prosecutrix and woke her up at 4.00 a.m. and asked her to cook food. Accordingly, after taking tifin, the appellant left the house at about 7.00 a.m. and while leaving the house gave threat to the prosecutrix to kill her if she disclosed the incident to anybody. Hence, the prosecutrix was scared.4 It is also the case of prosecution that after leaving the::: Downloaded on - 09/06/2013 17:30:51 :::6 cra103.11 appellant for his work, the prosecutrix took the bath and washed away her clothes. Thereafter, she narrated the incident to her aunt, namely Tarabai and grand father Bhausaheb, who in turn informed to Badambai, her remote grand mother, as well as the said incident came to the knowledge of one Raghunath Kothule, remote maternal uncle of the prosecutrix, who took her and her sister Nikita to their houses. On 10.4.2010 Raghunath Kothule left the prosecutrix and her sister Nikita to the house of PW4 Chandrakant Borude i.e. maternal uncle of victim, resident of Sarola Baddi. The prosecutrix narrated the events to the said maternal uncle and aunt. Accordingly, her complaint (Exh.15) was recorded by P.S.O. of Nagar Taluka police station PW9 A.S.I. Bapu Bhosale on 14.4.2010 and offence was registered against the appellant under C.R. No. 62 of 2010 underSections 376,354,504and506of the Indian Penal Code and same was treated as the first information report.5 It is further the case of prosecution that PW8 Mrs. Jyotipriya Singh, Superintendent of Police (Rural), Ahmednagar, was having charge of Nagar Taluka police station at the relevant time and on 14.4.2010 she received C.R. No. 62::: Downloaded on - 09/06/2013 17:30:51 :::7 cra103.11 of 2010 for further investigation. Accordingly, she perused the complaint and special report of the crime and arrested the appellant under arrest panchanama (Exh.31). The special report (Exh.38) was prepared by PW9 A.S.I. Bhosale.Thereafter PW8 Mrs. Jyotipriya Singh issued letter (Exh.17) for examination of the appellant and the appellant was sent to the Civil Hospital, Ahmednagar for examination purpose.Accordingly, PW2 Dr. Bharati Peche, who was Medical Officer at the Civil Hospital, Ahmednagar, examined him and collected the samples of blood, hair and nail, as well as sample of his semen was taken by other doctor, namely Dr. Bhujbal and M.L.C. (Exh.18) was registered. She also prepared the medical certificate of examination of the appellant at Exh. 20.6 Thereafter, PW8 Mrs. Jyotipriya Singh visited the spot of the offence on 15.4.2010 and drew spot panchanama (Exh.35) and the complainant prosecutrix pointed out the said spot of the offence. The quilt and bed sheet (cover of mattress) i.e. articles C and D were attached from the scene of offence under the said panchanama. Moreover, the clothes of the prosecutrix and the accused were also seized bearing article nos. 1 to 10::: Downloaded on - 09/06/2013 17:30:51 :::8 cra103.11 under panchanama Exhs. 34 and 35 respectively.7 The prosecutrix was referred to the Civil Hospital, Ahmednagar and PW6 Dr. Kalamkar Sandip Malhari examined her as per letter of Reference (Exh.26), as well as her radiological examination was conducted for confirmation of her age and while recording her history, her age was given as 13 years. Accordingly, he issued the medical examination certificate of the prosecutrix, which is produced at Exh.27.8 Moreover, PW8 Mrs. Jyotipriya Singh also recorded statements of witnesses, as well as she gave letter (Exh.41) to the Head Master, Tuljabhavani Madhyamik Vidyalaya, Khadki and requested for bona fide certificate of the prosecutrix on 21.4.2010. Accordingly, on 22.4.2010, she received letter from the Head Master of the said school along with bona fide certificate (Exh.32) of the prosecutrix, showing her date of birth therein.9 The prosecution case further recites that PW8 Mrs. Jyotipriya Singh prepared forwarding letter (Exh.33) and sent::: Downloaded on - 09/06/2013 17:30:51 :::9 cra103.11 the muddemal clothes of the accused and the prosecutrix to the Forensic Laboratory on 21.4.2010. Accordingly, the chemical analysis reports were received from the Chemical Analyser's office, which are produced at Exhs. 43, 44, 45 and 46, respectively. During the investigation, the prosecutrix and her sister were produced before the Special Judicial Magistrate for recording the statement. Accordingly, after completion of investigation, PW8 Mrs. Jyotipriya Singh filed the charge sheet before the learned Judicial Magistrate, First Class, Court no.6, Ahmednagar on 5.7.2010 and thereafter the said learned Judicial Magistrate, First Class, Court No.6, Ahmednagar, committed the case to the Court of Sessions, Ahmednagar on 6.7.2010.10 Accordingly, charge was framed against the appellant on 15.7.2010 at Exh. 2 by the learned District Judge-6 and Assistant Sessions Judge, Ahmednagar for the offences punishable underSection 376,354,323,504and506of the Indian Penal Code.11 To substantiate the said charges levelled against the::: Downloaded on - 09/06/2013 17:30:51 :::10 cra103.11 appellant, the prosecution examined as many as 9 witnesses, as mentioned below :-PW1 Nilima Balasaheb Kothule i.e. prosecutrix.PW2 Dr. Bharati Shahaji Peche, who examined the accused and issued medical certificate Exh.18 and case papers (Exh.20).PW3 Badambai Sitaram Kothule, relative of prosecutrix, whom prosecutrix narrated the incident for the first time.PW4 Chandrakant Bhanudas Borude, maternal uncle of victim Nilima.PW5 Mithu Sopan Sathe, panch for panchanama of seizure of clothes of victim (Exh.24).PW6 Dr. Kalamkar Sandip Malhari, who examined the prosecutrix and issued the medical certificate (Exh. 27).PW7 Ram Vitthal Salunke, panch to spot panchanama Exh.35.PW8 Mrs. Jyotipriya Singh, Superintendent of Police (Rural), Ahmednagar - investigating officer.PW9 A.S.I. Bapu Dashrath Bhosale, who recorded the complaint of prosecutrix (Exh.15).::: Downloaded on - 09/06/2013 17:30:51 :::11 cra103.11 12 The defence of the appellant/accused was of total denial. He contended that he has been implicated in this case falsely and he further stated that his wife was heart patient prior to marriage a quarrel was picked up on birth of daughters. His brother in law i.e. PW4 Chandrakant blamed him for death of his wife. Then they started insisting upon him to transfer his landed property, to which appellant/accused refused. Hence, the said brother in law lodged false case against him, through PW1 Nilima, and accordingly, the accused claimed to be innocent. After considering the oral, the documentary and the medical evidence adduced/produced by the prosecution on record, as well as considering the rival submissions advanced by the learned counsel for the parties, the learned Assistant Sessions Judge and District Judge-6, Ahmednagar, convicted and sentenced the appellant/accused as aforesaid. Being aggrieved and dissatisfied by the said conviction and sentence, the appellant has assailed the same by filing the present appeal and prayed for quashment thereof.13 Before adverting to the submissions advanced by the::: Downloaded on - 09/06/2013 17:30:51 :::12 cra103.11 learned counsel for the parties, it is necessary to deal with the material evidence on record and the pivot of the prosecution case revolves around the very testimony of the prosecutrix, namely Nilima Kothule, wherein she has narrated the occurrence of events meticulously, wherein she stated that her mother died when they were residing at Pimpri-Chinchwad, Pune, and therefore, they shifted to the house of her grand parents along with accused and her younger sister at Khadki, Taluka Nagar. Her father was serving as driver on a dumper at Khandala. She used to prepare food in the house for all the family members i.e. grand parents, sister and accused father.Her father used to leave the house at about 7.00 a.m. and used to return back at about 8.00 p.m. One day quarrel took place between accused father and grand mother of prosecutrix, namely Babaibai, and hence, the accused/appellant drove her out of the house, which occurred about two months prior to the incident and therefore, she went to her married daughter, namely Saina Vitthal Gadhave for shelter. She further stated that on 5.4.2010 at about 2.30 p.m. she attended her examination of drawing and returned back at 5.30 p.m. At about 6.00 p.m. she prepared food for all the members of the::: Downloaded on - 09/06/2013 17:30:51 :::13 cra103.11 family and at about 8.00 p.m. her father returned to home and she served him food and after dinner he went outside the house. Thereafter, the prosecutrix, her sister Nikita and grand father Bhausaheb took their dinner and went to sleep in the court yard of the house.14 She further stated that about 11.00 p.m. her father returned back to home and pulled her legs and thereby she was woke up and the appellant/accused dragged her inside of the house from the court yard and while dragging inside the house she requested him not to do the atrocity on her, but accused ignored her and gave her threat not to shout and further gave threat to kill her, if shouted. Hence, prosecutrix started weeping and crying. The appellant removed his clothes as well as her clothes and thereafter he laid the prosecutrix on the cot and divided her legs to opposite sides. There was mattress (Gadi) covered with quilt (Godhadi). He laid on her person and committed the sexual intercourse with her like husband and wife, and thereby she started paining to her private part and she became unconscious. At about 4.00 a.m. her father appellant kicked her and woke her up and asked to::: Downloaded on - 09/06/2013 17:30:51 :::14 cra103.11 prepare food for tifin, and accordingly, she prepared food and appellant took tifin and left at 7.00 a.m. for work and before leaving the house he threatened to the prosecutrix to kill her, if she disclosed the incident to anybody.15 Thereafter, she stated that she took the bath and told the said event to her sister Nikita and grand father Bhausaheb, and further informed to Badambai i.e. her remote grand mother, who in turn informed to her son Raghunath Kothule. Thereafter prosecutrix and her sister Nikita resided at the house of Badambai and Raghunath for about 4-5 days. Accordingly, on 12.4.2010 Badambai and Raghunath took the prosecutrix and her sister to the house of her maternal uncle Chandrakant Borude at Sarola Baddi, Taluka Nagar and she narrated the afore said incident to him. Accordingly, Chandrakant Borude took the prosecutrix and Nikita to the Child Line Care Center, Ahmednagar and the prosecutrix narrated the untoward incident occurred at the hands of her father to Shri Panchal, Manisha Kasar and Kundan Pathare, and with their help, approached Nagar Taluka police station and narrated the incident to police personnel, and accordingly, her complaint was recorded, which::: Downloaded on - 09/06/2013 17:30:51 :::15 cra103.11 was treated as the first information report (Exh.15).16 Thereafter, she further stated that she was referred to the Civil Hospital and her medical examination was conducted and she also gave her history and stated that about two months prior to the incident, her father drove her grand mother Babaibai from the house and in the absence of grand mother, outraged her modesty and used to behave with her in filthy and badly manner. She further stated that during investigation, her clothes were seized and she further stated that the accused be sentenced for life.17 In the cross-examination, she stated that there were scratches on her back due to dragging and pulling and she cried loudly and also shouted in low voice, but did not give call to her grand father or sister or neighbourer. She also stated that she attempted to escape from the clutches of her father.She further stated that she resisted her father while making intercourse with her. However, she stated that she did not sustain any injury on her back at that time. She also stated that her father was drunkard and addicted to alcohol.::: Downloaded on - 09/06/2013 17:30:51 :::16 cra103.11 18 According to her, she did not go to the police station after lodging the complaint on 14.4.2010 and also did not go to Khadki to the house of the accused. She further stated that her father accused picked up quarrel with her grand mother and drove her out of the house and started outraging her modesty, but she did not make any complaint or narrated the grievance to any person. She further stated that her maternal uncle used to visit their house at Khadki on occasions. She admitted that she did not narrate the event to Tarabai Kothule wife of brother of her father and the contents to that effect were marked as portion 'A' in her complaint amounting to contradiction. Moreover, she deposed that she did state before police that she narrated the event to her sister Nikita and grand mother Badambai, but she could not assign any reason why said fact is not mentioned in the police statement amounting to omission therein and improvement in her testimony. Moreover, she deposed that she stated to the police that she told the event of rape to Manisha Kasar and Kundan Pathare, but such mention is not there in her complaint amounting to omission and improvement in her testimony. So also, contradiction was::: Downloaded on - 09/06/2013 17:30:51 :::17 cra103.11 brought on record in respect of portion marked 'B' in her complaint. Few suggestions were given to her, but same were denied by her.19 Coming to the testimony of PW4 Chandrakant Bhanudas Borude i.e. maternal uncle of victim Nilima, who stated that his sister Kamala @ Sangita died due to heart attack on 29.1.2009 and accused Balu had two daughters, namely Nilima and Nikita. At the time of incident, Nilima was learning in th 8 standard in the High School at Khadki. He further stated that on 12.4.2010, Raghunath Kothule of Khadki brought Nilima and Nikita at his house at Sarola Baddi at about 9.15 a.m. and when both came to his house, they started weeping and they were extremely nervous, and therefore, he gave support to them, and thereafter, Nilima told him about the occurrence of the incident and narrated that in the night at about 9.00 p.m. Balu took food and went outside the house and then came back at 11.00 p.m. and thereafter held legs of Nilima while she was asleep and pulled her with skidding and dragged inside the house and when he was removing clothes on his person, Nilima was beseeching not to do the shameful::: Downloaded on - 09/06/2013 17:30:51 :::18 cra103.11 and abominable act, but he removed her clothes and committed rape on her and she became unconscious till 4.00 a.m. when accused father kicked her and woke her up. Thereafter Nilima prepared food, accused took his tiffin and left the house at 7.00 a.m. She further narrated that accused gave her threat to kill her if she narrated the incident to any person. Thereafter, Nilima stated that she went to the house of Badambai and narrated the incident to her. Then, Badambai took Nilima and her sister in their house on the land. Thereafter, Raghunath Kothule gave meassage to PW4 Chandrakant Borude on telephone and reported him that accused treated his daughters with cruelty and assaulted them. Hence, PW4 Chandrakant Borude informed Raghunath Kothule not to bring the said girls to his house for 4-5 days due to death of his aunt Draupadabai and her last rites, and he brought them thereafter on 12.4.2010.20 PW4 Chandrakant Borude further stated that on hearing the afore said event, he was shocked and on 13.4.2010 he decided to approach the Child Line Center, Ahmednagar in the interest of both the minor girls Nilima and Nikita at::: Downloaded on - 09/06/2013 17:30:51 :::19 cra103.11 Ahmednagar. He further stated that the office bearers of Child Line Center advised him that it was necessary to report the incident to the police though the girl is minor. Accordingly, on 14.4.2010, he approached Ahmednagar Taluka police station along with his wife, prosecutrix Nilima, his maternal uncle Raghunath Kothule, Manisha Kasar and Kundan Pathare of Child Line Center. Accordingly, police personnel recorded the complaint of prosecutrix Nilima, as well as police personnel recorded his statement on 15.4.2010.21 In the cross-examination, he stated that another maternal uncle of victim Nilima, namely Raghunath told him about the incident whatever he heard. However, PW4 Chandrakant stated that Raghunath did not state him on 6.4.2010 that accused raped Nilima at about 11.00 a.m. He also stated that he did not make further contact with Raghunath to get additional information. He even did not talk with Raghunath on 7.4.2010, and neither Raghunath nor Badambai came to his residence on the said date. Badambai also told him about the incident on phone. He further stated that till 12.4.2010 he did not meet Raghunath Kothule or his mother::: Downloaded on - 09/06/2013 17:30:51 :::20 cra103.11 Badambai. However, on 12.4.2010 both the girls and Raghunath came to his home. However, he did not discuss the event occurred with Nilima, since persons had gathered on the th 10 day on the cause of death of his aunt, namely Drupadabai.He also stated that he did not bring Nilima to police station on 13.4.2010. He also admitted that till 12.4.2010 Nilima and Nikita did not make contact with him on phone. On 14.4.2010 Raghunath Kothule again came at Nagar and thereafter he, his wife Anita and both the girls came to Child Line Center. He also stated that Kotwali police station is situated on the way near Child Line Center. He also stated that he was knowing and had learnt that Child Line Center gives hand to the children who are victims of atrocity, illtreatment and outraging of modesty, etc. 22 As regards, recording of the complaint, he stated that between 12.00 noon to 1.00 p.m. they were in the police station and police recorded the complaint of victim during that period on 14.4.2010 as per the events narrated by the victim.Contradiction as to portion marked 'A' in the contents of his police statement was brought on record that he stated to police::: Downloaded on - 09/06/2013 17:30:51 :::21 cra103.11 about the incident. Alike, the police also interrogated with his wife. Moreover, omission was taken out in his police statement and improvement in his testimony that Nilima stated about the incident to Badambai and Badambai took her in the land Mala.Few suggestions were given to him that false complaint was lodged against the accused with the assistance of office bearers of the Child Line Center, but same were denied by him.23 That takes me to the evidence of PW6 Dr. Kalamkar Sandip Malhari, who stated that he was serving as Medical Officer at Civil Hospital, Ahmednagar at the relevant time and on 14.4.2010 the police personnel referred the prosecutrix Nilima for medical examination along with letter (Exh.26), which comprised following five points :-(1) Whether the prosecutrix is competent physically for sexual intercourse ?(2) Whether there is penetration of penis in the vagina of the prosecutrix ?(3) Whether injuries or marks of injury is present to internal or outer side of vagina ?::: Downloaded on - 09/06/2013 17:30:51 :::22 cra103.11 (4) Whether stains of semen present inside or outside of vagina ?(5) And lastly the age determination test to confirm the age of prosecutrix.24 Accordingly, Dr. Malhari stated that he carried out the medical examination of the prosecutrix with reference to the said letter Exh.26. He also stated that he recorded the history of rape as per the narration of prosecutrix Nilima that she was raped on 5.4.2010 and she had taken her regular bath every day thereafter till the medical examination. During examination, he noticed, secondary sexual characters moderately developed, breast developed moderately, and public hairs and auxillary hairs developed moderately. There were no marks or sign of any external injury on all over body including vagina.On internal examination of vagina, he found that hymen was ruptured and it was easily passing two fingers inside vagina.Thereafter he collected the samples of (1) blood in plain and cited phial, (2) nails of toes and fingers, (3) pubic hairs, and (4) vaginal swab.25 He further stated that thereafter he referred the victim::: Downloaded on - 09/06/2013 17:30:51 :::23 cra103.11 to the Gynecologist for medical examination and received the report of female unmarried girl about 13 years with history of rape. He stated that as stated by victim menstrual cycle was not started and secondary sexual characters were in developing stage. Auxillary pubic hairs were present and breast was developing. No evidence of external or internal region in around vagina and other parts of the body was seen. In vaginal examination, hymen was found ruptured, no fresh injuries or bleeding was seen from inside. Two fingers were easily passing in vaginal region and uterus was normal in size, anteverted and free, servix and vaginal health.26 He also stated that the victim was then sent for radiological examination to confirm her age. Accordingly, X-ray of wrist joint, elbow joint and of iliac bone and x-ray of skull, scalp were taken. However, opinion of radiologist was not recorded. Accordingly, PW6 Dr. Malhari stated that he issued medical examination certificate, which is produced at Exh. 27. He further stated that at the out set while recording history, victim told her age as 13 years and name Nilima. He agreed that secondary sexual characters can be found::: Downloaded on - 09/06/2013 17:30:51 :::24 cra103.11 developed in the female above 15 years. Accordingly, he recorded secondary sexual characters in developing state in medical examination certificate. He further stated that existence of injuries depends on passing of longer period and nature of the injuries and the victim was produced for medical examination after the period of 9 days from the date of rape.According to him, rupture of hymen is sign of sexual intercourse.27 In the cross-examination, he stated that he agrees with the observation of Dr. Modi that in female women menstrual cycle may be started at the age of 10 to 11 years.He also stated that he agrees with the observation of Dr. Modi that marks of violence may be found present on every part of body like forearm, wrist, face, breast, lower part of the abdomen and internal aspects of thighs and back. The injuries scratches, abrasion, bruises are the marks of resistance and struggle to rape and such injuries can be seen at the time of medical examination. However, he stated that he does not agree that the injuries may be seen after 7-8 days after rape and it depends upon the nature and gravity of existence of longer::: Downloaded on - 09/06/2013 17:30:51 :::25 cra103.11 period. He also stated that it is probable that in rape cases, due to struggle and resistance, injuries like scratches, bruises, abrasion can be found on the body of rapist. He further stated that he agrees with the observation of Dr. Modi that vaginal orifice in case of a girl of 14 years is of so small size that it will be difficult for passing of little finger in vagina. He further stated that he agrees with the observations of Dr. Modi that passing of two fingers in vagina is possible in case of frequent sexual intercourse committed with female. However, he stated that by single act of sexual intercourse may not give the observation of passing two fingers easily and further agreed that in case of forceful sexual intercourse like rape on a female below 14 years of age, it becomes difficult for the victim even to walk in order. He admitted that during medical examination of victim, he found no injury in libia majora, libia minora and in her vagina. He further stated that he agrees with the observation of Dr. Modi that injury to the penis of a young person is probable when forceful sexual intercourse is committed on a minor girl below age of 14 years and it depends on hymen size i.e. hymnal orifice. Few suggestions were given to him that he falsely stated that he carried out medical examination of victim::: Downloaded on - 09/06/2013 17:30:51 :::26 cra103.11 Nilima and recorded her history and other particulars, but same was denied by him. It was further suggested that the opinion of radiologist is not taken purposely for the reason that age of the victim was above 16 years, but same was also denied by him.28 Coming to the deposition of PW2 Dr. Bharti Shahaji Peche, who examined the appellant herein and she stated that she was serving as Medical Officer in Civil Hospital, Ahmednagar since last eight years and on 14.4.2010 the accused Balasaheb Kothule was produced for medical examination along with letter (Exh.17). Accordingly, she carried out the medical examination of Balasaheb Kothule and extracted the samples of blood, hairs and nail on the same day. She further stated that on the next day the other doctor collected sample of semen of the accused. She produced M.L.C. paper at Exh.18, as well as produced case papers at Exh.19, which show that the accused was produced on 15.4.2010 for taking the sample of semen. After sealing the sample of blood, hair and nails of the accused she affixed the lable and handed over the same in the custody of police for sending it to the Chemical Analyser. She further stated that she::: Downloaded on - 09/06/2013 17:30:51 :::27 cra103.11 prepared the certificate (Exh.20) on the basis of entries in the medical certificate.29 In the cross-examination, she stated that it may be or may not be probable to result injury by forceful rape on a girl of 14 years old. She further admitted that minor injury to a girl on the verge of her young age is possible during forceful intercourse, She stated that major injury may survive for the period of 4 to 5 days as an impact of rape and minor injuries may not survive. It was suggested to her that she has not referred that the samples of hair, blood and nail, etc. were sealed and packed for handing over to the police for sending to the Chemical Analyser, but same was denied by her.30 On the afore said material evidence adduced/produced by the prosecution on record, learned counsel for the appellant submitted that although the prosecutrix Nilima stated that she narrated the incident to his grand father Bhausaheb, but prosecution has not examined the said material witness for the reasons best known to the prosecution and the said infirmity hampers the case of the::: Downloaded on - 09/06/2013 17:30:51 :::28 cra103.11 prosecution. It was also canvassed that the prosecution also failed to examine the younger sister of victim, namely Nikita, who could have thrown better light on the prosecution case, but the prosecution failed to examine the said important witness also, which sustains fatal blow to the case of prosecution.31 Moreover, it is vehemently argued by learned counsel for the appellant that there is delay of 9 days in lodging the first information report, since the alleged incident occurred on 5.4.2010; whereas the first information report came to be lodged after the lapse of 9 days i.e. on 14.4.2010 and the prosecution has not given any convincing and plausible explanation therefor, which also creates suspicion about base of the prosecution case and possibility of concocting after though false story against the appellant cannot be ruled out. It is also canvassed by the learned counsel for the appellant that the timing in the first information report and the timing given by PW4 Chandrakant Borude differs from each other, since the first information report discloses time as 1700 hours; whereas PW4 Chandrakant Borude stated that report was lodged between 12.00 noon and 1.00 p.m. on 14.4.2010 and the said::: Downloaded on - 09/06/2013 17:30:51 :::29 cra103.11 variance in the timing of lodging the first information report also goes to the root of the matter and diminishes the credibility of the prosecution case. Pertinently, it is also pointed out that even the medical examination of the accused was conducted after the period of 9 days from the alleged incident i.e. on 14.4.2010 and even the semen sample of the accused was taken after the lapse of 9 days and his genital part was also examined after delay of 9 days, which amounts to deformity and infirmity in the prosecution case.32 It is asserted by the learned counsel for the appellant that panch witness PW5 Mithu Sathe and the panchnama are silent in respect of sealing of the articles after seizure thereof, and therefore, suspicion is created about the consequent chemical analysis reports, since the seized articles were not sealed and possibility of tampering thereof cannot be ruled out.33 It is further canvassed by the learned counsel for the appellant that the prosecutrix was pampered and tutored by PW4 Chandrakant Borude and present complaint came to be lodged by the prosecutrix Nilima at the instance and behest of::: Downloaded on - 09/06/2013 17:30:51 :::30 cra103.11 said PW4 Chandrakant Borude, who is brother in law of the appellant herein with ulterior motive.34 It is further canvassed by the learned counsel for the appellant that there are omissions and contradictions in the testimonies of prosecution witnesses i.e. PW1 prosecutrix and PW4 Chandrakant Borude, which go to the root of the matter and hampers the case of the prosecution. The prosecutrix also admitted about the delay in lodging the first information report and it is further submitted that it is curious to note that although PW1 prosecutrix was dragged by the appellant from courtyard to the house, she did not sustain any injury on her back. It is also canvassed that although the prosecutrix cried loudly and shouted even at low voice, neither her grand father nor her younger sister woke up and came there to help her and even she admitted that she did not give call to her grand father or sister or neighbourer, which raises suspicion about the conduct of the prosecutrix and absolves the appellant from the alleged offence.35 As regards the testimony of PW4 Chandrakant::: Downloaded on - 09/06/2013 17:30:51 :::31 cra103.11 Borude, it is canvassed that the said testimony also has been impeached in the cross-examination and there are omissions and contradictions, which go to the root of the matter. It is also canvassed that although PW4 Chandrakant Borude had telephoned, it is curious to note that prosecutrix Nilima and her sister Nikita did not ring him up and inform the occurrence of the alleged incident at the earlier point of time and it is also submitted that he took the prosecutrix to the police station on 14.4.2010 and lodged the first information report of the prosecutrix after the lapse of about 9 days from the date of incident and his statement was recorded thereafter on 15.4.2010 and no proper explanation has been given for the said delay. Accordingly he submitted that the said testimony is not of any aid and assistance to the case of prosecution.36 As regards the medical evidence, it is submitted that the age of the prosecutrix was not ascertained, although her X-ray was taken and the said radiological certificate has not been produced by the prosecution on record. It is also canvassed that the report of the medical examination discloses that there was no mark or sign of any external injury on all over her body,::: Downloaded on - 09/06/2013 17:30:51 :::32 cra103.11 including vagina, and therefore, there was no violence, which essentially culminates to the position that no rape was committed upon the victim by the appellant. Moreover, it is submitted that two fingers were easily passing through the vagina of the victim, which indicates that she was habituated to sexual intercourse. It has also come in the evidence of Dr. Malhari that in case of forceful sexual intercourse like rape on a female below 14 years of age, it becomes difficult to the victim even to walk in order, but same did not happen with the victim.He also stated that in case of rape after making struggle and resistance, injuries like scratches, bruises, abrasion also can be found on the body of rapist, but nothing was found on the body of appellant during his medical examination conducted by Dr. PW2 Bharati Peche. Even, it is submitted that blood and semen samples of the appellant were taken after the lapse of 9 days and the said delay also brings the medical examination of the appellant under the cloud of suspicion. It is submitted that the timing in lodging the first information report given in the deposition of PW4 Chandrakant Borude differs and it is stated that the first information report discloses the timing as 1700 hours; whereas PW4 Chandrakant Borude stated the timing of::: Downloaded on - 09/06/2013 17:30:51 :::33 cra103.11 lodging the complaint between 12.00 noon and 1.00 p.m. and the said variance also creates doubt about the timing of the lodging of the first information report. Accordingly, it is submitted that the prosecutrix was pampered and tutored by PW4 Chandrakant Borude i.e. brother in law of the appellant and the complaint/the first information report was lodged by the prosecutrix Nilima against her father at the instance of her maternal uncle PW4 Chandrakant Borude and the appellant has been implicated falsely in this case, and urged that the present appeal be allowed and the appellant be acquitted.37 Learned Additional Public Prosecutor countered the said arguments vehemently and submitted that the ocular, documentary and medical evidence adduced/produced by the prosecution is in consonance with each other, which connects the appellant with the guilt. He also canvassed that the testimony of prosecutrix is trustworthy and reliable and there is no lacuna therein, and hence, same is required to be accepted, and consequently, is required to be believed to base the conviction against the appellant.::: Downloaded on - 09/06/2013 17:30:51 :::34 cra103.11 38 As regards the alleged delay in lodging the first information report, it is submitted that the date of occurrence of incident is 5.4.2010; whereas the complaint came to be lodged on 14.4.2010 i.e. after the lapse of 9 days and in the said context, it is submitted that PW4 Chandrakant Borude i.e. maternal uncle of victim has given convincing explanation therefor that his aunt, namely Draupadabai had expired and ig th after the expiry of mourning period i.e. after the 10 day and her last rites, he talked to the victim and lodged the complaint immediately on 14.4.2010 and the said explanation given by PW4 Chandrakant Borude is plausible.39 In support of his argument, learned Additional Public Prosecutor appearing on behalf of the respondent/State relied upon the observations made by the Hon'ble Supreme Court in the judicial pronouncement in the case of Satyaopal vs State of Haryana, reported at AIR 2009 SC 2190, which are as follows :-" 20. This Court can take judicial notice of the fact that ordinarily the family of the victim would not intend to get a stigma attached to the victim. Delay in lodging the First Information::: Downloaded on - 09/06/2013 17:30:51 :::35 cra103.11 Report in a case of this nature is a normal phenomenon. Both the courts below apart from relying on a part of the testimony of the prosecutrix found the evidence of PW-5 to be absolutely reliable. The medical evidence itself being a part of the evidence is required to be appreciated in the context of ocular evidence and other circumstances surrounding thereto.40It is also canvassed by learned Additional Public Prosecutor that the medical evidence adduced by the prosecution through PW6 Dr. Malhari, who examined the victim and the medical report and case papers pertaining to victim produced by him as well as the medical evidence adduced by the prosecution through PW2 Bharati Peche, who examined the accused and the medical report and case papers submitted by her in respect of accused correlate with each other and amounts to cogent and incriminating evidence against the appellant, which connects the appellant with the crime.41 As regards the argument advanced by the learned counsel for the appellant that prosecution did not examine grand father, namely Bhausaheb and younger sister of victim::: Downloaded on - 09/06/2013 17:30:51 :::36 cra103.11 namely Nikita, it is submitted that there was no necessity to examine the said witnesses, since testimony of PW1 prosecutrix Nilima is self-explicit, who has narrated the incident with the particulars lucidly and nothing could be elicited through her cross-examination beneficial to the case of the accused, and hence, the said deposition of PW1 prosecutrix itself and the other circumstantial evidence, such as medical evidence and the Chemical Analyser's reports Exhs. 43 to 46 pertaining to the blood on the quilt and semen on the bed cover and blood on the kurta, which pertained to 'A' group, connect the accused with the crime clinchingly.42 It is further submitted that there is no substance in the defence taken by the appellant that prosecutrix filed the false case against the appellant at the instance of her maternal uncle PW4 Chandrakant Borude, who pampered and tutored the prosecutrix and it is submitted that no daughter would falsely implicate her father at the instance of her maternal uncle in the crime, such as in the present case. It is further submitted that, in fact, the appellant has committed heinous crime i.e. committed rape upon her own daughter, and hence, it is::: Downloaded on - 09/06/2013 17:30:52 :::37 cra103.11 submitted that the learned Trial Court has scrutinized and assessed the evidence and convicted and sentenced the appellant properly and no interference therein is warranted in the present appeal and urged that present appeal be dismissed.43 Learned Additional Public Prosecutor for the respondent/State relied upon the observations made by the Hon'ble Supreme Court in the judicial pronouncement in the case of Siriya aliasShri Lal vs State of M.P., reported at 2008 AIR SCW 3940, which are as follows :" 7. The law regulates social interests, arbitrates conflicting claims and demands. Security of persons and property of the people is an essential function of the State. It could be achieved through instrumentality of criminal law. Undoubtedly, there is a cross cultural conflict where living law must find answer to the new challenges and the courts are required to mould the sentencing system to meet the challenges. The contagion of lawlessness would undermine social order and lay it in ruins. Protection of society and stamping out criminal proclivity must be the object of law which must be achieved by imposing appropriate sentence. Therefore, law as a corner stone of the edifice of "order" should::: Downloaded on - 09/06/2013 17:30:52 :::38 cra103.11 meet the challenges confronting the society. Friedman in his "Law in Changing Society" stated that, "State of criminal law continues to be - as it should be - a decisive reflection of social consciousness of society". Therefore, in operating the sentencing system, law should adopt the corrective machinery or the deterrence based on factual matrix. By deft modulation sentencing process be stern where it should be, and tempered with mercy where it warrants to be. The facts and given circumstances in each case, the nature of the crime, the manner in which it was planned and committed, the motive for commission of the crime, the conduct of the accused, the nature of weapons used and all other attending circumstances are relevant facts which would enter into the area of consideration.8. Therefore, undue sympathy to impose inadequate sentence would do more harm to the justice system to undermine the public confidence in the efficacy of law and society could not long endure under such serious threats. It is, therefore, the duty of every court to award proper sentence having regard to the nature of the offence and the manner in which it was executed or committed etc. This position was illuminatingly stated by this Court in Sevaka Perumal etc. v. State of Tamil Nadu (1991 (3) SCC 471). "::: Downloaded on - 09/06/2013 17:30:52 :::39 cra103.11 44 I have perused the impugned judgment, dated 12.1.2011; the ocular, the documentary and the medical evidence adduced/produced by the prosecution on record; and also heard the submissions advanced by the learned counsel for the parties anxiously and at the out set, as regards 9 days delay in lodging the first information report, admittedly the alleged incident of committal of rape upon victim Nilima occurred on 5.4.2010; whereas the first information report came to be lodged on 14.4.2010 and in the said context, it is material to note that the prosecutrix PW1 Nilima stated in her deposition that she was scared and frightened due to said incident of committal of rape upon her by the accused, and she and her sister Nikita approached Badambai Sitaram Kothule i.e. her remote grand mother from the side of mother and told her the occurrence of the incident, and in turn, she narrated the said incident to her son, namely Raghunath Kothule and thereafter for 4-5 days victim Nilima and Nikita resided in the land of Badambai and her son Raghunath and on 12.4.2010 Raghunath Kothule took both the said sisters to the house of PW4 Chandrakant Borude maternal uncle of victim Nilima and she narrated him the untoward incident occurred with Nilima at::: Downloaded on - 09/06/2013 17:30:52 :::40 cra103.11 the hands of appellant, and PW4 Chandrakant Borude has categorically stated in his deposition that at that time he was busy on account of death of his aunt and after expiry of said period of mourning, he approached the police personnel along with Nilima and lodged the complaint on 14.4.2010, and hence, it is amply clear that the prosecution has explained the said delay i.e. from 5.4.2010 to 14.4.2010 convincingly.45 Moreover, the state of mind of victim Nilima, who was hardly of 13 to 14 years of age at the relevant time, is necessary to be considered, since committal of rape at the hands of her own father gave indelible scar not only on her body but on her mind also and the feeling of betrayal of trust in the mind of victim Nilima is required to be considered with gentle approach, since the person i.e. father, in whom she reposed the trust and confidence to protect her, he himself betrayed her by committing rape upon her and the said aspect also is required to be considered while assessing the delay in lodging the first information report and there is no doubt that the prosecution has given plausible explanation for the said delay, and hence, same would not be an impediment in the::: Downloaded on - 09/06/2013 17:30:52 :::41 cra103.11 prosecution case.46 As regards time of the lodging the first information report on 14.4.2010, the first information report discloses that it was registered at about 1700 hours on 14.4.2010; whereas PW4 Chandrakant Borude has stated in his deposition that they were in the police station between 12.00 noon to 1.00 p.m. on 14.4.2010 and the police recorded the complaint within the said period of one hour. It is pointed out that the complaint of PW1 Nilima was recorded at about 1.00 p.m. on 14.4.2010, but offence came to be registered on the basis of the said complaint at about 1700 hours on the same day under C.R. No. 62 of 2010 by the police personnel and considering the totality of the circumstances, the said difference in the timing does not hamper the case of the prosecution.47 Moreover, it is material to note that the testimony of PW1 Nilima i.e. prosecutrix is self-explicit and she has given the details meticulously about the occurrence of the incident therein and it has not been shaken in the searching cross-examination by the defence. True it is, there are few omissions::: Downloaded on - 09/06/2013 17:30:52 :::42 cra103.11 and a contradiction therein, but same are not vital and do not go to the root of the matter and do not diminish the credibility of her testimony. Moreover, it is also material to note that PW1 Nilima also categorically stated about the chain of the incidents since the death of her mother and also the occurrence of the incidents about two months prior to 5.4.2010, as well as the events occurred on the date of incident i.e. 5.4.2010 meticulously and also her testimony reflects the conduct and behaviour of the appellant herein and nothing beneficial to the case of the appellant could be elicited from the searching cross-examination conducted by the defence, and therefore, it is amply clear that the said testimony withstood the test of cross-examination and has not been demolished therein, and hence, same is required to be accepted as reliable and trustworthy to connect the appellant with the crime.48 As regards the defence of the accused that prosecutrix was pampered and tutored by PW4 Chandrakant Borude i.e. brother in law of accused and the present complaint came to be lodged by the prosecutrix Nilima at the behest of::: Downloaded on - 09/06/2013 17:30:52 :::43 cra103.11 PW4 Chandrakant Borude falsely with ulterior motive, the said defence is not acceptable, since considering the facts and circumstances in the present case, it is not conceivable that a daughter i.e. PW1 Nilima prosecutrix lodged the false complaint against her own father in respect of committal of rape, at the instance and on the behest of her maternal uncle PW4 Chandrakant Borude and considering the oral, documentary and medical evidence on record, which is in consonance with each other, the said defence bears no substance.49 Besides, it is pertinent to note that the prosecution has produced the bona fide certificate of victim Nilima at Exh.32, which discloses her date of birth as 18.6.1997 and the incident of committal of rape occurred on 5.4.2010, and hence, it is apparently clear that the age of the victim Nilima was about 13 years on the date of occurrence of the incident and although radiological examination of the victim was conducted, but her said report was not recorded and such non-recording of said report will not hamper the case of the prosecution, considering the very bona fide certificate disclosing the date of birth of victim Nilima therein.::: Downloaded on - 09/06/2013 17:30:52 :::44 cra103.11 50 Keeping in mind the oral evidence of PW1 Nilima prosecutrix and considering the medical evidence adduced by PW6 Dr. Malhari, who examined the victim, wherein it is categorically mentioned that on internal examination of vagina of the victim, her hymen was found ruptured and her menstrual cycle was not started and considering her age about 13 years, and as two fingers were easily passing through vaginal region, there cannot be any dispute that there was penetration into the vagina of PW1 Nilima and the appellant herein committed rape upon her as stated by her. Moreover, although no injuries were found on the libia majora and libia minora and no mark or sign or any external injury on the body of victim including vagina were found, since the victim has categorically stated in her deposition that the accused has committed rape upon her and since her hymen was ruptured although she was of 13 years old, the said circumstances of alleged non violence will not diminish the credibility of her testimony and very occurrence of the incident of committal of rape upon her will not come under the cloud of suspicion.::: Downloaded on - 09/06/2013 17:30:52 :::45 cra103.11 51 Moreover, the quilt, bed cover and kurta were seized under the panchanama and same were sent to the Chemical Analyser's office for examination purpose and the reports of the Chemical Analyser are produced on record at Exhs. 43 to 46, and the report of the Chemical Analyser at Exh. 43 discloses that quilt bore human blood of 'A' group, as well as bed cover bore human semen of 'A' group and the nicker of victim bore human blood of 'A' group. As also Chemical Analyser's report Exh. 44 discloses that the blood group of victim Nilima was 'A', as well as Chemical Analyser's report Exh. 45 discloses that blood group of accused was also 'A', and therefore, it is amply clear that semen on the bed cover pertained to the accused and the blood stains on the quilt and nicker pertained to the victim and the said corroborative piece of evidence categorically connects the appellant with the crime.52 Having the comprehensive view of the matter and substratum and entire survey of the tangible evidence including the oral, the documentary and the medical evidence on record and also considering the afore said judicial pronouncements, I am not inclined to accept the submissions advanced by the::: Downloaded on - 09/06/2013 17:30:52 :::46 cra103.11 learned counsel for the appellant and the prosecution has proved and established beyond reasonable doubt that the appellant committed rape upon her own daughter, which is not only loathsome sin, but also abhorrent, which gave indelible scar not only on the body of the victim Nilima, but also on her mind and the offence committed by the appellant is certainly shocking and heinous, since the appellant betrayed the trust of her own daughter, as the protector of the trust i.e. father has betrayed the victim his own daughter, and therefore, learned Trial Court, after scrutinizing and analysing the evidence, convicted and sentenced the appellant rightly and there is no glaring defect therein, and hence, no interference therein is warranted in the present appeal, and consequently, present appeal fails.53 In the result, present appeal stands dismissed and the conviction and sentence imposed upon the appellant by the judgment and order, dated 12.1.2011, rendered by the learned District Judge-6 and Assistant Sessions Judge, Ahmednagar stands maintained and confirmed. Office to inform to the appellant in the concerned jail accordingly. Mrs. Monika::: Downloaded on - 09/06/2013 17:30:52 :::47 cra103.11 Purnapatre, was appointed in the present matter as an Advocate for the appellant through Legal Aid. Hence, her remuneration is quantified at Rs.5,000/- and the Legal Aid Committee to pay the same to her accordingly.ig (SHRIHARI P. DAVARE), JUDGE. dbm/cra103.11::: Downloaded on - 09/06/2013 17:30:52 :::
b926491b-cb56-551f-800a-41f0b808115c
court_cases
Rajasthan High CourtState Of Rajasthan And Ors. vs Balaji Industries on 20 November, 2001JUDGMENT Balia, J.1. Heard learned counsel for the parties.The respondent-petitioner was granted permission to construct over the land in question. The petitioner had purchased the land in question from the Receiver of M/s.Daduwala & Co. It is situated in Bhilwara. He sought permission for construction from Commissioner. The permission was granted by the Commissioner of Municipality in terms of Section 170 of the Municipalities Act, 1959. It has been brought to the notice of the Court that by Notification dated 24.11.1976 the Commissioner was delegated power to exercise the authority of the Board Under Section 170 of the Act in the matter of granting permission and he was therefore duly competent to grant such permission.2. It appears that at the relevant time, the elected body of Municipal Council, Bhilwara was superseded and its administration was put under an Administrator. The Administrator by his order dated 27.6.1988 in purported exercise of his powers Under Section 311 of the Act, stayed the operation of the order granting permission to the respondent-petitioner and directed the petitioner to stop further construction over the land in question. The said order dated 27.6.1988 (Annex.9) was subjected to challenge in Writ Petition No. 2003/88. (i) The State Government through the Secretary, Local Self Government, (ii) the Administrator Municipal Council, Bhilwara and (iii) the Municipal Council, Bhilwara through its Commissioner were made respondents.3. One of the contentions raised by the petitioner before the learned Single Judge was that the ofder of permission granted Under Section 170 could be subjected to appeal under Sub-section (12) of Section 170 either to the Collector or before the State Government if the order is passed by the Board, and the Administrator could not in exercise of any authority intermeddle with the order passed by the Commissioner Under Section 170.4. At the time of hearing before the learned Single Judge the learned counsel appearing for the municipality expressed his agreement on this contention, however, Mr. Joshi, learned counsel for the State contended that no appeal could have been filed against that order of permission dated 25.3.1988.5. The learned Single Judge was of the opinion that the permission granted Under Section 170 could be made subject-matter of appeal and therefore the authority did not vest in the Administrator exercising the power of Municipality to have interfered with that order. There being no authority vesting in the Administrator to modify the order passed by himself Under Section 170, the impugned order Annex. 9 dated 27.6.1988 was quashed.6. Aggrieved with that judgment dated 18. 11. 1997, this appeal has been preferred on behalf of the State Government, Municipal Council through its Chairman and the Commissioner, Municipal Council, Bhilwara. The principal contention raised on behalf of the appellants is that the order passed by the Commissioner was not an appealable order and that the Administrator had necessary authority to revise the order passed by Commissioner, who was an authority subordinate to it, and therefore, the impugned order of Administrator was not without jurisdiction which could be interfered with at that stage by the Court.7. Learned counsel for the respondent has two fold contentions. Firstly, the Municipal Council having conceded before the learned Single Judge that the order Annex. 9 could be challenged only by way of appeal under the relevant provisions of the Act and not revisable by the Administrator, the appellants No.2 & 3 cannot be said to be persons aggrieved, therefore, they have no right to file this appeal. So far as State Government is concerned, since no order of the State Government or authority of the State Government is under challenge, the State Government too has no locus to file this appeal. On merit also, it was contended by learned counsel that under Sub-section (12) of Section 170 specific provision has been made for challenging the orders made thereunder by way of appeal, therefore apart from the concession made by the learned counsel for the Municipality, learned Single Judge was right in holding that an appeal lay against the order granting permission to the petitioner-respondent. As there is specific provision for challenging the orders granting permission for construction Under Section 170, no other general provision of appeal or revision could be invoked. It is also urged that assuming appeal lay Under Section 311 then too under that provision only appeal lay from an order passed by an officer appointed Under Section307 or 308 and no power Under Section 311 could be exercised by the Administrator who himself was appellate authority Under Section 311 in respect an order passed by an officer appointed Under Section 307 or 308, it necessarily envisage filing of appeal by someone else who is aggrieved and not by Appellate Authority himself. No power has been granted to institute an appeal suo-moto by the appellate authority himself and also decide the same. It has further been pointed out by the learned counsel that the only provision under which power of revision has been conferred under the Act is Section 285, under which power vest with State Government. The State Government has been conferred with the supervisory jurisdiction and authority 'to revise the orders passed or purported to have been passed under the Act y or on behalf of any Board, its Chairman, Vice Chairman, any member or officer or collector or other officer appointed by a municipality or by the State Government if in its opinion the order passed by such authority is not correct, legal or proper'.8. Mr. Joshi rejoined that the Administrator, has, at any rate jurisdiction to make necessary orders revising any orders passed by the subordinate officer of the municipality Under Section 67(e) of the Act.9. Having given our anxious consideration to the rival contentions, we are of the opinion that this appeal must fail for the reasons to be stated hereinafter.10. We find substance in the contention raised by the learned counsel for the respondent that technically this appeal is not maintainable. It is apparent that on behalf of petitioner No. 2 & 3 it was conceded before learned Single Judge that appeal lay against the order passed Under Section 170, and therefore, the only remedy was to get the orders corrected by way of filing an application before the State Government and applicability of Section 311 was excluded and the Administrator had no authority to revise or review the orders passed by the competent authority Under Section 170. An order, which has been passed on concession of a party, in our opinion, cannot be challenged by the party making such concession.11. So far as State of Rajasthan is concerned, none of its orders of authority to be exercised by it under the Act or any such power which it can legitimately exercise is subject-matter of this writ petition. It cannot be considered as an aggrieved party. Therefore, the State Government too cannot be said to have locus to file this appeal.12. However, as sufficiently detailed arguments have been addressed by the learned counsel, we deem it proper to deal the contentions raised on merit also.13. The impugned order Ex. 9 is an order staying the operation of permission granted by the Commissioner exercising powers of Municipal Board as its delegate on the alleged ground of some defects in eliciting certain information. The question raised is whether Administrator of a Municipal Board-or the Boa ,rd itself has jurisdiction to entertain an appeal against it, if so whether suo moto authority of appeal or revision could be exercised by the Administrator for cancelling the permission granted?14. The order challenged in the writ petition is purported to have been made Under Section 311 seeking to revise an order passed Under Section 170. Section 311 opens with mandate "save as otherwise expressly prescribed, an appeal shall lay to the Board". Thus, the principal foundation for invoking jurisdiction Under Section 311 by the Board for setting at naught an order passed by an officer appointed Under Section307 or 308 is that no appeal is prescribed elsewhere.15. In this contention, Section 170 of the Act unfolds the scheme which governs the erection of new buildings, new erection in existing building, re-erection to make material alternation in existing building, erection or re-erection of any projected portion of a building in respect of which the Board is empowered to enforce the removal or set apart or make or enlarge a well within the municipal limits, a notice is required to be given to the concerned municipal board of any person's intention to carry out such construction work.16. Sub-section (1) of Section 170 circumscribes the limit within which Sub-section(1) is to operate. Sub-section (3) defines what is material alteration requiring a notice to the municipality within the meaning of Sub-section (1)(b). Sub-section (4) envisages that if so prescribed by bye-laws, in addition to the notice the requisite information and plans of the proposed construction are required to be submitted to the Municipal Board in addition to issue of a notice and Sub-section (5) authorises the municipality to elicit such information and plans from the person giving notice under Sub-section (1) where no bye-laws exist. Thus, prescribing the procedure for collecting the necessary material about the new erections within the municipal limits Sub-section (6) authorises the municipality to give permission to execute any work of which notice has been given under Sub-section (1) with or without condition as may be deemed necessary for the purpose and subject to conditions mentioned in that provision. Sub-section (7) requires the Municipality in the case of a city, before granting permission to issue a provisional order directing the applicant not to proceed with intended work for a period which shall not be longer than one month and demand further particulars. Sub-section (8) envisages that on failure of the municipal council to dispose of the notice and the application for permission to make any construction within the Municipal limits within the period stated in Sub-section (8), it has to be deemed that permission has been granted absolutely for carrying out the proposed work. Sub-section (9) puts a restrain on the person giving notice under Sub-section (1) not to commence such work after the expiry of the period of one year from the date on which he become entitle to proceed with the erection work whether on grant of permission explicitly or because of deemed permission under Sub-section (8). Sub-section (10) authorises the Chairman, the Executive Officer or any other member, Officer or servant of the board authorised in this behalf to inspect any work in respect of which notice is required under Sub-section (1) while under construction or within one month of the receipt of the report that it has been completed or in default of such report any time after the completion and if so satisfied, specify by written notice any matter in respect of which the execution of such work may be in contravention of any provisions of theMunicipalities Actor bye-laws under the Act and requiring the person executing or who has executed the work and the owner of the work to cause removal of anything done contrary to any such provision or bye-law or he may be required to do, which he has omitted to do. Sub-section (11) makes any construction carried out under the permission granted UnderSection170subject to the provisions ofSection166of the Act.17. Thus, dealing with in detail, the manner in which permission is to be sought, conditions subject to which the permission is to be granted, the constraints on the grant of permission, the constraints of limitation within which such notice is to be disposed off by inviting objections thereto under Sub-section (12), a specific provision of appeal has been made conferring right of appeal on any person aggrieved of an order Under Clauses (a), (b), (c) of Sub-section (6) or Clause (a) or Clause (b) of Sub-section (11). Such appeal lay to the Collector. The emphasis on the sanctity of the permission granted UnderSection170is expressed in no uncertain terms by clearly stating that no such order shall be liable to be called in question otherwise than such appeal. For ready reference, Sub-section (12) ofSection 170is reproduced hereinbelow:-"(12) Any person aggrieved by an order of a board Under Clause (a) or Clause (b) or Clause (c) of Sub-section (6) or Clause (a) or Clause (b) of Sub-section (11) may within thirty days from the date of such order, exclusive of the time requisite for obtaining a copy thereof, appeal to the Collector and no such order shall be liable to be called in question otherwise than by such appeal.Provided that in relation to a corporation, this sub-section shall have effect as if for the expression "the Collector", the expression "the State Government or such officer as may be authorised by it in this behalf" were substituted therein.18. Thus, it is apparent that not merely the Sub-section (12) ofSection 170provides an appeal challenging any permission granted under Sub-section (6) or order made under Sub-section (11)(b) of.Section 170but further lays emphasis that no order which can be challenged by appeal is liable to be called in question otherwise than by such appeal. Thus, Sub-section (12) by necessary implication excludes the appellate jurisdiction Under Section311 in respect of orders of permission granted UnderSection170.19. Moreover, the order UnderSection170is envisaged by the Board. The Commissioner exercises such power as a delegate of the Board. When he exercises power UnderSection 170for granting sanction, he exercises the authority of the Board itself and his order becomes of the Board and it is not an order of that officer in his capacity as subordinate authority. It cannot be made subject-matter of challenge Under Section 311 which does not provide any appeal before the Board against the order of the Board itself.20. The principle is well settled and needs hardly elaboration that where any power vesting in any authority is exercised by someone else as his delegate, the exercise of such power by the delegate is to be deemed as if has been exercised by the authority delegating such power himself. In the words of Prof.S.A. de Smitrl from his book 'Judicial Review of Administrative Action':-"..... if it has validly delegated an executive power to make decisions, it will normally be bound by a particular decision, conferring rights on individuals (and possibly one derogating from those rights), made in pursuance of the delegated power and will be incapable of rescinding or varying it; nor will it be competent to "ratify" with retroactive effect a decision encroaching on individual rights made by the delegate in excess of the powers so delegated, even though the delegating authority could validly have made the decision itself in the first place."21.In this connection, attention may be drawn to the decision of Supreme Court inRoop Chand v. State of Punjab(AIR 1963 SC 1503).22. That apart, Section311 orSection 170(12)both confer appellate jurisdiction on the Authority superior to the authority which has passed the order and can be invoked by the person aggrieved. Ah appellate jurisdiction cannot be invoked by the Appellate Authority himself suo moto. Supervising powers are over orders passed by and proceedings conducted by sub-ordinate authorities are ordinarily conferred on a superior authority in the form of revisional jurisdiction. The revisional jurisdiction ordinarily can be exercised suo moto on the basis of any error appearing to the such revising authority from the record of the proceedings or on an application moved by the aggrieved party bringing such error to the notice of the revising authority.Section 115of the CPC,Section 482of the Cr.P.C., andSections 263&264of the Income Tax Act are a few instances of such provisions.The Rajasthan Municipalities Acttoo contains specific provision conferring supervisory jurisdiction. Such supervisory jurisdiction vests in the State and not in the Board or any officer of the Board. Section 285 of the Rajasthan Municipalities Act, 1959, which confers such supervisory jurisdiction, reads as under:-285. Powers of suspending execution of order etc. of board.(1) If authorised by the State Government in this behalf the execution of any order or resolution of a board, or the doing of anything which is about to be done or is being done by or on behalf of a board, is causing or is likely to cause injury or annoyance to the public or a breach of the peace or is unlawful, he may, by order in writing under his signature, suspend the execution or prohibit the doing thereof.(2) When any such officer makes any order under this section, he shall forthwith to the State Government and to the board affected thereby a copy of the order, with a statement of the reasons for making it and it shall be in the discretion of the State Government to rescind the order or to direct that it shall continue in force with or without modification, permanently or for such period as it thinks fit.Provided that no order of such officer passed under this section shall be confirmed, revised or modified by the State Government without giving the board reasonable opportunity of showing cause against the said order."23. A perusal of the aforesaid provision spells-o@t that unlike, as the case was inChintapalli Agency Taluk Arreck Sales Co-operative Society Ltd. v. Secretary, Food & Agriculture, Government of Andhra Pradesh Etc. (AIR 1977 SC 2313) before the Apex Court, no such power has been given to the Board or any authority exercising jurisdiction of the Board to revise any orders passed by its officer or its delegates. The authority to revise the orders which appear to be not in accordance with law or improper, vests in the State Government or any person authorised by the State Government to exercise such powers on its behalf.24. In the present case, the Administrator of the Municipality was acting as the Municipality itself and could not be said to have revisional power or supervisory powers UnderSection 285or any appellate jurisdiction Under Section 311. He cannot be said to be an officer of the State so authorised UnderSection 285as a controlling authority having revisional jurisdiction in the mattes of orders passed affecting others. The State Government has not exercised or purported to have exercised its jurisdiction UnderSection 285. Therefore, whether the State Government in a given case has exercised such power validly is not a question before us. That may be examined as and when occasion for such arises.25. In this connection, our attention has also been drawn toSection67with the specific reference to Clause (e) ofSection 67, which reads as under: -Section 67.--"It shall be the duty ot the chairman of a board to exercise supervision and control over the acts and proceedings of all officers and servants of the board in matters of executive administration and in matters concerning the accounts and records of the Board, and subject to the rules for the time being in force, and to the provisions of Chapter XIII, to dispose of all questions relating to the service of the said officers and servants, and their pay, privileges and allowances."26. This provision speaks about administrative control of the officers and servants of the Board in connection with their services. The specific power conferred UnderSection67(e)is to dispose of all questions relating to service of the said officers and servants and their pay, privileges and allowances, but does not confer any administrative or judicial in respect of orders made by them on application made by persons under various provisions of the Act and Rules which regulate their rights. Such orders unless they concern service, pay, privilege and allowances of officers and servants, do not come within the perview of exercise of authority UnderSection 67. It cannot be said that the Administrator of the Board has the power to upturn the order passed UnderSection 170which otherwise is liable to be upturned only either under appeal UnderSection170(12)or on an order passed in revision UnderSection 285of the Act.27. As a result, this appeal fails and is hereby dismissed. The ad-interim order if any stands vacated.
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Kerala High CourtUnknown vs By Adv.Sri.A.Arunkumar on 13 March, 2018Author:K.Abraham MathewBench:K.Abraham MathewIN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE K.ABRAHAM MATHEW TUESDAY, THE 13TH DAY OF MARCH 2018 / 22ND PHALGUNA, 1939 Crl.MC.No. 1568 of 2018 CC.NO.1411/2017 of JUDICIAL FIRST CLASS MAGISTRATE COURT-II,HOSDURG CRIME NO. 483/2017 OF NILESHWAR POLICE STATION , KASARAGOD ---------- PETITIONER(S)/ACCUSED NO.5 --------------------------- RISHIRAJ K.R., AGED 21 YEARS, S/O. RAJEEVAN, KALLUMADATHIL HOUSE, AZHITHALA, P.O. THAIKKADAPPURAM, NILESHWAR, PADNE VILLAGE, HOSDURG TALUK. BY ADV.SRI.A.ARUNKUMAR RESPONDENT(S)/STATE/COMPLAINANT : ------------------------------- 1. STATE OF KERALA, REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM-682031. 2. DEEPESH M., AGED 25 YEARS, S/O. LATE RAMANAN, MANGOTTU HOUSE, KAYYUR, KAYYUR VILLAGE, HOSDURG TALUK. 3. SHYAMJITH P. V., AGED 24 YEARS, S/O. BALAN, PUTHIYANAM VALAPPIL, KAYYUR, KAYYUR VILLAGE, HOSDURG TALUK. 4. RATHEESH K., AGED 32 YEARS, S/O. KODAKARA VALAPPIL KORAN, PEEDIKA VALAPPIL HOUSE, KAYYUR, KAYYUR VILLAGE, HOSDURG TALUK. 5. SHOBITH V., AGED 26 YEARS, S/O. SOBHANA V., VALAPPINAKATH HOUSE, KAYYUR, KAYYUR VILLAGE, HOSDURG TALUK. 6. SAJIN S. GOPAL, AGED 23 YEARS, S/O. GOPALAN, ARAMAM KAYYUR, KAYYUR VILLAGE, HOSDURG TALUK. R1 BY SENIOR PUBLIC PROSECUTOR SRI.ALEX M.THOMBRA R2 TO R6 BY ADV. SRI.VIPIN T JOSE THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON 13-03-2018, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: TS Crl.MC.No. 1568 of 2018 () --------------------------- APPENDIX PETITIONER(S)' ANNEXURES ------------------------- ANNEXURE AI A TRUE COPY OF THE F.I.R IN CRIME NO. 483 OF 2017 OF NILESHWAR POLICE STATION. ANNEXURE AII A TRUE COPY OF THE FINAL REPORT IN CRIME NO. 483 OF 2017 NILESHWAR POLICE STATION. ANNEXURE AIII A TRUE COPY OF THE AFFIDAVIT SWORN TO BY THE 2ND RESPONDENT. ANNEXURE AIV A TRUE COPY OF THE AFFIDAVIT SWORN TO BY THE 3RD RESPONDENT. ANNEXURE AV A TRUE COPY OF THE AFFIDAVIT SWORN TO BY THE 4TH RESPONDENT. ANNEXURE AVI A TRUE COPY OF THE AFFIDAVIT SWORN TO BY THE 5TH RESPONDENT. ANNEXURE AVII A TRUE COPY OF THE AFFIDAVIT SWORN TO BY THE 6TH RESPONDENT. RESPONDENT(S)' ANNEXURES - NIL ------------------------------ /TRUE COPY/ PS TO JUDGE TS 13/03/2018 K.ABRAHAM MATHEW J. -------------------------------------------- Crl.M.C. NO.1568 OF 2018 ----------------------------------------------- Dated this the 13th day of March, 2018 ORDERPetition filed under Section 482 Cr.P.C.2. Petitioner is the 5th accused in C.C.No.1411 of 2017 on the file of the Judicial First Class Magistrate-II, Hosdurg in which the allegation is that he along with the co-accused committed the offences under Sections 143, 147, 148, 323, 341 and 506 r/wSection 149IPC. Respondents 2 to 6 are the victims. It is submitted that the matter has been settled and the proceedings in the trial court as against the petitioner may be quashed.3. Heard the learned counsel for the petitioner and the respondents and the learned Public Prosecutor.4. The respondents 2 to 6 have entered appearance through counsel and filed affidavits stating that the matter has been settled. The offences underSections 323,341and506IPC are compoundable. I am satisfied that the matter has been settled and no public interest is involved.In the result, this Crl.M.C is allowed. The proceedings in C.C.No.1411 of 2017 on the file of the Judicial First Class Magistrate-II, Hosdurg are quashed.Sd/-K.ABRAHAM MATHEW JUDGE pm
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Gujarat High CourtDilip Sagar vs Deputy General Manager on 13 August, 2004Equivalent citations: (2004)3GLR573, (2005)ILLJ318GUJAuthor:K.S. JhaveriBench:K.S. JhaveriJUDGMENT K.S. Jhaveri, J.1. By this petition the petitioner has challenged the order dated 26.9.1997 passed by the Disciplinary Authority-Deputy General Manager, and also the order of appellate authority dated 6.12.1997 passed by the General Manager confirming the order of dismissal passed by the Disciplinary Authority.2. The petitioner was serving as a Clerk in Syndicate Bank, Vina Branch, Nadiad. He was originally appointed as Peon on 21.10.75 in Syndicate Bank, Paldi Branch. Thereafter he had appeared in the examination for the post of Clerk in which he had succeeded. In pursuance of the same he was appointed as a clerk on 21.2.1984 in Dasaj Branch. Thereafter he was transferred to Ashram Road branch of the respondent Bank on 10.6.1989.2.1 The petitioner has been maintaining his SB Accounts being (i) A-29 and (ii) 8264 at the Ashram Road Branch of the respondent Bank. During the period between 19.2.1994 and 21.2.1994 the petitioner caused crediting of Rs.31,818 to his said accounts a sum of Rs.31,818.03 being the proceeds of certain clearing instruments. Thereafter, during the period between 19.2.1994 and 2.3.1994, the petitioner withdrawn Rs.1000/- on 19.2.1994, Rs.9000/- on 2.3.1994, Rs.16500/- on 29.2.1994 and Rs.11000/- on 2.3.1994 from his aforesaid accounts.2.2 During January 1995 the Ashram Road Branch of the respondent bank received a complaint from one Ms Madhu Jain of New Delhi, alleging that Dividend warrant No.003911 issued in her name by M/s Vinyl Chemicals (India) Ltd., Bombay was encashed by another person through Ashram Road Branch, Ahmedabad and demanded refund of the said amount. Therefore, the respondent bank remitted Rs.159/- to Ms Madhu Jain by debiting "DW wrongly collected Account".2.3 On 15.6.1995, observing certain clearing credits made into the SB accounts of the petitioner, the respondent Bank requested the petitioner to furnish full particulars of the same. The petitioner, by letter dated 19.6.1995, submitted details of 207 divident/interest warrants/refund orders purportedly issued by 9 Public Limited Companies in favour of various persons, the accounts of which were credited to the petitioner's SB Accounts. In the said letter the petitioner has also confirmed that dividend warrant No.003911 issued by M/s Vinyl Chemicals (India) Ltd., for Rs.150/- is also one of the instruments, the proceeds of which were credited to the SB account of the petitioner. On 23.6.1995 the petitioner remitted Rs.10200/- for credit of his SB Account No.A-29 and Rs.21,200/- for credit of his SB account No.8264 maintained at the said branch.2.4 On 24.6.1994 the respondent bank debited Rs.10,129.98 to the SB Account No.A-29 and Rs.21,188.05 to the SB Account No.8264 of the petitioner and credited the same to the suspense account to meet the claims from the payees of the respective interest/divident warrants/refund orders, the amounts of which were got credited to the SB account of the petitioner.2.5 In July 1995, the Ashram Road Branch of the petitioner received another complaint from one Ms Vanita R. Ghetia of Upleta, Rajkot, alleging that the refund order No.574999 issued by M/s Birla Ericsson Optical Ltd., for Rs.1000/- was encashed at the branch and has demanded refund of the said amount. On verification it was revealed that the said instrument was also got credited to the SB account of the petitioner.2.6 It was further revealed that the SB ledger sheet pertaining to his SB Account No.A-29 for the period from 25.11.1993 and 1.9.1994 was found missing from the branch records and therefore the respondent Bank had to reconstruct the same with the help of other relevant records. During this period, an amount of Rs.10,129.98 was credited to the SB account of the petitioner being the proceeds of certain interest/ dividend warrants/refund orders issued in favour of certain third parties.2.7 On further investigation it was found that though the interest/divident warrants/ refund orders mentioned by the petitioner in his letter dated 19.6.1995 said to be issued by 9 companies in favour of others residing in various places were crossed "A/c Payee" and "not negotiable", the petitioner managed to get collected the proceeds thereof for credit of his account by resorting to fraudulent means. The bank has therefore come to the conclusion that since the petitioner was neither the payee nor the relevant instruments would have been endorsed in his favour because of their restrictive crossings, he has committed an offence of "conversion" of the monies belonging to some one else. Under the circumstances the bank alleged that the petitioner has committed an act of "gross misconduct" within the meaning of clause no.19.5 of Bipartite Settlement.2.8 In view of the above, a chargesheet was issued to the petitioner on 12.10.1995. Along with the petitioner two other officers of the bank were also chargesheeted for the alleged misconduct. The petitioner submitted his reply to the said chargesheet denying all the allegations. However, since the Disciplinary Authority was not satisfied with the explanation of the petitioner, a departmental inquiry was held against the petitioner. The petitioner was given the opportunity of examining the witnesses and cross-examining the management witnesses. the petitioner was also provided the defence representative Shri B.K. Karkara on behalf of the management who is an employee of the Bank.2.9 The Inquiry Officer, after inquiry, submitted his report on 16.10.1996 holding that the charges levelled against the petitioner have been proved beyond reasonable doubt. The petitioner submitted his written submissions against the findings of the Inquiry Officer on 16.12.1996. Thereafter, after hearing the petitioner, the Disciplinary Authority passed order dated 26.9.1997 dismissing the petitioner from the services of the bank with immediate effect.2.10 Against the said order the petitioner preferred an appeal before the Appellate Authority ie. General Manager (P), Head Office, manipal. The Appellate Authority, vide order dated 6th December 1997 dismissed the said appeal. It is against the aforesaid orders the present petition has been filed.3. Ms Ahuja, learned counsel for the petitioner submitted that the petitioner has been falsely roped in the alleged misconduct. According to the petitioner, the 207 instruments were credited by one Shri Jagdish Modi without the knowledge of the petitioner in his Savings Bank Account. She submitted that merely because the ledger sheet of account No.A/29 of the relevant period could not be found, it cannot be said that the petitioner has tried to destroy any of the records of Account No.A/29 as alleged.3.2 Learned counsel further submitted that one Mr. M.R. Shah, another employee of the bank had cleared the instruments even though they wer A/c Payee in collusion with one Jagdish Modi. She has also pointed out that in similar cases only minor punishment of stoppage of increments was imposed and the punishment imposed upon the petitioner is very harsh.3.3 She further submitted that during the 22 years of service there was no adverse remark against the petitioner and therefore the punishment of dismissal from service could not have been imposed upon the petitioner.4.1 Mr. PV Nanavati, learned counsel for the respondents submitted that the Inquiry Officer has fully and properly scrutinized the relevant material before him before recording the findings on the charges levelled against the petitioner. Reasonable opportunity was afforded to the petitioner during the course of inquiry.4.2 The Inquiry Officer has clearly recorded a finding of fact that the petitioner has fraudulently credited the proceeds of the instrumetns in question and derived undue/unlawful pecuniary advantage in detriment to the intersts of the bank.4.3 The Inquiry Officer has also recorded a finding that the petitioner has destructed the bank record to suppress his fraudulent act and exposed the bank to unnecessarylitigation. The said act of the petitioner constitued an act of "gross misconduct" within the meaning of clause no.19.5 of Bipartite Settlement. He therefore submitted the petitioner has not made out any case for interference by way of the present petition.5.0 I have heard the learned counsel for the respective parties extensively and gone through the entire report of the Inquiry Officer and other relevant record. From the record it is clear that the Enquiry Officer has followed all the rules and procedures prescribed while conducting the inquiry. The Inquiry officer has judiciously analysed all the evidences that have been adduced during the enquiry by both the parties. The Inquiry Officer has observed that there is enough oral and documentary evidence on record to show that the petitioner had indulged in acts of fraud and derived undue pecuniary advantage in detriment to the interest of the bank and that the petitioner had indulged in destruction of the bank records to suppress his fraudulent acts.5.2 The contention that one Mr. Jagadish Modi who is reported to be known to the petitioner had deposited 207 isntruments into the SB Account of the petitioenr without his knowledge is totally unbelievable.5.3 There is nothing on record to show that the petitioenr paid the amount to Shri Modi, whereas there is sufficient evidence to show that the petitioner received the amounts of said 207 instruments.5.4 There is also sufficient reason to believe that the petitioner is responsible for the destruction of SB ledger sheet pertaining to his SB Account No.A/29 for the period between 25.11.1993 and 1.9.1994.5.5 Except the petitioner, no other person will have any benefit from such destruction of SB ledger sheet pertaining to the account of the petitioner. 5.6 Being a responsible employee of the Bank, the petitioner should not have resorted to commit fraud for deriving undue pecuniary benefit to him. Looking to the facts and circumstances, the Inquiry Officer has rightly come to the conclusion that the bank being a financial isntitution dealing with public money cannot afford to continue to employ the dishonest employee, failing which the bank's image might suffer and the public will lose confidence in the bank.5.7 I do not find any reason to differ from the conclusion reached by the respondent authorities to substitute the penalty imposed upon the petitioner.6.1 Learned counsel for the petitioner has relied upon a decision of the Supreme Court in the case ofUnion of India Vs. K.A. Kittu and others,reported in (2001)1 SCC 65. In that case the Supreme Court upheld the decision of the Tribunal which set aside the report of the Inquiry officer on the ground that there was no felling during the period of the delinquent's posting as Cardamom Settlement Officer and there was no loss of revenue during that period. Thus,in that casethere was a clear finding of the Tribunal that the delinquent was not guilty of the charges levelled against him, whereas in the present case there is nothing to point out that the findings of the Inquiry Officer are perverse. Therefore the aforesaid decision is not helpful to the petitioner.6.2 Learned counsel for the petitioner next relied upon a decision of the Supreme Court in the case ofSher Bahadur Vs. Union of India, reported in (2002) 7 SCC 142. Inthe said decisionthe Supreme Court held that the requisite evidence must link the charged officer with the alleged misconduct and merely stating in the enquiry report that "in view of oral, documentary and circusmtantial evidence as adduced in the enquiry", is not sufficient. In the present case the Inquiry Officer has clearly recorded his finding of fact and clearly established that 207 instruments of various companies issued in favour of different parties were credited to his account unauthorisedly. The guilt of the petitioner has been proved beyond doubt and therefore, no reliance can be placed on the aforesaid decision.6.3 Learned counsel for the petitioner next relied upon a decision of the Supreme Court in the case ofDev Singh Vs. Punjab Tourism Development Corporation Ltd. and Another, reported in (2003) 8 SCC 9. In that case the Supreme Court held that in case of misplacement of an office file, in absence of any ulterior motive, punishment of dismissal therefor would shock judicial conscience and in such case the court can mould the relief. In the present case, SB ledger sheet pertaining to the SB Account No.A-29 of the petitioner for the period of alleged misappropriation is found missing. The finding of the Inquiry Officer in this regard is positive and therefore it cannot be said that there was no ulterior motive on the part of the petitioner. Therefore, the decision of the aforesaid case would not be of no assistance to the petitioner.6.4 Learned counsel for the petitioner next relied upon a decision in the case ofKumaon Mandal Vikas Nigam Ltd. Vs. Girja Shankar Pant and others, reported in (2001) 1 SCC 182. In the said case show cause notice was issued to the delinquient and the same was subsequently treated as chargesheet. Documents were not supplied to him despite requests and even inspection of some of the documetns was denied to him and without affording an opportunity of hearing the enquiry officer gave the finding that the charges stood proved. Therefore the High Court set aside the consequential dismissal order on the ground that there was miscarriage of justice and the Supreme Court confirmedthe said decision. In the present case, reasonable opportunity was afforded to the petitioner and there is no allegation that relevant documents were not supplied to him. Therefore, no support can be taken from the aforesaid decision by the petitioner.7. As against that Mr. P.V. Nanavati, learned cousnel for the respondents relied upon a decision of the Supreme Court in the case ofLalit Popli Vs. Canara Bank, reported in AIR 2003 SC 1796, wherein in para 17 it is held as under:"17. While exercising jurisdiction underARticle 226of the Constitution the High Court does not act as an appelalte authority. Its jurisdiction is circumscribed by limits of judicial review to correct errors of law or procedural errors leading to manifest injustice or violation of principles of natural justice. Judicial review is not akin to adjudication fo the case on meirts as an Appellate Authority."On the facts of the present case, the petitioner has failed to point out that there was violation of principles of natural justice. Record speaks that reasonable opportunity was afforded to the petitioner.8.In the case of Indian Iron and Steel Company Vs.Workmen, reported in (1958) I LLJ 260 the Supreme Court ruled that when a dispute arises, the industrial tribunal has the power to see whether the termination of services of workman is justified and to give proper relief. The tribunal cannot, however, act as a court of appeal and substitute its own judgement for that of the management. It will interfere:(i) when there is want of good faith;(ii) when there is victimisation or unfair labour practice;(ii) when the management has been guilty of a basic error or violation of a principle of natural justice; and(iv) when on the material the finding is compeltely baseless or perverse.The norms underlying these formulations are: (a) the industrial worker must be placed in such a position that security of hisservice may not depend upon the caprice or arbitrary will of the employer; (b) industrial peace should be maintained; and (c) the industry should be efficiently managed. Applying the said principles to the facts of the case, no interference is called for in this petition.9. In the result, I do not find any merits in the present petition. The petition is, therefore, rejected. Rule is discharged with no order as to costs.
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Standing Committee Report SummaryThe Standing Committee on Health and Family Welfare (Chair: Mr. Ram Gopal Yadav) presented its report on ‘Cancer Care Plan and Management: Prevention, Diagnosis, Research and Affordability of Cancer Treatment’ on September 12, 2022.  Key observations and recommendations of the Committee include the following:Cancer prevention:The Committee noted that tobacco use accounts for almost 50% of all cancers in India.  It noted the high incidence of tobacco related cancer in the north eastern region.  While such cancer cases are preventable, desired focus has not been given to reduce tobacco consumption.  The Committee recommended the government to focus on campaign against tobacco consumption and formulate strategies to stop the teenage population from getting addicted to tobacco.  Certain common cancers such as cervical and vulvar cancer can be prevented with vaccination.  The Committee noted that it was necessary to raise awareness regarding symptoms of cervical cancer.  It recommended to conduct more tests to ascertain the efficacy of the Human Papilloma Virus (HPV) vaccine against cervical cancer.  If the results are satisfactory, the government may include the HPV vaccine in the vaccination programme.Cancer screening and detection:The Committee noted that screening of common cancer under the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases, and Stroke (NPCDCS) is volunteer based and thus lacks the follow up strategy for further investigation and treatment.  There is a need for the central government to sponsor national screening programs for cancer in India.  The government should formulate a scheme to start a country wide population-based screening at the primary health centre (PHC) level under the National Health Mission.   Each PHC should be responsible for screening people in its area.  Mechanisms should be developed to link screening programmes to cancer registries across the country for better management.  NPCDCS only covers three common cancers (oral, cervical, and breast).   The Committee recommended that the government must consider including other prevalent cancers under the NPCDCS.Cancer diagnosis:Cancer diagnostic procedures are expensive and patients have to rely on private hospitals due to lack of diagnostic facilities in public hospitals.  The Committee recommended capping diagnostic testing charges.  It also recommended the Ministry of Health and Family Welfare to assess diagnostic facilities in all district hospitals and establish a decentralised diagnostic testing network.Cancer registries:The Committee noted that only 10% of India’s population is covered by population-based cancer registries (PBCRs) under the National Cancer Registry Programme.  It observed that there is an urgent need to have more rural based PBCRs to get information about the incidence and type of cancers across India.  It recommended the National Centre for Disease Informatics and Research to set up cancer registries in rural areas in states such as Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, and Rajasthan.Pradhan Mantri Jan Arogya Yojana (PM-JAY):Under PMJAY, beneficiary families get an annual defined health cover of five lakh rupees per family for secondary and tertiary health care.  The Committee recommended that the scheme should be expanded to include diagnostic tests and other services for cancer care.  It was also noted that all forms of medication and latest therapy are not covered under the scheme.  The Committee recommended the Ministry to regularly update the list of medication under the scheme.Price negotiation for anti-cancer drugs:Anti-cancer drugs and equipments are very expensive.  Cancer care centres may find it difficult to negotiate competitive prices with equipment manufacturers and pharmaceutical industry.  The Committee noted that National Cancer Grid (created for uniform standards of cancer care) has worked on a price discovery method by aggregating the demand for commonly used, high-value items from several centres and then negotiating with the industry.  This has helped to reduce costs of cancer care while maintaining the quality of drugs.   The Committee recommended that the government should: (i) take measures to encourage such group negotiations for cancer drugs through a central tendering platform, and (ii) extend such negotiations to equipments and consumables also.National Pharmaceutical Pricing Authority (NPPA):The NPPA fixes, revises and monitors the prices of scheduled drugs under the National List of Essential Medicines (NLEM).  Prices for drugs in NLEM allow a 16% margin for retailers.  The Committee noted that this margin was too high.   It recommended the government to either reduce the 16% margin for retailers or provide subsidy to the retailers/consumers.   It also recommended that the 10% annual increment allowed in the prices of non-scheduled drugs should be reduced to 5%.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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CAG Report Summary Agriculture Crop Insurance Schemes - The Comptroller and Auditor General (CAG) submitted a report on the 'Performance of Agriculture Crop Insurance Schemes' on July 21, 2017. The report examines the performances of crop insurance schemes in nine states, between the period 2011-12 and 2015-16. These schemes include the National Agriculture Insurance Scheme (NAIS), the Modified National Agriculture Insurance Scheme (MNAIS), and the Weather Based Crop Insurance Programme (WBCIP). Crop insurance schemes aim to provide insurance cover to farmers against yield losses. The Department of Agriculture, Cooperation and Farmers' Welfare is responsible for implementing the schemes. The Agriculture Insurance Company of India (AIC) and private insurance companies are the implementing agencies of the schemes. Key findings and recommendations of the audit report include: - Coverage of farmers: The CAG noted that the number of farmers covered under the scheme was low when compared to the population of farmers as per Census 2011. Share of farmers covered under all schemes ranged between 8% to 22% of the total farmers, between Kharif and Rabi crop from 2011 to 2016. The CAG noted that under NAIS, which provides subsidy for small and marginal farmers, coverage ranged between 2% to 13%. The CAG recommended that effective measures need to be taken by the Department of Agriculture Cooperation and Farmers' Welfare to ensure coverage of a larger number of farmers, including both with and without loans. - Data on beneficiary farmers: The CAG noted that data on beneficiary farmers was not maintained by the AIC, and the central and state governments. Further, schemes like MNAIS and WBCIS, do not require the central and state government to maintain databases of insured farmers. The CAG recommended that the central and state governments should maintain databases of beneficiary farmers for monitoring and implementation purposes. - Delays in processes: The CAG noted that while the Department of Agriculture Cooperation and Farmers' Welfare released their share of funds on time, delays in were observed in release of share from state governments. Further, CAG observed delays in: (i) the issue of notifications of crops and area covered and receipt of yield data by the states, disbursements of claims from banks. The CAG recommended that effective measures need to be taken by the Department to ensure that timelines are met by state governments, implementing agencies and banks. - Verification of claims by private insurance companies: The CAG noted that the AIC failed to verify the claims submitted by the private insurance companies before releasing funds under the MNAIS and the WBCIS. The guidelines released by the Department of Agriculture and Farmers' Welfare specify that funds can be released to private insurance companies on submission of: (i) statistics of claims covered with a certificate from the respective state government, and (ii) a random verification of scheme coverage. The CAG recommended that the Department should ensure that payments to private insurance companies are made only after verification of claims. Noting that private insurance companies receive large amount of funds under these schemes, the CAG also recommended that there needs to be a provision for audit of such companies by the CAG. - Savings under NAIS: Savings under NAIS may arise due to difference between premium collected and claims payable by the AIC. The CAG noted that the guidelines of NAIS do not address utilisation of such savings under the scheme. Savings of Rs 2,519 crore (18% of the premium collected) were retained by the AIC, between 1999- 2000 Rabi crop season and 2015-16 Rabi crop season. In this context, the CAG recommended that the manner in which such savings will be dealt with, should be taken up by the Department of Agriculture Cooperation and Farmers' Welfare, Ministry of Finance and the AIC. - Monitoring of the schemes: The CAG noted that the monitoring of schemes by the implementing agencies and the central and state governments, was poor. The CAG observed that a technical support unit to monitor the scheme was not set up. Further, periodic appraisal reports of the schemes were not prepared by the Department of Agriculture Cooperation and Farmers' Welfare. The CAG recommended that the central and state governments need to ensure that the schemes are monitored at all levels.
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## Report Summary Report Of The Committee On Revisiting And Revitalising The Ppp Model Of Infrastructure  The Committee on Revisiting and Revitalizing the PPP model of Infrastructure Development (Chair: Dr. Vijay Kelkar) submitted its report to the Finance Ministry on November 19, 2015. The Committee was formed following the Finance Minister's announcemet on revising the Public Private Partnership (PPP) mode of infrastructure development in his budget speech, 2015-16. This note summarises the key findings and recommendations of the report.  Terms of reference of the Committee included: (i) reviewing the experience of PPP policy, including the variations in contracts and the difficulties experienced, (ii) analysing the risks involved in PPP projects in different sectors and the framework of risk sharing between the project developer and the government, (iii) proposing design modifications to the contractual arrangements of PPPs based on the above; and (iv) proposing measures to improve capacity building in government for effective implementation of PPP projects.  Revisiting PPPs: The Committee noted that, with the current demographic transition, and the consequent growing need for better infrastructure, it is important for India to mature its current model of PPPs. PPPs have the potential to deliver infrastructure projects better and faster. Currently, PPP contracts focus more on fiscal benefits. The Committee recommended that the focus should instead be on service delivery for citizens. Further, fiscal reporting practices and performance monitoring of PPPs should be improved.  The PPP model requires the involvement of a private partner to leverage financing and improve operational efficiencies. Therefore, state owned enterprises or public sector undertakings should not be allowed to bid for PPP projects. PPPs should not be used by the government to evade its responsibility of service delivery to citizens. This model should be adopted only after checking its viability for a project, in terms of costs and risks. Further, PPP structures should not be adopted for very small projects, since the benefits are not commensurate with the costs.  Risk allocation and management: The Committee noted that inefficient and inequitable allocation of risk can be a major factor leading to failure of PPPs. PPP contracts should ensure optimal risk allocation across all stakeholders by ensuring that it is allocated [email protected] January 4, 2016 Tel: (011) 2323 4801-02, 4343 4035-36 to the entity that is best suited to manage the risk. A generic risk monitoring and evaluation framework should be developed covering all aspects of a project's lifecycle. The Committee also recommended the guidelines for risk allocation.  Strengthening policy and governance: Ministry of Finance may develop a national PPP policy document, endorsed by Parliament. The Committee also recommended formulating a PPP law, if feasible. Further, the Prevention of Corruption Act, 1988 should be amended to distinguish between genuine errors in decision making and acts of corruption by public servants.  Strengthening institutional capacity: The capacity of all stakeholders including regulators, authorities, consultants, financing agencies, etc should be built up. A national level institution should be set up to support institutional capacity building activities, and encouraging private investments with regard to PPPs. Independent regulators must be set up in sectors that are going for PPPs. An Infrastructure PPP Project Review Committee may be set up to evaluate PPP projects. An Infrastructure PPP Adjudication Tribunal should also be constituted. A quick, efficient, and enforceable dispute resolution mechanism must be developed for PPP projects.  Government should notify guidelines for auditing of PPPs, only enabling the review of government internal systems. Special Purpose Vehicles (private partners) should follow norms of corporate governance and financial disclosures as per the Companies Act, 2013.  Strengthening contracts: Since infrastructure projects span over 20-30 years, a private developer may lose bargaining power because of abrupt changes in the economic or policy environment. The Committee recommended that the private sector must be protected against such loss of bargaining power. This could be ensured by amending the terms of the PPP contracts to allow for renegotiations. The decision on a renegotiated concession agreement must be based on (i) full disclosure of renegotiated costs, risks and benefits, (ii) comparison with the financial position of the government at the time of signing the agreement, and (iii) comparison with the existing financial position of the government just before renegotiation. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it.
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CAG Report SummaryThe Comptroller and Auditor General of India (CAG) released its audit report on ‘Conservation of Coastal Ecosystems’ in August 2022.  Key observations and recommendations of CAG include:Institutional framework:The National Coastal Zone Management Authority (NCZMA) was constituted by the Ministry of Environment, Forests and Climate Change as an ad-hoc body for protecting coastal environment.  CAG noted that NCZMA has failed to carry out its functions due to an ad-hoc status and manpower constraints.  Further, its role has shrunk to mere deliberations or decision making on reclassification of Coastal Regulation Zone.  CAG recommended that the NCZMA and State Coastal Zone Management Authorities (SCZMAs) be made permanent bodies with full-time members.Project clearances:Industries have to seek approval for undertaking activities in CRZ.  CAG observed that certain projects were approved in spite of inadequacies in the Environmental Impact Assessment (EIA) reports.  The inadequacies include: (i) preparation of EIA reports by non-accredited consultants, (ii) use of outdated baseline data, and (iii) insufficient analysis of environmental impact in EIA.  Other issues with project approvals include: (i) non verification of information provided by private consultants, and (ii) deficiencies in public hearings (where people express their concerns about the environmental impact of the project).  CAG noted that the process of granting project clearance could not ensure fully that proposed projects would not have an adverse impact on the coastal ecology.  CAG recommended that the Ministry ensure in-depth ecological evaluation of projects by project proponents before granting them clearances.  Project proponents refer to agencies that propose to establish a project.Monitoring projects:Monitoring a project after its approval is essential in verifying the outcomes of the implemented mitigation measures.  CAG observed that in 18 of the audited projects, the project proponent failed to comply with conditions mentioned in the clearance and those laid down by the respective SCZMA.  Further, project proponents failed to furnish half yearly compliance reports and annual environmental statements.  CAG noted that SCZMAs either did not take actions against CRZ violations or action was ineffective.  Further, NCZMA did not monitor the activities of SCZMA related to monitoring and follow up of violations.  It recommended that the Ministry may revisit the roles and composition of agencies to strengthen the post-clearance monitoring process.Sustainable Development Goals (SDG):As per the 14thSDG of the United Nations, India has certain targets to conserve coastal areas.  These include preventing and reducing marine pollution by 2025.  NITI Aayog was responsible to oversee SDG implementation.   It carried out stakeholder mapping to aid decision makers in assessing the interests of different stakeholders.CAG observed that the stakeholder map lacked significant stakeholder organisations .  It recommended a review of the stakeholder mapping to ensure inclusion of all relevant institutions.Quality data is vital to track the progress on implementation of SDG targets.  CAG observed that there were data quality issues with respect to SDG indicators.   Further, most coastal states had not come up with localised indicators based on their development priorities and data requirements.  CAG recommended that localisation of indicators be prioritised in all stakeholder states.Integrated Coastal Zone Management Project:In 2010, the World Bank extended financial assistance to India worth Rs 896 crore (78% of the project cost) for the Integrated Coastal Zone Management Project (ICZMP).   States such as Gujarat, Odisha and West Bengal were chosen for the pilot.  The objective of the project was capacity development and piloting integrated coastal zone management.  CAG observed several deficiencies at the central and state level in the project.   These include: (i) inadequate monitoring and protection measures of coastal resources, (ii) insufficient manpower at selected institutes, and (iii) non execution of critical projects that had potential of reducing coastal pollution.Protection of vulnerable ecosystems:CAG sampled two coastal districts from each of the nine coastal states to assess the health of vulnerable and fragile marine ecosystems.  It observed that state governments did not prepare management plans for vulnerable ecosystems such as coral reefs and turtle nesting sites.   CAG recommended state governments to prepare management plans for protection of vulnerable ecosystems.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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Report SummaryThe NITI Aayog released a report on ‘Roadmap for Ethanol Blending in India 2020-25’ in June 2021.  The report suggests: (i) an annual roadmap for production and supply of ethanol till 2025-26, and (ii) systems for country wide marketing of ethanol.  Note that the National Policy on Biofuels, 2018 was notified in June 2018, which aimed at achieving 20% blending of ethanol in petrol by 2030.  In December 2020, the deadline to achieve the ethanol blending target was revised to 2025.  Key observations and recommendations include:Fuel ethanol demand projection:The report estimates that India’s requirement of ethanol for petrol blending will increase from 173 crore litres in 2019-20 to 1,016 crore litres in 2025-26.  To meet this demand, the ethanol production capacity will have to be increased from 684 crore litres in 2019-20 to 1,500 crore litres in 2025-26.  This includes production capacity of: (i) 740 crore litres of grain-based ethanol, and (ii) 760 crore sugar-based ethanol.  The report recommended that to enable roll out across India, ethanol may be supplied from surplus to deficit states based on the requirements.  This will ensure uniform availability of ethanol blends in the country.Ethanol blending roadmap:Thereport recommends that the Ministry of Petroleum and Natural Gas should notify a plan for availability of E10 fuel (blend of 10% ethanol and 90% petrol) by April 2022.  Further, the Ministry should notify a plan for continued availability of the fuel for older vehicles.  Fuel blended with 20% ethanol (E20) should be launched in phased manner from April 2023 to ensure availability of E20 by 2025.  The roll out of higher ethanol blends may be done in phased manner, starting with the states with surplus production of ethanol.Expediting regulatory clearances:Ethanol production plants need environmental clearances for new projects and expansion of existing projects.  The report recommends certain measures to expedite regulatory clearances for ethanol production such as expediting the issuing of consent to establish distilleries by state governments.  Further, a single window system may be formulated by the Department for Promotion of Industry and Internal Trade to accord speedy clearances.   This would facilitate speedy clearances for new projects and expansion of current projects for ethanol production.Ethanol pricing and environmental impact:In 2018-19, the government introduced a differential pricing policy wherein higher rates were offered to sugar mills for ethanol production from B-heavy molasses (an intermediate product) and sugarcane juice.  This incentivizes sugarcane-based ethanol production.  One litre of ethanol from sugar requires about 2,860 litres of water.  In view of the need for water conservation, the report recommended that suitable incentives should be used to (i) source ethanol from less water intensive crops, and (ii) promote production from maize and second-generation sources.Ethanol compatible vehicles:The Committee highlights that in order to use higher ethanol blends, vehicles need to be designed holistically to prevent engine failure and low fuel economy.   Flex Fuel vehicles, though proven, would cost more than normal petrol vehicles.  To ensure production of ethanol blended petrol compatible vehicles in the future, the Committee recommended that: (i) E20 material compliant and E10 engine tuned vehicles may be rolled out across the country from April 2023, and (ii) vehicles with E20 tuned engines can be rolled out from April 2025.Unrestricted movement of denatured ethanol:The report noted that ethanol used for blending purpose is denatured ethanol (unfit for human consumption).  It further noted that state governments are empowered to legislate, control, and levy taxes and duties on liquor meant for human consumption.  The report recommended that movement of denatured ethanol across India should not be under control of states.  It may be controlled only by the central government to ensure unrestricted movement across India.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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Standing Committee Report SummaryCommittee Report: Potential of Tourist Spots in the country - Connectivity and OutreachThe Standing Committee on Transport, Tourism and Culture (Chair: Mr. T.G. Venkatesh) submitted its report on the ‘Potential of Tourist Spots in the country - Connectivity and Outreach’ on July 27, 2021.  The Committee suggested ways to harness the huge tourism potential of India.  Key observations and recommendations of the Committee include:Swadesh Darshan Scheme:The Swadesh Darshan Scheme (SDS) was launched by the central government in 2015 for the integrated development of theme-based tourist circuits in the country.  The Committee noted that only one out of the 15 thematic circuits under the SDS has been completed so far.  It recommended: (i) developing tourist sites under the Himalayan, Buddhist, and North-East circuits on a priority basis, and (ii) including more rural areas in tourism circuits to benefit the poor.Development of tourism infrastructure:The Pilgrimage Rejuvenation and Spirituality, Heritage Augmentation Drive (PRASHAD) scheme was launched by the central government in 2015 to provide a complete religious tourism experience through planned development of identified pilgrimage and heritage destinations.  The Committee recommended: (i) engaging the private sector in providing tourism infrastructure under the SDS and PRASHAD schemes to make them commercially viable, (ii) augmenting hotel room capacity by constructing budget hotels on the surplus land at railway stations, and (iii) providing financial support to meet funding gaps for development of tourism infrastructure.Air connectivity:The Regional Connectivity Scheme was launched by the central government in 2016 to enhance regional air connectivity.   The Committee recommended operationalising the remaining routes under this scheme to meet emerging tourist demand in less connected regions.  The Committee observed that due to poor air connectivity, India’s share in international tourist arrivals is a mere 1.2%.  It recommended ensuring proper air connectivity to iconic tourist sites identified by the Ministry of Tourism.  This can be achieved by: (i) converting domestic airports to international airports on priority basis for sites with domestic airports only, and (ii) developing new airports for sites without direct air connectivity.Land connectivity:The Committee recommended: (i) introducing more semi-high speed trains on the routes where maximum tourists travel, (ii) ensuring intra-state rail connectivity, and (iii) developing roadside amenities like cafeterias along highways and expressways for long distance travellers.Cruise tourism:To promote cruise tourism in India, the Committee recommended: (i) revamping India’s port infrastructure, (ii) making cruise tourism facilities affordable for the masses, (iii) providing a complete cruise logistics service, (iv) inviting foreign cruise operators to function in India, (v) cooperating with other south-east Asian countries, and (vi) setting up a special government unit for the industry.Outreach and publicity:The Committee noted that in light of the COVID-19 pandemic, the revival of international tourism will take time.  To promote domestic tourism, the Committee recommended: (i) adopting digital marketing strategies to increase tourist footfall, and (ii) formulating a media strategy specifically for promoting the North-East region of India.To promote overseas tourism, the Committee recommended: (i) targeting foreign tourists and non-resident Indians through online and offline marketing strategies, and (ii) setting country-wise targets of foreign tourist arrivals to cover countries with high growth potential.Impact of COVID-19 on travel and hospitality sector:Taking note of the massive disruption in the tourism and hospitality industry due to COVID-19, the Committee recommended: (i) temporarily suspending all working capital, principal and interest payments for the sector, and (ii) extending the time periods for repayment or restructuring of loans by entities in the sector under the relief measures announced by the central government and the Reserve Bank of India.Adventure tourism:The Committee noted that the annual growth rate of inbound adventure tourism in India is 5-7% and that of domestic adventure tourism is 20-25%.  It recommended promoting India as an adventure tourism destination and promoting amusement parks in coordination with states and union territories.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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The Standing Committee on Personnel, Public Grievances, Law and Justice (Chair: Mr. Bhupender Yadav) submitted its report on “Draft Public Servants (Declaration of Assets and Liabilities and Minimum Value of Assets for Condonation or Exemption) Rules, 2017”. These Rules are proposed to be notified under the Lokpal and Lokayuktas Act, 2013.  They prescribe the form and manner for declaration of assets and liabilities of public servants.The 2013 Act requires a public servant to declare his assets and liabilities, and that of his spouse and dependent children. Previously, the Act itself specified the form and manner of the declaration.  However, the Lokpal and Lokayuktas (Amendment) Act, 2016 amended this provision to state that the form and manner of making such a declaration will be prescribed by the central government through rules.  The Rules were drafted pursuant to the 2016 Amendment Act.  The Standing Committee examined the Rules and made the following recommendations:Time period for declaration:As per the Rules, a public servant is required to make a declaration of assets and liabilities within six months of assuming office.  Public servants already in office are required to file a declaration on or before July 31, 2018.  Further, revised declarations need to be filed within six months if there is any change in the details provided in earlier declarations.  Instead of this process, the Committee recommended that declarations only be filed once a year.  This will allow public servants to file a single return in a year even if it includes several transactions.Determining minimum amount for declaration:Under the Rules, assets and liabilities below a certain value are exempted from declaration.  This minimum value of assets may be prescribed by the competent authority, having regard to the nature of public servant and the public office.  The Committee emphasised that the minimum value should be reasonable and should be revised at regular intervals.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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Standing Committee Report SummaryCommittee Report: Coal Conservation and Development of Infrastructure for Transportation of Coal across the CountryThe Standing Committee on Coal and Steel (Chair: Mr.  Rakesh Singh) submitted its report on the subject ‘Coal Conservation and Development of Infrastructure for Transportation of Coal across the Country’ in March 2021.  Key observations and recommendations of the Committee include:Transportation of coal:The Committee observed that 66% of the total coal in the country is transported through road.  It observed that transportation of coal through road adds to dust and air pollution.  It recommended that transportation of coal through road should gradually be done away with.  It also recommended that Coal India Limited should focus on placing a completely mechanised system for the transportation of coal from pit heads to despatch points through rail or covered conveyor belts.The Committee observed that various measures are being employed for controlling the environmental impact of transportation of coal through road.  These include: (i) transportation by covered trucks, (ii) regular water sprinkling in critical areas prone to air pollution, and (iii) treating roads with dust suppressant chemicals.  The Committee recommended setting up a monitoring mechanism to ensure strict implementation of these measures to reduce the negative impact of coal transportation by road.Central Sector Schemes:Under the central sector scheme called Conservation, Safety, and Infrastructural Development in Coal Mines, coal companies are given financial assistance for activities including: (i) conservation, (ii) environment management, (iii) safety, (iv) research, and (v) development of road and rail linkages for coal mines.  The Committee observed that over the years, under various sub-components of the scheme, there has been a carryover of required reimbursements from the previous year to the next year.  The Committee recommended that the present system of scrutinising and settling of claims for this scheme should be reviewed on priority.The Committee recommended that the number of road and rail projects under the scheme should be reduced, and only important and large rail and road links should be considered for assistance.  This will help in ensuring effective monitoring, quality of construction, and verification of estimates.Utilisation of coal loading capacity:The Committee noted that the demand for railway rakes is placed by the concerned coal company with zonal railways.  The demand is based on factors such as coal production, capacity to transport into sidings, and contractual obligations to customers.  The Committee noted the submission of the Ministry of Railways that most of the time, the loading capacity of the coal companies is less than the demand projected by them.  The shortfall in loading is primarily on account of less availability of coal at sidings.  The Committee recommended that coal companies should analyse the reasons for the shortfall and take corrective measures in this regard.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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Babu Jagjivan Ram Chhatrawas Yojana (BJRCY)Standing Committee Report SummaryThe Standing Committee on Social Justice and Empowerment (Chair: Mrs. Rama Devi) submitted its report on ‘Babu Jagjivan Ram Chhatrawas Yojana (BJRCY) for SC boys and girls’ on December 2, 2021.  BJRCY is a centrally sponsored scheme for the construction of hostels for students belonging to Scheduled Castes (SC).  Under the scheme, central assistance is provided for construction of new hostel buildings, expansion of existing hostel facilities for SC students, and repair and maintenance of operational hostels.  Key observations and recommendations of the Committee include:Status of hostels and hostel infrastructure:The Committee noted that from 2007-08 to 2020-21, 819 hostels were sanctioned under the scheme.  Of these, 662 hostels (391 for girls, 271 for boys) have been completed, 144 are under construction, and 13 have been cancelled.  Of the completed hostels, 366 (344 for girls, 22 for boys) are functional.  The Committee observed that the scheme had failed to meet its objective of having a hostel in every block headquarter of low literacy districts.The Committee further noted that states/UTs having a relatively larger SC population (such as Punjab and Bihar) had been sanctioned less hostels.  It noted that the facilities available in hostels are not satisfactory.  It recommended: (i) creation of a reliable database of hostels across the country, updated in real-time and monitored at the central level, (ii) conducting an assessment of required hostels in a time bound manner, and (iii) creation of an online portal for submitting proposals under BJRCY.Delay in constructing hostels:BJRCY requires the construction of sanctioned hostels to be completed within a period of two years.  The Committee observed that construction of many hostels has been inordinately delayed.  It recommended the Department of Social Justice and Empowerment to: (i) consider levying penalties for projects delayed beyond the specified period, and (ii) encourage the concerned state/UT governments to submit fresh proposals where hostels have been cancelled.Budgetary allocation:From the financial year 2021-22, BJRCY has been merged with two other schemes of the central government, viz., the Pradhan Mantri Adarsh Gram Yojana (PMAGY), and the Special Central Assistance to the Scheduled Castes Sub-Plan (SCA to SCSP).  These three schemes targeted at the SC population have been merged under a single scheme called the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY).  The Committee observed that the budgetary allocation for PM-AJAY for 2021-22 (Rs 1,800 crore) has been reduced by Rs 160 crore, in comparison to the total allocation for the three merged schemes (considering the actual expenditure under BJRCY) in 2020-21.  It also noted that the separate allocation for boys’ and girls’ hostels under BJRCY has been clubbed into a single reduced allocation since 2019-20.The Committee was of the opinion that specific allocation for BJRCY should have been continued for its independent functioning without getting affected by other schemes.  It asked the Department to justify through data that the new fund arrangement under PM-AJAY is successful for BJRCY.  Further, it recommended that notional allocation be made for BJRCY under the PM-AJAY allocation, including separate allocation for boys’ and girls’ hostels.  Noting that the scheme had not done well so far, the Committee recommended constituting a dedicated body for operating BJRCY (similar, for instance, to that in case of Kendriya Vidyalayas), especially since it will be fully funded by the central government under PM-AJAY.Monitoring and evaluation:Instead of the present system of a Steering Committee (comprising persons such as ex-officio members from the Department) to regularly review progress under the scheme, the Committee recommended constitution of a dedicated Hostel Management/Monitoring Committee, and penal provisions for violating established norms.  It also endorsed incorporation of NITI Aayog’s recommendations with regard to robust monitoring in the scheme guidelines (including submission of yearly action plans by implementing agencies regarding the maintenance of operational hostels).Re-examination of certain proposals/provisions under BJRCY:The Committee recommended the Department to re-submit its proposal to set up residential schools for SC girls under BJRCY, which was not approved by the Expenditure Finance Committee under the Ministry of Finance during 2018-19.  It also recommended re-examination of the provision for central assistance to private institutions and deemed universities (but not NGOs) under BJRCY, after detailed scrutiny of their credentials.  Note that prior to the revision of BJRCY in 2018, such central assistance was available to NGOs, private institutions and deemed universities for expansion of hostels.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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Standing Committee Report SummaryCommittee Report: Review of the Intellectual Property Rights RegimeThe Standing Committee on Commerce (Chair: Mr. Vijayasai Reddy) submitted its report on the subject ‘Review of the Intellectual Property Rights (IPR) Regime in India’.  IPR are rights given to creators of goods gained from scientific development, artistic work, or original research, which give the creators exclusive right over its use for a certain period.  Key observations and recommendations include:Role of IPR:The Committee noted that an improvement in protection of IPR increases Foreign Direct Investment (FDI) and inflow of foreign exchange.  For instance, an improvement of 1% in protection of copyrights increases FDI by 6.8%.Investment in R&D:The Committee noted that India grants a low number of patents (as compared to China and the USA), which can be attributed to low spending on research and development (0.7% of the GDP).  It recommended: (i) allocating funds to each government Departments for research, (ii) providing incentives to private companies for undertaking research, and (iii) directing large industries to give Corporate Social Responsibility funds for research.Encouraging IPR:The Committee noted that only 36% of patents filed in India are filed by domestic entities.   It attributed this to lack of awareness of IPR, and recommended the Department for Promotion of Industry and Internal Trade (DPIIT) to increase awareness among small businesses, artisans, and establishments in remote areas with participation of non-governmental organisation.National IPR Policy, 2016:The Policy was adopted to provide the legal and administrative framework to manage IPR.  The Committee recommended its re-assessment in light of new trends in innovation and to identify challenges in implementation of the policy.  It suggested involving state governments in framing IPR policies.IP Financing:The Committee noted that the use of IP backed financing (use of IP to gain financial benefits, credit or revenue) can enhance financial innovation, availability of credit, and increase capital base.  It recommended: (i) amending the Insurance Act, 1938 to minimise monetary risks from infringement of IPR, (ii) devising a uniform system of valuation of IP, (iii) enacting legislation to protect and determine standards for financing, and (iv) adopting risk-sharing policies with companies.Counterfeiting and piracy:To curb piracy and counterfeiting, the Committee recommended: (i) implementation of stringent legislation through strong inter-Departmental coordination, (ii) increasing the capacity of enforcement agencies (such as IPR cells in the state police), and (iii) establishing a method to estimate revenue loss from it.  It recommended labelling products as ‘patent pending’ (patent applied, but not yet granted) to deter misuse and yield marketing benefits.IP Appellate Board:The Committee noted that the Board had dealt with complex issues on IPR disputes and financing efficiently.  It recommended reconsidering its abolition under the Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021, as this may further increase judicial pendency.  It recommended undertaking a Judicial Impact Assessment and consultations before abolishing it.  It also recommended reforms in the Board, including greater structural autonomy, infrastructural and administrative reforms, and timely appointment of officials and manpower.Regulation:The Committee examined and recommended changes to: (i) the Patent Act, 1970, (ii) the Trademarks Act, 1999, and (iii) the Copyright Act, 1957.  It recommended changes to: (i) encourage registration of patents (by checking on the power to decline patents, and decreasing penalty for furnishing false information), (ii) fast-tracking patent applications (by shortening timelines for filing documents), (iii) prioritising trademarks for export-oriented products by creating a separate category, and (iv) increase compliance (by deploying trained police officers, and streamlining process for search and seizure).  It recommended incorporating work from the internet and digital broadcasters under licenses for copyright.  A separate framework for protecting trade secrets may be established.COVID-19:The Committee recommended waiving off patent rights for COVID-19 related drugs and vaccines temporarily, to address inadequate availability.  It recommended avoiding any delays in invoking compulsory licenses on crucial drugs and vaccines in emergency like situations in the future.Sector-specific recommendations:The Committee recommended creating a separate category of rights for Artificial Intelligence and related innovations, owing to its significant benefits and applications.  It also suggested focusing pharmaceutical research towards niche segments and discovery of new drugs.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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reports
The Standing Committee on Finance (Chairperson: Mr. Yashwant Sinha) presented its report on “Policy on New Licences in the Banking Sector” on October 18, 2013. It reviewed the performance of new banks and the guidelines for setting up of new banks while keeping in mind the objective of financial inclusion. The key observations and recommendations are mentioned below:The Standing Committee on Finance (Chairperson: Mr.YashwantSinha) presented its report on “Policy on New Licences in the Banking Sector” on October 18, 2013.  It reviewed the performance of new banks and the guidelines for setting up of new banks while keeping in mind the objective of financial inclusion. The key observations and recommendations are mentioned below:Issue of licences for establishment of new banks:The Committee noted that the Narasimhan Committee (1991) had recommended that the Reserve Bank of India (RBI) permit establishment of new banks in the private sector.  Following the recommendations, guidelines for licensing of new banks were issued by RBI in 1993 and revised guidelines were issued in January 2001 and February 2013.Out of the four banks established by individuals in 1993, just one has survived while three have either voluntarily merged or have been compulsorily merged due to a decline in their financial health.  The Committeeopined that the 1993 guidelines may not have been adequate to check such decline in financial health of the new banks.Banking licences to large industrial houses:The Committee observed that the 2013 guidelines for banking licences have permitted large industrial houses to apply for banking licenses, contrary to the 2001 guidelines.  It disapproved of RBI’s reasoning for issuing licences to large industrial houses that: (i) capital requirement can be easily provided by them, (ii) they had already been allowed entry into other financial service sectors, and (iii) they have nurtured industrial growth in various highly regulated sectors including telecom, power and highways.  It stated that it would be prudent to keep industry and banking separate since banking is a highly leveraged business involving public money and public welfare.  It expressed concern that industrial houses may not be geared to achieve the objectives of financial inclusion.Fit and proper criteria:At present, under the“fit and proper” criteria, entities applying for a banking licence should have sound credentials and integrity, and should have a successful track record of 10 years.  The Committee opined that a more precise, coherent and objective yardstick should be formulated to assess the credentials of various applicants.Paid up capital:The Committee recommended raising the minimum paid-up capital requirement for new banks from the current Rs 500 crore to Rs 1000 crore.  It opined that starting a bank with Rs 500 crore as capital could limit operations of the bank and that increasing the minimum requirement would also screen out less serious players.Lending norms:The Committee noted that there are no lending norms prescribed in the guidelines with regard to lending to entities associated with the promoters of the banks.  It expressed the need to have clear guidelines regarding the same in order to prevent appropriation of funds to serve the interests of the promoter group.Financial inclusion:The 2013 guidelines require new banks to open at least 25% of their branches in unbanked rural areas.  TheCommittee noted that the existing private sector banks have less than 20% of their branches in such areas.  It recommended that RBI have a mechanism to incentivise expansion of banking in unbanked rural areas.  Further, it proposed that permission for opening new branches be given in lots of four - three branches in urban areas and one in a rural area.Issues related to applications:The Committee proposed that: (i) RBI execute screening and evaluation of applicants in a transparent manner, (ii) RBI respond to applications promptly and inform rejected candidates about the reason for the same within a stipulated time period, and (ii) there be a mechanism to enable aggrieved applicants to seek review of decisions of RBI.
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reports
Standing Committee Report SummaryThe Standing Committee on Labour (Chair: Dr. Kirit Somaiya) submitted its report on ‘Safety, Security and Welfare of TV/Broadcasting / Digital Entertainment/Advertisement Industry Workers’ on December 17, 2018. The Committee noted in that in the recent past, there has been a high growth in television and digital entertainment sector.  However, the workers in this industry have not been able to secure coverage under existing labour laws.Coverage: The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 Act regulates the conditions of employment of certain cine-workers and cinema theatre workers.   The Committee noted that the Act did not include workers in the television /broadcasting/digital entertainment industry (‘Industry’).   The Committee noted that this had led to these workers being vulnerable since no specific safeguards are present in labour laws with regard to the terms and conditions of employment, payment of wages and provisions of other amenities to low paid artists and technicians engaged in the Industry.The Committee noted that there is a consensus amongst the Ministry of Labour & Employment and the Ministry of Information & Broadcasting (I&B) that workers in the Industry should also be included in the Act. Therefore, it recommended that the Act be suitably amended to include Industry workers under its ambit.Increase in remuneration: The Committee observed that the remuneration of Cine Workers has been increased to an amount of up to Rs. 8,000 per month, or up to one lakh rupees, where it is paid in lump sum or instalments.  However, the Committee was of the opinion that this amount is meagre.  It recommended that the remuneration be revised to Rs. 16,000 per month, or two lakh rupees if paid in lump sum or in instalments.Oversight and Regulation:The Committee observed that the central government has delegated all the powers exercisable by it under the Act, to the state government, except the power to make rules.  However, the Committee, stated that the Ministry of Labour & Employment is the nodal Ministry under the provisions of the said Act and must ensure proper implementation of the Act, in conjunction with all stakeholders, like state governments.  It recommended that the Ministry of Labour % Employment and Ministry of I&B jointly institute a regulatory mechanism in due time to ensure proper implementation of the Act.National survey of workers: The Committee noted that most of the workers in the Industry in the country are working on ‘piece rate basis’.  This has resulted in problems with identification of these workers.  The Committee, recommended that the Ministry of Labour & Employment and Ministry of Information jointly carry out a nation-wide survey of these workers.Poor Infrastructure: The Committee noted that the condition of studios, in terms of civic amenities, was poor.  It recommended that both the Ministries of Labour and Information & Broadcasting work with all concerned agencies, who accord statutory clearances to studios, to ensure that infrastructure of all studios is up to the mark.  This will ensure that the safety and welfare concerns of all people involved in the Industry is adequately taken care of.Safeguards for women workers: The Committee noted that the Act does not contain any specific provision for the safety and security of women working in the Industry. It recommended that the Ministry of Labour & Employment institute specific safeguards catering to the safety and security of female workers in due time and come up with stringent penal provisions that would act as a deterrent.DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”).  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it.
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constitution
# The Constitution Of India [*As on May*, 2022] # 2022 ## Preface This is the fifth pocket size edition of the Constitution of India in the diglot form. In this edition, the text of the Constitution of India has been brought up-to-date by incorporating therein all the amendments up to the Constitution (One Hundred and Fifth Amendment) Act, 2021. The foot notes below the text indicate the Constitution Amendment Acts by which such amendments have been made. The Constitution (One Hundredth Amendment) Act, 2015 containing details of acquired and transferred territories between the Governments of India and Bangladesh has been provided in APPENDIX I. The Constitution (Application to Jammu and Kashmir) Order, 2019 and the declaration under article 370(3) of the Constitution have been provided respectively in Appendix II and Appendix III for reference. New Delhi; Dr. Reeta Vasishta, *Secretary to the Government of India.* ## Art., arts. ........................................................ *for* Article, articles. | Cl., cls | ″ | Clause, clauses. | |---------------------|-----|------------------------| | C.O | ″ | Constitution Order. | | Ins | ″ | Inserted. | | P., pp | ″ | Page, pages. | | Pt | ″ | Part. | | Rep | ″ | Repealed. | | Ss., ss | ″ | Section, sections. | | Sch | ″ | Schedule. | | Subs | ″ | Substituted. | | w.e.f | ″ | with effect from. | | w.r.e.f | ″ | with | | r | | | | etrospective effect | | | from. ## Contents __________ PREAMBLE ## Part I The Union And Its Territory ARTICLES 1. Name and territory of the Union. 2. Admission or establishment of new States. [2A. Sikkim to be associated with the Union.—*Omitted.*] 3. Formation of new States and alteration of areas, boundaries or names of existing States. 4. Laws made under articles 2 and 3 to provide for the amendment of the First and the Fourth Schedules and supplemental, incidental and consequential matters. ## Part Ii Citizenship 5. Citizenship at the commencement of the Constitution. 6. Rights of citizenship of certain persons who have migrated to India from Pakistan. 7. Rights of citizenship of certain migrants to Pakistan. 8. Rights of citizenship of certain persons of Indian origin residing outside India. 9. Persons voluntarily acquiring citizenship of a foreign State not to be citizens. 10. Continuance of the rights of citizenship. 11. Parliament to regulate the right of citizenship by law. ## Part Iii Fundamental Rights General 12. Definition. 13. Laws inconsistent with or in derogation of the fundamental rights. Right to Equality 14. Equality before law. 15. Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth. 16. Equality of opportunity in matters of public employment. 17. Abolition of Untouchability. 18. Abolition of titles. Right to Freedom 19. Protection of certain rights regarding freedom of speech, etc. 20. Protection in respect of conviction for offences. 21. Protection of life and personal liberty. 21A. Right to education. 22. Protection against arrest and detention in certain cases. Right against Exploitation 23. Prohibition of traffic in human beings and forced labour. 24. Prohibition of employment of children in factories, etc. Right to Freedom of Religion 25. Freedom of conscience and free profession, practice and propagation of religion. 26. Freedom to manage religious affairs. 27. Freedom as to payment of taxes for promotion of any particular religion. 28. Freedom as to attendance at religious instruction or religious worship in certain educational institutions. ## Articles Cultural And Educational Rights 29. Protection of interests of minorities. 30. Right of minorities to establish and administer educational institutions. [31. Compulsory acquisition of property. —*Omitted*.] Saving of Certain Laws 31A. Saving of Laws providing for acquisition of estates, etc. 31B. Validation of certain Acts and Regulations. 31C. Saving of laws giving effect to certain directive principles. [31D. Saving of laws in respect of anti-national activities.—*Omitted.*] Right to Constitutional Remedies 32. Remedies for enforcement of rights conferred by this Part. [32A. Constitutional validity of State laws not to be considered in proceedings under article 32.—*Omitted.*] 33. Power of Parliament to modify the rights conferred by this Part in their application to Forces, etc. 34. Restriction on rights conferred by this Part while martial law is in force in any area. 35. Legislation to give effect to the provisions of this Part. ## Part Iv Directive Principles Of State Policy 36. Definition. 37. Application of the principles contained in this Part. 38. State to secure a social order for the promotion of welfare of the people. 39. Certain principles of policy to be followed by the State. 39A. Equal justice and free legal aid. ## Articles 40. Organisation of village panchayats. 41. Right to work, to education and to public assistance in certain cases. 42. Provision for just and humane conditions of work and maternity relief. 43. Living wage, etc., for workers. 43A. Participation of workers in management of Industries. 43B. Promotion of co-operative societies. 44. Uniform civil code for the citizens. 45. Provision for early childhood care and education to children below the age of six years. 46. Promotion of educational and economic interests of Scheduled Castes, Scheduled Tribes and other weaker sections. 47. Duty of the State to raise the level of nutrition and the standard of living and to improve public health. 48. Organisation of agriculture and animal husbandry. 48A. Protection and improvement of environment and safeguarding of forests and wild life. 49. Protection of monuments and places and objects of national importance. 50. Separation of judiciary from executive. 51. Promotion of international peace and security. ## Part Iva Fundamental Duties 51A. Fundamental duties. ## Part V The Union ## Chapter I.The Executive The President And Vice-President 52. The President of India. 53. Executive power of the Union. 54. Election of President. ## Articles 55. Manner of election of President. 56. Term of office of President. 57. Eligibility for re-election. 58. Qualifications for election as President. 59. Conditions of President's office. 60. Oath or affirmation by the President. 61. Procedure for impeachment of the President. 62. Time of holding election to fill vacancy in the office of President and the term of office of person elected to fill casual vacancy. 63. The Vice-President of India. 64. The Vice-President to be *ex officio* Chairman of the Council of States. 65. The Vice-President to act as President or to discharge his functions during casual vacancies in the office, or during the absence, of President. 66. Election of Vice-President. 67. Term of office of Vice-President. 68. Time of holding election to fill vacancy in the office of Vice-President and the term of office of person elected to fill casual vacancy. 69. Oath or affirmation by the Vice-President. 70. Discharge of President's functions in other contingencies. 71. Matters relating to, or connected with, the election of a President or Vice-President. 72. Power of President to grant pardons, etc., and to suspend, remit or commute sentences in certain cases. 73. Extent of executive power of the Union. Council of Ministers 74. Council of Ministers to aid and advise President. 75. Other provisions as to Ministers. The Attorney-General for India 76. Attorney-General for India. ## Articles Conduct Of Government Business 77. Conduct of business of the Government of India. 78. Duties of Prime Minister as respects the furnishing of information to the President, etc. ## Chapter Ii.Parliament General 79. Constitution of Parliament. 80. Composition of the Council of States. 81. Composition of the House of the People. 82. Readjustment after each census. 83. Duration of Houses of Parliament. 84. Qualification for membership of Parliament. 85. Sessions of Parliament, prorogation and dissolution. 86. Right of President to address and send messages to Houses. 87. Special address by the President. 88. Rights of Ministers and Attorney-General as respects Houses. ## Officers Of Parliament 89. The Chairman and Deputy Chairman of the Council of States. 90. Vacation and resignation of, and removal from, the office of Deputy Chairman. 91. Power of the Deputy Chairman or other person to perform the duties of the office of, or to act as, Chairman. 92. The Chairman or the Deputy Chairman not to preside while a resolution for his removal from office is under consideration. 93. The Speaker and Deputy Speaker of the House of the People. 94. Vacation and resignation of, and removal from, the offices of Speaker and Deputy Speaker. 95. Power of the Deputy Speaker or other person to perform the duties of the office of, or to act as, Speaker. ## Articles 96. The Speaker or the Deputy Speaker not to preside while a resolution for his removal from office is under consideration. 97. Salaries and allowances of the Chairman and Deputy Chairman and the Speaker and Deputy Speaker. 98. Secretariat of Parliament. ## Conduct Of Business 99. Oath or affirmation by members. 100. Voting in Houses, power of Houses to act notwithstanding vacancies and quorum. ## Disqualifications Of Members 101. Vacation of seats. 102. Disqualifications for membership. 103. Decision on questions as to disqualifications of members. 104. Penalty for sitting and voting before making oath or affirmation under article 99 or when not qualified or when disqualified. Powers, Privileges and Immunities of Parliament and its Members 105. Powers, privileges, etc., of the Houses of Parliament and of the members and committees thereof. 106. Salaries and allowances of members. Legislative Procedure 107. Provisions as to introduction and passing of Bills. 108. Joint sitting of both Houses in certain cases. 109. Special procedure in respect of Money Bills. 110. Definition of "Money Bills". 111. Assent to Bills. Procedure in Financial Matters 112. Annual financial statement. 113. Procedure in Parliament with respect to estimates. 114. Appropriation Bills. ## Articles 115. Supplementary, additional or excess grants. 116. Votes on account, votes of credit and exceptional grants. 117. Special provisions as to financial Bills. Procedure Generally 118. Rules of procedure. 119. Regulation by law of procedure in Parliament in relation to financial business. 120. Language to be used in Parliament. 121. Restriction on discussion in Parliament. 122. Courts not to inquire into proceedings of Parliament. ## Chapter Iii.Legislative Powers Of The President 123. Power of President to promulgate Ordinances during recess of Parliament. ## Chapter Iv. The Union Judiciary 124. Establishment and constitution of the Supreme Court. 124A. National Judicial Appointments Commission. 124B. Functions of Commission. 124C. Power of Parliament to make law. 125. Salaries, etc., of Judges. 126. Appointment of acting Chief Justice. 127. Appointment of *ad hoc* Judges. 128. Attendance of retired Judges at sittings of the Supreme Court. 129. Supreme Court to be a court of record. 130. Seat of Supreme Court. 131. Original jurisdiction of the Supreme Court. [131A. Exclusive jurisdiction of the Supreme Court in regard to questions as to constitutional validity of Central laws.*Omitted*.] 132. Appellate jurisdiction of the Supreme Court in appeals from High Courts in certain cases. 133. Appellate jurisdiction of the Supreme Court in appeals from High Courts in regard to civil matters. 134. Appellate jurisdiction of the Supreme Court in regard to criminal matters. ## Articles 134A. Certificate for appeal to the Supreme Court. 135. Jurisdiction and powers of the Federal Court under existing law to be exercisable by the Supreme Court. 136. Special leave to appeal by the Supreme Court. 137. Review of judgments or orders by the Supreme Court. 138. Enlargement of the jurisdiction of the Supreme Court. 139. Conferment on the Supreme Court of powers to issue certain writs. 139A. Transfer of certain cases. 140. Ancillary powers of the Supreme Court. 141. Law declared by Supreme Court to be binding on all courts. 142. Enforcement of decrees and orders of the Supreme Court and orders as to discovery, etc. 143. Power of the President to consult the Supreme Court. 144. Civil and judicial authorities to act in aid of the Supreme Court. [144A. Special provisions as to disposal of questions relating to constitutional validity of laws.*Omitted*.] 145. Rules of Court, etc. 146. Officers and servants and the expenses of the Supreme Court. 147. Interpretation. ## Chapter V.Comptroller And Auditor- General Of India 148. Comptroller and Auditor-General of India. 149. Duties and powers of the Comptroller and Auditor-General. 150. Form of accounts of the Union and of the States. 151. Audit reports. ## Part Vi The States Chapter I. General 152. Definition. ## Articles Chapter Ii. The Executive The Governor 153. Governors of States. 154. Executive power of State. 155. Appointment of Governor. 156. Term of office of Governor. 157. Qualifications for appointment as Governor. 158. Conditions of Governor's office. 159. Oath or affirmation by the Governor. 160. Discharge of the functions of the Governor in certain contingencies. 161. Power of Governor to grant pardons, etc., and to suspend, remit or commute sentences in certain cases. 162. Extent of executive power of the State. Council of Ministers 163. Council of Ministers to aid and advise Governor. 164. Other provisions as to Ministers. The Advocate-General for the State 165. Advocate-General for the State. Conduct of Government Business 166. Conduct of business of the Government of a State. 167. Duties of Chief Minister as respects the furnishing of information to Governor, etc. ## Chapter Iii.The State Legislature General 168. Constitution of Legislatures in States. 169. Abolition or creation of Legislative Councils in States. 170. Composition of the Legislative Assemblies. ## Articles 171. Composition of the Legislative Councils. 172. Duration of State Legislatures. 173. Qualification for membership of the State Legislature. 174. Sessions of the State Legislature, prorogation and dissolution. 175. Right of Governor to address and send messages to the House or Houses. 176. Special address by the Governor. 177. Rights of Ministers and Advocate-General as respects the Houses. Officers of the State Legislature 178. The Speaker and Deputy Speaker of the Legislative Assembly. 179. Vacation and resignation of, and removal from, the offices of Speaker and Deputy Speaker. 180. Power of the Deputy Speaker or other person to perform the duties of the office of, or to act as, Speaker. 181. The Speaker or the Deputy Speaker not to preside while a resolution for his removal from office is under consideration. 182. The Chairman and Deputy Chairman of the Legislative Council. 183. Vacation and resignation of, and removal from, the offices of Chairman and Deputy Chairman. 184. Power of the Deputy Chairman or other person to perform the duties of the office of, or to act as, Chairman. 185. The Chairman or the Deputy Chairman not to preside while a resolution for his removal from office is under consideration. 186. Salaries and allowances of the Speaker and Deputy Speaker and the Chairman and Deputy Chairman. 187. Secretariat of State Legislature. Conduct of Business 188. Oath or affirmation by members. 189. Voting in Houses, power of Houses to act notwithstanding vacancies and quorum. Disqualifications of Members 190. Vacation of seats. ## Articles 191. Disqualifications for membership. 192. Decision on questions as to disqualifications of members. 193. Penalty for sitting and voting before making oath or affirmation under article 188 or when not qualified or when disqualified. Powers, privileges and immunities of State Legislatures and their Members 194. Powers, privileges, etc., of the Houses of Legislatures and of the members and committees thereof. 195. Salaries and allowances of members. Legislative Procedure 196. Provisions as to introduction and passing of Bills. 197. Restriction on powers of Legislative Council as to Bills other than Money Bills. 198. Special procedure in respect of Money Bills. 199. Definition of "Money Bills". 200. Assent to Bills. 201. Bills reserved for consideration. Procedure in Financial Matters 202. Annual financial statement. 203. Procedure in Legislature with respect to estimates. 204. Appropriation Bills. 205. Supplementary, additional or excess grants. 206. Votes on account, votes of credit and exceptional grants. 207. Special provisions as to financial Bills. Procedure Generally 208. Rules of procedure. 209. Regulation by law of procedure in the Legislature of the State in relation to financial business. ## Articles 210. Language to be used in the Legislature. 211. Restriction on discussion in the Legislature. 212. Courts not to inquire into proceedings of the Legislature. ## Chapter Iv.Legislative Power Of The Governor 213. Power of Governor to promulgate Ordinances during recess of Legislature. ## Chapter V.The High Courts In The States 214. High Courts for States. 215. High Courts to be courts of record. 216. Constitution of High Courts. 217. Appointment and conditions of the office of a Judge of a High Court. 218. Application of certain provisions relating to Supreme Court to High Courts. 219. Oath or affirmation by Judges of High Courts. 220. Restriction on practice after being a permanent Judge. 221. Salaries, etc., of Judges. 222. Transfer of a Judge from one High Court to another. 223. Appointment of acting Chief Justice. 224. Appointment of additional and acting Judges. 224A. Appointment of retired Judges at sittings of High Courts. 225. Jurisdiction of existing High Courts. 226. Power of High Courts to issue certain writs. [226A. Constitutional validity of Central laws not to be considered in proceedings under article 226.*Omitted.*] 227. Power of superintendence over all courts by the High Court. 228. Transfer of certain cases to High Court. [228A. Special provisions as to disposal of questions relating to constitutional validity of State laws.*Omitted.*] ## Articles 229. Officers and servants and the expenses of High Courts. 230. Extension of jurisdiction of High Courts to Union territories. 231. Establishment of a common High Court for two or more States. [232. Articles 230, 231 and 232 substituted by articles 230 and 231]. CHAPTER VI.SUBORDINATE COURTS 233. Appointment of district judges. 233A. Validation of appointments of, and judgments, etc., delivered by, certain district judges. 234. Recruitment of persons other than district judges to the judicial service. 235. Control over subordinate courts. 236. Interpretation. 237. Application of the provisions of this Chapter to certain class or classes of magistrates. [PART VII.—Omitted] THE STATES IN PART B OF THE FIRST SCHEDULE [238. Omitted.] PART VIII ## The Union Territories 239. Administration of Union territories. 239A. Creation of local Legislatures or Council of Ministers or both for certain Union territories. 239AA. Special provisions with respect to Delhi. 239AB. Provision in case of failure of constitutional machinery. 239B. Power of administrator to promulgate Ordinances during recess of Legislature. 240. Power of President to make regulations for certain Union territories. 241. High Courts for Union territories. [242. Coorg.*Omitted.*] PART IX ## The Panchayats 243. Definitions. ## Articles | 243A. | Gram Sabha. | |--------------------------------------------------------|----------------------------------------------------------| | 243B. | Constitution of Panchayats. | | 243C. | Composition of Panchayats. | | 243D. | Reservation of seats. | | 243E. | Duration of Panchayats, etc. | | 243F. | Disqualifications for membership. | | 243G. | Powers, authority and responsibilities of Panchayats. | | 243H. | Powers to impose taxes by, and Funds of, the Panchayats. | | 243-I. | | | Constitution of Finance Commission to review financial | | | position. | | | 243J. | Audit of accounts of Panchayats. | | 243K. | Elections to the Panchayats. | | 243L. | Application to Union territories. | 243M. Part not to apply to certain areas. 243N. Continuance of existing laws and Panchayats. 243-O. Bar to interference by courts in electoral matters. PART IXA ## The Municipalities | 243P. | Definitions. | |----------|----------------------------------------------------------------| | 243Q. | Constitution of Municipalities. | | 243R. | Composition of Municipalities. | | 243S. | Constitution and composition of Wards Committees, etc. | | 243T. | Reservation of seats. | | 243U. | Duration of Municipalities, etc. | | 243V. | Disqualifications for membership. | | 243W. | Powers, authority and responsibilities of Municipalities, etc. | | 243X. | Power to impose taxes by, and Funds of, the Municipalities. | | 243Y. | Finance Commission. | ARTICLES 243Z. Audit of accounts of Municipalities. 243ZA. Elections to the Municipalities. 243ZB. Application to Union territories. 243ZC. Part not to apply to certain areas. 243ZD. Committee for district planning. 243ZE. Committee for Metropolitan planning. 243ZF. Continuance of existing laws and Municipalities. 243ZG. Bar to interference by courts in electoral matters. ## Part Ixb The Co-Operative Societies 243ZH. Definitions. 243Z-I. Incorporation of co-operative societies. 243ZJ. Number and term of members of board and its office bearers. 243ZK. Election of members of board. 243ZL. Supersession and suspension of board and interim management. 243ZM. Audit of accounts of co-operative societies. 243ZN. Convening of general body meetings. 243Z-O. Right of a member to get information. 243ZP. Returns. 243ZQ. Offences and penalties. 243ZR. Application to multi-State co-operative societies. 243ZS. Application to Union territories. 243ZT. Continuance of existing laws. ## **Part X** The Scheduled And Tribal Areas 244. Administration of Scheduled Areas and Tribal Areas. 244A. Formation of an autonomous State comprising certain tribal areas in Assam and creation of local Legislature or Council of Ministers or both therefor. ## Part Xi Relations Between The Union And The States Chapter I.Legislative Relations Distribution Of Legislative Powers 245. Extent of laws made by Parliament and by the Legislatures of States. 246. Subject-matter of laws made by Parliament and by the Legislatures of States. 246A. Special provision with respect to goods and services tax. 247. Power of Parliament to provide for the establishment of certain additional courts. 248. Residuary powers of legislation. 249. Power of Parliament to legislate with respect to a matter in the State List in the national interest. 250. Power of Parliament to legislate with respect to any matter in the State List if a Proclamation of Emergency is in operation. 251. Inconsistency between laws made by Parliament under articles 249 and 250 and laws made by the Legislatures of States. 252. Power of Parliament to legislate for two or more States by consent and adoption of such legislation by any other State. 253. Legislation for giving effect to international agreements. 254. Inconsistency between laws made by Parliament and laws made by the Legislatures of States. 255. Requirements as to recommendations and previous sanctions to be regarded as matters of procedure only. ## Chapter Ii. Administrative Relations General 256. Obligation of States and the Union. 257. Control of the Union over States in certain cases. [257A. Assistance to States by deployment of armed forces or other forces of the Union.*Omitted.*] 258. Power of the Union to confer powers, etc., on States in certain cases. ## Articles 258A. Power of the States to entrust functions to the Union. [259. Armed Forces in States in Part B of the First Schedule.*Omitted.*] 260. Jurisdiction of the Union in relation to territories outside India. 261. Public acts, records and judicial proceedings. Disputes relating to Waters 262. Adjudication of disputes relating to waters of inter-State rivers or river valleys. Co-ordination between States 263. Provisions with respect to an inter-State Council. ## Part Xii Finance, Property, Contracts And Suits Chapter I.Finance General 264. Interpretation. 265. Taxes not to be imposed save by authority of law. 266. Consolidated Funds and public accounts of India and of the States. 267. Contingency Fund. Distribution of Revenues between the Union and the States 268. Duties levied by the Union but collected and appropriated by the States. [268A. Service tax levied by Union and collected by the Union and the States.*Omitted.]* 269. Taxes levied and collected by the Union but assigned to the States. 269A. Levy and collection of goods and services tax in course of inter- State trade or commerce. 270. Taxes levied and distributed between the Union and the States. 271. Surcharge on certain duties and taxes for purposes of the Union. [272. Taxes which are levied and collected by the Union and may be distributed between the Union and the States.*Omitted.*] 273. Grants in lieu of export duty on jute and jute products. 274. Prior recommendation of President required to Bills affecting taxation in which States are interested. ## Articles 275. Grants from the Union to certain States. 276. Taxes on professions, trades, callings and employments. 277. Savings. [278. Agreement with States in Part B of the First Schedule with regard to certain financial matters.*Omitted.*] 279. Calculation of "net proceeds", etc. 279A. Goods and Services Tax Council. 280. Finance Commission. 281. Recommendations of the Finance Commission. ## Miscellaneous Financial Provisions 282. Expenditure defrayable by the Union or a State out of its revenues. 283. Custody, etc., of Consolidated Funds, Contingency Funds and moneys credited to the public accounts. 284. Custody of suitors' deposits and other moneys received by public servants and courts. 285. Exemption of property of the Union from State taxation. 286. Restrictions as to imposition of tax on the sale or purchase of goods. 287. Exemption from taxes on electricity. 288. Exemption from taxation by States in respect of water or electricity in certain cases. 289. Exemption of property and income of a State from Union taxation. 290. Adjustment in respect of certain expenses and pensions. 290A. Annual payment to certain Devaswom Funds. [291. Privy purse sums of Rulers.*Omitted*.] ## Chapter Ii. Borrowing 292. Borrowing by the Government of India. 293. Borrowing by States. ## Articles Chapter Iii. Property, Contracts, Rights, Liabilities, Obligations And Suits 294. Succession to property, assets, rights, liabilities and obligations in certain cases. 295. Succession to property, assets, rights, liabilities and obligations in other cases. 296. Property accruing by escheat or lapse or as *bona vacantia.* 297. Things of value within territorial waters or continental shelf and resources of the exclusive economic zone to vest in the Union. 298. Power to carry on trade, etc. 299. Contracts. 300. Suits and proceedings. ## Chapter Iv. Right To Property 300A. Persons not to be deprived of property save by authority of law. ## Part Xiii Trade, Commerce And Intercourse Within The Territory Of India 301. Freedom of trade, commerce and intercourse. 302. Power of Parliament to impose restrictions on trade, commerce and intercourse. 303. Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce. 304. Restrictions on trade, commerce and intercourse among States. 305. Saving of existing laws and laws providing for State monopolies. [306. Power of certain States in Part B of the First Schedule to impose restrictions on trade and commerce.*Omitted*] 307. Appointment of authority for carrying out the purposes of articles 301 to 304. ## Part Xiv Services Under The Union And The States Chapter I. Services 308. Interpretation. ## Articles 309. Recruitment and conditions of service of persons serving the Union or a State. 310. Tenure of office of persons serving the Union or a State. 311. Dismissal, removal or reduction in rank of persons employed in civil capacities under the Union or a State. 312. All-India services. 312A. Power of Parliament to vary or revoke conditions of service of officers of certain services. 313. Transitional provisions. [314. Provision for protection of existing officers of certain services. Omitted.] ## Chapter Ii.—Public Service Commissions 315. Public Service Commissions for the Union and for the States. 316. Appointment and term of office of members. 317. Removal and suspension of a member of a Public Service Commission. 318. Power to make regulations as to conditions of service of members and staff of the Commission. 319. Prohibition as to the holding of offices by members of Commission on ceasing to be such members. 320. Functions of Public Service Commissions. 321. Power to extend functions of Public Service Commissions. 322. Expenses of Public Service Commissions. 323. Reports of Public Service Commissions. ## Part Xiva Tribunals 323A. Administrative tribunals. 323B. Tribunals for other matters. ## Articles Part Xv Elections 324. Superintendence, direction and control of elections to be vested in an Election Commission. 325. No person to be ineligible for inclusion in, or to claim to be included in a special, electoral roll on grounds of religion, race, caste or sex. 326. Elections to the House of the People and to the Legislative Assemblies of States to be on the basis of adult suffrage. 327. Power of Parliament to make provision with respect to elections to Legislatures. 328. Power of Legislature of a State to make provision with respect to elections to such Legislature. 329. Bar to interference by courts in electoral matters. [329A. Special provision as to elections to Parliament in the case of Prime Minister and Speaker.*Omitted.*] ## Part Xvi Special Provisions Relating To Certain Classes 330. Reservation of seats for Scheduled Castes and Scheduled Tribes in the House of the People. 331. Representation of the Anglo-Indian community in the House of the People. 332. Reservation of seats for Scheduled Castes and Scheduled Tribes in the Legislative Assemblies of the States. 333. Representation of the Anglo-Indian community in the Legislative Assemblies of the States. 334. Reservation of seats and special representation to cease after certain period. 335. Claims of Scheduled Castes and Scheduled Tribes to services and posts. 336. Special provision for Anglo-Indian community in certain services. 337. Special provision with respect to educational grants for the benefit of Anglo-Indian Community. ARTICLES 338. National Commission for Scheduled Castes. 338A. National Commission for Scheduled Tribes. 338B. National Commission for Backward Classes. 339. Control of the Union over the administration of Scheduled Areas and the welfare of Scheduled Tribes. 340. Appointment of a Commission to investigate the conditions of backward classes. 341. Scheduled Castes. 342. Scheduled Tribes. 342A. Socially and educationally backward classes. ## Part Xvii Official Language Chapter I.—Language Of The Union 343. Official language of the Union. 344. Commission and Committee of Parliament on official language. ## Chapter Ii. Regional Languages 345. Official language or languages of a State. 346. Official language for communication between one State and another or between a State and the Union. 347. Special provision relating to language spoken by a section of the population of a State. ## Chapter Iii.Language Of The Supreme Court, High Courts, Etc. 348. Language to be used in the Supreme Court and in the High Courts and for Acts, Bills, etc. 349. Special procedure for enactment of certain laws relating to language. ## Chapter Iv.Special Directives 350. Language to be used in representations for redress of grievances. 350A. Facilities for instruction in mother-tongue at primary stage. ARTICLES 350B. Special Officer for linguistic minorities. 351. Directive for development of the Hindi language. ## Part Xviii Emergency Provisions 352. Proclamation of Emergency. 353. Effect of Proclamation of Emergency. 354. Application of provisions relating to distribution of revenues while a Proclamation of Emergency is in operation. 355. Duty of the Union to protect States against external aggression and internal disturbance. 356. Provisions in case of failure of constitutional machinery in States. 357. Exercise of legislative powers under Proclamation issued under article 356. 358. Suspension of provisions of article 19 during emergencies. 359. Suspension of the enforcement of the rights conferred by Part III during emergencies. [359A. Application of this Part to the State of Punjab.*Omitted.*] 360. Provisions as to financial emergency. ## Part Xix Miscellaneous 361. Protection of President and Governors and Rajpramukhs. 361A. Protection of publication of proceedings of Parliament and State Legislatures. 361B. Disqualification for appointment on remunerative political post. [362. Rights and privileges of Rulers of Indian States.*Omitted.*] 363. Bar to interference by courts in disputes arising out of certain treaties, agreements, etc. 363A. Recognition granted to Rulers of Indian States to cease and privy purses to be abolished. 364. Special provisions as to major ports and aerodromes. 365. Effect of failure to comply with, or to give effect to, directions given by the Union. ## Articles 366. Definitions. 367. Interpretation. ## Part Xx Amendment Of The Constitution 368. Power of Parliament to amend the Constitution and procedure therefor. ## Part Xxi Temporary, Transitional And Special Provisions 369. Temporary power to Parliament to make laws with respect to certain matters in the State List as if they were matters in the Concurrent List. 370. Temporary provisions with respect to the State of Jammu and Kashmir. 371. Special provision with respect to the States of Maharashtra and Gujarat. 371A. Special provision with respect to the State of Nagaland. 371B . Special provision with respect to the State of Assam. 371C. Special provision with respect to the State of Manipur. 371D. Special provisions with respect to the State of Andhra Pradesh or the State of Telangana. 371E. Establishment of Central University in Andhra Pradesh. 371F. Special provisions with respect to the State of Sikkim. 371G. Special provision with respect to the State of Mizoram. 371H. Special provision with respect to the State of Arunachal Pradesh. 371-I. Special provision with respect to the State of Goa. 371J. Special provisions with respect to the State of Karnataka. 372. Continuance in force of existing laws and their adaptation. 372A. Power of the President to adapt laws. 373. Power of President to make order in respect of persons under preventive detention in certain cases. 374. Provisions as to Judges of the Federal Court and proceedings pending in the Federal Court or before His Majesty in Council. ## Articles 375. Courts, authorities and officers to continue to function subject to the provisions of the Constitution. 376. Provisions as to Judges of High Courts. 377. Provisions as to Comptroller and Auditor-General of India. 378. Provisions as to Public Service Commissions. 378A. Special provision as to duration of Andhra Pradesh Legislative Assembly. [379. Provisions as to provisional Parliament and the Speaker and Deputy Speaker thereof.*Omitted.*] [380. Provision as to President. *Omitted.*] [381. Council of Ministers of the President.*Omitted.*] [382. Provisions as to provisional Legislatures for States in Part A of the First Schedule. *-- Omitted.*] [383. Provision as to Governors of Provinces. *-- Omitted.*] [384. Council of Ministers of the Governors.*Omitted.*] [385. Provision as to provisional Legislatures in States in Part B of the First Schedule.*Omitted.*] [386. Council of Ministers for States in Part B of the First Schedule. - - Omitted.] [387. Special provision as to determination of population for the purposes of certain elections.*Omitted.*] [388. Provisions as to the filling of casual vacancies in the provisional Parliament and provisional Legislatures of the States. Omitted.] [389. Provision as to Bills pending in the Dominion Legislatures and in the Legislatures of Provinces and Indian States.*Omitted.*] [390. Money received or raised or expenditure incurred between the commencement of the Constitution and the 31st day of March, 1950. *Omitted.*] ## Articles [391. Power of the President to amend the First and Fourth Schedules in certain contingencies.*Omitted.*] 392. Power of the President to remove difficulties. ## Part Xxii Short Title, Commencement, Authoritative Text In Hindi And Repeals 393. Short title. 394. Commencement. 394A. Authoritative text in the Hindi language. 395. Repeals. ## Schedules First Schedule I. —The States. II. —The Union territories. ## Second Schedule PART A—Provisions as to the President and the Governors of States. PART B— [Omitted.] PART C—Provisions as to the Speaker and the Deputy Speaker of the House of the People and the Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of the Legislative Assembly and the Chairman and the Deputy Chairman of the Legislative Council of a State. PART D— Provisions as to the Judges of the Supreme Court and of the High Courts. PART E— Provisions as to the Comptroller and Auditor-General of India. THIRD SCHEDULE— Forms of Oaths or Affirmations. FOURTH SCHEDULE—Allocation of seats in the Council of States. ## Articles FIFTH SCHEDULE— Provisions as to the Administration and Control of Scheduled Areas and Scheduled Tribes PART A—General. PART B—Administration and Control of Scheduled Areas and Scheduled Tribes. PART C— Scheduled Areas. PART D—Amendment of the Schedule. SIXTH SCHEDULE— Provisions as to the Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram. SEVENTH SCHEDULE— List I - Union List. List II— State List. List III— Concurrent List. EIGHTH SCHEDULE— Languages. NINTH SCHEDULE—Validation of certain Acts and Regulations. TENTH SCHEDULE— Provisions as to disqualification on ground of defection. ELEVENTH SCHEDULE— Powers, authority and responsibilities of Panchayats. TWELFTH SCHEDULE— Powers, authority and responsibilities of Municipalities, etc. ## Appendices APPENDIX I.—The Constitution (One Hundredth Amendment) Act, 2015. APPENDIX II.—The Constitution (Application to Jammu and Kashmir) Order, 2019. APPENDIX III.— Declaration under article 370(3) of the Constitution. ## The Constitution Of India Preamble WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a 1[SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC] and to secure to all its citizens: JUSTICE, social, economic and political; LIBERTY of thought, expression, belief, faith and worship; EQUALITY of status and of opportunity; and to promote among them all FRATERNITY assuring the dignity of the individual and the 2[unity and integrity of the Nation]; IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION. ______________________________________________ ## Part I The Union And Its Territory 1. Name and territory of the Union.—(1) India, that is Bharat, shall be a Union of States. 1[(2) The States and the territories thereof shall be as specified in the First Schedule.] (3) The territory of India shall comprise— (a) the territories of the States; 2[(b) the Union territories specified in the First Schedule; and] (c) such other territories as may be acquired. 2. Admission or establishment of new States.—Parliament may by law admit into the Union, or establish, new States on such terms and conditions as it thinks fit. 3[2A. [*Sikkim to be associated with the Union.*].—Omitted by the Constitution (Thirty-sixth Amendment) *Act,* 1975, s. 5 (*w.e.f.* 26-4-1975).] 3. Formation of new States and alteration of areas, boundaries or names of existing States.—Parliament may by law— (a) form a new State by separation of territory from any State or by uniting two or more States or parts of States or by uniting any territory to a part of any State; (b) increase the area of any State; (c) diminish the area of any State; (d) alter the boundaries of any State; (e) alter the name of any State: 1[Provided that no Bill for the purpose shall be introduced in either House of Parliament except on the recommendation of the ______________________________________________ ## (Part I.—Union And Its Territory) President and unless, where the proposal contained in the Bill affects the area, boundaries or name of any of the States 2***, the Bill has been referred by the President to the Legislature of that State for expressing its views thereon within such period as may be specified in the reference or within such further period as the President may allow and the period so specified or allowed has expired.] 3[*Explanation I.*—In this article, in clauses (a) to (e), "State" includes a Union territory, but in the proviso, "State" does not include a Union territory. Explanation II.—The power conferred on Parliament by clause (a) includes the power to form a new State or Union territory by uniting a part of any State or Union territory to any other State or Union territory.] 4. Laws made under articles 2 and 3 to provide for the amendment of the First and the Fourth Schedules and supplemental, incidental and consequential matters.—(1) Any law referred to in article 2 or article 3 shall contain such provisions for the amendment of the First Schedule and the Fourth Schedule as may be necessary to give effect to the provisions of the law and may also contain such supplemental, incidental and consequential provisions (including provisions as to representation in Parliament and in the Legislature or Legislatures of the State or States affected by such law) as Parliament may deem necessary. (2) No such law as aforesaid shall be deemed to be an amendment of this Constitution for the purposes of article 368. ## Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 3. Ins. by the Constitution (Eighteenth Amendment) Act, 1966, s. 2 (w.e.f. 27-8-1966). ## Part Ii Citizenship 5. Citizenship at the commencement of the Constitution.—At the commencement of this Constitution, every person who has his domicile in the territory of India and— (a) who was born in the territory of India; or (b) either of whose parents was born in the territory of India; or (c) who has been ordinarily resident in the territory of India for not less than five years immediately preceding such commencement, shall be a citizen of India. 6. Rights of citizenship of certain persons who have migrated to India from Pakistan.—Notwithstanding anything in article 5, a person who has migrated to the territory of India from the territory now included in Pakistan shall be deemed to be a citizen of India at the commencement of this Constitution if— (a) he or either of his parents or any of his grand-parents was born in India as defined in the Government of India Act, 1935 (as originally enacted); and (b)(i) in the case where such person has so migrated before the nineteenth day of July, 1948, he has been ordinarily resident in the territory of India since the date of his migration, or (ii) in the case where such person has so migrated on or after the nineteenth day of July, 1948, he has been registered as a citizen of India by an officer appointed in that behalf by the Government of the Dominion of India on an application made by him therefor to such officer before the commencement of this Constitution in the form and manner prescribed by that Government: Provided that no person shall be so registered unless he has been resident in the territory of India for at least six months immediately preceding the date of his application. **7. Rights of citizenship of certain migrants to Pakistan**.— Notwithstanding anything in articles 5 and 6, a person who has after the first day of March, 1947, migrated from the territory of India to the territory now included in Pakistan shall not be deemed to be a citizen of India: ## (Part Ii.—Citizenship) Provided that nothing in this article shall apply to a person who, after having so migrated to the territory now included in Pakistan, has returned to the territory of India under a permit for resettlement or permanent return issued by or under the authority of any law and every such person shall for the purposes of clause (b) of article 6 be deemed to have migrated to the territory of India after the nineteenth day of July, 1948. 8. Rights of citizenship of certain persons of Indian origin residing outside India.—Notwithstanding anything in article 5, any person who or either of whose parents or any of whose grand-parents was born in India as defined in the Government of India Act, 1935 (as originally enacted), and who is ordinarily residing in any country outside India as so defined shall be deemed to be a citizen of India if he has been registered as a citizen of India by the diplomatic or consular representative of India in the country where he is for the time being residing on an application made by him therefor to such diplomatic or consular representative, whether before or after the commencement of this Constitution, in the form and manner prescribed by the Government of the Dominion of India or the Government of India. 9. Persons voluntarily acquiring citizenship of a foreign State not to be citizens.— No person shall be a citizen of India by virtue of article 5, or be deemed to be a citizen of India by virtue of article 6 or article 8, if he has voluntarily acquired the citizenship of any foreign State. 10. Continuance of the rights of citizenship.—Every person who is or is deemed to be a citizen of India under any of the foregoing provisions of this Part shall, subject to the provisions of any law that may be made by Parliament, continue to be such citizen. 11. Parliament to regulate the right of citizenship by law.—Nothing in the foregoing provisions of this Part shall derogate from the power of Parliament to make any provision with respect to the acquisition and termination of citizenship and all other matters relating to citizenship. ## Part Iii Fundamental Rights General 12. Definition.—In this Part, unless the context otherwise requires, "the State" includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of India. 13. Laws inconsistent with or in derogation of the fundamental rights.—(1) All laws in force in the territory of India immediately before the commencement of this Constitution, in so far as they are inconsistent with the provisions of this Part, shall, to the extent of such inconsistency, be void. (2) The State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall, to the extent of the contravention, be void. (3) In this article, unless the context otherwise requires,— (a) "law" includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage having in the territory of India the force of law; (b) "laws in force" includes laws passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that any such law or any part thereof may not be then in operation either at all or in particular areas. 1[(4) Nothing in this article shall apply to any amendment of this Constitution made under article 368.] ## Right To Equality 14. Equality before law.—The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India. 15. Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth.—(1) The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them. (2) No citizen shall, on grounds only of religion, race, caste, sex, place of birth or any of them, be subject to any disability, liability, restriction or condition with regard to— ______________________________________________ 1. Ins. by the Constitution (Twenty-fourth Amendment) Act, 1971, s. 2 (w.e.f. 5-11-1971). ## (Part Iii.—Fundamental Rights) (a) access to shops, public restaurants, hotels and places of public entertainment; or (b) the use of wells, tanks, bathing ghats, roads and places of public resort maintained wholly or partly out of State funds or dedicated to the use of the general public. (3) Nothing in this article shall prevent the State from making any special provision for women and children. 1[(4) Nothing in this article or in clause (2) of article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.] 2[(5) Nothing in this article or in sub-clause (g) of clause (1) of article 19 shall prevent the State from making any special provision, by law, for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes or the Scheduled Tribes in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the State, other than the minority educational institutions referred to in clause (1) of article 30.] 3[(6) Nothing in this article or sub-clause (g) of clause (1) of article 19 or clause (2) of article 29 shall prevent the State from making,— (a) any special provision for the advancement of any economically weaker sections of citizens other than the classes mentioned in clauses (4) and (5); and (b) any special provision for the advancement of any economically weaker sections of citizens other than the classes mentioned in clauses (4) and (5) in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the State, other than the minority educational institutions referred to in clause (1) of article 30, which in the case of reservation would be in addition to the existing reservations and subject to a maximum of ten per cent. of the total seats in each category. ______________________________________________ ## (Part Iii.—Fundamental Rights) Explanation.—For the purposes of this article and article 16, "economically weaker sections" shall be such as may be notified by the State from time to time on the basis of family income and other indicators of economic disadvantage.] ## 16. Equality Of Opportunity In Matters Of Public Employment.—(1) There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State. (2) No citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or discriminated against in respect of, any employment or office under the State. (3) Nothing in this article shall prevent Parliament from making any law prescribing, in regard to a class or classes of employment or appointment to an office 1[under the Government of, or any local or other authority within, a State or Union territory, any requirement as to residence within that State or Union territory] prior to such employment or appointment. (4) Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State. 2[(4A) Nothing in this article shall prevent the State from making any provision for reservation 3[in matters of promotion, with consequential seniority, to any class] or classes of posts in the services under the State in favour of the Scheduled Castes and the Scheduled Tribes which, in the opinion of the State, are not adequately represented in the services under the State.] 4[(4B) Nothing in this article shall prevent the State from considering any unfilled vacancies of a year which are reserved for being filled up in that year in accordance with any provision for reservation made under clause (4) or clause (4A) as a separate class of vacancies to be filled up in any succeeding year or years and such class of vacancies shall not be considered together with the vacancies of the year in which they are being filled up for determining the ceiling of fifty per cent. reservation on total number of vacancies of that year.] ______________________________________________ 1. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for "under any State specified in the First Schedule or any local or other authority within its territory, any requirement as to residence within that State" (w.e.f. 1-11-1956). 2. Ins. by the Constitution (Seventy-seventh Amendment) Act, 1995, s. 2 (w.e.f. 17-6-1995). 3. Subs. by the Constitution (Eighty-fifth Amendment) Act, 2001, s. 2, for certain words (retrospectively w.e.f. 17-6-1995). 4. Ins. by the Constitution (Eighty-first Amendment) Act, 2000, s. 2 (w.e.f. 9-6-2000). ## (Part Iii.—Fundamental Rights) (5) Nothing in this article shall affect the operation of any law which provides that the incumbent of an office in connection with the affairs of any religious or denominational institution or any member of the governing body thereof shall be a person professing a particular religion or belonging to a particular denomination. 1[(6) Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any economically weaker sections of citizens other than the classes mentioned in clause (4), in addition to the existing reservation and subject to a maximum of ten per cent. of the posts in each category.] 17. Abolition of Untouchability.—"Untouchability" is abolished and its practice in any form is forbidden. The enforcement of any disability arising out of "Untouchability" shall be an offence punishable in accordance with law. 18. Abolition of titles.—(1) No title, not being a military or academic distinction, shall be conferred by the State. (2) No citizen of India shall accept any title from any foreign State. (3) No person who is not a citizen of India shall, while he holds any office of profit or trust under the State, accept without the consent of the President any title from any foreign State. (4) No person holding any office of profit or trust under the State shall, without the consent of the President, accept any present, emolument, or office of any kind from or under any foreign State. ## Right To Freedom 19. Protection Of Certain Rights Regarding Freedom Of Speech, Etc.— (1) All citizens shall have the right— (a) to freedom of speech and expression; (b) to assemble peaceably and without arms; (c) to form associations or unions 2[or co-operative societies]; (d) to move freely throughout the territory of India; ______________________________________________ ## (Part Iii.—Fundamental Rights) (e) to reside and settle in any part of the territory of India; 1[and] 2[(f)* * * * *] (g) to practise any profession, or to carry on any occupation, trade or business. 3[(2) Nothing in sub-clause (a) of clause (1) shall affect the operation of any existing law, or prevent the State from making any law, in so far as such law imposes reasonable restrictions on the exercise of the right conferred by the said sub-clause in the interests of 4[the sovereignty and integrity of India], the security of the State, friendly relations with foreign States, public order, decency or morality, or in relation to contempt of court, defamation or incitement to an offence.] (3) Nothing in sub-clause (b) of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, in the interests of 4[the sovereignty and integrity of India or] public order, reasonable restrictions on the exercise of the right conferred by the said sub-clause. (4) Nothing in sub-clause (c) of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, in the interests of 4[the sovereignty and integrity of India or] public order or morality, reasonable restrictions on the exercise of the right conferred by the said sub-clause. (5) Nothing in 5[sub-clauses (d) and (e)] of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, reasonable restrictions on the exercise of any of the rights conferred by the said sub-clauses either in the interests of the general public or for the protection of the interests of any Scheduled Tribe. (6) Nothing in sub-clause (g) of the said clause shall affect the operation of any existing law in so far as it imposes, or prevent the State from making any law imposing, in the interests of the general public, reasonable restrictions on the exercise of the right conferred by the said sub-clause, and, in particular, 1[nothing in the said sub-clause shall affect the operation of any existing law in so far as it relates to, or prevent the State from making any law relating to,— (i) the professional or technical qualifications necessary for practising any profession or carrying on any occupation, trade or business, or (ii) the carrying on by the State, or by a corporation owned or controlled by the State, of any trade, business, industry or service, whether to the exclusion, complete or partial, of citizens or otherwise.] 20. Protection in respect of conviction for offences.—(1) No person shall be convicted of any offence except for violation of a law in force at the time of the commission of the Act charged as an offence, nor be subjected to a penalty greater than that which might have been inflicted under the law in force at the time of the commission of the offence. (2) No person shall be prosecuted and punished for the same offence more than once. (3) No person accused of any offence shall be compelled to be a witness against himself. 21. Protection of life and personal liberty.—No person shall be deprived of his life or personal liberty except according to procedure established by law. 2**[21A. Right to education.**—The State shall provide free and compulsory education to all children of the age of six to fourteen years in such manner as the State may, by law, determine.] 22. Protection against arrest and detention in certain cases.—(1) No person who is arrested shall be detained in custody without being informed, as soon as may be, of the grounds for such arrest nor shall he be denied the right to consult, and to be defended by, a legal practitioner of his choice. ## ______________________________________________ (Part Iii.—Fundamental Rights) (2) Every person who is arrested and detained in custody shall be produced before the nearest magistrate within a period of twenty-four hours of such arrest excluding the time necessary for the journey from the place of arrest to the court of the magistrate and no such person shall be detained in custody beyond the said period without the authority of a magistrate. (3) Nothing in clauses (1) and (2) shall apply— (a) to any person who for the time being is an enemy alien; or (b) to any person who is arrested or detained under any law providing for preventive detention. (4) No law providing for preventive detention shall authorise the detention of a person for a longer period than three months unless— (a) an Advisory Board consisting of persons who are, or have been, or are qualified to be appointed as, Judges of a High Court has reported before the expiration of the said period of three months that there is in its opinion sufficient cause for such detention: ______________________________________________ "(4) No law providing for preventive detention shall authorise the detention of a person for a longer period than two months unless an Advisory Board constituted in accordance with the recommendations of the Chief Justice of the appropriate High Court has reported before the expiration of the said period of two months that there is in its opinion sufficient cause for such detention: Provided that an Advisory Board shall consist of a Chairman and not less than two other members, and the Chairman shall be a serving Judge of the appropriate High Court and the other members shall be serving or retired Judges of any High Court : Provided further that nothing in this clause shall authorise the detention of any person beyond the maximum period prescribed by any law made by Parliament under sub-clause (a) of clause (7). Explanation.—In this clause, "appropriate High Court" means,— (i) in the case of the detention of a person in pursuance of an order of detention made by the Government of India or an officer or authority subordinate to that Government, the High Court for the Union territory of Dehli; (ii) in the case of the detention of a person in pursuance of an order of detention made by the Government of any State (other than a Union territory), the High Court for that State; and (iii) in the case of the detention of a person in pursuance of an order of detention made by the administrator of a Union territory or an officer or authority subordinate to such administrator, such High Court as may be specified by or under any law made by Parliament in this behalf.". ## (Part Iii.—Fundamental Rights) Provided that nothing in this sub-clause shall authorise the detention of any person beyond the maximum period prescribed by any law made by Parliament under sub-clause (b) of clause (7); or (b) such person is detained in accordance with the provisions of any law made by Parliament under sub-clauses (a) and (b) of clause (7). (5) When any person is detained in pursuance of an order made under any law providing for preventive detention, the authority making the order shall, as soon as may be, communicate to such person the grounds on which the order has been made and shall afford him the earliest opportunity of making a representation against the order. (6) Nothing in clause (5) shall require the authority making any such order as is referred to in that clause to disclose facts which such authority considers to be against the public interest to disclose. (7) Parliament may by law prescribe— (a) the circumstances under which, and the class or classes of cases in which, a person may be detained for a period longer than three months under any law providing for preventive detention without obtaining the opinion of an Advisory Board in accordance with the provisions of subclause (a) of clause (4); (b) the maximum period for which any person may in any class or classes of cases be detained under any law providing for preventive detention; and (c) the procedure to be followed by an Advisory Board in an inquiry under sub-clause (a) of clause (4). be notified).  "sub-clause (a) of clause (4)" shall stand substituted as "clause (4)" by s. 3(b)(iii), ibid. (date yet to be notified). ## Right Against Exploitation 23. **Prohibition of traffic in human beings and forced labour.**—(1) Traffic in human beings and *begar* and other similar forms of forced labour are prohibited and any contravention of this provision shall be an offence punishable in accordance with law. (2) Nothing in this article shall prevent the State from imposing compulsory service for public purposes, and in imposing such service the State shall not make any discrimination on grounds only of religion, race, caste or class or any of them. 24. Prohibition of employment of children in factories, etc.—No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in any other hazardous employment. ## Right To Freedom Of Religion 25. Freedom of conscience and free profession, practice and propagation of religion.—(1) Subject to public order, morality and health and to the other provisions of this Part, all persons are equally entitled to freedom of conscience and the right freely to profess, practice and propagate religion. (2) Nothing in this article shall affect the operation of any existing law or prevent the State from making any law— (a) regulating or restricting any economic, financial, political or other secular activity which may be associated with religious practice; (b) providing for social welfare and reform or the throwing open of Hindu religious institutions of a public character to all classes and sections of Hindus. Explanation I.—The wearing and carrying of *kirpans* shall be deemed to be included in the profession of the Sikh religion. Explanation II.—In sub-clause (b) of clause (2), the reference to Hindus shall be construed as including a reference to persons professing the Sikh, Jaina or Buddhist religion, and the reference to Hindu religious institutions shall be construed accordingly. 26. Freedom to manage religious affairs.—Subject to public order, morality and health, every religious denomination or any section thereof shall have the right— (a) to establish and maintain institutions for religious and charitable purposes; ## (Part Iii.—Fundamental Rights) (b) to manage its own affairs in matters of religion; (c) to own and acquire movable and immovable property; and (d) to administer such property in accordance with law. 27. Freedom as to payment of taxes for promotion of any particular religion.—No person shall be compelled to pay any taxes, the proceeds of which are specifically appropriated in payment of expenses for the promotion or maintenance of any particular religion or religious denomination. 28. Freedom as to attendance at religious instruction or religious worship in certain educational institutions.—(1) No religious instruction shall be provided in any educational institution wholly maintained out of State funds. (2) Nothing in clause (1) shall apply to an educational institution which is administered by the State but has been established under any endowment or trust which requires that religious instruction shall be imparted in such institution. (3) No person attending any educational institution recognised by the State or receiving aid out of State funds shall be required to take part in any religious instruction that may be imparted in such institution or to attend any religious worship that may be conducted in such institution or in any premises attached thereto unless such person or, if such person is a minor, his guardian has given his consent thereto. ## Cultural And Educational Rights 29. Protection of interests of minorities.—(1) Any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same. (2) No citizen shall be denied admission into any educational institution maintained by the State or receiving aid out of State funds on grounds only of religion, race, caste, language or any of them. 30. Right of minorities to establish and administer educational institutions.—(1) All minorities, whether based on religion or language, shall have the right to establish and administer educational institutions of their choice. ## (Part Iii.—Fundamental Rights) 1[(1A) In making any law providing for the compulsory acquisition of any property of an educational institution established and administered by a minority, referred to in clause (1), the State shall ensure that the amount fixed by or determined under such law for the acquisition of such property is such as would not restrict or abrogate the right guaranteed under that clause.] (2) The State shall not, in granting aid to educational institutions, discriminate against any educational institution on the ground that it is under the management of a minority, whether based on religion or language. 2* * * * 31. [Compulsory acquisition of property.].—Omitted by the Constitution (Forty-fourth Amendment) *Act,* 1978, s. 6 (*w.e.f.* 20-6-1979). ## 3*[Saving Of Certain Laws]* 4**[31A. Saving Of Laws Providing For Acquisition Of Estates, Etc**.— 5[(1) Notwithstanding anything contained in article 13, no law providing for— (a) the acquisition by the State of any estate or of any rights therein or the extinguishment or modification of any such rights, or (b) the taking over of the management of any property by the State for a limited period either in the public interest or in order to secure the proper management of the property, or (c) the amalgamation of two or more corporations either in the public interest or in order to secure the proper management of any of the corporations, or (d) the extinguishment or modification of any rights of managing agents, secretaries and treasurers, managing directors, directors or managers of corporations, or of any voting rights of shareholders thereof, or ## ______________________________________________ (Part Iii.—Fundamental Rights) (e) the extinguishment or modification of any rights accruing by virtue of any agreement, lease or licence for the purpose of searching for, or winning, any mineral or mineral oil, or the premature termination or cancellation of any such agreement, lease or licence, shall be deemed to be void on the ground that it is inconsistent with, or takes away or abridges any of the rights conferred by 1[article 14 or article 19]: Provided that where such law is a law made by the Legislature of a State, the provisions of this article shall not apply thereto unless such law, having been reserved for the consideration of the President, has received his assent:] 2[Provided further that where any law makes any provision for the acquisition by the State of any estate and where any land comprised therein is held by a person under his personal cultivation, it shall not be lawful for the State to acquire any portion of such land as is within the ceiling limit applicable to him under any law for the time being in force or any building or structure standing thereon or appurtenant thereto, unless the law relating to the acquisition of such land, building or structure, provides for payment of compensation at a rate which shall not be less than the market value thereof.] (2) In this article,— 3[(a) the expression "estate" shall, in relation to any local area, have the same meaning as that expression or its local equivalent has in the existing law relating to land tenures in force in that area and shall also include— (i) any jagir, inam or *muafi* or other similar grant and in the States of 4[Tamil Nadu] and Kerala, any *janmam* right; (ii) any land held under ryotwari settlement; (iii) any land held or let for purposes of agriculture or for purposes ancillary thereto, including waste land, forest land, land for pasture or sites of buildings and other structures occupied by cultivators of land, agricultural labourers and village artisans;] ______________________________________________ ## (Part Iii.—Fundamental Rights) (b) the expression "rights", in relation to an estate, shall include any rights vesting in a proprietor, sub-proprietor, under-proprietor, tenureholder, 1[*raiyat, under-raiyat]* or other intermediary and any rights or privileges in respect of land revenue.] 2**[31B. Validation of certain Acts and Regulations.**—Without prejudice to the generality of the provisions contained in article 31A, none of the Acts and Regulations specified in the Ninth Schedule nor any of the provisions thereof shall be deemed to be void, or ever to have become void, on the ground that such Act, Regulation or provision is inconsistent with, or takes away or abridges any of the rights conferred by, any provisions of this Part, and notwithstanding any judgment, decree or order of any court or Tribunal to the contrary, each of the said Acts and Regulations shall, subject to the power of any competent Legislature to repeal or amend it, continue in force.] 3**[31C. Saving of laws giving effect to certain directive principles**.— Notwithstanding anything contained in article 13, no law giving effect to the policy of the State towards securing 4[all or any of the principles laid down in Part IV] shall be deemed to be void on the ground that it is inconsistent with, or takes away or abridges any of the rights conferred by 5[article 14 or article 19;] 6[and no law containing a declaration that it is for giving effect to such policy shall be called in question in any court on the ground that it does not give effect to such policy]: Provided that where such law is made by the Legislature of a State, the provisions of this article shall not apply thereto unless such law, having been reserved for the consideration of the President, has received his assent.] 731D. [Saving of laws in respect of anti-national activities.].—Omitted by the Constitution (Forty-third Amendment) *Act,*1977, s. 2 (*w.e.f.*13-4-1978). ______________________________________________ 3. Ins. by the Constitution (Twenty-fifth Amendment) Act, 1971, s. 3 (w.e.f. 20-4-1972). 4. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 4, for "the principles specified in clause (b) or clause (c) of article 39" (w.e.f. 3-1-1977). Section 4 has been declared invalid by the Supreme Court in Minerva Mills Ltd. and Others Vs Union of India and Others, AIR 1980 SC 1789. 5. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 8, for "article 14, article 19 or article 31" (w.e.f. 20-6-1979). 6. The words in italics struck down by the Supreme Court in Kesavananda Bharati vs. State of Kerala, AIR 1973, SC 1461. ## (Part Iii.—Fundamental Rights) Right To Constitutional Remedies 32. Remedies for enforcement of rights conferred by this Part.—(1) The right to move the Supreme Court by appropriate proceedings for the enforcement of the rights conferred by this Part is guaranteed. (2) The Supreme Court shall have power to issue directions or orders or writs, including writs in the nature of *habeas corpus, mandamus,* prohibition, quo warranto and *certiorari,* whichever may be appropriate, for the enforcement of any of the rights conferred by this Part. (3) Without prejudice to the powers conferred on the Supreme Court by clauses (1) and (2), Parliament may by law empower any other court to exercise within the local limits of its jurisdiction all or any of the powers exercisable by the Supreme Court under clause (2). (4) The right guaranteed by this article shall not be suspended except as otherwise provided for by this Constitution. 132A. [Constitutional validity of State laws not to be considered in proceedings under article 32.].—Omitted by the Constitution (Forty-third Amendment) *Act,* 1977, s. 3 (*w.e.f.* 13-4-1978). 2[33. Power of Parliament to modify the rights conferred by this Part in their application to Forces, etc.—Parliament may, by law, determine to what extent any of the rights conferred by this Part shall, in their application to,— (a) the members of the Armed Forces; or (b) the members of the Forces charged with the maintenance of public order; or (c) persons employed in any bureau or other organisation established by the State for purposes of intelligence or counter intelligence; or (d) person employed in, or in connection with, the telecommunication systems set up for the purposes of any Force, bureau or organisation referred to in clauses (a) to (c), be restricted or abrogated so as to ensure the proper discharge of their duties and the maintenance of discipline among them.] ______________________________________________ ## (Part Iii.—Fundamental Rights) 34. Restriction on rights conferred by this Part while martial law is in force in any area.—Notwithstanding anything in the foregoing provisions of this Part, Parliament may by law indemnify any person in the service of the Union or of a State or any other person in respect of any act done by him in connection with the maintenance or restoration of order in any area within the territory of India where martial law was in force or validate any sentence passed, punishment inflicted, forfeiture ordered or other act done under martial law in such area. 35. Legislation to give effect to the provisions of this Part.— Notwithstanding anything in this Constitution,— (a) Parliament shall have, and the Legislature of a State shall not have, power to make laws— (i) with respect to any of the matters which under clause (3) of article 16, clause (3) of article 32, article 33 and article 34 may be provided for by law made by Parliament; and (ii) for prescribing punishment for those acts which are declared to be offences under this Part, and Parliament shall, as soon as may be after the commencement of this Constitution, make laws for prescribing punishment for the acts referred to in sub-clause (ii); (b) any law in force immediately before the commencement of this Constitution in the territory of India with respect to any of the matters referred to in sub-clause (i) of clause (a) or providing for punishment for any act referred to in sub-clause (ii) of that clause shall, subject to the terms thereof and to any adaptations and modifications that may be made therein under article 372, continue in force until altered or repealed or amended by Parliament. Explanation.—In this article, the expression "law in force'' has the same meaning as in article 372. ## Part Iv Directive Principles Of State Policy 36. Definition.—In this Part, unless the context otherwise requires, "the State" has the same meaning as in Part III. 37. Application of the principles contained in this Part.—The provisions contained in this Part shall not be enforceable by any court, but the principles therein laid down are nevertheless fundamental in the governance of the country and it shall be the duty of the State to apply these principles in making laws. 38. State to secure a social order for the promotion of welfare of the people.—1[(1)] The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life. 2[(2) The State shall, in particular, strive to minimise the inequalities in income, and endeavour to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations.] 39. Certain principles of policy to be followed by the State.—The State shall, in particular, direct its policy towards securing— (a) that the citizens, men and women equally, have the right to an adequate means of livelihood; (b) that the ownership and control of the material resources of the community are so distributed as best to subserve the common good; (c) that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment; (d) that there is equal pay for equal work for both men and women; (e) that the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are not forced by economic necessity to enter avocations unsuited to their age or strength; ______________________________________________ ## (Part Iv.— Directive Principles Of State Policy) 1[(f) that children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment.] 2**[39A. Equal justice and free legal aid.**—The State shall secure that the operation of the legal system promotes justice, on a basis of equal opportunity, and shall, in particular, provide free legal aid, by suitable legislation or schemes or in any other way, to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities.] 40. Organisation of village panchayats.—The State shall take steps to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government. 41. Right to work, to education and to public assistance in certain cases.—The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want. 42. Provision for just and humane conditions of work and maternity relief.—The State shall make provision for securing just and humane conditions of work and for maternity relief. 43. Living wage, etc., for workers.—The State shall endeavour to secure, by suitable legislation or economic organisation or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities and, in particular, the State shall endeavour to promote cottage industries on an individual or co-operative basis in rural areas. 3[43A. **Participation of workers in management of industries**.—The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisations engaged in any industry.] ## ______________________________________________ (Part Iv.— Directive Principles Of State Policy) 1[43B. **Promotion of co-operative societies**.—The State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.] 44. **Uniform civil code for the citizens**.—The State shall endeavour to secure for the citizens a uniform civil code throughout the territory of India. 2[45. Provision for early childhood care and education to children below the age of six years.—The State shall endeavour to provide early childhood care and education for all children until they complete the age of six years.] 46. Promotion of educational and economic interests of Scheduled Castes, Scheduled Tribes and other weaker sections.—The State shall promote with special care the educational and economic interests of the weaker sections of the people, and, in particular, of the Scheduled Castes and the Scheduled Tribes, and shall protect them from social injustice and all forms of exploitation. 47. Duty of the State to raise the level of nutrition and the standard of living and to improve public health.—The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health. 48. Organisation of agriculture and animal husbandry.—The State shall endeavour to organise agriculture and animal husbandry on modern and scientific lines and shall, in particular, take steps for preserving and improving the breeds, and prohibiting the slaughter, of cows and calves and other milch and draught cattle. 3[48A. Protection and improvement of environment and safeguarding of forests and wild life.—The State shall endeavour to protect and improve the environment and to safeguard the forests and wild life of the country.] ______________________________________________ ## (Part Iv.— Directive Principles Of State Policy) 49. Protection of monuments and places and objects of national importance.—It shall be the obligation of the State to protect every monument or place or object of artistic or historic interest, 1[declared by or under law made by Parliament] to be of national importance, from spoliation, disfigurement, destruction, removal, disposal or export, as the case may be. 50. Separation of judiciary from executive.—The State shall take steps to separate the judiciary from the executive in the public services of the State. 51. Promotion of international peace and security.—The State shall endeavour to— (a) promote international peace and security; (b) maintain just and honourable relations between nations; (c) foster respect for international law and treaty obligations in the dealings of organised peoples with one another; and (d) encourage settlement of international disputes by arbitration. ______________________________________________ ## 1[**Part Iva** Fundamental Duties 51A. Fundamental duties.—It shall be the duty of every citizen of India— (a) to abide by the Constitution and respect its ideals and institutions, the National Flag and the National Anthem; (b) to cherish and follow the noble ideals which inspired our national struggle for freedom; (c) to uphold and protect the sovereignty, unity and integrity of India; (d) to defend the country and render national service when called upon to do so; (e) to promote harmony and the spirit of common brotherhood amongst all the people of India transcending religious, linguistic and regional or sectional diversities; to renounce practices derogatory to the dignity of women; (f) to value and preserve the rich heritage of our composite culture; (g) to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures; (h) to develop the scientific temper, humanism and the spirit of inquiry and reform; (i) to safeguard public property and to abjure violence; (j) to strive towards excellence in all spheres of individual and collective activity so that the nation constantly rises to higher levels of endeavour and achievement; ] 2[(k) who is a parent or guardian to provide opportunities for education to his child or, as the case may be, ward between the age of six and fourteen years.] ## ______________________________________________ Part V The Union Chapter I.—The Executive The President and Vice-President 52. The President of India.—There shall be a President of India. 53. Executive power of the Union.—(1) The executive power of the Union shall be vested in the President and shall be exercised by him either directly or through officers subordinate to him in accordance with this Constitution. (2) Without prejudice to the generality of the foregoing provision, the supreme command of the Defence Forces of the Union shall be vested in the President and the exercise thereof shall be regulated by law. (3) Nothing in this article shall— (a) be deemed to transfer to the President any functions conferred by any existing law on the Government of any State or other authority; or (b) prevent Parliament from conferring by law functions on authorities other than the President. 54. Election of President.—The President shall be elected by the members of an electoral college consisting of— (a) the elected members of both Houses of Parliament; and (b) the elected members of the Legislative Assemblies of the States. 1[*Explanation.—*In this article and in article 55, "State" includes the National Capital Territory of Delhi and the Union territory of *Pondicherry.] 55. Manner of election of President.—(1) As far as practicable, there shall be uniformity in the scale of representation of the different States at the election of the President. (2) For the purpose of securing such uniformity among the States inter se as well as parity between the States as a whole and the Union, the number of votes which each elected member of Parliament and of the Legislative Assembly of each State is entitled to cast at such election shall be determined in the following manner:— (a) every elected member of the Legislative Assembly of a State shall have as many votes as there are multiples of one thousand in the quotient obtained by dividing the population of the State by the total number of the elected members of the Assembly; ______________________________________________ (b) if, after taking the said multiples of one thousand, the remainder is not less than five hundred, then the vote of each member referred to in sub-clause (a) shall be further increased by one; (c) each elected member of either House of Parliament shall have such number of votes as may be obtained by dividing the total number of votes assigned to the members of the Legislative Assemblies of the States under sub-clauses (a) and (b) by the total number of the elected members of both Houses of Parliament, fractions exceeding one-half being counted as one and other fractions being disregarded. (3) The election of the President shall be held in accordance with the system of proportional representation by means of the single transferable vote and the voting at such election shall be by secret ballot. 1[*Explanation.—*In this article, the expression "population" means the population as ascertained at the last preceding census of which the relevant figures have been published: Provided that the reference in this *Explanation* to the last preceding census of which the relevant figures have been published shall, until the relevant figures for the first census taken after the year 2[2026] have been published, be construed as a reference to the 1971 census.] 56. Term of office of President.—(1) The President shall hold office for a term of five years from the date on which he enters upon his office: Provided that— (a) the President may, by writing under his hand addressed to the Vice-President, resign his office; (b) the President may, for violation of the Constitution, be removed from office by impeachment in the manner provided in article 61; (c) the President shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office. (2) Any resignation addressed to the Vice-President under clause (a) of the proviso to clause (1) shall forthwith be communicated by him to the Speaker of the House of the People. ______________________________________________ 2. Subs. by the Constitution (Eighty-fourth Amendment) Act, 2001, s. 2, for "2000" (w.e.f. 21-2-2002). 57. Eligibility for re-election.—A person who holds, or who has held, office as President shall, subject to the other provisions of this Constitution, be eligible for re-election to that office. 58. Qualifications for election as President.—(1) No person shall be eligible for election as President unless he— (a) is a citizen of India, (b) has completed the age of thirty-five years, and (c) is qualified for election as a member of the House of the People. (2) A person shall not be eligible for election as President if he holds any office of profit under the Government of India or the Government of any State or under any local or other authority subject to the control of any of the said Governments. Explanation.—For the purposes of this article, a person shall not be deemed to hold any office of profit by reason only that he is the President or Vice-President of the Union or the Governor 1*** of any State or is a Minister either for the Union or for any State. 59. Conditions of President's office.—(1) The President shall not be a member of either House of Parliament or of a House of the Legislature of any State, and if a member of either House of Parliament or of a House of the Legislature of any State be elected President, he shall be deemed to have vacated his seat in that House on the date on which he enters upon his office as President. (2) The President shall not hold any other office of profit. (3) The President shall be entitled without payment of rent to the use of his official residences and shall be also entitled to such emoluments, allowances and privileges as may be determined by Parliament by law and, until provision in that behalf is so made, such emoluments, allowances and privileges as are specified in the Second Schedule. (4) The emoluments and allowances of the President shall not be diminished during his term of office. 60. Oath or affirmation by the President.—Every President and every person acting as President or discharging the functions of the President shall, before entering upon his office, make and subscribe in the presence of the Chief Justice of India or, in his absence, the senior-most Judge of the Supreme Court available, an oath or affirmation in the following form, that is to say— ______________________________________________ (Part V.—The Union) "I, A.B., do swear in the name of God that I will faithfully execute the office solemnly affirm of President (or discharge the functions of the President) of India and will to the best of my ability preserve, protect and defend the Constitution and the law and that I will devote myself to the service and well-being of the people of India.". 61. Procedure for impeachment of the President.—(1) When a President is to be impeached for violation of the Constitution, the charge shall be preferred by either House of Parliament. (2) No such charge shall be preferred unless— (a) the proposal to prefer such charge is contained in a resolution which has been moved after at least fourteen days' notice in writing signed by not less than one-fourth of the total number of members of the House has been given of their intention to move the resolution, and (b) such resolution has been passed by a majority of not less than two-thirds of the total membership of the House. (3) When a charge has been so preferred by either House of Parliament, the other House shall investigate the charge or cause the charge to be investigated and the President shall have the right to appear and to be represented at such investigation. (4) If as a result of the investigation a resolution is passed by a majority of not less than two-thirds of the total membership of the House by which the charge was investigated or caused to be investigated, declaring that the charge preferred against the President has been sustained, such resolution shall have the effect of removing the President from his office as from the date on which the resolution is so passed. 62. Time of holding election to fill vacancy in the office of President and the term of office of person elected to fill casual vacancy.—(1) An election to fill a vacancy caused by the expiration of the term of office of President shall be completed before the expiration of the term. (2) An election to fill a vacancy in the office of President occurring by reason of his death, resignation or removal, or otherwise shall be held as soon as possible after, and in no case later than six months from, the date of occurrence of the vacancy; and the person elected to fill the vacancy shall, subject to the provisions of article 56, be entitled to hold office for the full term of five years from the date on which he enters upon his office. 63. The Vice-President of India.—There shall be a Vice-President of India. 64. The Vice-President to be *ex officio* Chairman of the Council of States.—The Vice-President shall be *ex officio* Chairman of the Council of the States and shall not hold any other office of profit: Provided that during any period when the Vice-President acts as President or discharges the functions of the President under article 65, he shall not perform the duties of the office of Chairman of the Council of States and shall not be entitled to any salary or allowance payable to the Chairman of the Council of States under article 97. 65. The Vice-President to act as President or to discharge his functions during casual vacancies in the office, or during the absence, of President.—(1) In the event of the occurrence of any vacancy in the office of the President by reason of his death, resignation or removal, or otherwise, the Vice-President shall act as President until the date on which a new President elected in accordance with the provisions of this Chapter to fill such vacancy enters upon his office. (2) When the President is unable to discharge his functions owing to absence, illness or any other cause, the Vice-President shall discharge his functions until the date on which the President resumes his duties. (3) The Vice-President shall, during, and in respect of, the period while he is so acting as, or discharging the functions of, President, have all the powers and immunities of the President and be entitled to such emoluments, allowances and privileges as may be determined by Parliament by law and, until provision in that behalf is so made, such emoluments, allowances and privileges as are specified in the Second Schedule. 66. Election of Vice-President.—(1) The Vice-President shall be elected by the 1[members of an electoral college consisting of the members of both Houses of Parliament] in accordance with the system of proportional representation by means of the single transferable vote and the voting at such election shall be by secret ballot. (2) The Vice-President shall not be a member of either House of Parliament or of a House of the Legislature of any State, and if a member of either House of Parliament or of a House of the Legislature of any State be elected Vice-President, he shall be deemed to have vacated his seat in that House on the date on which he enters upon his office as Vice-President. (3) No person shall be eligible for election as Vice-President unless he— (a) is a citizen of India; (b) has completed the age of thirty-five years; and ______________________________________________ 1. Subs. by the Constitution (Eleventh Amendment) Act, 1961, s. 2, for "members of both Houses of Parliament assembled at a joint meeting" (w.e.f. 19-12-1961). (c) is qualified for election as a member of the Council of States. (4) A person shall not be eligible for election as Vice-President if he holds any office of profit under the Government of India or the Government of any State or under any local or other authority subject to the control of any of the said Governments. Explanation.—For the purposes of this article, a person shall not be deemed to hold any office of profit by reason only that he is the President or Vice-President of the Union or the Governor 1*** of any State or is a Minister either for the Union or for any State. 67. Term of office of Vice-President.—The Vice-President shall hold office for a term of five years from the date on which he enters upon his office: Provided that— (a) a Vice-President may, by writing under his hand addressed to the President, resign his office; (b) a Vice-President may be removed from his office by a resolution of the Council of States passed by a majority of all the then members of the Council and agreed to by the House of the People; but no resolution for the purpose of this clause shall be moved unless at least fourteen days' notice has been given of the intention to move the resolution; (c) a Vice-President shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office. 68. Time of holding election to fill vacancy in the office of Vice- President and the term of office of person elected to fill casual vacancy.— (1) An election to fill a vacancy caused by the expiration of the term of office of Vice-President shall be completed before the expiration of the term. (2) An election to fill a vacancy in the office of Vice-President occurring by reason of his death, resignation or removal, or otherwise shall be held as soon as possible after the occurrence of the vacancy, and the person elected to fill the vacancy shall, subject to the provisions of article 67, be entitled to hold office for the full term of five years from the date on which he enters upon his office. 69. Oath or affirmation by the Vice-President.—Every Vice- President shall, before entering upon his office, make and subscribe before the ______________________________________________ President, or some person appointed in that behalf by him, an oath or affirmation in the following form, that is to say— "I, A.B., do swear in the name of God that I will bear true faith and solemnly affirm allegiance to the Constitution of India as by law established and that I will faithfully discharge the duty upon which I am about to enter.". 70. Discharge of President's functions in other contingencies.— Parliament may make such provision as it thinks fit for the discharge of the functions of the President in any contingency not provided for in this Chapter. 1[71. Matters relating to, or connected with, the election of a President or Vice-President.—(1) All doubts and disputes arising out of or in connection with the election of a President or Vice-President shall be inquired into and decided by the Supreme Court whose decision shall be final. (2) If the election of a person as President or Vice-President is declared void by the Supreme Court, acts done by him in the exercise and performance of the powers and duties of the office of President or Vice-President, as the case may be, on or before the date of the decision of the Supreme Court shall not be invalidated by reason of that declaration. (3) Subject to the provisions of this Constitution, Parliament may by law regulate any matter relating to or connected with the election of a President or Vice-President. (4) The election of a person as President or Vice-President shall not be called in question on the ground of the existence of any vacancy for whatever reason among the members of the electoral college electing him.] 72. Power of President to grant pardons, etc., and to suspend, remit or commute sentences in certain cases.—(1) The President shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence— (a) in all cases where the punishment or sentence is by a Court Martial; (b) in all cases where the punishment or sentence is for an offence ______________________________________________ against any law relating to a matter to which the executive power of the Union extends; (c) in all cases where the sentence is a sentence of death. (2) Nothing in sub-clause (a) of clause (1) shall affect the power conferred by law on any officer of the Armed Forces of the Union to suspend, remit or commute a sentence passed by a Court Martial. (3) Nothing in sub-clause (c) of clause (1) shall affect the power to suspend, remit or commute a sentence of death exercisable by the Governor 1*** of a State under any law for the time being in force. 73. Extent of executive power of the Union.—(1) Subject to the provisions of this Constitution, the executive power of the Union shall extend— (a) to the matters with respect to which Parliament has power to make laws; and (b) to the exercise of such rights, authority and jurisdiction as are exercisable by the Government of India by virtue of any treaty or agreement: Provided that the executive power referred to in sub-clause (a) shall not, save as expressly provided in this Constitution or in any law made by Parliament, extend in any State 2*** to matters with respect to which the Legislature of the State has also power to make laws. (2) Until otherwise provided by Parliament, a State and any officer or authority of a State may, notwithstanding anything in this article, continue to exercise in matters with respect to which Parliament has power to make laws for that State such executive power or functions as the State or officer or authority thereof could exercise immediately before the commencement of this Constitution. ## ______________________________________________ (Part V.—The Union) Council Of Ministers 74. Council of Ministers to aid and advise President.—1[(1) There shall be a Council of Ministers with the Prime Minister at the head to aid and advise the President who shall, in the exercise of his functions, act in accordance with such advice:] 2[Provided that the President may require the Council of Ministers to reconsider such advice, either generally or otherwise, and the President shall act in accordance with the advice tendered after such reconsideration.] (2) The question whether any, and if so what, advice was tendered by Ministers to the President shall not be inquired into in any court. 75. Other provisions as to Ministers.—(1) The Prime Minister shall be appointed by the President and the other Ministers shall be appointed by the President on the advice of the Prime Minister. 3[(1A) The total number of Ministers, including the Prime Minister, in the Council of Ministers shall not exceed fifteen per cent. of the total number of members of the House of the People. (1B) A member of either House of Parliament belonging to any political party who is disqualified for being a member of that House under paragraph 2 of the Tenth Schedule shall also be disqualified to be appointed as a Minister under clause (1) for duration of the period commencing from the date of his disqualification till the date on which the term of his office as such member would expire or where he contests any election to either House of Parliament before the expiry of such period, till the date on which he is declared elected, whichever is earlier.] (2) The Ministers shall hold office during the pleasure of the President. (3) The Council of Ministers shall be collectively responsible to the House of the People. (4) Before a Minister enters upon his office, the President shall administer to him the oaths of office and of secrecy according to the forms set out for the purpose in the Third Schedule. 3. Ins. by the Constitution (Ninety-first Amendment) Act, 2003, s. 2 (w.e.f. 1-1-2004). (5) A Minister who for any period of six consecutive months is not a member of either House of Parliament shall at the expiration of that period cease to be a Minister. (6) The salaries and allowances of Ministers shall be such as Parliament may from time to time by law determine and, until Parliament so determines, shall be as specified in the Second Schedule. ## The Attorney-General For India 76. Attorney-General for India.—(1) The President shall appoint a person who is qualified to be appointed a Judge of the Supreme Court to be Attorney-General for India. (2) It shall be the duty of the Attorney-General to give advice to the Government of India upon such legal matters, and to perform such other duties of a legal character, as may from time to time be referred or assigned to him by the President, and to discharge the functions conferred on him by or under this Constitution or any other law for the time being in force. (3) In the performance of his duties the Attorney-General shall have right of audience in all courts in the territory of India. (4) The Attorney-General shall hold office during the pleasure of the President, and shall receive such remuneration as the President may determine. ## Conduct Of Government Business 77. Conduct of business of the Government of India.—(1) All executive action of the Government of India shall be expressed to be taken in the name of the President. (2) Orders and other instruments made and executed in the name of the President shall be authenticated in such manner as may be specified in rules1 to be made by the President, and the validity of an order or instrument which is so authenticated shall not be called in question on the ground that it is not an order or instrument made or executed by the President. (3) The President shall make rules for the more convenient transaction of the business of the Government of India, and for the allocation among Ministers of the said business. 2(4) * * * * ______________________________________________ 78. Duties of Prime Minister as respects the furnishing of information to the President, etc.—It shall be the duty of the Prime Minister— (a) to communicate to the President all decisions of the Council of Ministers relating to the administration of the affairs of the Union and proposals for legislation; (b) to furnish such information relating to the administration of the affairs of the Union and proposals for legislation as the President may call for; and (c) if the President so requires, to submit for the consideration of the Council of Ministers any matter on which a decision has been taken by a Minister but which has not been considered by the Council. ## Chapter Ii.—Parliament General **79. Constitution of Parliament.**—There shall be a Parliament for the Union which shall consist of the President and two Houses to be known respectively as the Council of States and the House of the People. 80. Composition of the Council of States.—(1) 1[2*** The Council of States] shall consist of— (a) twelve members to be nominated by the President in accordance with the provisions of clause (3); and (b) not more than two hundred and thirty-eight representatives of the States 3[and of the Union territories]. (2) The allocation of seats in the Council of States to be filled by representatives of the States 3[and of the Union territories] shall be in accordance with the provisions in that behalf contained in the Fourth Schedule. (3) The members to be nominated by the President under sub-clause (a) of clause (1) shall consist of persons having special knowledge or practical experience in respect of such matters as the following, namely:— Literature, science, art and social service. ______________________________________________ (4) The representatives of each State 1*** in the Council of States shall be elected by the elected members of the Legislative Assembly of the State in accordance with the system of proportional representation by means of the single transferable vote. (5) The representatives of the 2[Union territories] in the Council of States shall be chosen in such manner as Parliament may by law prescribe. 3[**81. Composition of the House of the People**.—(1) 4[Subject to the provisions of article 331 5***], the House of the People shall consist of— (a) not more than 6[five hundred and thirty members] chosen by direct election from territorial constituencies in the States, and (b) not more than 7[twenty members] to represent the Union territories, chosen in such manner as Parliament may by law provide. (2) For the purposes of sub-clause (a) of clause (1),— (a) there shall be allotted to each State a number of seats in the House of the People in such manner that the ratio between that number and the population of the State is, so far as practicable, the same for all States; and (b) each State shall be divided into territorial constituencies in such manner that the ratio between the population of each constituency and the number of seats allotted to it is, so far as practicable, the same throughout the State: 8[Provided that the provisions of sub-clause (a) of this clause shall not be applicable for the purpose of allotment of seats in the House of the People to any State so long as the population of that State does not exceed six millions.] (3) In this article, the expression "population" means the population as ______________________________________________ 4. Subs. by the Constitution (Thirty-fifth Amendment) Act, 1974, s. 4, for "subject to the provisions of article 331" (w.e.f. 1-3-1975). 5. The words and figure "and paragraph 4 of the Tenth Schedule" omitted by the Constitution (Thirty-sixth Amendment) Act, 1975, s. 5 (w.e.f. 26-4-1975). 6. Subs. by the Goa, Daman and Diu Reorganisation Act, 1987 (18 of 1987), s. 63, for "five hundred and twenty-five members" (w.e.f. 30-5-1987). 7. Subs. by the Constitution (Thirty-first Amendment) Act, 1973, s. 2, for "twenty-five members" (w.e.f. 17-10-1973). 8. Ins. by s. 2, *ibid.* (w.e.f. 17-10-1973). ascertained at the last preceding census of which the relevant figures have been published. 1[Provided that the reference in this clause to the last preceding census of which the relevant figures have been published shall, until the relevant figures for the first census taken after the year 2[2026] have been published, 3[be construed,— (i) for the purposes of sub-clause (a) of clause (2) and the proviso to that clause, as a reference to the 1971 census; and (ii) for the purposes of sub-clause (b) of clause (2) as a reference to the 4[2001] census.]] 82. Readjustment after each census.—Upon the completion of each census, the allocation of seats in the House of the People to the States and the division of each State into territorial constituencies shall be readjusted by such authority and in such manner as Parliament may by law determine: Provided that such readjustment shall not affect representation in the House of the People until the dissolution of the then existing House: 5[Provided further that such readjustment shall take effect from such date as the President may, by order, specify and until such readjustment takes effect, any election to the House may be held on the basis of the territorial constituencies existing before such readjustment: Provided also that until the relevant figures for the first census taken after the year 6[2026] have been published, it shall not be necessary to 7[readjust— (i) the allocation of seats in the House of the People to the States as ______________________________________________ (w.e.f. 22-6-2003). 5. Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 16 (w.e.f. 3-1-1977). 6. Subs. by the Constitution (Eighty-fourth Amendment) Act, 2001, s. 4, for "2000" (w.e.f. 21-2-2002). 7. Subs. by s.4, *ibid*., for certain words (w.e.f. 21-2-2002). readjusted on the basis of the 1971 census; and (ii) the division of each State into territorial constituencies as may be readjusted on the basis of the 1[2001] census, under this article.]] 83. Duration of Houses of Parliament.—(1) The Council of States shall not be subject to dissolution, but as nearly as possible one-third of the members thereof shall retire as soon as may be on the expiration of every second year in accordance with the provisions made in that behalf by Parliament by law. (2) The House of the People, unless sooner dissolved, shall continue for 2[five years] from the date appointed for its first meeting and no longer and the expiration of the said period of 2[five years] shall operate as a dissolution of the House: Provided that the said period may, while a Proclamation of Emergency is in operation, be extended by Parliament by law for a period not exceeding one year at a time and not extending in any case beyond a period of six months after the Proclamation has ceased to operate. 84. Qualification for membership of Parliament.—A person shall not be qualified to be chosen to fill a seat in Parliament unless he— 3[(a) is a citizen of India, and makes and subscribes before some person authorised in that behalf by the Election Commission an oath or affirmation according to the form set out for the purpose in the Third Schedule;] (b) is, in the case of a seat in the Council of States, not less than thirty years of age and, in the case of a seat in the House of the People, not less than twenty-five years of age; and (c) possesses such other qualifications as may be prescribed in that behalf by or under any law made by Parliament. 1978, s. 13, for "six years" (w.e.f. 20-6-1979). 3. Subs. by the Constitution (Sixteenth Amendment) Act, 1963, s. 3, for cl.(a) (w.e.f. 5-10-1963). 1[**85. Sessions of Parliament, prorogation and dissolution**.—(1) The President shall from time to time summon each House of Parliament to meet at such time and place as he thinks fit, but six months shall not intervene between its last sitting in one session and the date appointed for its first sitting in the next session. (2) The President may from time to time— (a) prorogue the Houses or either House; (b) dissolve the House of the People.] 86. Right of President to address and send messages to Houses.—(1) The President may address either House of Parliament or both Houses assembled together, and for that purpose require the attendance of members. (2) The President may send messages to either House of Parliament, whether with respect to a Bill then pending in Parliament or otherwise, and a House to which any message is so sent shall with all convenient despatch consider any matter required by the message to be taken into consideration. 87. Special address by the President.—(1) At the commencement of 2[the first session after each general election to the House of the People and at the commencement of the first session of each year] the President shall address both Houses of Parliament assembled together and inform Parliament of the causes of its summons. (2) Provision shall be made by the rules regulating the procedure of either House for the allotment of time for discussion of the matters referred to in such address 3***. ## 88. Rights Of Ministers And Attorney-General As Respects Houses.— Every Minister and the Attorney-General of India shall have the right to speak in, and otherwise to take part in the proceedings of, either House, any joint sitting of the Houses, and any committee of Parliament of which he may be named a member, but shall not by virtue of this article be entitled to vote. 3. The words "and for the precedence of such discussion over other business of the House" omitted by s. 7, *ibid.* (w.e.f. 18-6-1951). ## (Part V.—The Union) Officers Of Parliament 89. The Chairman and Deputy Chairman of the Council of States.—(1) The Vice- President of India shall be *ex officio* Chairman of the Council of States. (2) The Council of States shall, as soon as may be, choose a member of the Council to be Deputy Chairman thereof and, so often as the office of Deputy Chairman becomes vacant, the Council shall choose another member to be Deputy Chairman thereof. 90. Vacation and resignation of, and removal from, the office of Deputy Chairman.—A member holding office as Deputy Chairman of the Council of States— (a) shall vacate his office if he ceases to be a member of the Council; (b) may at any time, by writing under his hand addressed to the Chairman, resign his office; and (c) may be removed from his office by a resolution of the Council passed by a majority of all the then members of the Council: Provided that no resolution for the purpose of clause *(c)* shall be moved unless at least fourteen days' notice has been given of the intention to move the resolution. 91. Power of the Deputy Chairman or other person to perform the duties of the office of, or to act as, Chairman.—(1) While the office of Chairman is vacant, or during any period when the Vice-President is acting as, or discharging the functions of, President, the duties of the office shall be performed by the Deputy Chairman, or, if the office of Deputy Chairman is also vacant, by such member of the Council of States as the President may appoint for the purpose. (2) During the absence of the Chairman from any sitting of the Council of States the Deputy Chairman, or, if he is also absent, such person as may be determined by the rules of procedure of the Council, or, if no such person is present, such other person as may be determined by the Council, shall act as Chairman. 92. The Chairman or the Deputy Chairman not to preside while a resolution for his removal from office is under consideration.—(1) At any sitting of the Council of States, while any resolution for the removal of the Vice-President from his office is under consideration, the Chairman, or while any resolution for the removal of the Deputy Chairman from his office is under consideration, the Deputy Chairman, shall not, though he is present, preside, and the provisions of clause (2) of article 91 shall apply in relation to every such sitting as they apply in relation to a sitting from which the Chairman, or, as the case may be, the Deputy Chairman, is absent. (Part V.—The Union) (2) The Chairman shall have the right to speak in, and otherwise to take part in the proceedings of, the Council of States while any resolution for the removal of the Vice-President from his office is under consideration in the Council, but, notwithstanding anything in article 100, shall not be entitled to vote at all on such resolution or on any other matter during such proceedings. 93. The Speaker and Deputy Speaker of the House of the People.— The House of the People shall, as soon as may be, choose two members of the House to be respectively Speaker and Deputy Speaker thereof and, so often as the office of Speaker or Deputy Speaker becomes vacant, the House shall choose another member to be Speaker or Deputy Speaker, as the case may be. 94. Vacation and resignation of, and removal from, the offices of Speaker and Deputy Speaker.— A member holding office as Speaker or Deputy Speaker of the House of the People— (a) shall vacate his office if he ceases to be a member of the House of the People; (b) may at any time, by writing under his hand addressed, if such member is the Speaker, to the Deputy Speaker, and if such member is the Deputy Speaker, to the Speaker, resign his office; and (c) may be removed from his office by a resolution of the House of the People passed by a majority of all the then members of the House: Provided that no resolution for the purpose of clause (c) shall be moved unless at least fourteen days' notice has been given of the intention to move the resolution: Provided further that, whenever the House of the People is dissolved, the Speaker shall not vacate his office until immediately before the first meeting of the House of the People after the dissolution. 95. Power of the Deputy Speaker or other person to perform the duties of the office of, or to act as, Speaker.—(1) While the office of Speaker is vacant, the duties of the office shall be performed by the Deputy Speaker or, if the office of Deputy Speaker is also vacant, by such member of the House of the People as the President may appoint for the purpose. (2) During the absence of the Speaker from any sitting of the House of the People the Deputy Speaker or, if he is also absent, such person as may be determined by the rules of procedure of the House, or, if no such person is present, such other person as may be determined by the House, shall act as Speaker. 96. The Speaker or the Deputy Speaker not to preside while a resolution for his removal from office is under consideration.—(1) At any sitting of the House of the People, while any resolution for the removal of the Speaker from his office is under consideration, the Speaker, or while any resolution for the removal of the Deputy Speaker from his office is under consideration, the Deputy Speaker, shall not, though he is present, preside, and the provisions of clause (2) of article 95 shall apply in relation to every such sitting as they apply in relation to a sitting from which the Speaker, or, as the case may be, the Deputy Speaker, is absent. (2) The Speaker shall have the right to speak in, and otherwise to take part in the proceedings of, the House of the People while any resolution for his removal from office is under consideration in the House and shall, notwithstanding anything in article 100, be entitled to vote only in the first instance on such resolution or on any other matter during such proceedings but not in the case of an equality of votes. 97. Salaries and allowances of the Chairman and Deputy Chairman and the Speaker and Deputy Speaker.—There shall be paid to the Chairman and the Deputy Chairman of the Council of States, and to the Speaker and the Deputy Speaker of the House of the People, such salaries and allowances as may be respectively fixed by Parliament by law and, until provision in that behalf is so made, such salaries and allowances as are specified in the Second Schedule. 98. Secretariat of Parliament.—(1) Each House of Parliament shall have a separate secretarial staff: Provided that nothing in this clause shall be construed as preventing the creation of posts common to both Houses of Parliament. (2) Parliament may by law regulate the recruitment, and the conditions of service of persons appointed, to the secretarial staff of either House of Parliament. (3) Until provision is made by Parliament under clause (2), the President may, after consultation with the Speaker of the House of the People or the Chairman of the Council of States, as the case may be, make rules regulating the recruitment, and the conditions of service of persons appointed, to the secretarial staff of the House of the People or the Council of States, and any rules so made shall have effect subject to the provisions of any law made under the said clause. ## (Part V.—The Union) Conduct Of Business 99. Oath or affirmation by members.—Every member of either House of Parliament shall, before taking his seat, make and subscribe before the President, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Third Schedule. 100. Voting in Houses, power of Houses to act notwithstanding vacancies and quorum.—(1) Save as otherwise provided in this Constitution, all questions at any sitting of either House or joint sitting of the Houses shall be determined by a majority of votes of the members present and voting, other than the Speaker or person acting as Chairman or Speaker. The Chairman or Speaker, or person acting as such, shall not vote in the first instance, but shall have and exercise a casting vote in the case of an equality of votes. (2) Either House of Parliament shall have power to act notwithstanding any vacancy in the membership thereof, and any proceedings in Parliament shall be valid notwithstanding that it is discovered subsequently that some person who was not entitled so to do sat or voted or otherwise took part in the proceedings. 1[(3) Until Parliament by law otherwise provides, the quorum to constitute a meeting of either House of Parliament shall be one-tenth of the total number of members of the House. (4) If at any time during a meeting of a House there is no quorum, it shall be the duty of the Chairman or Speaker, or person acting as such, either to adjourn the House or to suspend the meeting until there is a quorum.] ## Disqualifications Of Members 101. Vacation of seats.— (1) No person shall be a member of both Houses of Parliament and provision shall be made by Parliament by law for the vacation by a person who is chosen a member of both Houses of his seat in one House or the other. ______________________________________________ (2) No person shall be a member both of Parliament and of a House of the Legislature of a State 1***, and if a person is chosen a member both of Parliament and of a House of the Legislature of 2[a State], then, at the expiration of such period as may be specified in rules made by the President, that person's seat in Parliament shall become vacant, unless he has previously resigned his seat in the Legislature of the State. (3) If a member of either House of Parliament— (a) becomes subject to any of the disqualifications mentioned in 3[clause (1) or clause (2) of article 102], or 4[(b) resigns his seat by writing under his hand addressed to the Chairman or the Speaker, as the case may be, and his resignation is accepted by the Chairman or the Speaker, as the case may be,] his seat shall thereupon become vacant: 5[Provided that in the case of any resignation referred to in sub-clause (b), if from information received or otherwise and after making such inquiry as he thinks fit, the Chairman or the Speaker, as the case may be, is satisfied that such resignation is not voluntary or genuine, he shall not accept such resignation.] (4) If for a period of sixty days a member of either House of Parliament is without permission of the House absent from all meetings thereof, the House may declare his seat vacant: Provided that in computing the said period of sixty days no account shall be taken of any period during which the House is prorogued or is adjourned for more than four consecutive days. India, Extraordinary, P. 678. article 102" (w.e.f. 1-3-1985). 102. Disqualifications for membership.—(1) A person shall be disqualified for being chosen as, and for being, a member of either House of Parliament— 1[(a) if he holds any office of profit under the Government of India or the Government of any State, other than an office declared by Parliament by law not to disqualify its holder;] (b) if he is of unsound mind and stands so declared by a competent court; (c) if he is an undischarged insolvent; (d) if he is not a citizen of India, or has voluntarily acquired the citizenship of a foreign State, or is under any acknowledgment of allegiance or adherence to a foreign State; (e) if he is so disqualified by or under any law made by Parliament. 2[*Explanation.—*For the purposes of this clause] a person shall not be deemed to hold an office of profit under the Government of India or the Government of any State by reason only that he is a Minister either for the Union or for such State. 3[(2) A person shall be disqualified for being a member of either House of Parliament if he is so disqualified under the Tenth Schedule.] ## 4**[103. Decision On Questions As To Disqualifications Of Members**.— (1) If any question arises as to whether a member of either House of Parliament has become subject to any of the disqualifications mentioned in clause (1) of article 102, the question shall be referred for the decision of the President and his decision shall be final. ______________________________________________ 3. Ins. by s. 3, *ibid.* (w.e.f. 1-3-1985). 4. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 20, for art. 103 (w.e.f. 3-1-1977) and further subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 14, for art. 103 (w.e.f. 20-6-1979). (2) Before giving any decision on any such question, the President shall obtain the opinion of the Election Commission and shall act according to such opinion.] 104. Penalty for sitting and voting before making oath or affirmation under article 99 or when not qualified or when disqualified.—If a person sits or votes as a member of either House of Parliament before he has complied with the requirements of article 99, or when he knows that he is not qualified or that he is disqualified for membership thereof, or that he is prohibited from so doing by the provisions of any law made by Parliament, he shall be liable in respect of each day on which he so sits or votes to a penalty of five hundred rupees to be recovered as a debt due to the Union. Powers, Privileges and Immunities of Parliament and its Members 105. Powers, privileges, etc., of the Houses of Parliament and of the members and committees thereof.—(1) Subject to the provisions of this Constitution and to the rules and standing orders regulating the procedure of Parliament, there shall be freedom of speech in Parliament. (2) No member of Parliament shall be liable to any proceedings in any court in respect of anything said or any vote given by him in Parliament or any committee thereof, and no person shall be so liable in respect of the publication by or under the authority of either House of Parliament of any report, paper, votes or proceedings. 1[(3) In other respects, the powers, privileges and immunities of each House of Parliament, and of the members and the committees of each House, shall be such as may from time to time be defined by Parliament by law, and, until so defined, 2[shall be those of that House and of its members and committees immediately before the coming into force of section 15 of the Constitution (Forty-fourth Amendment) Act, 1978.]]. ______________________________________________ words (w.e.f. 20-6-1979). (4) The provisions of clauses (1), (2) and (3) shall apply in relation to persons who by virtue of this Constitution have the right to speak in, and otherwise to take part in the proceedings of, a House of Parliament or any committee thereof as they apply in relation to members of Parliament. 106. Salaries and allowances of members.—Members of either House of Parliament shall be entitled to receive such salaries and allowances as may from time to time be determined by Parliament by law and, until provision in that respect is so made, allowances at such rates and upon such conditions as were immediately before the commencement of this Constitution applicable in the case of members of the Constituent Assembly of the Dominion of India. ## Legislative Procedure 107. Provisions as to introduction and passing of Bills.—(1) Subject to the provisions of articles 109 and 117 with respect to Money Bills and other financial Bills, a Bill may originate in either House of Parliament. (2) Subject to the provisions of articles 108 and 109, a Bill shall not be deemed to have been passed by the Houses of Parliament unless it has been agreed to by both Houses, either without amendment or with such amendments only as are agreed to by both Houses. (3) A Bill pending in Parliament shall not lapse by reason of the prorogation of the Houses. (4) A Bill pending in the Council of States which has not been passed by the House of the People shall not lapse on a dissolution of the House of the People. (5) A Bill which is pending in the House of the People, or which having been passed by the House of the People is pending in the Council of States, shall, subject to the provisions of article 108, lapse on a dissolution of the House of the People. 108. Joint sitting of both Houses in certain cases.—(1) If after a Bill has been passed by one House and transmitted to the other House— (a) the Bill is rejected by the other House; or (b) the Houses have finally disagreed as to the amendments to be made in the Bill; or (c) more than six months elapse from the date of the reception of the Bill by the other House without the Bill being passed by it, the President may, unless the Bill has elapsed by reason of a dissolution of the House of the People, notify to the Houses by message if they are sitting or by public notification if they are not sitting, his intention to summon them to meet in a joint sitting for the purpose of deliberating and voting on the Bill: Provided that nothing in this clause shall apply to a Money Bill. (2) In reckoning any such period of six months as is referred to in clause (1), no account shall be taken of any period during which the House referred to in sub-clause (c) of that clause is prorogued or adjourned for more than four consecutive days. (3) Where the President has under clause (1) notified his intention of summoning the Houses to meet in a joint sitting, neither House shall proceed further with the Bill, but the President may at any time after the date of his notification summon the Houses to meet in a joint sitting for the purpose specified in the notification and, if he does so, the Houses shall meet accordingly. (4) If at the joint sitting of the two Houses the Bill, with such amendments, if any, as are agreed to in joint sitting, is passed by a majority of the total number of members of both Houses present and voting, it shall be deemed for the purposes of this Constitution to have been passed by both Houses: Provided that at a joint sitting— (a) if the Bill, having been passed by one House, has not been passed by the other House with amendments and returned to the House in which it originated, no amendment shall be proposed to the Bill other than such amendments (if any) as are made necessary by the delay in the passage of the Bill; (b) if the Bill has been so passed and returned, only such amendments as aforesaid shall be proposed to the Bill and such other amendments as are relevant to the matters with respect to which the Houses have not agreed; and the decision of the person presiding as to the amendments which are admissible under this clause shall be final. (5) A joint sitting may be held under this article and a Bill passed thereat, notwithstanding that a dissolution of the House of the People has intervened since the President notified his intention to summon the Houses to meet therein. ## 109. Special Procedure In Respect Of Money Bills.—(1) A Money Bill shall not be introduced in the Council of States. (Part V.—The Union) (2) After a Money Bill has been passed by the House of the People it shall be transmitted to the Council of States for its recommendations and the Council of States shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the House of the People with its recommendations and the House of the People may thereupon either accept or reject all or any of the recommendations of the Council of States. (3) If the House of the People accepts any of the recommendations of the Council of States, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Council of States and accepted by the House of the People. (4) If the House of the People does not accept any of the recommendations of the Council of States, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the House of the People without any of the amendments recommended by the Council of States. (5) If a Money Bill passed by the House of the People and transmitted to the Council of States for its recommendations is not returned to the House of the People within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the House of the People. 110. Definition of "Money Bills".—(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:— (a) the imposition, abolition, remission, alteration or regulation of any tax; (b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India; (c) the custody of the Consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund; (d) the appropriation of moneys out of the Consolidated Fund of India; (e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure; (f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or (g) any matter incidental to any of the matters specified in subclauses (a) to (f). (2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes. (3) If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final. (4) There shall be endorsed on every Money Bill when it is transmitted to the Council of States under article 109, and when it is presented to the President for assent under article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill. 111. Assent to Bills.—When a Bill has been passed by the Houses of Parliament, it shall be presented to the President, and the President shall declare either that he assents to the Bill, or that he withholds assent therefrom: Provided that the President may, as soon as possible after the presentation to him of a Bill for assent, return the Bill if it is not a Money Bill to the Houses with a message requesting that they will reconsider the Bill or any specified provisions thereof and, in particular, will consider the desirability of introducing any such amendments as he may recommend in his message, and when a Bill is so returned, the Houses shall reconsider the Bill accordingly, and if the Bill is passed again by the Houses with or without amendment and presented to the President for assent, the President shall not withhold assent therefrom. ## Procedure In Financial Matters 112. Annual financial statement.—(1) The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, in this Part referred to as the "annual financial statement''. (2) The estimates of expenditure embodied in the annual financial statement shall show separately— (a) the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India; and (b) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of India, and shall distinguish expenditure on revenue account from other expenditure. (3) The following expenditure shall be expenditure charged on the Consolidated Fund of India— (a) the emoluments and allowances of the President and other expenditure relating to his office; (b) the salaries and allowances of the Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of the House of the People; (c) debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt; (d) (i) the salaries, allowances and pensions payable to or in respect of Judges of the Supreme Court; (ii) the pensions payable to or in respect of Judges of the Federal Court; (iii) the pensions payable to or in respect of Judges of any High Court which exercises jurisdiction in relation to any area included in the territory of India or which at any time before the commencement of this Constitution exercised jurisdiction in relation to any area included in 1[a Governor's Province of the Dominion of India]; (e) the salary, allowances and pension payable to or in respect of the Comptroller and Auditor-General of India; (f) any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal; (g) any other expenditure declared by this Constitution or by Parliament by law to be so charged. 113. Procedure in Parliament with respect to estimates.—(1) So much of the estimates as relates to expenditure charged upon the Consolidated Fund of India shall not be submitted to the vote of Parliament, but nothing in this clause shall be construed as preventing the discussion in either House of Parliament of any of those estimates. ______________________________________________ (2) So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the House of the People, and the House of the People shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein. (3) No demand for a grant shall be made except on the recommendation of the President. 114. Appropriation Bills.—(1) As soon as may be after the grants under article 113 have been made by the House of the People, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet— (a) the grants so made by the House of the People; and (b) the expenditure charged on the Consolidated Fund of India but not exceeding in any case the amount shown in the statement previously laid before Parliament. (2) No amendment shall be proposed to any such Bill in either House of Parliament which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of India, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final. (3) Subject to the provisions of articles 115 and 116, no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law passed in accordance with the provisions of this article. 115. Supplementary, additional or excess grants.—(1) The President shall— (a) if the amount authorised by any law made in accordance with the provisions of article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or (b) if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year, cause to be laid before both the Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be. (2) The provisions of articles 112, 113 and 114 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant. 116. Votes on account, votes of credit and exceptional grants.—(1) Notwithstanding anything in the foregoing provisions of this Chapter, the House of the People shall have power— (a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 113 for the voting of such grant and the passing of the law in accordance with the provisions of article 114 in relation to that expenditure; (b) to make a grant for meeting an unexpected demand upon the resources of India when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement; (c) to make an exceptional grant which forms no part of the current service of any financial year, and Parliament shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of India for the purposes for which the said grants are made. (2) The provisions of articles 113 and 114 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure. 117. Special provisions as to financial Bills.—(1) A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of clause (1) of article 110 shall not be introduced or moved except on the recommendation of the President and a Bill making such provision shall not be introduced in the Council of States: Provided that no recommendation shall be required under this clause for the moving of an amendment making provision for the reduction or abolition of any tax. (2) A Bill or amendment shall not be deemed to make provision for any of the matters aforesaid by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes. (3) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill. ## Procedure Generally 118. Rules of procedure.—(1) Each House of Parliament may make rules for regulating, subject to the provisions of this Constitution, its procedure and the conduct of its business. (2) Until rules are made under clause (1), the rules of procedure and standing orders in force immediately before the commencement of this Constitution with respect to the Legislature of the Dominion of India shall have effect in relation to Parliament subject to such modifications and adaptations as may be made therein by the Chairman of the Council of States or the Speaker of the House of the People, as the case may be. (3) The President, after consultation with the Chairman of the Council of States and the Speaker of the House of the People, may make rules as to the procedure with respect to joint sittings of, and communications between, the two Houses. (4) At a joint sitting of the two Houses the Speaker of the House of the People, or in his absence such person as may be determined by rules of procedure made under clause (3), shall preside. 119. Regulation by law of procedure in Parliament in relation to financial business.— Parliament may, for the purpose of the timely completion of financial business, regulate by law the procedure of, and the conduct of business in, each House of Parliament in relation to any financial matter or to any Bill for the appropriation of moneys out of the Consolidated Fund of India, and, if and so far as any provision of any law so made is inconsistent with any rule made by a House of Parliament under clause (1) of article 118 or with any rule or standing order having effect in relation to Parliament under clause (2) of that article, such provision shall prevail. ## ______________________________________________ (Part V.—The Union) 120. Language to be used in Parliament.—(1) Notwithstanding anything in Part XVII, but subject to the provisions of article 348, business in Parliament shall be transacted in Hindi or in English: Provided that the Chairman of the Council of States or Speaker of the House of the People, or person acting as such, as the case may be, may permit any member who cannot adequately express himself in Hindi or in English to address the House in his mother-tongue. (2) Unless Parliament by law otherwise provides, this article shall, after the expiration of a period of fifteen years from the commencement of this Constitution, have effect as if the words "or in English" were omitted therefrom. 121. Restriction on discussion in Parliament.—No discussion shall take place in Parliament with respect to the conduct of any Judge of the Supreme Court or of a High Court in the discharge of his duties except upon a motion for presenting an address to the President praying for the removal of the Judge as hereinafter provided. 122. Courts not to inquire into proceedings of Parliament.—(1) The validity of any proceedings in Parliament shall not be called in question on the ground of any alleged irregularity of procedure. (2) No officer or member of Parliament in whom powers are vested by or under this Constitution for regulating procedure or the conduct of business, or for maintaining order, in Parliament shall be subject to the jurisdiction of any court in respect of the exercise by him of those powers. ## Chapter Iii.—Legislative Powers Of The President 123. Power of President to promulgate Ordinances during recess of Parliament.—(1) If at any time, except when both Houses of Parliament are in session, the President is satisfied that circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinances as the circumstances appear to him to require. (2) An Ordinance promulgated under this article shall have the same force and effect as an Act of Parliament, but every such Ordinance— (a) shall be laid before both Houses of Parliament and shall cease to operate at the expiration of six weeks from the reassembly of Parliament, or, if before the expiration of that period resolutions disapproving it are passed by both Houses, upon the passing of the second of those resolutions; and (b) may be withdrawn at any time by the President. Explanation.—Where the Houses of Parliament are summoned to reassemble on different dates, the period of six weeks shall be reckoned from the later of those dates for the purposes of this clause. (3) If and so far as an Ordinance under this article makes any provision which Parliament would not under this Constitution be competent to enact, it shall be void. 1(4)* * * * * ## Chapter Iv.—The Union Judiciary 124. Establishment and constitution of Supreme Court.—(1) There shall be a Supreme Court of India consisting of a Chief Justice of India and, until Parliament by law prescribes a larger number, of not more than [seven] other Judges. (2) Every Judge of the Supreme Court shall be appointed by the President by warrant under his hand and seal 2[on the recommendation of the National Judicial Appointments Commission referred to in article 124A] and shall hold office until he attains the age of sixty-five years: 3[* * * * *] 4[Provided that]— (a) a Judge may, by writing under his hand addressed to the President, resign his office; (b) a Judge may be removed from his office in the manner provided in clause (4). 5[(2A) The age of a Judge of the Supreme Court shall be determined by such authority and in such manner as Parliament may by law provide.] (3) A person shall not be qualified for appointment as a Judge of the ______________________________________________ 1. Ins. by the Constitution (Thirty-eighth Amendment) Act, 1975, s. 2 (with retrospective effect) and omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 16 (w.e.f. 20-6-1979).  Now "thirty-three" *vide* the Supreme Court (Number of Judges) Amendment Act, 2019 (37 of 2019), s. 2 (w.e.f. 9-8-2019). 2. Subs. by the Constitution (Ninety-ninth Amendment) Act, 2014, s. 2, for "after consultation with such of the Judges of the Supreme Court and of the High Court in the States as the President may deem necessary for the purpose" (w.e.f. 13-4-2015). This amendment has been struck down by the Supreme Court in the case of Supreme Court Advocates-on-Record Association and another Vs. Union of India in its judgment dated 16-10-2015, AIR 2016 SC 117. 3. The first proviso was omitted by s. 2, *ibid.* (w.e.f.13-4-2015).The proviso was as under:— "Provided that in the case of appointment of a Judge other than the Chief Justice, the Chief Justice of India shall always be consulted:". This amendment has been struck down by the Supreme Court in the case of Supreme Court Advocates-on-Record Association and another Vs. Union of India in its judgment dated 16-10-2015, AIR 2016 SC 117. 4. Subs. by s. 2, *ibid*. for "provided further that" (w.e.f.13-4-2015).This amendment has been struck down by the Supreme Court in the Supreme Court Advocates-on-Record Association and another Vs Union of India judgment dated 16-10-2015, AIR 2016 SC 117. 5. Ins. by the Constitution (Fifteenth Amendment) Act, 1963, s. 2 (w.e.f. 5-10-1963). Supreme Court unless he is a citizen of India and— (a) has been for at least five years a Judge of a High Court or of two or more such Courts in succession; or (b) has been for at least ten years an advocate of a High Court or of two or more such Courts in succession; or (c) is, in the opinion of the President, a distinguished jurist. Explanation I.—In this clause "High Court'' means a High Court which exercises, or which at any time before the commencement of this Constitution exercised, jurisdiction in any part of the territory of India. Explanation II.—In computing for the purpose of this clause the period during which a person has been an advocate, any period during which a person has held judicial office not inferior to that of a district judge after he became an advocate shall be included. (4) A Judge of the Supreme Court shall not be removed from his office except by an order of the President passed after an address by each House of Parliament supported by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting has been presented to the President in the same session for such removal on the ground of proved misbehaviour or incapacity. (5) Parliament may by law regulate the procedure for the presentation of an address and for the investigation and proof of the misbehaviour or incapacity of a Judge under clause (4). (6) Every person appointed to be a Judge of the Supreme Court shall, before he enters upon his office, make and subscribe before the President, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Third Schedule. (7) No person who has held office as a Judge of the Supreme Court shall plead or act in any court or before any authority within the territory of India. 1[**124A. National Judicial Appointments Commission**.—(1) There shall be a Commission to be known as the National Judicial Appointments Commission consisting of the following, namely:— (a) the Chief Justice of India, Chairperson, *ex officio*; (b) two other senior Judges of the Supreme Court next to the Chief Justice of India––Members, *ex officio*; ## ______________________________________________ (Part V.—The Union) (c) the Union Minister in charge of Law and Justice––Member, ex officio; (d) two eminent persons to be nominated by the committee consisting of the Prime Minister, the Chief Justice of India and the Leader of Opposition in the House of the People or where there is no such Leader of Opposition, then, the Leader of single largest Opposition Party in the House of the People––Members: Provided that one of the eminent person shall be nominated from amongst the persons belonging to the Scheduled Castes, the Scheduled Tribes, Other Backward Classes, Minorities or Women: Provided further that an eminent person shall be nominated for a period of three years and shall not be eligible for renomination. (2) No act or proceedings of the National Judicial Appointments Commission shall be questioned or be invalidated merely on the ground of the existence of any vacancy or defect in the constitution of the Commission. 124B. **Functions of Commission.**––It shall be the duty of the National Judicial Appointments Commission to— (a) recommend persons for appointment as Chief Justice of India, Judges of the Supreme Court, Chief Justices of High Courts and other Judges of High Courts; (b) recommend transfer of Chief Justices and other Judges of High Courts from one High Court to any other High Court; and (c) ensure that the person recommended is of ability and integrity. 124C. Power of Parliament to make law.––Parliament may, by law, regulate the procedure for the appointment of Chief Justice of India and other Judges of the Supreme Court and Chief Justices and other Judges of High Courts and empower the Commission to lay down by regulations the procedure for the discharge of its functions, the manner of selection of persons for appointment and such other matters as may be considered necessary by it.] 125. Salaries, etc., of Judges.— 1[(1) There shall be paid to the Judges of the Supreme Court such salaries as may be determined by Parliament by law and, until provision in that behalf is so made, such salaries as are specified in the Second Schedule.] (2) Every Judge shall be entitled to such privileges and allowances and to such rights in respect of leave of absence and pension as may from time to time be determined by or under law made by Parliament and, until so determined, to such privileges, allowances and rights as are specified in the Second Schedule: Provided that neither the privileges nor the allowances of a Judge nor his rights in respect of leave of absence or pension shall be varied to his disadvantage after his appointment. ## ______________________________________________ (Part V.—The Union) 126. Appointment of acting Chief Justice.—When the office of Chief Justice of India is vacant or when the Chief Justice is, by reason of absence or otherwise, unable to perform the duties of his office, the duties of the office shall be performed by such one of the other Judges of the Court as the President may appoint for the purpose. 127. Appointment of *ad hoc* **Judges.**—(1) If at any time there should not be a quorum of the Judges of the Supreme Court available to hold or continue any session of the Court, 1[the National Judicial Appointments Commission on a reference made to it by the Chief Justice of India, may with the previous consent of the President] and after consultation with the Chief Justice of the High Court concerned, request in writing the attendance at the sittings of the Court, as an *ad hoc* Judge, for such period as may be necessary, of a Judge of a High Court duly qualified for appointment as a Judge of the Supreme Court to be designated by the Chief Justice of India. (2) It shall be the duty of the Judge who has been so designated, in priority to other duties of his office, to attend the sittings of the Supreme Court at the time and for the period for which his attendance is required, and while so attending he shall have all the jurisdiction, powers and privileges, and shall discharge the duties, of a Judge of the Supreme Court. 128. Attendance of retired Judges at sittings of the Supreme Court.—Notwithstanding anything in this Chapter, 2[the National Judicial Appointments Commission] may at any time, with the previous consent of the President, request any person who has held the office of a Judge of the Supreme Court or of the Federal Court 3[or who has held the office of a Judge of a High Court and is duly qualified for appointment as a Judge of the Supreme Court] to sit and act as a Judge of the Supreme Court, and every such person so requested shall, while so sitting and acting, be entitled to such allowances as the President may by order determine and have all the jurisdiction, powers and privileges of, but shall not otherwise be deemed to be, a Judge of that Court: Provided that nothing in this article shall be deemed to require any such person as aforesaid to sit and act as a Judge of that Court unless he consents so to do. ## ______________________________________________ 1. Subs. By The Constitution (Ninety-Ninth Amendment) Act, 2014, S. 4, For "The Chief Justice of India may, with the previous consent of the President" (w.e.f. 13-4-2015). This amendment has been struck down by the Supreme Court in the case of Supreme Court Advocates-on-Record Association and another vs. Union of India in its judgment dated 16-10-2015, AIR 2016 SC 117. 2. Subs. by s. 5, *ibid.*, for "the Chief Justice of India" (w.e.f. 13-4-2015). This amendment has been struck down by the Supreme Court in the case of Supreme Court Advocateson-Record Association and another Vs. Union of India in its judgment dated 16-10- 2015, AIR 2016 SC 117. 3. Ins. by the Constitution (Fifteenth Amendment) Act, 1963, s.3 (w.e.f. 5-10-1963). 129. Supreme Court to be a court of record.—The Supreme Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself. 130. Seat of Supreme Court.—The Supreme Court shall sit in Delhi or in such other place or places, as the Chief Justice of India may, with the approval of the President, from time to time, appoint. 131. Original jurisdiction of the Supreme Court.—Subject to the provisions of this Constitution, the Supreme Court shall, to the exclusion of any other court, have original jurisdiction in any dispute— (a) between the Government of India and one or more States; or (b) between the Government of India and any State or States on one side and one or more other States on the other; or (c) between two or more States, if and in so far as the dispute involves any question (whether of law or fact) on which the existence or extent of a legal right depends: 1[Provided that the said jurisdiction shall not extend to a dispute arising out of any treaty, agreement, covenant, engagement, *sanad* or other similar instrument which, having been entered into or executed before the commencement of this Constitution, continues in operation after such commencement, or which provides that the said jurisdiction shall not extend to such a dispute.] 2[**131A**. Exclusive jurisdiction of the Supreme Court in regard to questions as to constitutional validity of Central laws.].—Omitted by the Constitution (Forty-third Amendment) *Act,* 1977, s. 4 (*w.e.f.* 13-4-1978). 132. Appellate jurisdiction of Supreme Court in appeals from High Courts in certain cases.—(1) An appeal shall lie to the Supreme Court from any judgment, decree or final order of a High Court in the territory of India, whether in a civil, criminal or other proceeding, 3[if the High Court certifies under article 134A] that the case involves a substantial question of law as to the interpretation of this Constitution. 4(2)* * * * * (3) Where such a certificate is given, 2*** any party in the case may ______________________________________________ 1. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 5, for the proviso (w.e.f. 1-11-1956). 2. Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 23 (w.e.f. 1-2-1977). 3. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 17, for "if the High Court certifies" (w.e.f. 1-8-1979). 4. Cl. (2) omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 17, for "if the High Court certifies" (w.e.f. 1-8-1979). appeal to the Supreme Court on the ground that any such question as aforesaid has been wrongly decided 1***. Explanation.—For the purposes of this article, the expression "final order" includes an order deciding an issue which, if decided in favour of the appellant, would be sufficient for the final disposal of the case. 133. Appellate jurisdiction of Supreme Court in appeals from High Courts in regard to civil matters.—2[(1) An appeal shall lie to the Supreme Court from any judgment, decree or final order in a civil proceeding of a High Court in the territory of India 3[if the High Court certifies under article 134A—] (a) that the case involves a substantial question of law of general importance; and (b) that in the opinion of the High Court the said question needs to be decided by the Supreme Court.] (2) Notwithstanding anything in article 132, any party appealing to the Supreme Court under clause (1) may urge as one of the grounds in such appeal that a substantial question of law as to the interpretation of this Constitution has been wrongly decided. (3) Notwithstanding anything in this article, no appeal shall, unless Parliament by law otherwise provides, lie to the Supreme Court from the judgment, decree or final order of one Judge of a High Court. 134. Appellate jurisdiction of Supreme Court in regard to criminal matters.—(1) An appeal shall lie to the Supreme Court from any judgment, final order or sentence in a criminal proceeding of a High Court in the territory of India if the High Court— (a) has on appeal reversed an order of acquittal of an accused person and sentenced him to death; or (b) has withdrawn for trial before itself any case from any court subordinate to its authority and has in such trial convicted the accused person and sentenced him to death; or (c) 4[certifies under article 134A] that the case is a fit one for appeal to the Supreme Court: Provided that an appeal under sub-clause (c) shall lie subject to such provisions as may be made in that behalf under clause (1) of article 145 and to such conditions as the High Court may establish or require. ______________________________________________ 1. Certain words omitted by s. 17, *ibid.* (w.e.f. 1-8-1979). (w.e.f. 27-2-1973). Court certifies.—" (w.e.f. 1-8-1979). (2) Parliament may by law confer on the Supreme Court any further powers to entertain and hear appeals from any judgment, final order or sentence in a criminal proceeding of a High Court in the territory of India subject to such conditions and limitations as may be specified in such law. 1**[134A. Certificate for appeal to the Supreme Court.**—Every High Court, passing or making a judgment, decree, final order, or sentence, referred to in clause (1) of article 132 or clause (1) of article 133, or clause (1) of article 134,— (a) may, if it deems fit so to do, on its own motion; and (b) shall, if an oral application is made, by or on behalf of the party aggrieved, immediately after the passing or making of such judgment, decree, final order or sentence, determine, as soon as may be after such passing or making, the question whether a certificate of the nature referred to in clause (1) of article 132, or clause (1) of article 133 or, as the case may be, sub-clause (c) of clause (1) of article 134, may be given in respect of that case.] 135. Jurisdiction and powers of the Federal Court under existing law to be exercisable by the Supreme Court.—Until Parliament by law otherwise provides, the Supreme Court shall also have jurisdiction and powers with respect to any matter to which the provisions of article 133 or article 134 do not apply if jurisdiction and powers in relation to that matter were exercisable by the Federal Court immediately before the commencement of this Constitution under any existing law. 136. Special leave to appeal by the Supreme Court.—(1) Notwithstanding anything in this Chapter, the Supreme Court may, in its discretion, grant special leave to appeal from any judgment, decree, determination, sentence or order in any cause or matter passed or made by any court or tribunal in the territory of India. (2) Nothing in clause (1) shall apply to any judgment, determination, sentence or order passed or made by any court or tribunal constituted by or under any law relating to the Armed Forces. 137. Review of judgments or orders by the Supreme Court.—Subject to the provisions of any law made by Parliament or any rules made under article 145, the Supreme Court shall have power to review any judgment pronounced or order made by it. 138. Enlargement of the jurisdiction of the Supreme Court.—(1) The Supreme Court shall have such further jurisdiction and powers with respect to any of the matters in the Union List as Parliament may by law confer. ______________________________________________ (2) The Supreme Court shall have such further jurisdiction and powers with respect to any matter as the Government of India and the Government of any State may by special agreement confer, if Parliament by law provides for the exercise of such jurisdiction and powers by the Supreme Court. 139. Conferment on the Supreme Court of powers to issue certain writs.—Parliament may by law confer on the Supreme Court power to issue directions, orders or writs, including writs in the nature of habeas corpus, mandamus, prohibition, *quo warranto* and *certiorari,* or any of them, for any purposes other than those mentioned in clause (2) of article 32. 1[**139A. Transfer of certain cases**.—2[(1) Where cases involving the same or substantially the same questions of law are pending before the Supreme Court and one or more High Courts or before two or more High Courts and the Supreme Court is satisfied on its own motion or on an application made by the Attorney-General of India or by a party to any such case that such questions are substantial questions of general importance, the Supreme Court may withdraw the case or cases pending before the High Court or the High Courts and dispose of all the cases itself: Provided that the Supreme Court may after determining the said questions of law return any case so withdrawn together with a copy of its judgment on such questions to the High Court from which the case has been withdrawn, and the High Court shall on receipt thereof, proceed to dispose of the case in conformity with such judgment.] (2) The Supreme Court may, if it deems it expedient so to do for the ends of justice, transfer any case, appeal or other proceedings pending before any High Court to any other High Court.] 140. Ancillary powers of Supreme Court.—Parliament may by law make provision for conferring upon the Supreme Court such supplemental powers not inconsistent with any of the provisions of this Constitution as may appear to be necessary or desirable for the purpose of enabling the Court more effectively to exercise the jurisdiction conferred upon it by or under this Constitution. 141. Law declared by Supreme Court to be binding on all courts.— The law declared by the Supreme Court shall be binding on all courts within the territory of India. ______________________________________________ 1. Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 24 (w.e.f. 1-2-1977). 142. Enforcement of decrees and orders of Supreme Court and orders as to discovery, etc.—(1) The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it, and any decree so passed or order so made shall be enforceable throughout the territory of India in such manner as may be prescribed by or under any law made by Parliament and, until provision in that behalf is so made, in such manner as the President may by order1 prescribe. (2) Subject to the provisions of any law made in this behalf by Parliament, the Supreme Court shall, as respects the whole of the territory of India, have all and every power to make any order for the purpose of securing the attendance of any person, the discovery or production of any documents, or the investigation or punishment of any contempt of itself. 143. Power of President to consult Supreme Court.—(1) If at any time it appears to the President that a question of law or fact has arisen, or is likely to arise, which is of such a nature and of such public importance that it is expedient to obtain the opinion of the Supreme Court upon it, he may refer the question to that Court for consideration and the Court may, after such hearing as it thinks fit, report to the President its opinion thereon. (2) The President may, notwithstanding anything in 2*** the proviso to article 131, refer a dispute of the kind mentioned in the 3[said proviso] to the Supreme Court for opinion and the Supreme Court shall, after such hearing as it thinks fit, report to the President its opinion thereon. 144. Civil and judicial authorities to act in aid of the Supreme Court.—All authorities, civil and judicial, in the territory of India shall act in aid of the Supreme Court. 4[**144A.** [Special provisions as to disposal of questions relating to constitutional validity of laws.].—Omitted by the Constitution (Forty-third Amendment) *Act,* 1977, s. 5 (*w.e.f.* 13-4-1978).] 145. Rules of Court, etc.—(1) Subject to the provisions of any law made by Parliament, the Supreme Court may from time to time, with the approval of the President, make rules for regulating generally the practice and procedure of the Court including— (a) rules as to the persons practising before the Court; (b) rules as to the procedure for hearing appeals and other matters pertaining to appeals including the time within which appeals to the Court are to be entered; ## ______________________________________________ (Part V.—The Union) (c) rules as to the proceedings in the Court for the enforcement of any of the rights conferred by Part III; 1[(cc) rules as to the proceedings in the Court under 2[article 139A];] (d) rules as to the entertainment of appeals under sub-clause (c) of clause (1) of article 134; (e) rules as to the conditions subject to which any judgment pronounced or order made by the Court may be reviewed and the procedure for such review including the time within which applications to the Court for such review are to be entered; (f) rules as to the costs of and incidental to any proceedings in the Court and as to the fees to be charged in respect of proceedings therein; (g) rules as to the granting of bail; (h) rules as to stay of proceedings; (i) rules providing for the summary determination of any appeal which appears to the Court to be frivolous or vexatious or brought for the purpose of delay; (j) rules as to the procedure for inquiries referred to in clause (1) of article 317. (2) Subject to the 3[provisions of 4*** clause (3)], rules made under this article may fix the minimum number of Judges who are to sit for any purpose, and may provide for the powers of single Judges and Division Courts. (3) 5[4***The minimum number] of Judges who are to sit for the purpose of deciding any case involving a substantial question of law as to the interpretation of this Constitution or for the purpose of hearing any reference under article 143 shall be five: Provided that, where the Court hearing an appeal under any of the provisions of this Chapter other than article 132 consists of less than five Judges and in the course of the hearing of the appeal the Court is satisfied that ______________________________________________ of clause (3)" (w.e.f. 1-2-1977). 4. Certain words omitted by the Constitution (Forty-third Amendment) Act, 1977, s. 6 (w.e.f. 13-4-1978). 5. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 26, for "The minimum number" (w.e.f. 1-2-1977). the appeal involves a substantial question of law as to the interpretation of this Constitution the determination of which is necessary for the disposal of the appeal, such Court shall refer the question for opinion to a Court constituted as required by this clause for the purpose of deciding any case involving such a question and shall on receipt of the opinion dispose of the appeal in conformity with such opinion. (4) No judgment shall be delivered by the Supreme Court save in open Court, and no report shall be made under article 143 save in accordance with an opinion also delivered in open Court. (5) No judgment and no such opinion shall be delivered by the Supreme Court save with the concurrence of a majority of the Judges present at the hearing of the case, but nothing in this clause shall be deemed to prevent a Judge who does not concur from delivering a dissenting judgment or opinion. 146. Officers and servants and the expenses of the Supreme Court.— (1) Appointments of officers and servants of the Supreme Court shall be made by the Chief Justice of India or such other Judge or officer of the Court as he may direct: Provided that the President may by rule require that in such cases as may be specified in the rule, no person not already attached to the Court shall be appointed to any office connected with the Court, save after consultation with the Union Public Service Commission. (2) Subject to the provisions of any law made by Parliament, the conditions of service of officers and servants of the Supreme Court shall be such as may be prescribed by rules made by the Chief Justice of India or by some other Judge or officer of the Court authorised by the Chief Justice of India to make rules for the purpose: Provided that the rules made under this clause shall, so far as they relate to salaries, allowances, leave or pensions, require the approval of the President. (3) The administrative expenses of the Supreme Court, including all salaries, allowances and pensions payable to or in respect of the officers and servants of the Court, shall be charged upon the Consolidated Fund of India, and any fees or other moneys taken by the Court shall form part of that Fund. 147. Interpretation.—In this Chapter and in Chapter V of Part VI, references to any substantial question of law as to the interpretation of this Constitution shall be construed as including references to any substantial (Part V.—The Union) question of law as to the interpretation of the Government of India Act, 1935 (including any enactment amending or supplementing that Act), or of any Order in Council or order made thereunder, or of the Indian Independence Act, 1947, or of any order made thereunder. ## Chapter V.—Comptroller And Auditor-General Of India 148. Comptroller and Auditor-General of India.—(1) There shall be a Comptroller and Auditor-General of India who shall be appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court. (2) Every person appointed to be the Comptroller and Auditor-General of India shall, before he enters upon his office, make and subscribe before the President, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Third Schedule. (3) The salary and other conditions of service of the Comptroller and Auditor-General shall be such as may be determined by Parliament by law and, until they are so determined, shall be as specified in the Second Schedule: Provided that neither the salary of a Comptroller and Auditor-General nor his rights in respect of leave of absence, pension or age of retirement shall be varied to his disadvantage after his appointment. (4) The Comptroller and Auditor-General shall not be eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office. (5) Subject to the provisions of this Constitution and of any law made by Parliament, the conditions of service of persons serving in the Indian Audit and Accounts Department and the administrative powers of the Comptroller and Auditor-General shall be such as may be prescribed by rules made by the President after consultation with the Comptroller and Auditor-General. (6) The administrative expenses of the office of the Comptroller and Auditor-General, including all salaries, allowances and pensions payable to or in respect of persons serving in that office, shall be charged upon the Consolidated Fund of India. 149. Duties and powers of the Comptroller and Auditor-General.— The Comptroller and Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament and, until provision in that behalf is so made, shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States as were conferred on or exercisable by the Auditor-General of India immediately before the commencement of this Constitution in relation to the accounts of the Dominion of India and of the Provinces respectively. 1[**150. Form of accounts of the Union and of the States.**—The accounts of the Union and of the States shall be kept in such form as the President may, 2[on the advice of] the Comptroller and Auditor-General of India, prescribe.] 151. Audit reports.—(1) The reports of the Comptroller and Auditor- General of India relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament. (2) The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor 3*** of the State, who shall cause them to be laid before the Legislature of the State. ## ______________________________________________ Part Vi The States 1*** Chapter I.—General 152. Definition.—In this Part, unless the context otherwise requires, the expression "State" 2[does not include the State of Jammu and Kashmir]. ## Chapter Ii.—The Executive The Governor 153. Governors of States.—There shall be a Governor for each State: 3[Provided that nothing in this article shall prevent the appointment of the same person as Governor for two or more States.] 154. Executive power of State.—(1) The executive power of the State shall be vested in the Governor and shall be exercised by him either directly or through officers subordinate to him in accordance with this Constitution. (2) Nothing in this article shall— (a) be deemed to transfer to the Governor any functions conferred by any existing law on any other authority; or (b) prevent Parliament or the Legislature of the State from conferring by law functions on any authority subordinate to the Governor. 155. Appointment of Governor.—The Governor of a State shall be appointed by the President by warrant under his hand and seal. 156. Term of office of Governor.—(1) The Governor shall hold office during the pleasure of the President. (2) The Governor may, by writing under his hand addressed to the President, resign his office. (3) Subject to the foregoing provisions of this article, a Governor shall hold office for a term of five years from the date on which he enters upon his office: ______________________________________________ (Part VI.—The States) Provided that a Governor shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office. 157. Qualifications for appointment as Governor.—No person shall be eligible for appointment as Governor unless he is a citizen of India and has completed the age of thirty-five years. 158. Conditions of Governor's office.—(1) The Governor shall not be a member of either House of Parliament or of a House of the Legislature of any State specified in the First Schedule, and if a member of either House of Parliament or of a House of the Legislature of any such State be appointed Governor, he shall be deemed to have vacated his seat in that House on the date on which he enters upon his office as Governor. (2) The Governor shall not hold any other office of profit. (3) The Governor shall be entitled without payment of rent to the use of his official residences and shall be also entitled to such emoluments, allowances and privileges as may be determined by Parliament by law and, until provision in that behalf is so made, such emoluments, allowances and privileges as are specified in the Second Schedule. 1[(3A) Where the same person is appointed as Governor of two or more States, the emoluments and allowances payable to the Governor shall be allocated among the States in such proportion as the President may by order determine.] (4) The emoluments and allowances of the Governor shall not be diminished during his term of office. 159. Oath or affirmation by the Governor.—Every Governor and every person discharging the functions of the Governor shall, before entering upon his office, make and subscribe in the presence of the Chief Justice of the High Court exercising jurisdiction in relation to the State, or, in his absence, the senior most Judge of that Court available, an oath or affirmation in the following form, that is to say— "I, A. B., do swear in the name of God that I will faithfully execute the solemnly affirm office of Governor (or discharge the functions of the Governor) of .........(*name of the State*) and will to the best of my ability preserve, protect and defend the Constitution and the law and that I will devote myself to the service and well-being of the people of ..……(*name of the State*).". ______________________________________________ ## (Part Vi.—The States) 160. Discharge of the functions of the Governor in certain contingencies.—The President may make such provision as he thinks fit for the discharge of the functions of the Governor of a State in any contingency not provided for in this Chapter. 161. Power of Governor to grant pardons, etc., and to suspend, remit or commute sentences in certain cases.—The Governor of a State shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence against any law relating to a matter to which the executive power of the State extends. 162. Extent of executive power of State.—Subject to the provisions of this Constitution, the executive power of a State shall extend to the matters with respect to which the Legislature of the State has power to make laws: Provided that in any matter with respect to which the Legislature of a State and Parliament have power to make laws, the executive power of the State shall be subject to, and limited by, the executive power expressly conferred by this Constitution or by any law made by Parliament upon the Union or authorities thereof. ## Council Of Ministers 163. Council of Ministers to aid and advise Governor.—(1) There shall be a Council of Ministers with the Chief Minister at the head to aid and advise the Governor in the exercise of his functions, except in so far as he is by or under this Constitution required to exercise his functions or any of them in his discretion. (2) If any question arises whether any matter is or is not a matter as respects which the Governor is by or under this Constitution required to act in his discretion, the decision of the Governor in his discretion shall be final, and the validity of anything done by the Governor shall not be called in question on the ground that he ought or ought not to have acted in his discretion. (3) The question whether any, and if so what, advice was tendered by Ministers to the Governor shall not be inquired into in any court. 164. Other provisions as to Ministers.—(1) The Chief Minister shall be appointed by the Governor and the other Ministers shall be appointed by the Governor on the advice of the Chief Minister, and the Ministers shall hold office during the pleasure of the Governor: ## (Part Vi.—The States) Provided that in the States of 1[Chhattisgarh, Jharkhand], Madhya Pradesh and 2[Odisha] there shall be a Minister in charge of tribal welfare who may in addition be in charge of the welfare of the Scheduled Castes and backward classes or any other work. 3[(1A) The total number of Ministers, including the Chief Minister, in the Council of Ministers in a State shall not exceed fifteen per cent. of the total number of members of the Legislative Assembly of that State: Provided that the number of Ministers, including the Chief Minister in a State shall not be less than twelve: Provided further that where the total number of Ministers including the Chief Minister in the Council of Ministers in any State at the commencement of the Constitution (Ninety-first Amendment) Act, 2003 exceeds the said fifteen per cent. or the number specified in the first proviso, as the case may be, then the total number of Ministers in that State shall be brought in conformity with the provisions of this clause within six months from such date 4 as the President may by public notification appoint. (1B) A member of the Legislative Assembly of a State or either House of the Legislature of a State having Legislative Council belonging to any political party who is disqualified for being a member of that House under paragraph 2 of the Tenth Schedule shall also be disqualified to be appointed as a Minister under clause (1) for duration of the period commencing from the date of his disqualification till the date on which the term of his office as such member would expire or where he contests any election to the Legislative Assembly of a State or either House of the Legislature of a State having Legislative Council, as the case may be, before the expiry of such period, till the date on which he is declared elected, whichever is earlier.] (2) The Council of Ministers shall be collectively responsible to the Legislative Assembly of the State. (3) Before a Minister enters upon his office, the Governor shall administer to him the oaths of office and of secrecy according to the forms set out for the purpose in the Third Schedule. ______________________________________________ 1. Subs. by the Constitution (Ninety-fourth Amendment) Act, 2006, s. 2, for "Bihar" (w.e.f. 12-6-2006). 2. Subs. by the Orissa (Alteration of Name) Act, 2011 (15 of 2011), s. 4, for "Orissa" (w.e.f. 1-11-2011). 3. Ins. by the Constitution (Ninety-first Amendment) Act, 2003, s. 3 (w.e.f. 1-1-2004). 4. 7-1-2004, *vide* notification number S.O. 21(E), dated 7-1-2004. (Part VI.—The States) (4) A Minister who for any period of six consecutive months is not a member of the Legislature of the State shall at the expiration of that period cease to be a Minister. (5) The salaries and allowances of Ministers shall be such as the Legislature of the State may from time to time by law determine and, until the Legislature of the State so determines, shall be as specified in the Second Schedule. ## The Advocate-General For The State 165. Advocate-General for the State.—(1) The Governor of each State shall appoint a person who is qualified to be appointed a Judge of a High Court to be Advocate-General for the State. (2) It shall be the duty of the Advocate-General to give advice to the Government of the State upon such legal matters, and to perform such other duties of a legal character, as may from time to time be referred or assigned to him by the Governor, and to discharge the functions conferred on him by or under this Constitution or any other law for the time being in force. (3) The Advocate-General shall hold office during the pleasure of the Governor, and shall receive such remuneration as the Governor may determine. ## Conduct Of Government Business 166. Conduct of Business of the Government of a State.—(1) All executive action of the Government of a State shall be expressed to be taken in the name of the Governor. (2) Orders and other instruments made and executed in the name of the Governor shall be authenticated in such manner as may be specified in rules to be made by the Governor, and the validity of an order or instrument which is so authenticated shall not be called in question on the ground that it is not an order or instrument made or executed by the Governor. (3) The Governor shall make rules for the more convenient transaction of the business of the Government of the State, and for the allocation among Ministers of the said business in so far as it is not business with respect to which the Governor is by or under this Constitution required to act in his discretion. 1(4)* * * * * ## ______________________________________________ (Part Vi.—The States) 167. Duties of Chief Minister as respects the furnishing of information to Governor, etc.—It shall be the duty of the Chief Minister of each State— (a) to communicate to the Governor of the State all decisions of the Council of Ministers relating to the administration of the affairs of the State and proposals for legislation; (b) to furnish such information relating to the administration of the affairs of the State and proposals for legislation as the Governor may call for; and (c) if the Governor so requires, to submit for the consideration of the Council of Ministers any matter on which a decision has been taken by a Minister but which has not been considered by the Council. ## Chapter Iii.—The State Legislature General 168. Constitution of Legislatures in States.—(1) For every State there shall be a Legislature which shall consist of the Governor, and— (a) in the States of 1*** 2[Andhra Pradesh], Bihar, 3*** 4[Madhya Pradesh], 5*** 6[Maharashtra], 7[Karnataka], 8*** 9[10[Tamil Nadu, Telangana]] 11[and Uttar Pradesh], two Houses; ______________________________________________ 2. Ins. by the Andhra Pradesh Legislative Council Act, 2005 (1 of 2006), s. 3 (w.e.f. 30-3-2007). 3. The word "Bombay" omitted by the Bombay Reorganisation Act, 1960 (11 of 1960) s. 20 (w.e.f. 1-5-1960). 5. The words "Tamil Nadu," omitted by the Tamil Nadu Legislative Council (Abolition) Act, 1986 (40 of 1986), s. 4 (w.e.f. 1-11-1986). 6. Ins. by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 20 (w.e.f. 1-5-1960). 7. Subs. by the Mysore State (Alteration of Name) Act, 1973 (31 of 1973), s. 4, for "Mysore" (w.e.f. 1-11-1973), which was inserted by the Constitution (Seventh Amendment) Act, 1956, s. 8(1) (w.e.f. 1-11-1956). 8. The word, "Punjab," omitted by the Punjab Legislative Council (Abolition) Act, 1969 (46 of 1969), s. 4 (w.e.f. 7-1-1970). 9. The words "Tamil Nadu" ins. by the Tamil Nadu Legislative Council Act, 2010 (16 of 2010), s. 3 (date not yet notified). 10. Subs. by the Andhra Pradesh Reorganisation Act, 2014 (6 of 2014), s. 96, for "Tamil Nadu" (w.e.f. 2-6-2014). 11. Subs. by the West Bengal Legislative Council (Abolition) Act, 1969 (20 of 1969), s. 4 for "Uttar Pradesh and West Bengal" (w.e.f. 1-8-1969). (b) in other States, one House. (2) Where there are two Houses of the Legislature of a State, one shall be known as the Legislative Council and the other as the Legislative Assembly, and where there is only one House, it shall be known as the Legislative Assembly. 169. Abolition or creation of Legislative Councils in States.—(1) Notwithstanding anything in article 168, Parliament may by law provide for the abolition of the Legislative Council of a State having such a Council or for the creation of such a Council in a State having no such Council, if the Legislative Assembly of the State passes a resolution to that effect by a majority of the total membership of the Assembly and by a majority of not less than two-thirds of the members of the Assembly present and voting. (2) Any law referred to in clause (1) shall contain such provisions for the amendment of this Constitution as may be necessary to give effect to the provisions of the law and may also contain such supplemental, incidental and consequential provisions as Parliament may deem necessary. (3) No such law as aforesaid shall be deemed to be an amendment of this Constitution for the purposes of article 368. 1[**170. Composition of the Legislative Assemblies.**—(1) Subject to the provisions of article 333, the Legislative Assembly of each State shall consist of not more than five hundred, and not less than sixty, members chosen by direct election from territorial constituencies in the State. (2) For the purposes of clause (1), each State shall be divided into territorial constituencies in such manner that the ratio between the population of each constituency and the number of seats allotted to it shall, so far as practicable, be the same throughout the State. 2[*Explanation.—*In this clause, the expression "population" means the population as ascertained at the last preceding census of which the relevant figures have been published: Explanation (w.e.f. 3-1-1977). ## (Part Vi.—The States) Provided that the reference in this *Explanation* to the last preceding census of which the relevant figures have been published shall, until the relevant figures for the first census taken after the year 1[2026] have been published, be construed as a reference to the 2[2001] census.] (3) Upon the completion of each census, the total number of seats in the Legislative Assembly of each State and the division of each State into territorial constituencies shall be readjusted by such authority and in such manner as Parliament may by law determine: Provided that such readjustment shall not affect representation in the Legislative Assembly until the dissolution of the then existing Assembly: 3[Provided further that such readjustment shall take effect from such date as the President may, by order, specify and until such readjustment takes effect, any election to the Legislative Assembly may be held on the basis of the territorial constituencies existing before such readjustment: Provided also that until the relevant figures for the first census taken after the year 1[2026] have been published, it shall not be necessary to 4[readjust— (i) the total number of seats in the Legislative Assembly of each State as readjusted on the basis of the 1971 census; and (ii) the division of such State into territorial constituencies as may be readjusted on the basis of the 2[2001] census, under this clause.] 171. Composition of the Legislative Councils.—(1) The total number of members in the Legislative Council of a State having such a Council shall not exceed 5[one-third] of the total number of members in the Legislative Assembly of that State: ______________________________________________ 1. Subs. by the Constitution (Eighty-fourth Amendment) Act, 2001, s. 5, for "2000" (w.e.f. 21-2-2002). 2. Subs. by the Constitution (Eighty-seventh Amendment) Act, 2003, s. 4, for "1991" (w.e.f. 22-6-2003). The figures "1991" were substituted for the original figures "1971" by the Constitution (Eighty fourth Amendment) Act, 2001, s. 5 (w.e.f. 21-2-2002). 3. Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 29 (w.e.f. 3-1-1977). 4. Subs. by the Constitution (Eighty-fourth Amendment) Act, 2001, s. 5, for certain words (w.e.f. 21-2-2002). 5. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 10, for "one-fourth" (w.e.f. 1-11-1956). Provided that the total number of members in the Legislative Council of a State shall in no case be less than forty. (2) Until Parliament by law otherwise provides, the composition of the Legislative Council of a State shall be as provided in clause (3). (3) Of the total number of members of the Legislative Council of a State— (a) as nearly as may be, one-third shall be elected by electorates consisting of members of municipalities, district boards and such other local authorities in the State as Parliament may by law specify; (b) as nearly as may be, one-twelfth shall be elected by electorates consisting of persons residing in the State who have been for at least three years graduates of any university in the territory of India or have been for at least three years in possession of qualifications prescribed by or under any law made by Parliament as equivalent to that of a graduate of any such university; (c) as nearly as may be, one-twelfth shall be elected by electorates consisting of persons who have been for at least three years engaged in teaching in such educational institutions within the State, not lower in standard than that of a secondary school, as may be prescribed by or under any law made by Parliament; (d) as nearly as may be, one-third shall be elected by the members of the Legislative Assembly of the State from amongst persons who are not members of the Assembly; (e) the remainder shall be nominated by the Governor in accordance with the provisions of clause (5). (4) The members to be elected under sub-clauses (a), (b) and (c) of clause (3) shall be chosen in such territorial constituencies as may be prescribed by or under any law made by Parliament, and the elections under the said sub-clauses and under sub-clause (d) of the said clause shall be held in accordance with the system of proportional representation by means of the single transferable vote. (5) The members to be nominated by the Governor under sub-clause (e) of clause (3) shall consist of persons having special knowledge or practical experience in respect of such matters as the following, namely:— Literature, science, art, co-operative movement and social service. 172. Duration of State Legislatures.—(1) Every Legislative Assembly of every State, unless sooner dissolved, shall continue for 1[five years] from the date appointed for its first meeting and no longer and the expiration of the said period of 1[five years] shall operate as a dissolution of the Assembly: Provided that the said period may, while a Proclamation of Emergency is in operation, be extended by Parliament by law for a period not exceeding one year at a time and not extending in any case beyond a period of six months after the Proclamation has ceased to operate. (2) The Legislative Council of a State shall not be subject to dissolution, but as nearly as possible one-third of the members thereof shall retire as soon as may be on the expiration of every second year in accordance with the provisions made in that behalf by Parliament by law. 173. Qualification for membership of the State Legislature.—A person shall not be qualified to be chosen to fill a seat in the Legislature of a State unless he— 2[(a) is a citizen of India, and makes and subscribes before some person authorised in that behalf by the Election Commission an oath or affirmation according to the form set out for the purpose in the Third Schedule;] (b) is, in the case of a seat in the Legislative Assembly, not less than twenty-five years of age and, in the case of a seat in the Legislative Council, not less than thirty years of age; and (c) possesses such other qualifications as may be prescribed in that behalf by or under any law made by Parliament. ## ______________________________________________ (Part Vi.—The States) 1[174. Sessions of the State Legislature, prorogation and dissolution.—(1) The Governor shall from time to time summon the House or each House of the Legislature of the State to meet at such time and place as he thinks fit, but six months shall not intervene between its last sitting in one session and the date appointed for its first sitting in the next session. (2) The Governor may from time to time— (a) prorogue the House or either House; (b) dissolve the Legislative Assembly.] 175. Right of Governor to address and send messages to the House or Houses.—(1) The Governor may address the Legislative Assembly or, in the case of a State having a Legislative Council, either House of the Legislature of the State, or both Houses assembled together, and may for that purpose require the attendance of members. (2) The Governor may send messages to the House or Houses of the Legislature of the State, whether with respect to a Bill then pending in the Legislature or otherwise, and a House to which any message is so sent shall with all convenient despatch consider any matter required by the message to be taken into consideration. 176. Special address by the Governor.—(1) At the commencement of 2[the first session after each general election to the Legislative Assembly and at the commencement of the first session of each year], the Governor shall address the Legislative Assembly or, in the case of a State having a Legislative Council, both Houses assembled together and inform the Legislature of the causes of its summons. (2) Provision shall be made by the rules regulating the procedure of the House or either House for the allotment of time for discussion of the matters referred to in such address 3***. 177. Rights of Ministers and Advocate-General as respects the Houses.—Every Minister and the Advocate-General for a State shall have the right to speak in, and otherwise to take part in the proceedings of, the Legislative Assembly of the State or, in the case of a State having a Legislative Council, both Houses, and to speak in, and otherwise to take part in the proceedings of, any committee of the Legislature of which he may be named a member, but shall not, by virtue of this article, be entitled to vote. (w.e.f. 18-6-1951). 2. Subs. by s. 9, *ibid.*, for "every session" (w.e.f. 18-6-1951). 3. The words "and for the precedence of such discussion over other business of the House" omitted by s. 9, *ibid*. (w.e.f. 18-6-1951). ## (Part Vi.—The States) Officers Of The State Legislature 178. The Speaker and Deputy Speaker of the Legislative Assembly.—Every Legislative Assembly of a State shall, as soon as may be, choose two members of the Assembly to be respectively Speaker and Deputy Speaker thereof and, so often as the office of Speaker or Deputy Speaker becomes vacant, the Assembly shall choose another member to be Speaker or Deputy Speaker, as the case may be. 179. Vacation and resignation of, and removal from, the offices of Speaker and Deputy Speaker.—A member holding office as Speaker or Deputy Speaker of an Assembly— (a) shall vacate his office if he ceases to be a member of the Assembly; (b) may at any time by writing under his hand addressed, if such member is the Speaker, to the Deputy Speaker, and if such member is the Deputy Speaker, to the Speaker, resign his office; and (c) may be removed from his office by a resolution of the Assembly passed by a majority of all the then members of the Assembly: Provided that no resolution for the purpose of clause (c) shall be moved unless at least fourteen days' notice has been given of the intention to move the resolution: Provided further that, whenever the Assembly is dissolved, the Speaker shall not vacate his office until immediately before the first meeting of the Assembly after the dissolution. 180. Power of the Deputy Speaker or other person to perform the duties of the office of, or to act as, Speaker.—(1) While the office of Speaker is vacant, the duties of the office shall be performed by the Deputy Speaker or, if the office of Deputy Speaker is also vacant, by such member of the Assembly as the Governor may appoint for the purpose. (2) During the absence of the Speaker from any sitting of the Assembly the Deputy Speaker or, if he is also absent, such person as may be determined by the rules of procedure of the Assembly, or, if no such person is present, such other person as may be determined by the Assembly, shall act as Speaker. 181. The Speaker or the Deputy Speaker not to preside while a resolution for his removal from office is under consideration.—(1) At any sitting of the Legislative Assembly, while any resolution for the removal of the Speaker from his office is under consideration, the Speaker, or while any resolution for the removal of the Deputy Speaker from his office is under consideration, the Deputy Speaker, shall not, though he is present, preside, and the provisions of clause (2) of article 180 shall apply in relation to every such sitting as they apply in relation to a sitting from which the Speaker or, as the case may be, the Deputy Speaker, is absent. (Part VI.—The States) (2) The Speaker shall have the right to speak in, and otherwise to take part in the proceedings of, the Legislative Assembly while any resolution for his removal from office is under consideration in the Assembly and shall, notwithstanding anything in article 189, be entitled to vote only in the first instance on such resolution or on any other matter during such proceedings but not in the case of an equality of votes. 182. The Chairman and Deputy Chairman of the Legislative Council.—The Legislative Council of every State having such Council shall, as soon as may be, choose two members of the Council to be respectively Chairman and Deputy Chairman thereof and, so often as the office of Chairman or Deputy Chairman becomes vacant, the Council shall choose another member to be Chairman or Deputy Chairman, as the case may be. 183. Vacation and resignation of, and removal from, the offices of Chairman and Deputy Chairman.—A member holding office as Chairman or Deputy Chairman of a Legislative Council— (a) shall vacate his office if he ceases to be a member of the Council; (b) may at any time by writing under his hand addressed, if such member is the Chairman, to the Deputy Chairman, and if such member is the Deputy Chairman, to the Chairman, resign his office; and (c) may be removed from his office by a resolution of the Council passed by a majority of all the then members of the Council: Provided that no resolution for the purpose of clause (c) shall be moved unless at least fourteen days' notice has been given of the intention to move the resolution. 184. Power of the Deputy Chairman or other person to perform the duties of the office of, or to act as, Chairman.—(1) While the office of Chairman is vacant, the duties of the office shall be performed by the Deputy Chairman or, if the office of Deputy Chairman is also vacant, by such member of the Council as the Governor may appoint for the purpose. (2) During the absence of the Chairman from any sitting of the Council the Deputy Chairman or, if he is also absent, such person as may be determined by the rules of procedure of the Council, or, if no such person is present, such other person as may be determined by the Council, shall act as Chairman. ## (Part Vi.—The States) 185. The Chairman or the Deputy Chairman not to preside while a resolution for his removal from office is under consideration.—(1) At any sitting of the Legislative Council, while any resolution for the removal of the Chairman from his office is under consideration, the Chairman, or while any resolution for the removal of the Deputy Chairman from his office is under consideration, the Deputy Chairman, shall not, though he is present, preside, and the provisions of clause (2) of article 184 shall apply in relation to every such sitting as they apply in relation to a sitting from which the Chairman or, as the case may be, the Deputy Chairman is absent. (2) The Chairman shall have the right to speak in, and otherwise to take part in the proceedings of, the Legislative Council while any resolution for his removal from office is under consideration in the Council and shall, notwithstanding anything in article 189, be entitled to vote only in the first instance on such resolution or on any other matter during such proceedings but not in the case of an equality of votes. 186. Salaries and allowances of the Speaker and Deputy Speaker and the Chairman and Deputy Chairman.—There shall be paid to the Speaker and the Deputy Speaker of the Legislative Assembly, and to the Chairman and the Deputy Chairman of the Legislative Council, such salaries and allowances as may be respectively fixed by the Legislature of the State by law and, until provision in that behalf is so made, such salaries and allowances as are specified in the Second Schedule. 187. Secretariat of State Legislature.—(1) The House or each House of the Legislature of a State shall have a separate secretarial staff: Provided that nothing in this clause shall, in the case of the Legislature of a State having a Legislative Council, be construed as preventing the creation of posts common to both Houses of such Legislature. (2) The Legislature of a State may by law regulate the recruitment, and the conditions of service of persons appointed, to the secretarial staff of the House or Houses of the Legislature of the State. (3) Until provision is made by the Legislature of the State under clause (2), the Governor may, after consultation with the Speaker of the Legislative Assembly or the Chairman of the Legislative Council, as the case may be, make rules regulating the recruitment, and the conditions of service of persons appointed, to the secretarial staff of the Assembly or the Council, and any rules so made shall have effect subject to the provisions of any law made under the said clause. ## (Part Vi.—The States) Conduct Of Business 188. Oath or affirmation by members.—Every member of the Legislative Assembly or the Legislative Council of a State shall, before taking his seat, make and subscribe before the Governor, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Third Schedule. 189. Voting in Houses, power of Houses to act notwithstanding vacancies and quorum.—(1) Save as otherwise provided in this Constitution, all questions at any sitting of a House of the Legislature of a State shall be determined by a majority of votes of the members present and voting, other than the Speaker or Chairman, or person acting as such. The Speaker or Chairman, or person acting as such, shall not vote in the first instance, but shall have and exercise a casting vote in the case of an equality of votes. (2) A House of the Legislature of a State shall have power to act notwithstanding any vacancy in the membership thereof, and any proceedings in the Legislature of a State shall be valid notwithstanding that it is discovered subsequently that some person who was not entitled so to do sat or voted or otherwise took part in the proceedings. 1[(3) Until the Legislature of the State by law otherwise provides, the quorum to constitute a meeting of a House of the Legislature of a State shall be ten members or one-tenth of the total number of members of the House, whichever is greater. (4) If at any time during a meeting of the Legislative Assembly or the Legislative Council of a State there is no quorum, it shall be the duty of the Speaker or Chairman, or person acting as such, either to adjourn the House or to suspend the meeting until there is a quorum.] ## Disqualifications Of Members 190. Vacation of seats.—(1) No person shall be a member of both Houses of the Legislature of a State and provision shall be made by the Legislature of the State by law for the vacation by a person who is chosen a member of both Houses of his seat in one house or the other. ______________________________________________ ## (Part Vi.—The States) (2) No person shall be a member of the Legislatures of two or more States specified in the First Schedule and if a person is chosen a member of the Legislatures of two or more such States, then, at the expiration of such period as may be specified in rules1 made by the President, that person's seat in the Legislatures of all such States shall become vacant, unless he has previously resigned his seat in the Legislatures of all but one of the States. (3) If a member of a House of the Legislature of a State— (a) becomes subject to any of the disqualifications mentioned in 2[clause (1) or clause (2) of article 191]; or 3[(b) resigns his seat by writing under his hand addressed to the speaker or the Chairman, as the case may be, and his resignation is accepted by the Speaker or the Chairman, as the case may be,] his seat shall thereupon become vacant: 4[Provided that in the case of any resignation referred to in sub-clause (b), if from information received or otherwise and after making such inquiry as he thinks fit, the Speaker or the Chairman, as the case may be, is satisfied that such resignation is not voluntary or genuine, he shall not accept such resignation.] (4) If for a period of sixty days a member of a House of the Legislature of a State is without permission of the House absent from all meetings thereof, the House may declare his seat vacant: Provided that in computing the said period of sixty days no account shall be taken of any period during which the House is prorogued or is adjourned for more than four consecutive days. 191. Disqualifications for membership.—(1) A person shall be disqualified for being chosen as, and for being, a member of the Legislative Assembly or Legislative Council of a State— (Part VI.—The States) 1[(a) if he holds any office of profit under the Government of India or the Government of any State specified in the First Schedule, other than an office declared by the Legislature of the State by law not to disqualify its holder;] (b) if he is of unsound mind and stands so declared by a competent court; (c) if he is an undischarged insolvent; (d) if he is not a citizen of India, or has voluntarily acquired the citizenship of a foreign State, or is under any acknowledgment of allegiance or adherence to a foreign State; (e) if he is so disqualified by or under any law made by Parliament. 2[*Explanation.*—For the purposes of this clause], a person shall not be deemed to hold an office of profit under the Government of India or the Government of any State specified in the First Schedule by reason only that he is a Minister either for the Union or for such State. 3[(2) A person shall be disqualified for being a member of the Legislative Assembly or Legislative Council of a State if he is so disqualified under the Tenth Schedule.] ## 4[**192. Decision On Questions As To Disqualifications Of Members**.—(1) If any question arises as to whether a member of a House of the Legislature of a State has become subject to any of the disqualifications mentioned in clause (1) of article 191, the question shall be referred for the decision of the Governor and his decision shall be final. (2) Before giving any decision on any such question, the Governor shall obtain the opinion of the Election Commission and shall act according to such opinion.] purposes of this article" (w.e.f. 1-3-1985). 3. Ins. by s. 5, *ibid.* (w.e.f. 1-3-1985). 4. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 33, for art. 192 (w.e.f. 3-1-1977) and further subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 25, for art. 192 (w.e.f. 20-6-1979). ## (Part Vi.—The States) 193. Penalty for sitting and voting before making oath or affirmation under article 188 or when not qualified or when disqualified.—If a person sits or votes as a member of the Legislative Assembly or the Legislative Council of a State before he has complied with the requirements of article 188, or when he knows that he is not qualified or that he is disqualified for membership thereof, or that he is prohibited from so doing by the provisions of any law made by Parliament or the Legislature of the State, he shall be liable in respect of each day on which he so sits or votes to a penalty of five hundred rupees to be recovered as a debt due to the State. Powers, Privileges and Immunities of State Legislatures and their Members 194. Powers, privileges, etc., of the Houses of Legislatures and of the members and committees thereof.—(1) Subject to the provisions of this Constitution and to the rules and standing orders regulating the procedure of the Legislature, there shall be freedom of speech in the Legislature of every State. (2) No member of the Legislature of a State shall be liable to any proceedings in any court in respect of anything said or any vote given by him in the Legislature or any committee thereof, and no person shall be so liable in respect of the publication by or under the authority of a House of such a Legislature of any report, paper, votes or proceedings. 1[(3) In other respects, the powers, privileges and immunities of a House of the Legislature of a State, and of the members and the committees of a House of such Legislature, shall be such as may from time to time be defined by the Legislature by law, and, until so defined, 2[shall be those of that House and of its members and committees immediately before the coming into force of section 26 of the Constitution (Forty-fourth Amendment) Act, 1978]. ______________________________________________ 1. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 34 to read as follows. : "(3) In other respects, the powers, privileges and immunities of a House of the Legislature of a State, and of the members and the committees of a House of such Legislature, shall be those of that House, and of its members and Committees, at the commencement of section 34 of the Constitution (Forty-second Amendment) Act, 1976, and as may be evolved by such House of the House of the People, and of its members and committees where such House is the Legislative Assembly and in accordance with those of the Council of States, and of its members and committees where such House is the Legislative Council." (date not notified). This amendment was omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 45 (w.e.f. 19-6-1979)." 2. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 26, for certain words (w.e.f. 20-6-1979). ## (Part Vi.—The States) (4) The provisions of clauses (1), (2) and (3) shall apply in relation to persons who by virtue of this Constitution have the right to speak in, and otherwise to take part in the proceedings of, a House of the Legislature of a State or any committee thereof as they apply in relation to members of that Legislature. 195. Salaries and allowances of members.—Members of the Legislative Assembly and the Legislative Council of a State shall be entitled to receive such salaries and allowances as may from time to time be determined, by the Legislature of the State by law and, until provision in that respect is so made, salaries and allowances at such rates and upon such conditions as were immediately before the commencement of this Constitution applicable in the case of members of the Legislative Assembly of the corresponding Province. ## Legislative Procedure 196. Provisions as to introduction and passing of Bills.—(1) Subject to the provisions of articles 198 and 207 with respect to Money Bills and other financial Bills, a Bill may originate in either House of the Legislature of a State which has a Legislative Council. (2) Subject to the provisions of articles 197 and 198, a Bill shall not be deemed to have been passed by the Houses of the Legislature of a State having a Legislative Council unless it has been agreed to by both Houses, either without amendment or with such amendments only as are agreed to by both Houses. (3) A Bill pending in the Legislature of a State shall not lapse by reason of the prorogation of the House or Houses thereof. (4) A Bill pending in the Legislative Council of a State which has not been passed by the Legislative Assembly shall not lapse on a dissolution of the Assembly. (5) A Bill which is pending in the Legislative Assembly of a State, or which having been passed by the Legislative Assembly is pending in the Legislative Council, shall lapse on a dissolution of the Assembly. 197. Restriction on powers of Legislative Council as to Bills other than Money Bills.—(1) If after a Bill has been passed by the Legislative Assembly of a State having a Legislative Council and transmitted to the Legislative Council— (a) the Bill is rejected by the Council; or (b) more than three months elapse from the date on which the Bill is laid before the Council without the Bill being passed by it; or (Part VI.—The States) (c) the Bill is passed by the Council with amendments to which the Legislative Assembly does not agree; the Legislative Assembly may, subject to the rules regulating its procedure, pass the Bill again in the same or in any subsequent session with or without such amendments, if any, as have been made, suggested or agreed to by the Legislative Council and then transmit the Bill as so passed to the Legislative Council. (2) If after a Bill has been so passed for the second time by the Legislative Assembly and transmitted to the Legislative Council— (a) the Bill is rejected by the Council; or (b) more than one month elapses from the date on which the Bill is laid before the Council without the Bill being passed by it; or (c) the Bill is passed by the Council with amendments to which the Legislative Assembly does not agree; the Bill shall be deemed to have been passed by the Houses of the Legislature of the State in the form in which it was passed by the Legislative Assembly for the second time with such amendments, if any, as have been made or suggested by the Legislative Council and agreed to by the Legislative Assembly. (3) Nothing in this article shall apply to a Money Bill. 198. Special procedure in respect of Money Bills.—(1) A Money Bill shall not be introduced in a Legislative Council. (2) After a Money Bill has been passed by the Legislative Assembly of a State having a Legislative Council, it shall be transmitted to the Legislative Council for its recommendations, and the Legislative Council shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the Legislative Assembly with its recommendations, and the Legislative Assembly may thereupon either accept or reject all or any of the recommendations of the Legislative Council. (3) If the Legislative Assembly accepts any of the recommendations of the Legislative Council, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Legislative Council and accepted by the Legislative Assembly. (4) If the Legislative Assembly does not accept any of the recommendations of the Legislative Council, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the Legislative Assembly without any of the amendments recommended by the Legislative Council. ## (Part Vi.—The States) (5) If a Money Bill passed by the Legislative Assembly and transmitted to the Legislative Council for its recommendations is not returned to the Legislative Assembly within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the Legislative Assembly. 199. Definition of "Money Bills".—(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:— (a) the imposition, abolition, remission, alteration or regulation of any tax; (b) the regulation of the borrowing of money or the giving of any guarantee by the State, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the State; (c) the custody of the Consolidated Fund or the Contingency Fund of the State, the payment of moneys into or the withdrawal of moneys from any such Fund; (d) the appropriation of moneys out of the Consolidated Fund of the State; (e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of the State, or the increasing of the amount of any such expenditure; (f) the receipt of money on account of the Consolidated Fund of the State or the public account of the State or the custody or issue of such money; or (g) any matter incidental to any of the matters specified in sub-clauses (a) to (f). (2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes. (3) If any question arises whether a Bill introduced in the Legislature of a State which has a Legislative Council is a Money Bill or not, the decision of the Speaker of the Legislative Assembly of such State thereon shall be final. (Part VI.—The States) (4) There shall be endorsed on every Money Bill when it is transmitted to the Legislative Council under article 198, and when it is presented to the Governor for assent under article 200, the certificate of the Speaker of the Legislative Assembly signed by him that it is a Money Bill. 200. Assent to Bills.—When a Bill has been passed by the Legislative Assembly of a State or, in the case of a State having a Legislative Council, has been passed by both Houses of the Legislature of the State, it shall be presented to the Governor and the Governor shall declare either that he assents to the Bill or that he withholds assent therefrom or that he reserves the Bill for the consideration of the President: Provided that the Governor may, as soon as possible after the presentation to him of the Bill for assent, return the Bill if it is not a Money Bill together with a message requesting that the House or Houses will reconsider the Bill or any specified provisions thereof and, in particular, will consider the desirability of introducing any such amendments as he may recommend in his message and, when a Bill is so returned, the House or Houses shall reconsider the Bill accordingly, and if the Bill is passed again by the House or Houses with or without amendment and presented to the Governor for assent, the Governor shall not withhold assent therefrom: Provided further that the Governor shall not assent to, but shall reserve for the consideration of the President, any Bill which in the opinion of the Governor would, if it became law, so derogate from the powers of the High Court as to endanger the position which that Court is by this Constitution designed to fill. 201. Bills reserved for consideration.—When a Bill is reserved by a Governor for the consideration of the President, the President shall declare either that he assents to the Bill or that he withholds assent therefrom: Provided that, where the Bill is not a Money Bill, the President may direct the Governor to return the Bill to the House or, as the case may be, the Houses of the Legislature of the State together with such a message as is mentioned in the first proviso to article 200 and, when a Bill is so returned, the House or Houses shall reconsider it accordingly within a period of six months from the date of receipt of such message and, if it is again passed by the House or Houses with or without amendment, it shall be presented again to the President for his consideration. ## Procedure In Financial Matters 202. Annual financial statement.—(1) The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the "annual financial statement". (2) The estimates of expenditure embodied in the annual financial statement shall show separately— (a) the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of the State; and (b) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State; and shall distinguish expenditure on revenue account from other expenditure. (3) The following expenditure shall be expenditure charged on the Consolidated Fund of each State— (a) the emoluments and allowances of the Governor and other expenditure relating to his office; (b) the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly and, in the case of a State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council; (c) debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt; (d) expenditure in respect of the salaries and allowances of Judges of any High Court; (e) any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal; (f) any other expenditure declared by this Constitution, or by the Legislature of the State by law, to be so charged. 203. Procedure in Legislature with respect to estimates.—(1) So much of the estimates as relates to expenditure charged upon the Consolidated Fund of a State shall not be submitted to the vote of the Legislative Assembly, but nothing in this clause shall be construed as preventing the discussion in the Legislature of any of those estimates. (Part VI.—The States) (2) So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the Legislative Assembly, and the Legislative Assembly shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein. (3) No demand for a grant shall be made except on the recommendation of the Governor. 204. Appropriation Bills.—(1) As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet— (a) the grants so made by the Assembly; and (b) the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the statement previously laid before the House or Houses. (2) No amendment shall be proposed to any such Bill in the House or either House of the Legislature of the State which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final. (3) Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article. 205. Supplementary, additional or excess grants.—(1) The Governor shall— (a) if the amount authorised by any law made in accordance with the provisions of article 204 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or (b) if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year, cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented to the Legislative Assembly of the State a demand for such excess, as the case may be. (2) The provisions of articles 202, 203 and 204 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or grant. ## 206. Votes On Account, Votes Of Credit And Exceptional Grants.—(1) Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State shall have power— (a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 203 for the voting of such grant and the passing of the law in accordance with the provisions of article 204 in relation to that expenditure; (b) to make a grant for meeting an unexpected demand upon the resources of the State when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement; (c) to make an exceptional grant which forms no part of the current service of any financial year; and the Legislature of the State shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the State for the purposes for which the said grants are made. (2) The provisions of articles 203 and 204 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure. ## (Part Vi.—The States) 207. Special provisions as to financial Bills.—(1) A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to *(f)* of clause (1) of article 199 shall not be introduced or moved except on the recommendation of the Governor, and a Bill making such provision shall not be introduced in a Legislative Council: Provided that no recommendation shall be required under this clause for the moving of an amendment making provision for the reduction or abolition of any tax. (2) A Bill or amendment shall not be deemed to make provision for any of the matters aforesaid by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes. (3) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of a State shall not be passed by a House of the Legislature of the State unless the Governor has recommended to that House the consideration of the Bill. ## Procedure Generally 208. Rules of procedure.—(1) A House of the Legislature of a State may make rules for regulating, subject to the provisions of this Constitution, its procedure and the conduct of its business. (2) Until rules are made under clause (1), the rules of procedure and standing orders in force immediately before the commencement of this Constitution with respect to the Legislature for the corresponding Province shall have effect in relation to the Legislature of the State subject to such modifications and adaptations as may be made therein by the Speaker of the Legislative Assembly, or the Chairman of the Legislative Council, as the case may be. (3) In a State having a Legislative Council the Governor, after consultation with the Speaker of the Legislative Assembly and the Chairman of the Legislative Council, may make rules as to the procedure with respect to communications between the two Houses. ______________________________________________ ## (Part Vi.—The States) 209. Regulation by law of procedure in the Legislature of the State in relation to financial business.—The Legislature of a State may, for the purpose of the timely completion of financial business, regulate by law the procedure of, and the conduct of business in, the House or Houses of the Legislature of the State in relation to any financial matter or to any Bill for the appropriation of moneys out of the Consolidated Fund of the State, and, if and so far as any provision of any law so made is inconsistent with any rule made by the House or either House of the Legislature of the State under clause (1) of article 208 or with any rule or standing order having effect in relation to the Legislature of the State under clause (2) of that article, such provision shall prevail. 210. Language to be used in the Legislature.—(1) Notwithstanding anything in Part XVII, but subject to the provisions of article 348, business in the Legislature of a State shall be transacted in the official language or languages of the State or in Hindi or in English: Provided that the Speaker of the Legislative Assembly or Chairman of the Legislative Council, or person acting as such, as the case may be, may permit any member who cannot adequately express himself in any of the languages aforesaid to address the House in his mother-tongue. (2) Unless the Legislature of the State by law otherwise provides, this article shall, after the expiration of a period of fifteen years from the commencement of this Constitution, have effect as if the words "or in English" were omitted therefrom: 1[Provided that in relation to the 2[Legislatures of the States of Himachal Pradesh, Manipur, Meghalaya and Tripura] this clause shall have effect as if for the words "fifteen years" occurring therein, the words "twenty-five years" were substituted:] 3[Provided further that in relation to the 4[Legislatures of the States of 5[Arunachal Pradesh, Goa and Mizoram]], this clause shall have effect as if for the words "fifteen years" occurring therein, the words "forty years" were substituted.] ______________________________________________ 1. Ins. by the State of Himachal Pradesh Act, 1970 (53 of 1970), s. 46 (w.e.f. 25-1-1971). 2. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71, for "Legislature of the State of Himachal Pradesh" (w.e.f. 21-1-1972). 3. Ins. by the State of Mizoram Act, 1986 (34 of 1986), s. 39 (w.e.f. 20-2-1987). 4. Subs. by the State of Arunachal Pradesh Act, 1986 (69 of 1986), s. 42, for "Legislature of the State of Mizoram" (w.e.f. 20-2-1987). 5. Subs. by the Goa, Daman and Diu Reorganisation Act, 1987 (18 of 1987), s. 63, for "Arunachal Pradesh and Mizoram" (w.e.f. 30-5-1987). 211. Restriction on discussion in the Legislature.—No discussion shall take place in the Legislature of a State with respect to the conduct of any Judge of the Supreme Court or of a High Court in the discharge of his duties. 212. Courts not to inquire into proceedings of the Legislature.—(1) The validity of any proceedings in the Legislature of a State shall not be called in question on the ground of any alleged irregularity of procedure. (2) No officer or member of the Legislature of a State in whom powers are vested by or under this Constitution for regulating procedure or the conduct of business, or for maintaining order, in the Legislature shall be subject to the jurisdiction of any court in respect of the exercise by him of those powers. ## Chapter Iv.—Legislative Power Of The Governor 213. Power of Governor to promulgate Ordinances during recess of Legislature.—(1) If at any time, except when the Legislative Assembly of a State is in session, or where there is a Legislative Council in a State, except when both Houses of the Legislature are in session, the Governor is satisfied that circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinances as the circumstances appear to him to require: Provided that the Governor shall not, without instructions from the President, promulgate any such Ordinance if— (a) a Bill containing the same provisions would under this Constitution have required the previous sanction of the President for the introduction thereof into the Legislature; or (b) he would have deemed it necessary to reserve a Bill containing the same provisions for the consideration of the President; or (c) an Act of the Legislature of the State containing the same provisions would under this Constitution have been invalid unless, having been reserved for the consideration of the President, it had received the assent of the President. (2) An Ordinance promulgated under this article shall have the same force and effect as an Act of the Legislature of the State assented to by the Governor, but every such Ordinance— (Part VI.—The States) (a) shall be laid before the Legislative Assembly of the State, or where there is a Legislative Council in the State, before both the Houses, and shall cease to operate at the expiration of six weeks from the reassembly of the Legislature, or if before the expiration of that period a resolution disapproving it is passed by the Legislative Assembly and agreed to by the Legislative Council, if any, upon the passing of the resolution or, as the case may be, on the resolution being agreed to by the Council; and (b) may be withdrawn at any time by the Governor. Explanation.—Where the Houses of the Legislature of a State having a Legislative Council are summoned to reassemble on different dates, the period of six weeks shall be reckoned from the later of those dates for the purposes of this clause. (3) If and so far as an Ordinance under this article makes any provision which would not be valid if enacted in an Act of the Legislature of the State assented to by the Governor, it shall be void: Provided that, for the purposes of the provisions of this Constitution relating to the effect of an Act of the Legislature of a State which is repugnant to an Act of Parliament or an existing law with respect to a matter enumerated in the Concurrent List, an Ordinance promulgated under this article in pursuance of instructions from the President shall be deemed to be an Act of the Legislature of the State which has been reserved for the consideration of the President and assented to by him. 1(4)* * * * ## Chapter V.—The High Courts In The States 214. High Courts for States.—2*** There shall be a High Court for each State. 3(2)* * * * 3(3)* * * * 215. High Courts to be courts of record.—Every High Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself. ## ______________________________________________ (Part Vi.—The States) 216. Constitution of High Courts.—Every High Court shall consist of a Chief Justice and such other Judges as the President may from time to time deem it necessary to appoint. 1* * * * * 217. Appointment and conditions of the office of a Judge of a High Court.—(1) Every Judge of a High Court shall be appointed by the President by warrant under his hand and seal 2[on the recommendation of the National Judicial Appointments Commission referred to in article 124A], and the Governor of the State, and, in the case of appointment of a Judge other than the Chief Justice, the Chief Justice of the High Court, 3[shall hold office, in the case of an additional or acting Judge, as provided in article 224, and in any other case, until he attains the age of 4[sixty-two years:]] Provided that— (a) a Judge may, by writing under his hand addressed to the President, resign his office; (b) a Judge may be removed from his office by the President in the manner provided in clause (4) of article 124 for the removal of a Judge of the Supreme Court; (c) the office of a Judge shall be vacated by his being appointed by the President to be a Judge of the Supreme Court or by his being transferred by the President to any other High Court within the territory of India. (2) A person shall not be qualified for appointment as a Judge of a High Court unless he is a citizen of India and— (a) has for at least ten years held a judicial office in the territory of India; or consultation with the Chief Justice of India, the Governor of the State, and, in the case of appointment of a Judge other than the Chief Justice, the Chief Justice of the High Court" (w.e.f. 13-4-2015). This amendment has been struck down by the Supreme Court in the case of Supreme Court Advocates-on-Record Association and Another Vs. Union of India in its judgment dated 16-10-2015, AIR 2016 SC 117. 3. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 12, for "shall hold office until he attains the age of sixty years" (w.e.f. 1-11-1956). 4. Subs. by the Constitution (Fifteenth Amendment) Act, 1963, s. 4(a), for "sixty years" (w.e.f. 5-10-1963). (Part VI.—The States) (b) has for at least ten years been an advocate of a High Court 1*** or of two or more such Courts in succession.2*** 2(c)* * * * * Explanation.—For the purposes of this clause— 3[(a) in computing the period during which a person has held judicial office in the territory of India, there shall be included any period, after he has held any judicial office, during which the person has been an advocate of a High Court or has held the office of a member of a tribunal or any post, under the Union or a State, requiring special knowledge of law;] 4[(aa)] in computing the period during which a person has been an advocate of a High Court, there shall be included any period during which the person 5[has held judicial office or the office of a member of a tribunal or any post, under the Union or a State, requiring special knowledge of law] after he became an advocate; (b) in computing the period during which a person has held judicial office in the territory of India or been an advocate of a High Court, there shall be included any period before the commencement of this Constitution during which he has held judicial office in any area which was comprised before the fifteenth day of August, 1947, within India as defined by the Government of India Act, 1935, or has been an advocate of any High Court in any such area, as the case may be. 6[(3) If any question arises as to the age of a Judge of a High Court, the question shall be decided by the President after consultation with the Chief Justice of India and the decision of the President shall be final.] ______________________________________________ 2. The word "or" and sub-clause (c) were ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 36 (w.e.f. 3-1-1977) and omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 28 (w.e.f. 20-6-1979). 3. Ins. by the Constitution (Forty-fourth Amendment) Act, 1978. s. 28 (w.e.f. 20-6-1979). 4. Cl. (a) re-lettered as cl. (aa) by the Constitution (Forty-fourth Amendment) Act, 1978, s. 28 (w.e.f. 20-6-1979). 5. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 36, for "has held judicial office" (w.e.f. 3-1-1977). 6. Ins. by the Constitution (Fifteenth Amendment) Act, 1963, s. 4(b), (with retrospective effect). 218. Application of certain provisions relating to Supreme Court to High Courts.—The provisions of clauses (4) and (5) of article 124 shall apply in relation to a High Court as they apply in relation to the Supreme Court with the substitution of references to the High Court for references to the Supreme Court. 219. Oath or affirmation by Judges of High Courts.—Every person appointed to be a Judge of a High Court 1*** shall, before he enters upon his office, make and subscribe before the Governor of the State, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Third Schedule. 2[**220. Restriction on practice after being a permanent Judge**.—No person who, after the commencement of this Constitution, has held office as a permanent Judge of a High Court shall plead or act in any court or before any authority in India except the Supreme Court and the other High Courts. Explanation.—In this article, the expression "High Court" does not include a High Court for a State specified in Part B of the First Schedule as it existed before the commencement3 of the Constitution (Seventh Amendment) Act, 1956.] 221. Salaries, etc., of Judges.—4[(1) There shall be paid to the Judges of each High Court such salaries as may be determined by Parliament by law and, until provision in that behalf is so made, such salaries as are specified in the Second Schedule.] (2) Every Judge shall be entitled to such allowances and to such rights in respect of leave of absence and pension as may from time to time be determined by or under law made by Parliament and, until so determined, to such allowances and rights as are specified in the Second Schedule: Provided that neither the allowances of a Judge nor his rights in respect to leave of absence or pension shall be varied to his disadvantage after his appointment. 3. 1st November, 1956. 4. Subs. by the Constitution (Fifty-fourth Amendment) Act, 1986, s. 3, for clause (1) (w.e.f. 1-4-1986). ## (Part Vi.—The States) 222. Transfer of a Judge from one High Court to another.—(1) The President may, 1[on the recommendation of the National Judicial Appointments Commission referred to in article 124A], transfer a Judge from one High Court to any other High Court 2***. 3[(2) When a Judge has been or is so transferred, he shall, during the period he serves, after the commencement of the Constitution (Fifteenth Amendment) Act, 1963, as a Judge of the other High Court, be entitled to receive in addition to his salary such compensatory allowance as may be determined by Parliament by law and, until so determined, such compensatory allowance as the President may by order fix.] 223. Appointment of acting Chief Justice.—When the office of Chief Justice of a High Court is vacant or when any such Chief Justice is, by reason of absence or otherwise, unable to perform the duties of his office, the duties of the office shall be performed by such one of the other Judges of the Court as the President may appoint for the purpose. 4[**224. Appointment of additional and acting Judges**.—(1) If by reason of any temporary increase in the business of a High Court or by reason of arrears of work therein, it appears to the President that the number of the Judges of that Court should be for the time being increased, 5[the President may, in consultation with the National Judicial Appointments Commission, appoint] duly qualified persons to be additional Judges of the Court for such period not exceeding two years as he may specify. (2) When any Judge of a High Court other than the Chief Justice is by ______________________________________________ 3. Ins. by the Constitution (Fifteenth Amendment) Act, 1963, s. 5 (w.e.f. 5-10-1963). Original cl. (2) was omitted by the Constitution (Seventh Amendment) Act, 1956, s. 14 (w.e.f. 1-11-1956). 4. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 15 for art. 224 (w.e.f. 1-11-1956). 5. Subs. by the Constitution (Ninety-ninth Amendment) Act, 2014, s. 8, for "the President may appoint" (w.e.f. 13-4-2015). This amendment has been struck down, by the Supreme Court in the case of Supreme Court Advocates-on-Record Association and Another *Vs. Union of India* in its judgment, dated 16-10-2015, AIR 2016 SC 117. (Part VI.—The States) reason of absence or for any other reason unable to perform the duties of his office or is appointed to act temporarily as Chief Justice, 1[the President may, in consultation with the National Judicial Appointments Commission, appoint] a duly qualified person to act as a Judge of that Court until the permanent Judge has resumed his duties. (3) No person appointed as an additional or acting Judge of a High Court shall hold office after attaining the age of 2[sixty-two years].] 3[**224A. Appointment of retired Judges at sittings of High Courts**.— Notwithstanding anything in this Chapter, 4[the National Judicial Appointments Commission on a reference made to it by the Chief Justice of a High Court for any State, may with the previous consent of the President], request any person who has held the office of a Judge of that Court or of any other High Court to sit and act as a Judge of the High Court for that State, and every such person so requested shall, while so sitting and acting, be entitled to such allowances as the President may by order determine and have all the jurisdiction, powers and privileges of, but shall not otherwise be deemed to be, a Judge of that High Court: Provided that nothing in this article shall be deemed to require any such person as aforesaid to sit and act as a Judge of that High Court unless he consents so to do.] 225. Jurisdiction of existing High Courts.—Subject to the provisions of this Constitution and to the provisions of any law of the appropriate Legislature made by virtue of powers conferred on that Legislature by this Constitution, the jurisdiction of, and the law administered in, any existing High Court, and the respective powers of the Judges thereof in relation to the administration of justice in the Court, including any power to make rules of Court and to regulate the sittings of the Court and of members thereof sitting alone or in Division Courts, shall be the same as immediately before the commencement of this Constitution: ______________________________________________ Another Vs. Union of India in its judgment, dated 16-10-2015, AIR 2016 SC 117. 2 Subs. by the Constitution (Fifteenth Amendment) Act, 1963, s. 6, for "sixty years" (w.e.f. 5-10-1963). 3. Ins. by s. 7, *ibid*. (w.e.f. 5-10-1963). 4. Subs. by the Constitution (Ninety-ninth Amendment) Act, 2014, s. 9, for "the Chief Justice of a High Court for any State may at any time, with the previous consent of the President" (w.e.f. 13-4-2015). This amendment has been struck down by the Supreme Court in the case of Supreme Court *Advocates-on-Record Association and Another Vs*. Union of India in its judgment dated 16-10-2015, AIR 2016 SC 117. ## (Part Vi.—The States) 1[Provided that any restriction to which the exercise of original jurisdiction by any of the High Courts with respect to any matter concerning the revenue or concerning any act ordered or done in the collection thereof was subject immediately before the commencement of this Constitution shall no longer apply to the exercise of such jurisdiction.] 2[**226. Power of High Courts to issue certain writs.**—(1) Notwithstanding anything in article 32 3***, every High Court shall have power, throughout the territories in relation to which it exercises jurisdiction, to issue to any person or authority, including in appropriate cases, any Government, within those territories directions, orders or writs, including 4[writs in the nature of *habeas corpus, mandamus,* prohibition, quo warranto and *certiorari,* or any of them, for the enforcement of any of the rights conferred by Part III and for any other purpose.] (2) The power conferred by clause (1) to issue directions, orders or writs to any Government, authority or person may also be exercised by any High Court exercising jurisdiction in relation to the territories within which the cause of action, wholly or in part, arises for the exercise of such power, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories. 5[(3) Where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on, or in any proceedings relating to, a petition under clause (1), without— (a) furnishing to such party copies of such petition and all documents in support of the plea for such interim order; and ______________________________________________ (w.e.f. 1-2-1977). 3. The words, figures and letters "but subject to the provisions of article 131A and article 226A" omitted by the Constitution (Forty-third Amendment) Act, 1977, s. 7 (w.e.f. 13-4-1978). 4. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 30, for the portion beginning with "writs in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari, or any of them" and ending with "such illegality has resulted in substantial failure of justice." (w.e.f. 1-8-1979). 5. Subs. by s.30, *ibid.,* for cls. (3), (4), (5) and (6) (w.e.f. 1-8-1979). (b) giving such party an opportunity of being heard, makes an application to the High Court for the vacation of such order and furnishes a copy of such application to the party in whose favour such order has been made or the counsel of such party, the High Court shall dispose of the application within a period of two weeks from the date on which it is received or from the date on which the copy of such application is so furnished, whichever is later, or where the High Court is closed on the last day of that period, before the expiry of the next day afterwards on which the High Court is open; and if the application is not so disposed of, the interim order shall, on the expiry of that period, or, as the case may be, the expiry of the said next day, stand vacated.] 1[(4) The power conferred on a High Court by this article shall not be in derogation of the power conferred on the Supreme Court by clause (2) of article 32.] 2[**226A**. Constitutional validity of Central laws not to be considered in proceedings under article 226.].—Omitted by the Constitution (Forty-third Amendment) *Act,* 1977, s. 8 (*w.e.f.* 13-4-1978). 227. Power of superintendence over all courts by the High Court.— 3[(1) Every High Court shall have superintendence over all courts and tribunals throughout the territories in relation to which it exercises jurisdiction.] (2) Without prejudice to the generality of the foregoing provision, the High Court may— (a) call for returns from such courts; (b) make and issue general rules and prescribe forms for regulating the practice and proceedings of such courts; and (c) prescribe forms in which books, entries and accounts shall be kept by the officers of any such courts. (3) The High Court may also settle tables of fees to be allowed to the sheriff and all clerks and officers of such courts and to attorneys, advocates and pleaders practising therein: ______________________________________________ 2. Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 39 (w.e.f. 1-2-1977). ## (Part Vi.—The States) Provided that any rules made, forms prescribed or tables settled under clause (2) or clause (3) shall not be inconsistent with the provision of any law for the time being in force, and shall require the previous approval of the Governor. (4) Nothing in this article shall be deemed to confer on a High Court powers of superintendence over any court or tribunal constituted by or under any law relating to the Armed Forces. 1(5)* * * * 228. Transfer of certain cases to High Court.—If the High Court is satisfied that a case pending in a court subordinate to it involves a substantial question of law as to the interpretation of this Constitution the determination of which is necessary for the disposal of the case, 2[it shall withdraw the case and 3*** may—] (a) either dispose of the case itself, or (b) determine the said question of law and return the case to the court from which the case has been so withdrawn together with a copy of its judgment on such question, and the said court shall on receipt thereof proceed to dispose of the case in conformity with such judgment. 4[**228A.** Special provisions as to disposal of questions relating to constitutional validity of State laws.].—Omitted by the Constitution (Fortythird Amendment) *Act,* 1977, s. 10 (w.e.f. 13-4-1978). ## 229. Officers And Servants And The Expenses Of High Courts.—(1) Appointments of officers and servants of a High Court shall be made by the Chief Justice of the Court or such other Judge or officer of the Court as he may direct: ______________________________________________ Act, 1978, s. 31 (w.e.f. 20-6-1979). 2. Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 41, for "it shall withdraw the case and may—" (w.e.f. 1-2-1977). 3. The words, figures and letter, "subject to the provisions of article 131A," omitted by the Constitution (Forty-third Amendment) Act, 1977, s. 9 (w.e.f. 13-4-1978). 4. Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 42 (w.e.f. 1-2-1977). ## (Part Vi.—The States) Provided that the Governor of the State 1*** may by rule require that in such cases as may be specified in the rule no person not already attached to the Court shall be appointed to any office connected with the Court save after consultation with the State Public Service Commission. (2) Subject to the provisions of any law made by the Legislature of the State, the conditions of service of officers and servants of a High Court shall be such as may be prescribed by rules made by the Chief Justice of the Court or by some other Judge or officer of the Court authorised by the Chief Justice to make rules for the purpose: Provided that the rules made under this clause shall, so far as they relate to salaries, allowances, leave or pensions, require the approval of the Governor of the State 1***. (3) The administrative expenses of a High Court, including all salaries, allowances and pensions payable to or in respect of the officers and servants of the Court, shall be charged upon the Consolidated Fund of the State, and any fees or other moneys taken by the Court shall form part of that Fund. ## 2[230. Extension Of Jurisdiction Of High Courts To Union territories.—(1) Parliament may by law extend the jurisdiction of a High Court to, or exclude the jurisdiction of a High Court from, any Union territory. (2) Where the High Court of a State exercises jurisdiction in relation to a Union territory,— (a) nothing in this Constitution shall be construed as empowering the Legislature of the State to increase, restrict or abolish that jurisdiction; and (b) the reference in article 227 to the Governor shall, in relation to any rules, forms or tables for subordinate courts in that territory, be construed as a reference to the President. 231. Establishment of a common High Court for two or more States.—(1) Notwithstanding anything contained in the preceding provisions of this Chapter, Parliament may by law establish a common High Court for two or more States or for two or more States and a Union territory. (2) In relation to any such High Court,— (Part VI.—The States) 1(a)* * * * * (b) the reference in article 227 to the Governor shall, in relation to any rules, forms or tables for subordinate courts, be construed as a reference to the Governor of the State in which the subordinate courts are situate; and (c) the references in articles 219 and 229 to the State shall be construed as a reference to the State in which the High Court has its principal seat: Provided that if such principal seat is in a Union territory, the references in articles 219 and 229 to the Governor, Public Service Commission, Legislature and Consolidated Fund of the State shall be construed respectively as references to the President, Union Public Service Commission, Parliament and Consolidated Fund of India.] [**232.** Interpretation.—Articles 230, 231 and 232 subs. by articles 230 and 231 by the Constitution (Seventh Amendment) Act, 1956, s. 16 (w.e.f. 1-11-1956)]. ## Chapter Vi.—Subordinate Courts 233. Appointment of district judges.—(1) Appointments of persons to be, and the posting and promotion of, district judges in any State shall be made by the Governor of the State in consultation with the High Court exercising jurisdiction in relation to such State. (2) A person not already in the service of the Union or of the State shall only be eligible to be appointed a district judge if he has been for not less than seven years an advocate or a pleader and is recommended by the High Court for appointment. ______________________________________________ Another Vs. Union of India reported AIR 2016 SC 117. Before amendment, subclause (a) was as under:— "(a) the reference in article 217 to the Governor of the State shall be construed as reference to the Governors of all the States in relation to which the High Court exercises jurisdiction;". ## (Part Vi.—The States) 1[233A. Validation of appointments of, and judgments, etc., delivered by, certain district judges.—Notwithstanding any judgment, decree or order of any court,— (a) (i) no appointment of any person already in the judicial service of a State or of any person who has been for not less than seven years an advocate or a pleader, to be a district judge in that State, and (ii) no posting, promotion or transfer of any such person as a district judge, made at any time before the commencement of the Constitution (Twentieth Amendment) Act, 1966, otherwise than in accordance with the provisions of article 233 or article 235 shall be deemed to be illegal or void or ever to have become illegal or void by reason only of the fact that such appointment, posting, promotion or transfer was not made in accordance with the said provisions; (b) no jurisdiction exercised, no judgment, decree, sentence or order passed or made, and no other act or proceeding done or taken, before the commencement of the Constitution (Twentieth Amendment) Act, 1966 by, or before, any person appointed, posted, promoted or transferred as a district judge in any State otherwise than in accordance with the provisions of article 233 or article 235 shall be deemed to be illegal or invalid or ever to have become illegal or invalid by reason only of the fact that such appointment, posting, promotion or transfer was not made in accordance with the said provisions.] 234. Recruitment of persons other than district judges to the judicial service.—Appointments of persons other than district judges to the judicial service of a State shall be made by the Governor of the State in accordance with rules made by him in that behalf after consultation with the State Public Service Commission and with the High Court exercising jurisdiction in relation to such State. 235. Control over subordinate courts.—The control over district courts and courts subordinate thereto including the posting and promotion of, and the grant of leave to, persons belonging to the judicial service of a State and holding any post inferior to the post of district judge shall be vested in the High Court, but nothing in this article shall be construed as taking away from any such person any right of appeal which he may have under the law regulating the conditions of his service or as authorising the High Court to deal with him otherwise than in accordance with the conditions of his service prescribed under such law. ______________________________________________ (Part VI.—The States) 236. Interpretation.—In this Chapter— (a) the expression "district judge" includes judge of a city civil court, additional district judge, joint district judge, assistant district judge, chief judge of a small cause court, chief presidency magistrate, additional chief presidency magistrate, sessions judge, additional sessions judge and assistant sessions Judge; (b) the expression "judicial service" means a service consisting exclusively of persons intended to fill the post of district judge and other civil judicial posts inferior to the post of district judge. 237. Application of the provisions of this Chapter to certain class or classes of magistrates.—The Governor may by public notification direct that the foregoing provisions of this Chapter and any rules made thereunder shall with effect from such date as may be fixed by him in that behalf apply in relation to any class or classes of magistrates in the State as they apply in relation to persons appointed to the judicial service of the State subject to such exceptions and modifications as may be specified in the notification. ## Part Vii [The States in Part B of the First Schedule]. ______________________________________________ ## Part Viii 1[The Union Territories] 2[**239. Administration of Union territories.—**(1) Save as otherwise provided by Parliament by law, every Union territory shall be administered by the President acting, to such extent as he thinks fit, through an administrator to be appointed by him with such designation as he may specify. (2) Notwithstanding anything contained in Part VI, the President may appoint the Governor of a State as the administrator of an adjoining Union territory, and where a Governor is so appointed, he shall exercise his functions as such administrator independently of his Council of Ministers.] 3[239A. Creation of local Legislatures or Council of Ministers or both for certain Union territories.—(1) Parliament may by law create 4[for the Union territory of 5[Puducherry]]— (a) a body, whether elected or partly nominated and partly elected, to function as a Legislature for the Union territory, or (b) a Council of Ministers, or both with such constitution, powers and functions, in each case, as may be specified in the law. (2) Any such law as is referred to in clause (1) shall not be deemed to be an amendment of this Constitution for the purposes of article 368 notwithstanding that it contains any provision which amends or has the effect of amending this Constitution.] (w.e.f. 30-5-1987). 5. Subs. by the Pondicherry (Alteration of Name) Act, 2006 (44 of 2006), s. 4, for "Pondicherry" (w.e.f. 1-10-2006). 1[**239AA. Special provisions with respect to Delhi.—**(1) As from the date of commencement of the Constitution (Sixty-ninth Amendment) Act, 1991, the Union territory of Delhi shall be called the National Capital Territory of Delhi (hereafter in this Part referred to as the National Capital Territory) and the administrator thereof appointed under article 239 shall be designated as the Lieutenant Governor. (2)(a) There shall be a Legislative Assembly for the National Capital Territory and the seats in such Assembly shall be filled by members chosen by direct election from territorial constituencies in the National Capital Territory. (b) The total number of seats in the Legislative Assembly, the number of seats reserved for Scheduled Castes, the division of the National Capital Territory into territorial constituencies (including the basis for such division) and all other matters relating to the functioning of the Legislative Assembly shall be regulated by law made by Parliament. (c) The provisions of articles 324 to 327 and 329 shall apply in relation to the National Capital Territory, the Legislative Assembly of the National Capital Territory and the members thereof as they apply, in relation to a State, the Legislative Assembly of a State and the members thereof respectively; and any reference in articles 326 and 329 to "appropriate Legislature" shall be deemed to be a reference to Parliament. (3) (a) Subject to the provisions of this Constitution, the Legislative Assembly shall have power to make laws for the whole or any part of the National Capital Territory with respect to any of the matters enumerated in the State List or in the Concurrent List in so far as any such matter is applicable to Union territories except matters with respect to Entries 1, 2 and 18 of the State List and Entries 64, 65 and 66 of that List in so far as they relate to the said Entries 1, 2 and 18. (b) Nothing in sub-clause (a) shall derogate from the powers of Parliament under this Constitution to make laws with respect to any matter for a Union territory or any part thereof. ______________________________________________ (c) If any provision of a law made by the Legislative Assembly with respect to any matter is repugnant to any provision of a law made by Parliament with respect to that matter, whether passed before or after the law made by the Legislative Assembly, or of an earlier law, other than a law made by the Legislative Assembly, then, in either case, the law made by Parliament, or, as the case may be, such earlier law, shall prevail and the law made by the Legislative Assembly shall, to the extent of the repugnancy, be void: Provided that if any such law made by the Legislative Assembly has been reserved for the consideration of the President and has received his assent, such law shall prevail in the National Capital Territory: Provided further that nothing in this sub-clause shall prevent Parliament from enacting at any time any law with respect to the same matter including a law adding to, amending, varying or repealing the law so made by the Legislative Assembly. (4) There shall be a Council of Ministers consisting of not more than ten per cent. of the total number of members in the Legislative Assembly, with the Chief Minister at the head to aid and advise the Lieutenant Governor in the exercise of his functions in relation to matters with respect to which the Legislative Assembly has power to make laws, except in so far as he is, by or under any law, required to act in his discretion: Provided that in the case of difference of opinion between the Lieutenant Governor and his Ministers on any matter, the Lieutenant Governor shall refer it to the President for decision and act according to the decision given thereon by the President and pending such decision it shall be competent for the Lieutenant Governor in any case where the matter, in his opinion, is so urgent that it is necessary for him to take immediate action, to take such action or to give such direction in the matter as he deems necessary. (5) The Chief Minister shall be appointed by the President and other Ministers shall be appointed by the President on the advice of the Chief Minister and the Ministers shall hold office during the pleasure of the President. (6) The Council of Ministers shall be collectively responsible to the Legislative Assembly. 1[(7) (a)] Parliament may, by law, make provisions for giving effect to, or supplementing the provisions contained in the foregoing clauses and for all matters incidental or consequential thereto. 2[(b) Any such law as is referred to in sub-clause (a) shall not be deemed to be an amendment of this Constitution for the purposes of article 368 notwithstanding that it contains any provision which amends or has the effect of amending, this Constitution.] (8) The provisions of article 239B shall, so far as may be, apply in relation to the National Capital Territory, the Lieutenant Governor and the Legislative Assembly, as they apply in relation to the Union territory of 3[Puducherry], the administrator and its Legislature, respectively; and any reference in that article to "clause (1) of article 239A" shall be deemed to be a reference to this article or article 239AB, as the case may be. 239AB. Provision in case of failure of constitutional machinery.—If the President, on receipt of a report from the Lieutenant Governor or otherwise, is satisfied— (a) that a situation has arisen in which the administration of the National Capital Territory cannot be carried on in accordance with the provisions of article 239AA or of any law made in pursuance of that article; or (b) that for the proper administration of the National Capital Territory it is necessary or expedient so to do, the President may by order suspend the operation of any provision of article 239AA or of all or any of the provisions of any law made in pursuance of that article for such period and subject to such conditions as may be specified in such law and make such incidental and consequential provisions as may appear to him to be necessary or expedient for administering the National Capital Territory in accordance with the provisions of article 239 and article 239AA.] ## ______________________________________________ (Part Viii.—The Union Territories) 1[239B. Power of administrator to promulgate Ordinances during recess of Legislature.—(1) If at any time, except when the Legislature of 2[the Union territory of 3[Puducherry]] is in session, the administrator thereof is satisfied that circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinances as the circumstances appear to him to require: Provided that no such Ordinance shall be promulgated by the administrator except after obtaining instructions from the President in that behalf: Provided further that whenever the said Legislature is dissolved, or its functioning remains suspended on account of any action taken under any such law as is referred to in clause (1) of article 239A, the administrator shall not promulgate any Ordinance during the period of such dissolution or suspension. (2) An Ordinance promulgated under this article in pursuance of instructions from the President shall be deemed to be an Act of the Legislature of the Union territory which has been duly enacted after complying with the provisions in that behalf contained in any such law as is referred to in clause (1) of article 239A, but every such Ordinance— (a) shall be laid before the Legislature of the Union territory and shall cease to operate at the expiration of six weeks from the reassembly of the Legislature or if, before the expiration of that period, a resolution disapproving it is passed by the Legislature, upon the passing of the resolution; and (b) may be withdrawn at any time by the administrator after obtaining instructions from the President in that behalf. (3) If and so far as an Ordinance under this article makes any provision which would not be valid if enacted in an Act of the Legislature of the Union territory made after complying with the provisions in that behalf contained in any such law as is referred to in clause (1) of article 239A, it shall be void.] 4(4)* * * * ______________________________________________ 1. Ins. by the Constitution (Twenty-seventh Amendment) Act, 1971, s. 3 (w.e.f. 30-12-1971). 2. Subs. by the Goa, Daman and Diu Reorganisation Act, 1987 (18 of 1987) s. 63, for "a Union territory referred to in clause (1) article 239A" (w.e.f. 30-5-1987). 3. Subs. by the Pondicherry (Alteration of Name) Act, 2006 (44 of 2006), s. 4, for "Pondicherry" (w.e.f. 1-10-2006). 4. Clause (4) ins. by the Constitution (Thirty-eighth Amendment) Act, 1975, s. 4 (with retrospective effect). This amendment was omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 32 (w.e.f. 20-6-1979). ## 1[240. Power of President to make regulations for certain Union territories.—(1) The President may make regulations for the peace, progress and good government of the Union territory of— (a) the Andaman and Nicobar Islands; 2[(b) Lakshadweep;] 3[(c) Dadra and Nagar Haveli and Daman and Diu;] 4[(d) **** ;] 5[(e) 6[Puducherry ];] 7(f) * * * 8(g) * * * 9[Provided that when any body is created under article 239A to function as a Legislature for the Union territory of 6[Puducherry], the President shall not make any regulation for the peace, progress and good government of that Union territory with effect from the date appointed for the first meeting of the Legislature:] ______________________________________________ 8-1962, *vide* s.7). 6. Subs. by the Pondicherry (Alteration of Name) Act, 2006 (44 of 2006), s. 4 for "Pondicherry" (w.e.f. 1-10-2006). 7. The entry (f) relating to Mizoram omitted by the State of Mizoram Act, 1986 (34 of 1986), s. 39 (w.e.f. 20-2-1987). 8. The entry (g) relating to Arunachal Pradesh omitted by the State of Arunachal Pradesh Act, 1986 (69 of 1986), s. 42 (w.e.f. 20-2-1987). 9. Ins. by the Constitution (Fourteenth Amendment) Act, 1962, s. 5 (w.e.f. 28-12-1962). ## (Part Viii.—The Union Territories) 1[Provided further that whenever the body functioning as a Legislature for the Union territory of 2[Puducherry] is dissolved, or the functioning of that body as such Legislature remains suspended on account of any action taken under any such law as is referred to in clause (1) of article 239A, the President may, during the period of such dissolution or suspension, make regulations for the peace, progress and good government of that Union territory.] (2) Any regulation so made may repeal or amend any Act made by Parliament or 3[any other law], which is for the time being applicable to the Union territory and, when promulgated by the President, shall have the same force and effect as an Act of Parliament which applies to that territory.] 241. High Courts for Union territories—(1) Parliament may by law constitute a High Court for a 4[Union territory] or declare any court in any 5[such territory] to be a High Court for all or any of the purposes of this Constitution. (2) The provisions of Chapter V of Part VI shall apply in relation to every High Court referred to in clause (1) as they apply in relation to a High Court referred to in article 214 subject to such modifications or exceptions as Parliament may by law provide. 6[(3) Subject to the provisions of this Constitution and to the provisions of any law of the appropriate Legislature made by virtue of powers conferred on that Legislature by or under this Constitution, every High Court exercising jurisdiction immediately before the commencement of the Constitution (Seventh Amendment) Act, 1956, in relation to any Union territory shall continue to exercise such jurisdiction in relation to that territory after such commencement. (4) Nothing in this article derogates from the power of Parliament to extend or exclude the jurisdiction of a High Court for a State to, or from, any Union territory or part thereof.] 242. [*Coorg.*].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 *and Sch.*(w.e.f. 1-11-1956). ______________________________________________ "Pondicherry" (w.e.f. 1-10-2006). 3. Subs. by the Constitution (Twenty-seventh Amendment) Act, 1971, s.4, for "any existing law" (w.e.f. 15-2-1972). 4. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for "State specified in Part C of the First Schedule" (w.e.f. 1-11-1956). 5. Subs. by s. 29 and Sch., *ibid.,* for "such State" (w.e.f. 1-11-1956). 6. Subs. by s. 29 and Sch., *ibid*., for cls. (3) and (4) (w.e.f. 1-11-1956). ## 1[**Part Ix** The Panchayats 243. Definitions.—In this Part, unless the context otherwise requires,— (a) "district" means a district in a State; (b) "Gram Sabha" means a body consisting of persons registered in the electoral rolls relating to a village comprised within the area of Panchayat at the village level; (c) "intermediate level" means a level between the village and district levels specified by the Governor of a State by public notification to be the intermediate level for the purposes of this Part; (d) "Panchayat" means an institution (by whatever name called) of self-government constituted under article 243B, for the rural areas; (e) "Panchayat area" means the territorial area of a Panchayat; (f) "Population" means the population as ascertained at the last preceding census of which the relevant figures have been published; (g) "village" means a village specified by the Governor by public notification to be a village for the purposes of this Part and includes a group of villages so specified. 243A. Gram Sabha.—A Gram Sabha may exercise such powers and perform such functions at the village level as the Legislature of a State may, by law, provide. 243B. Constitution of Panchayats.—(1) There shall be constituted in every State, Panchayats at the village, intermediate and district levels in accordance with the provisions of this Part. (2) Notwithstanding anything in clause (1), Panchayats at the intermediate level may not be constituted in a State having a population not exceeding twenty lakhs. 243C. Composition of Panchayats.—(1) Subject to the provisions of ## This Part, The Legislature Of A State May, By Law, Make Provisions With Respect To The Composition Of Panchayats: ______________________________________________ (Part Ix.—The Panchayats) Provided that the ratio between the population of the territorial area of a Panchayat at any level and the number of seats in such Panchayat to be filled by election shall, so far as practicable, be the same throughout the State. (2) All the seats in a Panchayat shall be filled by persons chosen by direct election from territorial constituencies in the Panchayat area and, for this purpose, each Panchayat area shall be divided into territorial constituencies in such manner that the ratio between the population of each constituency and the number of seats allotted to it shall, so far as practicable, be the same throughout the Panchayat area. (3) The Legislature of a State may, by law, provide for the representation— (a) of the Chairpersons of the Panchayats at the village level, in the Panchayats at the intermediate level or, in the case of a State not having Panchayats at the intermediate level, in the Panchayats at the district level; (b) of the Chairpersons of the Panchayats at the intermediate level, in the Panchayats at the district level; (c) of the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly a Panchayat area at a level other than the village level, in such Panchayat; (d) of the members of the Council of States and the members of the Legislative Council of the State, where they are registered as electors within— (i) a Panchayat area at the intermediate level, in Panchayat at the intermediate level; (ii) a Panchayat area at the district level, in Panchayat at the district level. (4) The Chairperson of a Panchayat and other members of a Panchayat whether or not chosen by direct election from territorial constituencies in the Panchayat area shall have the right to vote in the meetings of the Panchayats. (5) The Chairperson of— (a) a Panchayat at the village level shall be elected in such manner as the Legislature of a State may, by law, provide; and (b) a Panchayat at the intermediate level or district level shall be elected by, and from amongst, the elected members thereof. 243D. Reservation of seats.—(1) Seats shall be reserved for— (a) the Scheduled Castes; and (b) the Scheduled Tribes, in every Panchayat and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Panchayat as the population of the Scheduled Castes in that Panchayat area or of the Scheduled Tribes in that Panchayat area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Panchayat. (2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes. (3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Panchayat shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Panchayat. (4) The offices of the Chairpersons in the Panchayats at the village or any other level shall be reserved for the Scheduled Castes, the Scheduled Tribes and women in such manner as the Legislature of a State may, by law, provide: Provided that the number of offices of Chairpersons reserved for the Scheduled Castes and the Scheduled Tribes in the Panchayats at each level in any State shall bear, as nearly as may be, the same proportion to the total number of such offices in the Panchayats at each level as the population of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to the total population of the State: Provided further that not less than one-third of the total number of offices of Chairpersons in the Panchayats at each level shall be reserved for women: Provided also that the number of offices reserved under this clause shall be allotted by rotation to different Panchayats at each level. (5) The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period specified in article 334. (6) Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation of seats in any Panchayat or offices of Chairpersons in the Panchayats at any level in favour of backward class of citizens. 243E. Duration of Panchayats, etc.—(1) Every Panchayat, unless sooner dissolved under any law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer. (2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Panchayat at any level, which is functioning immediately before such amendment, till the expiration of its duration specified in clause (1). (3) An election to constitute a Panchayat shall be completed— (a) before the expiry of its duration specified in clause (1); (b) before the expiration of a period of six months from the date of its dissolution: Provided that where the remainder of the period for which the dissolved Panchayat would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the Panchayat for such period. (4) A Panchayat constituted upon the dissolution of a Panchayat before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Panchayat would have continued under clause (1) had it not been so dissolved. 243F. Disqualifications for membership.—(1) A person shall be disqualified for being chosen as, and for being, a member of a Panchayat— (a) if he is so disqualified by or under any law for the time being in force for the purposes of elections to the Legislature of the State concerned: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twentyone years; (b) if he is so disqualified by or under any law made by the Legislature of the State. (2) If any question arises as to whether a member of a Panchayat has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of such authority and in such manner as the Legislature of a State may, by law, provide. ## (Part Ix.—The Panchayats) 243G. Powers, authority and responsibilities of Panchayats.— Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to— (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. 243H. Powers to impose taxes by, and Funds of, the Panchayats.— The Legislature of a State may, by law,— (a) authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits; (b) assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits; (c) provide for making such grants-in-aid to the Panchayats from the Consolidated Fund of the State; and (d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Panchayats and also for the withdrawal of such moneys therefrom, as may be specified in the law. 243-I. Constitution of Finance Commission to review financial position.—(1) The Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor as to— (a) the principles which should govern— (i) the distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Panchayats at all levels of their respective shares of such proceeds; (Part IX.—The Panchayats) (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayats; (iii) the grants-in-aid to the Panchayats from the Consolidated Fund of the State; (b) the measures needed to improve the financial position of the Panchayats; (c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats. (2) The Legislature of a State may, by law, provide for the composition of the Commission, the qualifications which shall be requisite for appointment as members thereof and the manner in which they shall be selected. (3) The Commission shall determine their procedure and shall have such powers in the performance of their functions as the Legislature of the State may, by law, confer on them. (4) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State. 243J. Audit of accounts of Panchayats.—The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Panchayats and the auditing of such accounts. 243K. Elections to the Panchayats.—(1) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the Panchayats shall be vested in a State Election Commission consisting of a State Election Commissioner to be appointed by the Governor. (2) Subject to the provisions of any law made by the Legislature of a State, the conditions of service and tenure of office of the State Election Commissioner shall be such as the Governor may by rule determine: Provided that the State Election Commissioner shall not be removed from his office except in like manner and on the like grounds as a Judge of a High Court and the conditions of service of the State Election Commissioner shall not be varied to his disadvantage after his appointment. ## (Part Ix.—The Panchayats) (3) The Governor of a State shall, when so requested by the State Election Commission, make available to the State Election Commission such staff as may be necessary for the discharge of the functions conferred on the State Election Commission by clause (1). (4) Subject to the provisions of this Constitution, the Legislature of a State may, by law, make provision with respect to all matters relating to, or in connection with, elections to the Panchayats. 243L. Application to Union territories.—The provisions of this Part shall apply to the Union territories and shall, in their application to a Union territory, have effect as if the references to the Governor of a State were references to the Administrator of the Union territory appointed under article 239 and references to the Legislature or the legislative Assembly of a State were references, in relation to a Union territory having a Legislative Assembly, to that Legislative Assembly: Provided that the President may, by public notification, direct that the provisions of this Part shall apply to any Union territory or part thereof subject to such exceptions and modifications as he may specify in the notification. 243M. Part not to apply to certain areas.—(1) Nothing in this Part shall apply to the Scheduled Areas referred to in clause (1), and the tribal areas referred to in clause (2), of article 244. (2) Nothing in this Part shall apply to— (a) the States of Nagaland, Meghalaya and Mizoram; (b) the hill areas in the State of Manipur for which District Councils exist under any law for the time being in force. (3) Nothing in this Part— (a) relating to Panchayats at the district level shall apply to the hill areas of the District of Darjeeling in the State of West Bengal for which Darjeeling Gorkha Hill Council exists under any law for the time being in force; (b) shall be construed to affect the functions and powers of the Darjeeling Gorkha Hill Council constituted under such law. ## (Part Ix.—The Panchayats) 1[(3A) Nothing in article 243D, relating to reservation of seats for the Scheduled Castes, shall apply to the State of Arunachal Pradesh.] (4) Notwithstanding anything in this Constitution,— (a) the Legislature of a State referred to in sub-clause (a) of clause (2) may, by law, extend this Part to that State, except the areas, if any, referred to in clause (1), if the Legislative Assembly of that State passes a resolution to that effect by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting; (b) Parliament may, by law, extend the provisions of this Part to the Scheduled Areas and the tribal areas referred to in clause (1) subject to such exceptions and modifications as may be specified in such law, and no such law shall be deemed to be an amendment of this Constitution for the purposes of article 368. 243N. Continuance of existing laws and Panchayats.— Notwithstanding anything in this Part, any provision of any law relating to Panchayats in force in a State immediately before the commencement of the Constitution (Seventy-third Amendment) Act, 1992, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is earlier: Provided that all the Panchayats existing immediately before such commencement shall continue till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the Legislature of that State. 243-O. Bar to interference by courts in electoral matters.— Notwithstanding anything in this Constitution,— (a) the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies, made or purporting to be made under article 243K, shall not be called in question in any court; (b) no election to any Panchayat shall be called in question except by an election petition presented to such authority and in such manner as is provided for by or under any law made by the Legislature of a State. ______________________________________________ 1. Ins. by the Constitution (Eighty-third Amendment) Act, 2000, s. 2 (w.e.f. 8-9-2000). ## 1[Part Ixa The Municipalities 243P. Definitions.—In this Part, unless the context otherwise requires,— (a) "Committee" means a Committee constituted under article 243S; (b) "district" means a district in a State; (c) "Metropolitan area" means an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous areas, specified by the Governor by public notification to be a Metropolitan area for the purposes of this Part; (d) "Municipal area" means the territorial area of a Municipality as is notified by the Governor; (e) "Municipality" means an institution of self-government constituted under article 243Q; (f) "Panchayat" means a Panchayat constituted under article 243B; (g) "population" means the population as ascertained at the last preceding census of which the relevant figures have been published. 243Q. Constitution of Municipalities.—(1) There shall be constituted in every State,— (a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area; (b) a Municipal Council for a smaller urban area; and (c) a Municipal Corporation for a larger urban area, in accordance with the provisions of this Part: ______________________________________________ (Part IXA.—The Municipalities) Provided that a Municipality under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by public notification, specify to be an industrial township. (2) In this article, "a transitional area", "a smaller urban area" or "a larger urban area" means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in nonagricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part. 243R. Composition of Municipalities.—(1) Save as provided in clause (2), all the seats in a Municipality shall be filled by persons chosen by direct election from the territorial constituencies in the Municipal area and for this purpose each Municipal area shall be divided into territorial constituencies to be known as wards. (2) The Legislature of a State may, by law, provide— (a) for the representation in a Municipality of— (i) persons having special knowledge or experience in Municipal administration; (ii) the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly the Municipal area; (iii) the members of the Council of States and the members of the Legislative Council of the State registered as electors within the Municipal area; (iv) the Chairpersons of the Committees constituted under clause (5) of article 243S: Provided that the persons referred to in paragraph (i) shall not have the right to vote in the meetings of the Municipality; (b) the manner of election of the Chairperson of a Municipality. 243S. Constitution and composition of Wards Committees, etc.—(1) There shall be constituted Wards Committees, consisting of one or more wards, within the territorial area of a Municipality having a population of three lakhs or more. (2) The Legislature of a State may, by law, make provision with respect to— (a) the composition and the territorial area of a Wards Committee; (b) the manner in which the seats in a Wards Committee shall be filled. (3) A member of a Municipality representing a ward within the territorial area of the Wards Committee shall be a member of that Committee. (4) Where a Wards Committee consists of— (a) one ward, the member representing that ward in the Municipality; or (b) two or more wards, one of the members representing such wards in the Municipality elected by the members of the Wards Committee, shall be the Chairperson of that Committee. (5) Nothing in this article shall be deemed to prevent the Legislature of a State from making any provision for the constitution of Committees in addition to the Wards Committees. 243T. Reservation of seats.—(1) Seats shall be reserved for the Scheduled Castes and the Scheduled Tribes in every Municipality and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Municipality as the population of the Scheduled Castes in the Municipal area or of the Scheduled Tribes in the Municipal area bears to the total population of that area and such seats may be allotted by rotation to different constituencies in a Municipality. (2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes. (Part IXA.—The Municipalities) (3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Municipality shall be reserved for women and such seats may be allotted by rotation to different constituencies in a Municipality. (4) The offices of Chairpersons in the Municipalities shall be reserved for the Scheduled Castes, the Scheduled Tribes and women in such manner as the Legislature of a State may, by law, provide. (5) The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period specified in article 334. (6) Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation of seats in any Municipality or offices of Chairpersons in the Municipalities in favour of backward class of citizens. 243U. Duration of Municipalities, etc.—(1) Every Municipality, unless sooner dissolved under any law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer: Provided that a Municipality shall be given a reasonable opportunity of being heard before its dissolution. (2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Municipality at any level, which is functioning immediately before such amendment, till the expiration of its duration specified in clause (1). (3) An election to constitute a Municipality shall be completed,— (a) before the expiry of its duration specified in clause (1); (b) before the expiration of a period of six months from the date of its dissolution: Provided that where the remainder of the period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the Municipality for such period. (4) A Municipality constituted upon the dissolution of a Municipality before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Municipality would have continued under clause (1) had it not been so dissolved. (Part IXA.—The Municipalities) 243V. Disqualifications for membership.—(1) A person shall be disqualified for being chosen as, and for being, a member of a Municipality— (a) if he is so disqualified by or under any law for the time being in force for the purposes of elections to the Legislature of the State concerned: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years; (b) if he is so disqualified by or under any law made by the Legislature of the State. (2) If any question arises as to whether a member of a Municipality has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of such authority and in such manner as the Legislature of a State may, by law, provide. 243W. Powers, authority and responsibilities of Municipalities, etc.—Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow— (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to— (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. 243X. Power to impose taxes by, and Funds of, the Municipalities.— The Legislature of a State may, by law,— (a) authorise a Municipality to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits; (Part IXA.—The Municipalities) (b) assign to a Municipality such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits; (c) provide for making such grants-in-aid to the Municipalities from the Consolidated Fund of the State; and (d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Municipalities and also for the withdrawal of such moneys therefrom, as may be specified in the law. 243Y. Finance Commission.—(1) The Finance Commission constituted under article 243-I shall also review the financial position of the Municipalities and make recommendations to the Governor as to— (a) the principles which should govern— (i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Municipalities at all levels of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities; (iii) the grants-in-aid to the Municipalities from the Consolidated Fund of the State; (b) the measures needed to improve the financial position of the Municipalities; (c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities. (2) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State. 243Z. Audit of accounts of Municipalities.—The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Municipalities and the auditing of such accounts. 243ZA. Elections to the Municipalities.—(1) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the Municipalities shall be vested in the State Election Commission referred to in article 243K. (2) Subject to the provisions of this Constitution, the Legislature of a State may, by law, make provision with respect to all matters relating to, or in connection with, elections to the Municipalities. 243ZB. Application to Union territories.—The provisions of this Part shall apply to the Union territories and shall, in their application to a Union territory, have effect as if the references to the Governor of a State were references to the Administrator of the Union territory appointed under article 239 and references to the Legislature or the Legislative Assembly of a State were references in relation to a Union territory having a Legislative Assembly, to that Legislative Assembly: Provided that the President may, by public notification, direct that the provisions of this Part shall apply to any Union territory or part thereof subject to such exceptions and modifications as he may specify in the notification. 243ZC. Part not to apply to certain areas.—(1) Nothing in this Part shall apply to the Scheduled Areas referred to in clause (1), and the tribal areas referred to in clause (2) of article 244. (2) Nothing in this Part shall be construed to affect the functions and powers of the Darjeeling Gorkha Hill Council constituted under any law for the time being in force for the hill areas of the district of Darjeeling in the State of West Bengal. (3) Notwithstanding anything in this Constitution, Parliament may, by law, extend the provisions of this Part to the Scheduled Areas and the tribal areas referred to in clause (1) subject to such exceptions and modifications as may be specified in such law, and no such law shall be deemed to be an amendment of this Constitution for the purposes of article 368. 243ZD. Committee for district planning.—(1) There shall be constituted in every State at the district level a District Planning Committee to consolidate the plans prepared by the Panchayats and the Municipalities in the district and to prepare a draft development plan for the district as a whole. (2) The Legislature of a State may, by law, make provision with respect to— (Part IXA.—The Municipalities) (a) the composition of the District Planning Committees; (b) the manner in which the seats in such Committees shall be filled: Provided that not less than four-fifths of the total number of members of such Committee shall be elected by, and from amongst, the elected members of the Panchayat at the district level and of the Municipalities in the district in proportion to the ratio between the population of the rural areas and of the urban areas in the district; (c) the functions relating to district planning which may be assigned to such Committees; (d) the manner in which the Chairpersons of such Committees shall be chosen. (3) Every District Planning Committee shall, in preparing the draft development plan,— (a) have regard to— (i) matters of common interest between the Panchayats and the Municipalities including spatial planning, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation; (ii) the extent and type of available resources whether financial or otherwise; (b) consult such institutions and organisations as the Governor may, by order, specify. (4) The Chairperson of every District Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State. 243ZE. Committee for Metropolitan planning.—(1) There shall be constituted in every Metropolitan area a Metropolitan Planning Committee to prepare a draft development plan for the Metropolitan area as a whole. (2) The Legislature of a State may, by law, make provision with respect to— (a) the composition of the Metropolitan Planning Committees; (b) the manner in which the seats in such Committees shall be filled: ## (Part Ixa.—The Municipalities) Provided that not less than two-thirds of the members of such Committee shall be elected by, and from amongst, the elected members of the Municipalities and Chairpersons of the Panchayats in the Metropolitan area in proportion to the ratio between the population of the Municipalities and of the Panchayats in that area; (c) the representation in such Committees of the Government of India and the Government of the State and of such organisations and institutions as may be deemed necessary for carrying out the functions assigned to such Committees; (d) the functions relating to planning and coordination for the Metropolitan area which may be assigned to such Committees; (e) the manner in which the Chairpersons of such Committees shall be chosen. (3) Every Metropolitan Planning Committee shall, in preparing the draft development plan,— (a) have regard to— (i) the plans prepared by the Municipalities and the Panchayats in the Metropolitan area; (ii) matters of common interest between the Municipalities and the Panchayats, including coordinated spatial planning of the area, sharing of water and other physical and natural resources, the integrated development of infrastructure and environmental conservation; (iii) the overall objectives and priorities set by the Government of India and the Government of the State; (iv) the extent and nature of investments likely to be made in the Metropolitan area by agencies of the Government of India and of the Government of the State and other available resources whether financial or otherwise; (b) consult such institutions and organisations as the Governor may, by order, specify. (4) The Chairperson of every Metropolitan Planning Committee shall forward the development plan, as recommended by such Committee, to the Government of the State. (Part IXA.—The Municipalities) 243ZF. Continuance of existing laws and Municipalities.— Notwithstanding anything in this Part, any provision of any law relating to Municipalities in force in a State immediately before the commencement of the Constitution (Seventy-fourth Amendment) Act, 1992, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is earlier: Provided that all the Municipalities existing immediately before such commencement shall continue till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the Legislature of that State. 243ZG. Bar to interference by courts in electoral matters.— Notwithstanding anything in this Constitution,— (a) the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies, made or purporting to be made under article 243ZA shall not be called in question in any court; (b) no election to any Municipality shall be called in question except by an election petition presented to such authority and in such manner as is provided for by or under any law made by the Legislature of a State.] ## 1[Part Ixb The Co-Operative Societies 243ZH. Definitions.—In this Part, unless the context otherwise requires,— (a) "authorised person" means a person referred to as such in article 243ZQ; (b) "board" means the board of directors or the governing body of a co-operative society, by whatever name called, to which the direction and control of the management of the affairs of a society is entrusted to; (c) "co-operative society" means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State; (d) "multi-State co-operative society" means a society with objects not confined to one State and registered or deemed to be registered under any law for the time being in force relating to such co-operatives; (e) "office bearer" means a President, Vice-President, Chairperson, Vice-Chairperson, Secretary or Treasurer, of a co-operative society and includes any other person to be elected by the board of any co-operative society; (f) "Registrar" means the Central Registrar appointed by the Central Government in relation to the multi-State co-operative societies and the Registrar for co-operative societies appointed by the State Government under the law made by the Legislature of a State in relation to co-operative societies; (g) "State Act" means any law made by the Legislature of a State; (h) "State level co-operative society" means a co-operative society having its area of operation extending to the whole of a State and defined as such in any law made by the Legislature of a State. 243ZI. Incorporation of co-operative societies.—Subject to the provisions of this Part, the Legislature of a State may, by law, make provisions with respect to the incorporation, regulation and winding up of co-operative societies based on the principles of voluntary formation, democratic member-control, member-economic participation and autonomous functioning. ______________________________________________ ## (Part Ixb.—Co-Operative Societies) 243ZJ. Number and term of members of board and its office bearers.—(1) The board shall consist of such number of directors as may be provided by the Legislature of a State, by law: Provided that the maximum number of directors of a co-operative society shall not exceed twenty-one: Provided further that the Legislature of a State shall, by law, provide for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on board of every co-operative society consisting of individuals as members and having members from such class of category of persons. (2) The term of office of elected members of the board and its office bearers shall be five years from the date of election and the term of office bearers shall be conterminous with the term of the board: Provided that the board may fill a casual vacancy on the board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the board is less than half of its original term. (3) The Legislature of a State shall, by law, make provisions for co-option of persons to be members of the board having experience in the field of banking, management, finance or specialisation in any other field relating to the objects and activities undertaken by the co-operative society, as members of the board of such society: Provided that the number of such co-opted members shall not exceed two in addition to twenty-one directors specified in the first proviso to clause (1): Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member or to be eligible to be elected as office bearers of the board: Provided also that the functional directors of a co-operative society shall also be the members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in the first proviso to clause (1). ## (Part Ixb.—Co-Operative Societies) 243ZK. Election of members of board.—(1) Notwithstanding anything contained in any law made by the Legislature of a State, the election of a board shall be conducted before the expiry of the term of the board so as to ensure that the newly elected members of the board assume office immediately on the expiry of the term of the office of members of the outgoing board. (2) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to a co-operative society shall vest in such an authority or body, as may be provided by the Legislature of a State, by law: Provided that the Legislature of a State may, by law, provide for the procedure and guidelines for the conduct of such elections. ## 243Zl. Supersession And Suspension Of Board And Interim management.—(1) Notwithstanding anything contained in any law for the time being in force, no board shall be superseded or kept under suspension for a period exceeding six months: Provided that the board may be superseded or kept under suspension in a case— (i) of its persistent default; or (ii) of negligence in the performance of its duties; or (iii) the board has committed any act prejudicial to the interests of the co-operative society or its members; or (iv) there is stalemate in the constitution or functions of the board; or (v) the authority or body as provided by the Legislature of a State, by law, under clause (2) of article 243ZK, has failed to conduct elections in accordance with the provisions of the State Act: Provided further that the board of any such co-operative society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee by the Government: Provided also that in case of a co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 shall also apply: ## (Part Ixb.—Co-Operative Societies) Provided also that in case of a co-operative society, other than a multi-State co-operative society, carrying on the business of banking, the provisions of this clause shall have the effect as if for the words "six months", the words "one year" had been substituted. (2) In case of supersession of a board, the administrator appointed to manage the affairs of such co-operative society shall arrange for conduct of elections within the period specified in clause (1) and handover the management to the elected board. (3) The Legislature of a State may, by law, make provisions for the conditions of service of the administrator. 243ZM. Audit of accounts of co-operative societies.—(1) The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year. (2) The Legislature of a State shall, by law, lay down the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing accounts of the co-operative societies. (3) Every co-operative society shall cause to be audited by an auditor or auditing firms referred to in clause (2) appointed by the general body of the co-operative society: Provided that such auditors or auditing firms shall be appointed from a panel approved by a State Government or an authority authorised by the State Government in this behalf. (4) The accounts of every co-operative society shall be audited within six months of the close of the financial year to which such accounts relate. (5) The audit report of the accounts of an apex co-operative society, as may be defined by the State Act, shall be laid before the State Legislature in the manner, as may be provided by the State Legislature, by law. 243ZN. Convening of general body meetings.—The Legislature of a State may, by law, make provisions that the annual general body meeting of every co-operative society shall be convened within a period of six months of close of the financial year to transact the business as may be provided in such law. ## (Part Ixb.—Co-Operative Societies) 243ZO. Right of a member to get information.—(1) The Legislature of a State may, by law, provide for access to every member of a co-operative society to the books, information and accounts of the co-operative society kept in regular transaction of its business with such member. (2) The Legislature of a State may, by law, make provisions to ensure the participation of members in the management of the co-operative society providing minimum requirement of attending meetings by the members and utilising the minimum level of services as may be provided in such law. (3) The Legislature of a State may, by law, provide for co-operative education and training for its members. 243ZP. Returns.—Every co-operative society shall file returns, within six months of the close of every financial year, to the authority designated by the State Government including the following matters, namely:— (a) annual report of its activities; (b) its audited statement of accounts; (c) plan for surplus disposal as approved by the general body of the co-operative society; (d) list of amendments to the bye-laws of the co-operative society, if any; (e) declaration regarding date of holding of its general body meeting and conduct of elections when due; and (f) any other information required by the Registrar in pursuance of any of the provisions of the State Act. 243ZQ. Offences and penalties.—(1) The Legislature of a State may, by law, make provisions for the offences relating to the co-operative societies and penalties for such offences. (2) A law made by the Legislature of a State under clause (1) shall include the commission of the following act or omission as offences, namely:— (a) a co-operative society or an officer or member thereof wilfully makes a false return or furnishes false information, or any person wilfully not furnishes any information required from him by a person authorised in this behalf under the provisions of the State Act; ## (Part Ixb.—Co-Operative Societies) (b) any person wilfully or without any reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of the State Act; (c) any employer who, without sufficient cause, fails to pay to a co-operative society amount deducted by him from its employee within a period of fourteen days from the date on which such deduction is made; (d) any officer or custodian who wilfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a co-operative society of which he is an officer or custodian, to an authorised person; and (e) whoever, before, during or after the election of members of the board or office bearers, adopts any corrupt practice. 243ZR. Application to multi-State co-operative societies.—The provisions of this Part shall apply to the multi-State co-operative societies subject to the modification that any reference to "Legislature of a State", "State Act" or "State Government" shall be construed as a reference to "Parliament", "Central Act" or "the Central Government" respectively. 243ZS. Application to Union territories.—The provisions of this Part shall apply to the Union territories and shall, in their application to a Union territory, having no Legislative Assembly as if the references to the Legislature of a State were a reference to the administrator thereof appointed under article 239 and, in relation to a Union territory having a Legislative Assembly, to that Legislative Assembly: Provided that the President may, by notification in the Official Gazette, direct that the provisions of this Part shall not apply to any Union territory or part thereof as he may specify in the notification. 243ZT. Continuance of existing laws.— Notwithstanding anything in this Part, any provision of any law relating to co-operative societies in force in a State immediately before the commencement of the Constitution (Ninetyseventh Amendment) Act, 2011, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is less.] ## Part X The Scheduled And Tribal Areas 244. Administration of Scheduled Areas and Tribal Areas.—(1) The provisions of the Fifth Schedule shall apply to the administration and control of the Scheduled Areas and Scheduled Tribes in any State 1*** other than 2[the States of Assam, 3[, 4[Meghalaya, Tripura and Mizoram]]]. (2) The provisions of the Sixth Schedule shall apply to the administration of the tribal areas in 2[the States of Assam, 3[, 5[Meghalaya, Tripura and Mizoram]]]. 6[244A. Formation of an autonomous State comprising certain tribal areas in Assam and creation of local Legislature or Council of Ministers or both therefor.—(1) Notwithstanding anything in this Constitution, Parliament may, by law, form within the State of Assam an autonomous State comprising (whether wholly or in part) all or any of the tribal areas specified in 7[Part I] of the table appended to paragraph 20 of the Sixth Schedule and create therefor— (a) a body, whether elected or partly nominated and partly elected, to function as a Legislature for the autonomous State, or (b) a Council of Ministers, or both with such constitution, powers and functions, in each case, as may be specified in the law. (2) Any such law as is referred to in clause (1) may, in particular,— ______________________________________________ 1. The words and letters "specified in Part A or Part B of the First Schedule" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 2. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71, for "the State of Assam" (w.e.f. 21-1-1972). 3. Subs. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 2, for "and Meghalaya" (w.e.f. 1-4-1985). 4. Subs. by the State of Mizoram Act, 1986 (34 of 1986), s. 39, for "Meghalaya and Tripura" (w.e.f. 20-2-1987). 5. Subs. by s. 39, *ibid.*, for "Meghalaya and Tripura and the Union territory of Mizoram". (w.e.f. 20-2-1987). 6. Ins. by the Constitution (Twenty-second Amendment) Act, 1969, s. 2 (w.e.f. 25-9-1969). 7. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71, for "Part A" (w.e.f. 21-1-1972). ## (Part X.—The Scheduled And Tribal Areas) (a) specify the matters enumerated in the State List or the Concurrent List with respect to which the Legislature of the autonomous State shall have power to make laws for the whole or any part thereof, whether to the exclusion of the Legislature of the State of Assam or otherwise; (b) define the matters with respect to which the executive power of the autonomous State shall extend; (c) provide that any tax levied by the State of Assam shall be assigned to the autonomous State in so far as the proceeds thereof are attributable to the autonomous State; (d) provide that any reference to a State in any article of this Constitution shall be construed as including a reference to the autonomous State; and (e) make such supplemental, incidental and consequential provisions as may be deemed necessary. (3) An amendment of any such law as aforesaid in so far as such amendment relates to any of the matters specified in sub-clause (a) or sub-clause (b) of clause (2) shall have no effect unless the amendment is passed in each House of Parliament by not less than two-thirds of the members present and voting. (4) Any such law as is referred to in this article shall not be deemed to be an amendment of this Constitution for the purposes of article 368 notwithstanding that it contains any provision which amends or has the effect of amending this Constitution.] ## Part Xi Relations Between The Union And The States Chapter I.—Legislative Relations Distribution Of Legislative Powers 245. Extent of laws made by Parliament and by the Legislatures of States.—(1) Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole or any part of the State. (2) No law made by Parliament shall be deemed to be invalid on the ground that it would have extra-territorial operation. 246. Subject-matter of laws made by Parliament and by the Legislatures of States.—(1) Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the "Union List"). (2) Notwithstanding anything in clause (3), Parliament, and, subject to clause (1), the Legislature of any State 1*** also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the "Concurrent List"). (3) Subject to clauses (1) and (2), the Legislature of any State 1*** has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in this Constitution referred to as the "State List"). (4) Parliament has power to make laws with respect to any matter for any part of the territory of India not included 2[in a State] notwithstanding that such matter is a matter enumerated in the State List. 3[246A. **Special provision with respect to goods and services tax**.—(1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. ______________________________________________ 2. Subs. by s. 29 and Sch., *ibid.*, for "in Part A or Part B of the First Schedule" (w.e.f. 1-11-1956). 3. Ins. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 2 (w.e.f. 16-9-2016). ## (Part Xi.—Relations Between The Union And The States) (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Explanation.—The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Services Tax Council.] 247. Power of Parliament to provide for the establishment of certain additional courts.—Notwithstanding anything in this Chapter, Parliament may by law provide for the establishment of any additional courts for the better administration of laws made by Parliament or of any existing laws with respect to a matter enumerated in the Union List. 248. Residuary powers of legislation.—(1) 1[Subject to article 246A, Parliament] has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List. (2) Such power shall include the power of making any law imposing a tax not mentioned in either of those Lists. 249. Power of Parliament to legislate with respect to a matter in the State List in the national interest.—(1) Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws with respect to 2[goods and services tax provided under article 246A or] any matter enumerated in the State List specified in the resolution, it shall be lawful for Parliament to make laws for the whole or any part of the territory of India with respect to that matter while the resolution remains in force. (2) A resolution passed under clause (1) shall remain in force for such period not exceeding one year as may be specified therein: Provided that, if and so often as a resolution approving the continuance in force of any such resolution is passed in the manner provided in clause (1), such resolution shall continue in force for a further period of one year from the date on which under this clause it would otherwise have ceased to be in force. (3) A law made by Parliament which Parliament would not but for the passing of a resolution under clause (1) have been competent to make shall, to the extent of the incompetency, cease to have effect on the expiration of a period of six months after the resolution has ceased to be in force, except as respects things done or omitted to be done before the expiration of the said period. ## ______________________________________________ (Part Xi.—Relations Between The Union And The States) 250. Power of Parliament to legislate with respect to any matter in the State List if a Proclamation of Emergency is in operation.—(1) Notwithstanding anything in this Chapter, Parliament shall, while a Proclamation of Emergency is in operation, have power to make laws for the whole or any part of the territory of India with respect to 1[goods and services tax provided under article 246A or] any of the matters enumerated in the State List. (2) A law made by Parliament which Parliament would not but for the issue of a Proclamation of Emergency have been competent to make shall, to the extent of the incompetency, cease to have effect on the expiration of a period of six months after the Proclamation has ceased to operate, except as respects things done or omitted to be done before the expiration of the said period. 251. Inconsistency between laws made by Parliament under articles 249 and 250 and laws made by the Legislatures of States.—Nothing in articles 249 and 250 shall restrict the power of the Legislature of a State to make any law which under this Constitution it has power to make, but if any provision of a law made by the Legislature of a State is repugnant to any provision of a law made by Parliament which Parliament has under either of the said articles power to make, the law made by Parliament, whether passed before or after the law made by the Legislature of the State, shall prevail, and the law made by the Legislature of the State shall to the extent of the repugnancy, but so long only as the law made by Parliament continues to have effect, be inoperative. 252. Power of Parliament to legislate for two or more States by consent and adoption of such legislation by any other State.—(1) If it appears to the Legislatures of two or more States to be desirable that any of the matters with respect to which Parliament has no power to make laws for the States except as provided in articles 249 and 250 should be regulated in such States by Parliament by law, and if resolutions to that effect are passed by all the Houses of the Legislatures of those States, it shall be lawful for Parliament to pass an act for regulating that matter accordingly, and any Act so passed shall apply to such States and to any other State by which it is adopted afterwards by resolution passed in that behalf by the House or, where there are two Houses, by each of the Houses of the Legislature of that State. ______________________________________________ ## (Part Xi.—Relations Between The Union And The States) (2) Any Act so passed by Parliament may be amended or repealed by an Act of Parliament passed or adopted in like manner but shall not, as respects any State to which it applies, be amended or repealed by an Act of the Legislature of that State. 253. Legislation for giving effect to international agreements.— Notwithstanding anything in the foregoing provisions of this Chapter, Parliament has power to make any law for the whole or any part of the territory of India for implementing any treaty, agreement or convention with any other country or countries or any decision made at any international conference, association or other body. 254. Inconsistency between laws made by Parliament and laws made by the Legislatures of States.—(1) If any provision of a law made by the Legislature of a State is repugnant to any provision of a law made by Parliament which Parliament is competent to enact, or to any provision of an existing law with respect to one of the matters enumerated in the Concurrent List, then, subject to the provisions of clause (2), the law made by Parliament, whether passed before or after the law made by the Legislature of such State, or, as the case may be, the existing law, shall prevail and the law made by the Legislature of the State shall, to the extent of the repugnancy, be void. (2) Where a law made by the Legislature of a State 1*** with respect to one of the matters enumerated in the Concurrent List contains any provision repugnant to the provisions of an earlier law made by Parliament or an existing law with respect to that matter, then, the law so made by the Legislature of such State shall, if it has been reserved for the consideration of the President and has received his assent, prevail in that State: Provided that nothing in this clause shall prevent Parliament from enacting at any time any law with respect to the same matter including a law adding to, amending, varying or repealing the law so made by the Legislature of the State. 255. Requirements as to recommendations and previous sanctions to be regarded as matters of procedure only.—No Act of Parliament or of the Legislature of a State 1***, and no provision in any such Act, shall be invalid by reason only that some recommendation or previous sanction required by this Constitution was not given, if assent to that Act was given— ______________________________________________ (Part XI.—Relations between the Union and the States) (a) where the recommendation required was that of the Governor, either by the Governor or by the President; (b) where the recommendation required was that of the Rajpramukh, either by the Rajpramukh or by the President; (c) where the recommendation or previous sanction required was that of the President, by the President. ## Chapter Ii.—Administrative Relations General 256. Obligation of States and the Union.—The executive power of every State shall be so exercised as to ensure compliance with the laws made by Parliament and any existing laws which apply in that State, and the executive power of the Union shall extend to the giving of such directions to a State as may appear to the Government of India to be necessary for that purpose. 257. Control of the Union over States in certain cases.—(1) The executive power of every State shall be so exercised as not to impede or prejudice the exercise of the executive power of the Union, and the executive power of the Union shall extend to the giving of such directions to a State as may appear to the Government of India to be necessary for that purpose. (2) The executive power of the Union shall also extend to the giving of directions to a State as to the construction and maintenance of means of communication declared in the direction to be of national or military importance: Provided that nothing in this clause shall be taken as restricting the power of Parliament to declare highways or waterways to be national highways or national waterways or the power of the Union with respect to the highways or waterways so declared or the power of the Union to construct and maintain means of communication as part of its functions with respect to naval, military and air force works. (3) The executive power of the Union shall also extend to the giving of directions to a State as to the measures to be taken for the protection of the railways within the State. (4) Where in carrying out any direction given to a State under clause (2) as to the construction or maintenance of any means of communication or under clause (3) as to the measures to be taken for the protection of any railway, costs have been incurred in excess of those which would have been incurred in the discharge of the normal duties of the State if such direction had not been given, there shall be paid by the Government of India to the State such sum as may be agreed, or, in default of agreement, as may be determined by an arbitrator appointed by the Chief Justice of India, in respect of the extra costs so incurred by the State. ## (Part Xi.—Relations Between The Union And The States) 1[**257A.** [Assistance to States by deployment of armed forces or other forces of the Union.].—Omitted by the Constitution (Forty-fourth Amendment) *Act,* 1978, s. 33 (*w.e.f.* 20-6-1979).] 258. Power of the Union to confer powers, etc., on States in certain cases.—(1) Notwithstanding anything in this Constitution, the President may, with the consent of the Government of a State, entrust either conditionally or unconditionally to that Government or to its officers functions in relation to any matter to which the executive power of the Union extends. (2) A law made by Parliament which applies in any State may, notwithstanding that it relates to a matter with respect to which the Legislature of the State has no power to make laws, confer powers and impose duties, or authorise the conferring of powers and the imposition of duties, upon the State or officers and authorities thereof. (3) Where by virtue of this article powers and duties have been conferred or imposed upon a State or officers or authorities thereof, there shall be paid by the Government of India to the State such sum as may be agreed, or, in default of agreement, as may be determined by an arbitrator appointed by the Chief Justice of India, in respect of any extra costs of administration incurred by the State in connection with the exercise of those powers and duties. 2[**258A. Power of the States to entrust functions to the Union**.— Notwithstanding anything in this Constitution, the Governor of a State may, with the consent of the Government of India, entrust either conditionally or unconditionally to that Government or to its officers functions in relation to any matter to which the executive power of the State extends.] [**259.** Armed Forces in States in Part B of the First Schedule.].— Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 260. Jurisdiction of the Union in relation to territories outside India.—The Government of India may by agreement with the Government of any territory not being part of the territory of India undertake any executive, legislative or judicial functions vested in the Government of such territory, but every such agreement shall be subject to, and governed by, any law relating to the exercise of foreign jurisdiction for the time being in force. ______________________________________________ ## (Part Xi.—Relations Between The Union And The States) 261. Public acts, records and judicial proceedings.—(1) Full faith and credit shall be given throughout the territory of India to public acts, records and judicial proceedings of the Union and of every State. (2) The manner in which and the conditions under which the acts, records and proceedings referred to in clause (1) shall be proved and the effect thereof determined shall be as provided by law made by Parliament. (3) Final judgments or orders delivered or passed by civil courts in any part of the territory of India shall be capable of execution anywhere within that territory according to law. ## Disputes Relating To Waters 262. Adjudication of disputes relating to waters of inter-State rivers or river valleys.—(1) Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State river or river valley. (2) Notwithstanding anything in this Constitution, Parliament may by law provide that neither the Supreme Court nor any other court shall exercise jurisdiction in respect of any such dispute or complaint as is referred to in clause (1). ## Co-Ordination Between States 263. Provisions with respect to an inter-State Council.—If at any time it appears to the President that the public interests would be served by the establishment of a Council charged with the duty of— (a) inquiring into and advising upon disputes which may have arisen between States; (b) investigating and discussing subjects in which some or all of the States, or the Union and one or more of the States, have a common interest; or (c) making recommendations upon any such subject and, in particular, recommendations for the better co-ordination of policy and action with respect to that subject, it shall be lawful for the President by order to establish such a Council, and to define the nature of the duties to be performed by it and its organisation and procedure. ## Part Xii Finance, Property, Contracts And Suits Chapter I.—Finance General 1[264. **Interpretation**.—In this Part, "Finance Commission" means a Finance Commission constituted under article 280.] 265. Taxes not to be imposed save by authority of law.—No tax shall be levied or collected except by authority of law. 266. Consolidated Funds and public accounts of India and of the States.—(1) Subject to the provisions of article 267 and to the provisions of this Chapter with respect to the assignment of the whole or part of the net proceeds of certain taxes and duties to States, all revenues received by the Government of India, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled "the Consolidated Fund of India", and all revenues received by the Government of a State, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled "the Consolidated Fund of the State". (2) All other public moneys received by or on behalf of the Government of India or the Government of a State shall be credited to the public account of India or the public account of the State, as the case may be. (3) No moneys out of the Consolidated Fund of India or the Consolidated Fund of a State shall be appropriated except in accordance with law and for the purposes and in the manner provided in this Constitution. 267. Contingency Fund.—(1) Parliament may by law establish a Contingency Fund in the nature of an imprest to be entitled "the Contingency Fund of India" into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the President to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by Parliament by law under article 115 or article 116. ______________________________________________ ## (Part Xii.—Finance, Property, Contracts And Suits) (2) The Legislature of a State may by law establish a Contingency Fund in the nature of an imprest to be entitled "the Contingency Fund of the State" into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the Governor 1*** of the State to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by the Legislature of the State by law under article 205 or article 206. ## Distribution Of Revenues Between The Union And The States 268. Duties levied by the Union but collected and appropriated by the States.—(1) Such stamp duties 2*** as are mentioned in the Union List shall be levied by the Government of India but shall be collected— (a) in the case where such duties are leviable within any 3[Union territory], by the Government of India, and (b) in other cases, by the States within which such duties are respectively leviable. (2) The proceeds in any financial year of any such duty leviable within any State shall not form part of the Consolidated Fund of India, but shall be assigned to that State. 4**268A**. [Service tax levied by Union and collected and appropriated by the Union and the States.].—Omitted by the Constitution (One Hundred and First Amendment) Act, 2016, s. 7 (w.e.f. 16-9-2016). ______________________________________________ 2. The words "and such duties of excise on medicinal and toilet preparations" omitted by the Constitution (One Hundred and First Amendment) Act, 2016, s. 6, (w.e.f. 16-9-2016). 3. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for "State Specified in Part C of the First Schedule" (w.e.f. 1-11-1956). 4. Ins. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 2 (date not notified). ## (Part Xii.—Finance, Property, Contracts And Suits) 269. Taxes levied and collected by the Union but assigned to the States.—1[(1) Taxes on the sale or purchase of goods and taxes on the consignment of goods 2[except as provided in article 269A] shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2). Explanation.—For the purposes of this clause,— (a) the expression "taxes on the sale or purchase of goods" shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; (b) the expression "taxes on the consignment of goods" shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce. (2) The net proceeds in any financial year of any such tax, except in so far as those proceeds represent proceeds attributable to Union territories, shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax is leviable in that year, and shall be distributed among those States in accordance with such principles of distribution as may be formulated by Parliament by law.] 3[(3) Parliament may by law formulate principles for determining when a 4[sale or purchase of, or consignment of goods] takes place in the course of inter-State trade or commerce.] 5[269A. Levy and collection of goods and services tax in course of inter-State trade or commerce.— (1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. ______________________________________________ (w.e.f. 9-6-2000). 2. Ins. by the Constitution (One Hundred and First Amendment) Act, 2016 s. 8, (w.e.f. 16-9-2016). 3. Ins. by the Constitution (Sixth Amendment) Act, 1956, s. 3 (w.e.f. 11-9-1956). 4. Subs. by the Constitution (Forty-sixth Amendment) Act, 1982. s. 2, for "sale or purchase of goods" (w.e.f. 2-2-1983). 5. Ins. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 9 (w.e.f. 16-9-2016). ## (Part Xii.—Finance, Property, Contracts And Suits) Explanation.—For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter- State trade or commerce. (2) The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India. (3) Where an amount collected as tax levied under clause (1) has been used for payment of the tax levied by a State under article 246A, such amount shall not form part of the Consolidated Fund of India. (4) Where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. (5) Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.] 1[270. Taxes levied and distributed between the Union and the States.—(1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in 2[articles 268, 269 and 269A], respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). 3[(1A) The tax collected by the Union under clause (1) of article 246A shall also be distributed between the Union and the States in the manner provided in clause (2). (1B) The tax levied and collected by the Union under clause (2) of article 246A and article 269A, which has been used for payment of the tax levied by the Union under clause (1) of article 246A, and the amount apportioned to the Union under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).] ______________________________________________ 1. Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 3, for art. 270 (w.e.f. 1-4-1996). 2. Subs. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 3, for "articles 268 and 269" (date not notified) and further subs. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 10, for "arts. 268, 268A and 269" (w.e.f. 16-9-2016). 3. Ins. by s. 10, *ibid.* (w.e.f. 16-9-2016). ## (Part Xii.—Finance, Property, Contracts And Suits) (2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax or duty is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed in the manner provided in clause (3). (3) In this article, "prescribed" means, - (i) until a Finance Commission has been constituted, prescribed by the President by order, and (ii) after a Finance Commission has been constituted, prescribed by the President by order after considering the recommendations of the Finance Commission.] 271. Surcharge on certain duties and taxes for purposes of the Union.—Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles 1[except the goods and services tax under article 246A,] by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. [**272.** Taxes which are levied and collected by the Union and may be distributed between the Union and the States.].*—Omitted by the Constitution* (Eightieth Amendment) *Act*, 2000*, s.* 4. (w.e.f. 9-6-2000). 273. Grants in lieu of export duty on jute and jute products.—(1) There shall be charged on the Consolidated Fund of India in each year as grants-in-aid of the revenues of the States of Assam, Bihar, 2[Odisha] and West Bengal, in lieu of assignment of any share of the net proceeds in each year of export duty on jute and jute products to those States, such sums as may be prescribed. (2) The sums so prescribed shall continue to be charged on the Consolidated Fund of India so long as any export duty on jute or jute products continues to be levied by the Government of India or until the expiration of ten years from the commencement of this Constitution whichever is earlier. ______________________________________________ 1. Ins. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 11 (w.e.f. 16-9-2016). 2. Subs. by the Orissa (Alteration of Name) Act, 2011 (15 of 2011), s. 5, for "Orissa" (w.e.f. 1-11-2011). ## (Part Xii.—Finance, Property, Contracts And Suits) (3) In this article, the expression "prescribed" has the same meaning as in article 270. 274. Prior recommendation of President required to Bills affecting taxation in which States are interested.—(1) No Bill or amendment which imposes or varies any tax or duty in which States are interested, or which varies the meaning of the expression "agricultural income" as defined for the purposes of the enactments relating to Indian income-tax, or which affects the principles on which under any of the foregoing provisions of this Chapter moneys are or may be distributable to States, or which imposes any such surcharge for the purposes of the Union as is mentioned in the foregoing provisions of this Chapter, shall be introduced or moved in either House of Parliament except on the recommendation of the President. (2) In this article, the expression "tax or duty in which States are interested" means— (a) a tax or duty the whole or part of the net proceeds whereof are assigned to any State; or (b) a tax or duty by reference to the net proceeds whereof sums are for the time being payable out of the Consolidated Fund of India to any State. 275. Grants from the Union to certain States.—(1) Such sums as Parliament may by law provide shall be charged on the Consolidated Fund of India in each year as grants-in-aid of the revenues of such States as Parliament may determine to be in need of assistance, and different sums may be fixed for different States: Provided that there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of a State such capital and recurring sums as may be necessary to enable that State to meet the costs of such schemes of development as may be undertaken by the State with the approval of the Government of India for the purpose of promoting the welfare of the Scheduled Tribes in that State or raising the level of administration of the Scheduled Areas therein to that of the administration of the rest of the areas of that State: Provided further that there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of the State of Assam sums, capital and recurring, equivalent to— ## (Part Xii.—Finance, Property, Contracts And Suits) (a) the average excess of expenditure over the revenues during the two years immediately preceding the commencement of this Constitution in respect of the administration of the tribal areas specified in 1[Part I] of the table appended to paragraph 20 of the Sixth Schedule; and (b) the costs of such schemes of development as may be undertaken by that State with the approval of the Government of India for the purpose of raising the level of administration of the said areas to that of the administration of the rest of the areas of that State. 2[(1A) On and from the formation of the autonomous State under article 244A,— (i) any sums payable under clause (a) of the second proviso to clause (1) shall, if the autonomous State comprises all the tribal areas referred to therein, be paid to the autonomous State, and, if the autonomous State comprises only some of those tribal areas, be apportioned between the State of Assam and the autonomous State as the President may, by order, specify; (ii) there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of the autonomous State sums, capital and recurring, equivalent to the costs of such schemes of development as may be undertaken by the autonomous State with the approval of the Government of India for the purpose of raising the level of administration of that State to that of the administration of the rest of the State of Assam.] (2) Until provision is made by Parliament under clause (1), the powers conferred on Parliament under that clause shall be exercisable by the President by order and any order made by the President under this clause shall have effect subject to any provision so made by Parliament: Provided that after a Finance Commission has been constituted no order shall be made under this clause by the President except after considering the recommendations of the Finance Commission. 276. Taxes on professions, trades, callings and employments.—(1) Notwithstanding anything in article 246, no law of the Legislature of a State relating to taxes for the benefit of the State or of a municipality, district board, local board or other local authority therein in respect of professions, trades, callings or employments shall be invalid on the ground that it relates to a tax on income. ## ______________________________________________ (Part Xii.—Finance, Property, Contracts And Suits) (2) The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments shall not exceed 1[two thousand and five hundred rupees] per annum. 2* * * * (3) The power of the Legislature of a State to make laws as aforesaid with respect to taxes on professions, trades, callings and employments shall not be construed as limiting in any way the power of Parliament to make laws with respect to taxes on income accruing from or arising out of professions, trades, callings and employments. 277. Savings.—Any taxes, duties, cesses or fees which, immediately before the commencement of this Constitution, were being lawfully levied by the Government of any State or by any municipality or other local authority or body for the purposes of the State, municipality, district or other local area may, notwithstanding that those taxes, duties, cesses or fees are mentioned in the Union List, continue to be levied and to be applied to the same purposes until provision to the contrary is made by Parliament by law. 278. [Agreement with States in Part B of the First Schedule with regard to certain financial matters.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 *and Sch.(*w.e.f. 1-11-1956). 279. Calculation of "net proceeds", etc.—(1) In the foregoing provisions of this Chapter, "net proceeds" means in relation to any tax or duty the proceeds thereof reduced by the cost of collection, and for the purposes of those provisions the net proceeds of any tax or duty, or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Comptroller and Auditor-General of India, whose certificate shall be final. (2) Subject as aforesaid, and to any other express provision of this Chapter, a law made by Parliament or an order of the President may, in any case where under this Part the proceeds of any duty or tax are, or may be, assigned to any State, provide for the manner in which the proceeds are to be calculated, for the time from or at which and the manner in which any payments are to be made, for the making of adjustments between one financial year and another, and for any other incidental or ancillary matters. ______________________________________________ ## (Part Xii.—Finance, Property, Contracts And Suits) 1[279A. Goods and Services Tax **Council.—**(1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:— (a) the Union Finance Minister - Chairperson; (b) the Union Minister of State in charge of Revenue or Finance - Member; (c) the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government - Members. (3) The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide. (4) The Goods and Services Tax Council shall make recommendations to the Union and the States on— (a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax; (b) the goods and services that may be subjected to, or exempted from, the goods and services tax; (c) model Goods and Services Tax Laws, principles of levy, apportionment of Goods and Services Tax levied on supplies in the course of inter-State trade or commerce under article 269A and the principles that govern the place of supply; (d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax ; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; ______________________________________________ ## (Part Xii.—Finance, Property, Contracts And Suits) (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h) any other matter relating to the goods and services tax, as the Council may decide. (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. (6) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. (7) One-half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. (8) The Goods and Services Tax Council shall determine the procedure in the performance of its functions. (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely:— (a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting. (10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of— (a) any vacancy in, or any defect in, the constitution of the Council; or (b) any defect in the appointment of a person as a Member of the Council; or (c) any procedural irregularity of the Council not affecting the merits of the case. (11) The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute— ## (Part Xii.—Finance, Property, Contracts And Suits) (a) between the Government of India and one or more States; or (b) between the Government of India and any State or States on one side and one or more other States on the other side; or (c) between two or more States, arising out of the recommendations of the Council or implementation thereof.] 280. Finance Commission.—(1) The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President. (2) Parliament may by law determine the qualifications which shall be requisite for appointment as members of the Commission and the manner in which they shall be selected. (3) It shall be the duty of the Commission to make recommendations to the President as to— (a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds; (b) the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India; 1[(bb) the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State on the basis of the recommendations made by the Finance Commission of the State;] 2[(c) the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State;] 3[(d)] any other matter referred to the Commission by the President in the interests of sound finance. (4) The Commission shall determine their procedure and shall have such powers in the performance of their functions as Parliament may by law confer on them. ______________________________________________ ## (Part Xii.—Finance, Property, Contracts And Suits) 281. Recommendations of the Finance Commission.—The President shall cause every recommendation made by the Finance Commission under the provisions of this Constitution together with an explanatory memorandum as to the action taken thereon to be laid before each House of Parliament. ## Miscellaneous Financial Provisions 282. Expenditure defrayable by the Union or a State out of its revenues.—The Union or a State may make any grants for any public purpose, notwithstanding that the purpose is not one with respect to which Parliament or the Legislature of the State, as the case may be, may make laws. 283. Custody, etc., of Consolidated Funds, Contingency Funds and moneys credited to the public accounts.—(1) The custody of the Consolidated Fund of India and the Contingency Fund of India, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of India, their payment into the public account of India and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and, until provision in that behalf is so made, shall be regulated by rules made by the President. (2) The custody of the Consolidated Fund of a State and the Contingency Fund of a State, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of the State, their payment into the public account of the State and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made, shall be regulated by rules made by the Governor 1*** of the State. 284. Custody of suitors' deposits and other moneys received by public servants and courts.—All moneys received by or deposited with— (a) any officer employed in connection with the affairs of the Union or of a State in his capacity as such, other than revenues or public moneys raised or received by the Government of India or the Government of the State, as the case may be, or (b) any court within the territory of India to the credit of any cause, matter, account or persons, ## ______________________________________________ (Part Xii.—Finance, Property, Contracts And Suits) shall be paid into the public account of India or the public account of State, as the case may be. 285. Exemption of property of the Union from State taxation.—(1) The property of the Union shall, save in so far as Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State. (2) Nothing in clause (1) shall, until Parliament by law otherwise provides, prevent any authority within a State from levying any tax on any property of the Union to which such property was immediately before the commencement of this Constitution liable or treated as liable, so long as that tax continues to be levied in that State. 286. Restrictions as to imposition of tax on the sale or purchase of goods.—(1) No law of a State shall impose, or authorise the imposition of, a tax on 1[the supply of goods or of services or both, where such supply takes place]— (a) outside the State; or (b) in the course of the import of the 2[goods or services or both] into, or export of the 2[goods or services or both] out of, the territory of India. 3[* * * *] 4[(2) Parliament may by law formulate principles for determining when a 5[supply of goods or of services or both] in any of the ways mentioned in clause (1). 6[(3) * * * *] **287. Exemption from taxes on electricity**.—Save in so far as Parliament may by law otherwise provide, no law of a State shall impose, or authorise the imposition of, a tax on the consumption or sale of electricity (whether produced by a Government or other persons) which is— ______________________________________________ 1. Subs. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 13, for "the sale or purchase of goods where such sale or purchase takes place" (w.e.f. 16-9-2016). 2. Subs. by s. 13 (i)(B), *ibid*., for "goods" (w.e.f. 16-9-2016). 3. *Explanation* to cl. (1) omitted by the Constitution (Sixth Amendment) Act, 1956, s. 4 (w.e.f. 11-9-1956). 4. Subs. by s.4, *ibid.,* for cls. (2) and (3) (w.e.f. 11-9-1956). 5. Subs. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 13(ii), for "sale or purchase of goods takes place" (w.e.f. 16-9-2016). 6. Cl. (3) omitted by s. 13 (iii), *ibid*. (w.e.f. 16-9-2016). ## (Part Xii.—Finance, Property, Contracts And Suits) (a) consumed by the Government of India, or sold to the Government of India for consumption by that Government; or (b) consumed in the construction, maintenance or operation of any railway by the Government of India or a railway company operating that railway, or sold to that Government or any such railway company for consumption in the construction, maintenance or operation of any railway, and any such law imposing, or authorising the imposition of, a tax on the sale of electricity shall secure that the price of electricity sold to the Government of India for consumption by that Government, or to any such railway company as aforesaid for consumption in the construction, maintenance or operation of any railway, shall be less by the amount of the tax than the price charged to other consumers of a substantial quantity of electricity. 288. Exemption from taxation by States in respect of water or electricity in certain cases.—(1) Save in so far as the President may by order otherwise provide, no law of a State in force immediately before the commencement of this Constitution shall impose, or authorise the imposition of, a tax in respect of any water or electricity stored, generated, consumed, distributed or sold by any authority established by any existing law or any law made by Parliament for regulating or developing any inter-State river or river-valley. Explanation.—The expression "law of a State in force" in this clause shall include a law of a State passed or made before the commencement of this Constitution and not previously repealed, notwithstanding that it or parts of it may not be then in operation either at all or in particular areas. (2) The Legislature of a State may by law impose, or authorise the imposition of, any such tax as is mentioned in clause (1), but no such law shall have any effect unless it has, after having been reserved for the consideration of the President, received his assent; and if any such law provides for the fixation of the rates and other incidents of such tax by means of rules or orders to be made under the law by any authority, the law shall provide for the previous consent of the President being obtained to the making of any such rule or order. 289. Exemption of property and income of a State from Union taxation.—(1) The property and income of a State shall be exempt from Union taxation. ## (Part Xii.—Finance, Property, Contracts And Suits) (2) Nothing in clause (1) shall prevent the Union from imposing, or authorising the imposition of, any tax to such extent, if any, as Parliament may by law provide in respect of a trade or business of any kind carried on by, or on behalf of, the Government of a State, or any operations connected therewith, or any property used or occupied for the purposes of such trade or business, or any income accruing or arising in connection therewith. (3) Nothing in clause (2) shall apply to any trade or business, or to any class of trade or business, which Parliament may by law declare to be incidental to the ordinary functions of Government. 290. Adjustment in respect of certain expenses and pensions.— Where under the provisions of this Constitution the expenses of any court or Commission, or the pension payable to or in respect of a person who has served before the commencement of this Constitution under the Crown in India or after such commencement in connection with the affairs of the Union or of a State, are charged on the Consolidated Fund of India or the Consolidated Fund of a State, then, if— (a) in the case of a charge on the Consolidated Fund of India, the court or Commission serves any of the separate needs of a State, or the person has served wholly or in part in connection with the affairs of a State; or (b) in the case of a charge on the Consolidated Fund of a State, the court or Commission serves any of the separate needs of the Union or another State, or the person has served wholly or in part in connection with the affairs of the Union or another State, there shall be charged on and paid out of the Consolidated Fund of the State or, as the case may be, the Consolidated Fund of India or the Consolidated Fund of the other State, such contribution in respect of the expenses or pension as may be agreed, or as may in default of agreement be determined by an arbitrator to be appointed by the Chief Justice of India. 1[**290A. Annual payment to certain Devaswom Funds.**—A sum of forty-six lakhs and fifty thousand rupees shall be charged on, and paid out of, the Consolidated Fund of the State of Kerala every year to the Travancore Devaswom Fund; and a sum of thirteen lakhs and fifty thousand rupees shall be charged on, and paid out of, the Consolidated Fund of the State of 2[Tamil Nadu] every year to the Devaswom Fund established in that State for the maintenance of Hindu temples and shrines in the territories transferred to that State on the 1st day of November, 1956, from the State of Travancore-Cochin.] ______________________________________________ ## (Part Xii.—Finance, Property, Contracts And Suits) 291. [*Privy purse sums of Rulers.*].—Omitted by the Constitution (Twenty-sixth Amendment) Act, *1971, s. 2 (w.e.f. 28-12-1971).* ## Chapter Ii.—Borrowing 292. Borrowing by the Government of India.—The executive power of the Union extends to borrowing upon the security of the Consolidated Fund of India within such limits, if any, as may from time to time be fixed by Parliament by law and to the giving of guarantees within such limits, if any, as may be so fixed. 293. Borrowing by States.—(1) Subject to the provisions of this article, the executive power of a State extends to borrowing within the territory of India upon the security of the Consolidated Fund of the State within such limits, if any, as may from time to time be fixed by the Legislature of such State by law and to the giving of guarantees within such limits, if any, as may be so fixed. (2) The Government of India may, subject to such conditions as may be laid down by or under any law made by Parliament, make loans to any State or, so long as any limits fixed under article 292 are not exceeded, give guarantees in respect of loans raised by any State, and any sums required for the purpose of making such loans shall be charged on the Consolidated Fund of India. (3) A State may not without the consent of the Government of India raise any loan if there is still outstanding any part of a loan which has been made to the State by the Government of India or by its predecessor Government, or in respect of which a guarantee has been given by the Government of India or by its predecessor Government. (4) A consent under clause (3) may be granted subject to such conditions, if any, as the Government of India may think fit to impose. ## Chapter Iii.—Property, Contracts, Rights, Liabilities, Obligations And Suits 294. Succession to property, assets, rights, liabilities and obligations in certain cases.—As from the commencement of this Constitution— (a) all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of the Dominion of India and all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of each Governor's Province shall vest respectively in the Union and the corresponding State, and ## (Part Xii.—Finance, Property, Contracts And Suits) (b) all rights, liabilities and obligations of the Government of the Dominion of India and of the Government of each Governor's Province, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations respectively of the Government of India and the Government of each corresponding State, subject to any adjustment made or to be made by reason of the creation before the commencement of this Constitution of the Dominion of Pakistan or of the Provinces of West Bengal, East Bengal, West Punjab and East Punjab. 295. Succession to property, assets, rights, liabilities and obligations in other cases.—(1) As from the commencement of this Constitution— (a) all property and assets which immediately before such commencement were vested in any Indian State corresponding to a State specified in Part B of the First Schedule shall vest in the Union, if the purposes for which such property and assets were held immediately before such commencement will thereafter be purposes of the Union relating to any of the matters enumerated in the Union List, and (b) all rights, liabilities and obligations of the Government of any Indian State corresponding to a State specified in Part B of the First Schedule, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations of the Government of India, if the purposes for which such rights were acquired or liabilities or obligations were incurred before such commencement will thereafter be purposes of the Government of India relating to any of the matters enumerated in the Union List, subject to any agreement entered into in that behalf by the Government of India with the Government of that State. (2) Subject as aforesaid, the Government of each State specified in Part B of the First Schedule shall, as from the commencement of this Constitution, be the successor of the Government of the corresponding Indian State as regards all property and assets and all rights, liabilities and obligations, whether arising out of any contract or otherwise, other than those referred to in clause (1). 296. Property accruing by escheat or lapse or as *bona vacantia.*— Subject as hereinafter provided, any property in the territory of India which, if this Constitution had not come into operation, would have accrued to His Majesty or, as the case may be, to the Ruler of an Indian State by escheat or lapse, or as bona vacantia for want of a rightful owner, shall, if it is property situate in a State, vest in such State, and shall, in any other case, vest in the Union: ## (Part Xii.—Finance, Property, Contracts And Suits) Provided that any property which at the date when it would have so accrued to His Majesty or to the Ruler of an Indian State was in the possession or under the control of the Government of India or the Government of a State shall, according as the purposes for which it was then used or held were purposes of the Union or of a State, vest in the Union or in that State. Explanation.—In this article, the expressions "Ruler" and "Indian State" have the same meanings as in article 363. 1[297. Things of value within territorial waters or continental shelf and resources of the exclusive economic zone to vest in the Union.—(1) All lands, minerals and other things of value underlying the ocean within the territorial waters, or the continental shelf, or the exclusive economic zone, of India shall vest in the Union and be held for the purposes of the Union. (2) All other resources of the exclusive economic zone of India shall also vest in the Union and be held for the purposes of the Union. (3) The limits of the territorial waters, the continental shelf, the exclusive economic zone, and other maritime zones, of India shall be such as may be specified, from time to time, by or under any law made by Parliament.] 2[**298. Power to carry on trade, etc.**—The executive power of the Union and of each State shall extend to the carrying on of any trade or business and to the acquisition, holding and disposal of property and the making of contracts for any purpose: Provided that— (a) the said executive power of the Union shall, in so far as such trade or business or such purpose is not one with respect to which Parliament may make laws, be subject in each State to legislation by the State; and (b) the said executive power of each State shall, in so far as such trade or business or such purpose is not one with respect to which the State Legislature may make laws, be subject to legislation by Parliament.] ______________________________________________ ## (Part Xii.—Finance, Property, Contracts And Suits) 299. Contracts.—(1) All contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President, or by the Governor 1*** of the State, as the case may be, and all such contracts and all assurances of property made in the exercise of that power shall be executed on behalf of the President or the Governor 1*** by such persons and in such manner as he may direct or authorise. (2) Neither the President nor the Governor 2*** shall be personally liable in respect of any contract or assurance made or executed for the purposes of this Constitution, or for the purposes of any enactment relating to the Government of India heretofore in force, nor shall any person making or executing any such contract or assurance on behalf of any of them be personally liable in respect thereof. 300. Suits and proceedings.—(1) The Government of India may sue or be sued by the name of the Union of India and the Government of a State may sue or be sued by the name of the State and may, subject to any provisions which may be made by Act of Parliament or of the Legislature of such State enacted by virtue of powers conferred by this Constitution, sue or be sued in relation to their respective affairs in the like cases as the Dominion of India and the corresponding Provinces or the corresponding Indian States might have sued or been sued if this Constitution had not been enacted. (2) If at the commencement of this Constitution— (a) any legal proceedings are pending to which the Dominion of India is a party, the Union of India shall be deemed to be substituted for the Dominion in those proceedings; and (b) any legal proceedings are pending to which a Province or an Indian State is a party, the corresponding State shall be deemed to be substituted for the Province or the Indian State in those proceedings. ## 3[Chapter Iv.—Right To Property 300A. Persons not to be deprived of property save by authority of law.— No person shall be deprived of his property save by authority of law.] ______________________________________________ 1. The words "or the Rajpramukh" omitted by the Constitution (Seventh Amendment) ## Part Xiii Trade, Commerce And Intercourse Within The Territory Of India 301. **Freedom of trade, commerce and intercourse.**—Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free. 302. Power of Parliament to impose restrictions on trade, commerce and intercourse.—Parliament may by law impose such restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India as may be required in the public interest. 303. Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce.—(1) Notwithstanding anything in article 302, neither Parliament nor the Legislature of a State shall have power to make any law giving, or authorising the giving of, any preference to one State over another, or making, or authorising the making of, any discrimination between one State and another, by virtue of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule. (2) Nothing in clause (1) shall prevent Parliament from making any law giving, or authorising the giving of, any preference or making, or authorising the making of, any discrimination if it is declared by such law that it is necessary to do so for the purpose of dealing with a situation arising from scarcity of goods in any part of the territory of India. 304. Restrictions on trade, commerce and intercourse among States.—Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law— (a) impose on goods imported from other States 1[or the Union territories] any tax to which similar goods manufactured or produced in that State are subject, so, however, as not to discriminate between goods so imported and goods so manufactured or produced; and (b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest: ______________________________________________ (Part XIII.—Trade, Commerce and Intercourse within the Territory of India) Provided that no Bill or amendment for the purposes of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President. 1[305. Saving of existing laws and laws providing for State monopolies.—Nothing in articles 301 and 303 shall affect the provisions of any existing law except in so far as the President may by order otherwise direct; and nothing in article 301 shall affect the operation of any law made before the commencement of the Constitution (Fourth Amendment) Act, 1955, in so far as it relates to, or prevent Parliament or the Legislature of a State from making any law relating to, any such matter as is referred to in sub-clause (ii) of clause (6) of article 19.] 306. [Power of certain States in Part B of the First Schedule to impose restrictions on trade and commerce.].—Omitted by the Constitution (Seventh Amendment) *Act,* 1956, s. 29 and Sch.(w.e.f.1-11-1956). 307. Appointment of authority for carrying out the purposes of articles 301 to 304.—Parliament may by law appoint such authority as it considers appropriate for carrying out the purposes of articles 301, 302, 303 and 304, and confer on the authority so appointed such powers and such duties as it thinks necessary. ______________________________________________ ## Part Xiv Services Under The Union And The States Chapter I.— Services 308. Interpretation.—In this Part, unless the context otherwise requires, the expression "State" 1[does not include the State of Jammu and Kashmir]. 309. Recruitment and conditions of service of persons serving the Union or a State.—Subject to the provisions of this Constitution, Acts of the appropriate Legislature may regulate the recruitment, and conditions of service of persons appointed, to public services and posts in connection with the affairs of the Union or of any State: Provided that it shall be competent for the President or such person as he may direct in the case of services and posts in connection with the affairs of the Union, and for the Governor 2*** of a State or such person as he may direct in the case of services and posts in connection with the affairs of the State, to make rules regulating the recruitment, and the conditions of service of persons appointed, to such services and posts until provision in that behalf is made by or under an Act of the appropriate Legislature under this article, and any rules so made shall have effect subject to the provisions of any such Act. 310. Tenure of office of persons serving the Union or a State.—(1) Except as expressly provided by this Constitution, every person who is a member of a defence service or of a civil service of the Union or of an all-India service or holds any post connected with defence or any civil post under the Union holds office during the pleasure of the President, and every person who is a member of a civil service of a State or holds any civil post under a State holds office during the pleasure of the Governor 3*** of the State. (2) Notwithstanding that a person holding a civil post under the Union or a State holds office during the pleasure of the President or, as the case may be, of the Governor 2*** of the State, any contract under which a person, not being a member of a defence service or of an all-India service or of a civil service of the Union or a State, is appointed under this Constitution to hold such a post may, if the President or the Governor 4***, as the case may be, deems it ______________________________________________ 1. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for "means 2. The words "or Rajpramukh" omitted by s.29 and Sch., *ibid* (w.e.f. 1-11-1956). 3. The words "or, as the case may be, the Rajpramukh" omitted by s.29 and Sch., *ibid. .* (w.e.f. 1-11-1956). 4. The words "or the Rajpramukh" omitted by s.29 and Sch., *ibid.* (w.e.f. 1-11-1956). (Part XIV.—Services under the Union and the States) necessary in order to secure the services of a person having special qualifications, provide for the payment to him of compensation, if before the expiration of an agreed period that post is abolished or he is, for reasons not connected with any misconduct on his part, required to vacate that post. 311. Dismissal, removal or reduction in rank of persons employed in civil capacities under the Union or a State.—(1) No person who is a member of a civil service of the Union or an all-India service or a civil service of a State or holds a civil post under the Union or a State shall be dismissed or removed by an authority subordinate to that by which he was appointed. 1[(2) No such person as aforesaid shall be dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges 2***: 3[Provided that where it is proposed after such inquiry, to impose upon him any such penalty, such penalty may be imposed on the basis of the evidence adduced during such inquiry and it shall not be necessary to give such person any opportunity of making representation on the penalty proposed: Provided further that this clause shall not apply—] (a) where a person is dismissed or removed or reduced in rank on the ground of conduct which has led to his conviction on a criminal charge; or (b) where the authority empowered to dismiss or remove a person or to reduce him in rank is satisfied that for some reason, to be recorded by that authority in writing, it is not reasonably practicable to hold such inquiry; or (c) where the President or the Governor, as the case may be, is satisfied that in the interest of the security of the State it is not expedient to hold such inquiry. (3) If, in respect of any such person as aforesaid, a question arises whether it is reasonably practicable to hold such inquiry as is referred to in clause (2), the decision thereon of the authority empowered to dismiss or remove such person or to reduce him in rank shall be final.] ______________________________________________ 1. Subs. by the Constitution (Fifteenth Amendment) Act, 1963, s. 10, for cls. (2) and (3) 2. Certain words omitted by the Constitution (Forty-second Amendment) Act, 1976, s. 44 (w.e.f. 3-1-1977). ## (Part Xiv.—Services Under The Union And The States) 312. All-India services.—(1) Notwithstanding anything in 1[Chapter VI of Part VI or Part XI], if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest so to do, Parliament may by law provide for the creation of one or more all India services 2[(including an all-India judicial service)] common to the Union and the States, and, subject to the other provisions of this Chapter, regulate the recruitment, and the conditions of service of persons appointed, to any such service. (2) The services known at the commencement of this Constitution as the Indian Administrative Service and the Indian Police Service shall be deemed to be services created by Parliament under this article. 2[(3) The all-India judicial service referred to in clause (1) shall not include any post inferior to that of a district judge as defined in article 236. (4) The law providing for the creation of the all-India judicial service aforesaid may contain such provisions for the amendment of Chapter VI of Part VI as may be necessary for giving effect to the provisions of that law and no such law shall be deemed to be an amendment of this Constitution for the purposes of article 368.] ## 3[312A. Power Of Parliament To Vary Or Revoke Conditions Of Service of officers of certain services.—(1) Parliament may by law— (a) vary or revoke, whether prospectively or retrospectively, the conditions of services as respects remuneration, leave and pension and the rights as respects disciplinary matters of persons who, having been appointed by the Secretary of State or Secretary of State in Council to a civil service of the Crown in India before the commencement of this Constitution, continue on and after the commencement of the Constitution (Twenty-eighth Amendment) Act, 1972, to serve under the Government of India or of a State in any service or post; ## ______________________________________________ (Part Xiv.—Services Under The Union And The States) (b) vary or revoke, whether prospectively or retrospectively, the conditions of service as respects pension of persons who, having been appointed by the Secretary of State or Secretary of State in Council to a civil service of the Crown in India before the commencement of this Constitution, retired or otherwise ceased to be in service at any time before the commencement of the Constitution (Twenty-eighth Amendment) Act, 1972: Provided that in the case of any such person who is holding or has held the office of the Chief Justice or other Judge of the Supreme Court or a High Court, the Comptroller and Auditor-General of India, the Chairman or other member of the Union or a State Public Service Commission or the Chief Election Commissioner, nothing in sub-clause (a) or sub-clause (b) shall be construed as empowering Parliament to vary or revoke, after his appointment to such post, the conditions of his service to his disadvantage except in so far as such conditions of service are applicable to him by reason of his being a person appointed by the Secretary of State or Secretary of State in Council to a civil service of the Crown in India. (2) Except to the extent provided for by Parliament by law under this article, nothing in this article shall affect the power of any Legislature or other authority under any other provision of this Constitution to regulate the conditions of service of persons referred to in clause (1). (3) Neither the Supreme Court nor any other court shall have jurisdiction in— (a) any dispute arising out of any provision of, or any endorsement on, any covenant, agreement or other similar instrument which was entered into or executed by any person referred to in clause (1), or arising out of any letter issued to such person, in relation to his appointment to any civil service of the Crown in India or his continuance in service under the Government of the Dominion of India or a Province thereof; (b) any dispute in respect of any right, liability or obligation under article 314 as originally enacted. (4) The provisions of this article shall have effect notwithstanding anything in article 314 as originally enacted or in any other provision of this Constitution.] ## (Part Xiv.—Services Under The Union And The States) 313. Transitional provisions.—Until other provision is made in this behalf under this Constitution, all the laws in force immediately before the commencement of this Constitution and applicable to any public service or any post which continues to exist after the commencement of this Constitution, as an all-India service or as service or post under the Union or a State shall continue in force so far as consistent with the provisions of this Constitution. 314. [Provision for protection of existing officers of certain services.].— Omitted by the Constitution (Twenty-eighth Amendment) Act, 1972, s. 3 (w.e.f. 29-8-1972). ## Chapter Ii.— Public Service Commissions 315. Public Service Commissions for the Union and for the States.— (1) Subject to the provisions of this article, there shall be a Public Service Commission for the Union and a Public Service Commission for each State. (2) Two or more States may agree that there shall be one Public Service Commission for that group of States, and if a resolution to that effect is passed by the House or, where there are two Houses, by each House of the Legislature of each of those States, Parliament may by law provide for the appointment of a Joint State Public Service Commission (referred to in this Chapter as Joint Commission) to serve the needs of those States. (3) Any such law as aforesaid may contain such incidental and consequential provisions as may be necessary or desirable for giving effect to the purposes of the law. (4) The Public Service Commission for the Union, if requested so to do by the Governor 1*** of a State, may, with the approval of the President, agree to serve all or any of the needs of the State. (5) References in this Constitution to the Union Public Service Commission or a State Public Service Commission shall, unless the context otherwise requires, be construed as references to the Commission serving the needs of the Union or, as the case may be, the State as respects the particular matter in question. 316. Appointment and term of office of members.—(1) The Chairman and other members of a Public Service Commission shall be appointed, in the case of the Union Commission or a Joint Commission, by the President, and in the case of a State Commission, by the Governor of the State: ______________________________________________ ## (Part Xiv.—Services Under The Union And The States) Provided that as nearly as may be one-half of the members of every Public Service Commission shall be persons who at the dates of their respective appointments have held office for at least ten years either under the Government of India or under the Government of a State, and in computing the said period of ten years any period before the commencement of this Constitution during which a person has held office under the Crown in India or under the Government of an Indian State shall be included. 1[(1A) If the office of the Chairman of the Commission becomes vacant or if any such Chairman is by reason of absence or for any other reason unable to perform the duties of his office, those duties shall, until some person appointed under clause (1) to the vacant office has entered on the duties thereof or, as the case may be, until the Chairman has resumed his duties, be performed by such one of the other members of the Commission as the President, in the case of the Union Commission or a Joint Commission, and the Governor of the State in the case of a State Commission, may appoint for the purpose.] (2) A member of a Public Service Commission shall hold office for a term of six years from the date on which he enters upon his office or until he attains, in the case of the Union Commission, the age of sixty-five years, and in the case of a State Commission or a Joint Commission, the age of 2[sixty-two years], whichever is earlier: Provided that— (a) a member of a Public Service Commission may, by writing under his hand addressed, in the case of the Union Commission or a Joint Commission, to the President, and in the case of a State Commission, to the Governor 3*** of the State, resign his office; (b) a member of a Public Service Commission may be removed from his office in the manner provided in clause (1) or clause (3) of article 317. (3) A person who holds office as a member of a Public Service Commission shall, on the expiration of his term of office, be ineligible for re-appointment to that office. ## ______________________________________________ (Part Xiv.—Services Under The Union And The States) 317. Removal and suspension of a member of a Public Service Commission.—(1) Subject to the provisions of clause (3), the Chairman or any other member of a Public Service Commission shall only be removed from his office by order of the President on the ground of misbehaviour after the Supreme Court, on reference being made to it by the President, has, on inquiry held in accordance with the procedure prescribed in that behalf under article 145, reported that the Chairman or such other member, as the case may be, ought on any such ground to be removed. (2) The President, in the case of the Union Commission or a Joint Commission, and the Governor 1*** in the case of a State Commission, may suspend from office the Chairman or any other member of the Commission in respect of whom a reference has been made to the Supreme Court under clause (1) until the President has passed orders on receipt of the report of the Supreme Court on such reference. (3) Notwithstanding anything in clause (1), the President may by order remove from office the Chairman or any other member of a Public Service Commission if the Chairman or such other member, as the case may be,— (a) is adjudged an insolvent; or (b) engages during his term of office in any paid employment outside the duties of his office; or (c) is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body. (4) If the Chairman or any other member of a Public Service Commission is or becomes in any way concerned or interested in any contract or agreement made by or on behalf of the Government of India or the Government of a State or participates in any way in the profit thereof or in any benefit or emolument arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of clause (1), be deemed to be guilty of misbehaviour. 318. Power to make regulations as to conditions of service of members and staff of the Commission.—In the case of the Union Commission or a Joint Commission, the President and, in the case of a State Commission, the Governor 1*** of the State may by regulations— ______________________________________________ (Part XIV.—Services under the Union and the States) (a) determine the number of members of the Commission and their conditions of service; and (b) make provision with respect to the number of members of the staff of the Commission and their conditions of service: Provided that the conditions of service of a member of a Public Service Commission shall not be varied to his disadvantage after his appointment. ## 319. Prohibition As To The Holding Of Offices By Members Of Commission On Ceasing To Be Such Members.—On Ceasing To Hold Office— (a) the Chairman of the Union Public Service Commission shall be ineligible for further employment either under the Government of India or under the Government of a State; (b) the Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State; (c) a member other than the Chairman of the Union Public Service Commission shall be eligible for appointment as the Chairman of the Union Public Service Commission or as the Chairman of a State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State; (d) a member other than the Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of that or any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State. 320. Functions of Public Service Commissions.—(1) It shall be the duty of the Union and the State Public Service Commissions to conduct examinations for appointments to the services of the Union and the services of the State respectively. (2) It shall also be the duty of the Union Public Service Commission, if requested by any two or more States so to do, to assist those States in framing and operating schemes of joint recruitment for any services for which candidates possessing special qualifications are required. (3) The Union Public Service Commission or the State Public Service Commission, as the case may be, shall be consulted— (Part XIV.—Services under the Union and the States) (a) on all matters relating to methods of recruitment to civil services and for civil posts; (b) on the principles to be followed in making appointments to civil services and posts and in making promotions and transfers from one service to another and on the suitability of candidates for such appointments, promotions or transfers; (c) on all disciplinary matters affecting a person serving under the Government of India or the Government of a State in a civil capacity, including memorials or petitions relating to such matters; (d) on any claim by or in respect of a person who is serving or has served under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, that any costs incurred by him in defending legal proceedings instituted against him in respect of acts done or purporting to be done in the execution of his duty should be paid out of the Consolidated Fund of India, or, as the case may be, out of the Consolidated Fund of the State; (e) on any claim for the award of a pension in respect of injuries sustained by a person while serving under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, and any question as to the amount of any such award, and it shall be the duty of a Public Service Commission to advise on any matter so referred to them and on any other matter which the President, or, as the case may be, the Governor 1*** of the State, may refer to them: Provided that the President as respects the all-India services and also as respects other services and posts in connection with the affairs of the Union, and the Governor 2***, as respects other services and posts in connection with the affairs of a State, may make regulations specifying the matters in which either generally, or in any particular class of case or in any particular circumstances, it shall not be necessary for a Public Service Commission to be consulted. (4) Nothing in clause (3) shall require a Public Service Commission to be consulted as respects the manner in which any provision referred to in clause (4) of article 16 may be made or as respects the manner in which effect may be given to the provisions of article 335. ______________________________________________ (w.e.f. 1-11-1956). ## (Part Xiv.—Services Under The Union And The States) (5) All regulations made under the proviso to clause (3) by the President or the Governor 1*** of a State shall be laid for not less than fourteen days before each House of Parliament or the House or each House of the Legislature of the State, as the case may be, as soon as possible after they are made, and shall be subject to such modifications, whether by way of repeal or amendment, as both Houses of Parliament or the House or both Houses of the Legislature of the State may make during the session in which they are so laid. 321. Power to extend functions of Public Service Commissions.—An Act made by Parliament or, as the case may be, the Legislature of a State may provide for the exercise of additional functions by the Union Public Service Commission or the State Public Service Commission as respects the services of the Union or the State and also as respects the services of any local authority or other body corporate constituted by law or of any public institution. 322. Expenses of Public Service Commissions.—The expenses of the Union or a State Public Service Commission, including any salaries, allowances and pensions payable to or in respect of the members or staff of the Commission, shall be charged on the Consolidated Fund of India or, as the case may be, the Consolidated Fund of the State. 323. Reports of Public Service Commissions.—(1) It shall be the duty of the Union Commission to present annually to the President a report as to the work done by the Commission and on receipt of such report the President shall cause a copy thereof together with a memorandum explaining, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before each House of Parliament. (2) It shall be the duty of a State Commission to present annually to the Governor 1*** of the State a report as to the work done by the Commission, and it shall be the duty of a Joint Commission to present annually to the Governor 1*** of each of the States the needs of which are served by the Joint Commission a report as to the work done by the Commission in relation to that State, and in either case the Governor 2***, shall, on receipt of such report, cause a copy thereof together with a memorandum explaining, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State. ______________________________________________ 1. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 2. The words "or Rajpramukh, as the case may be" omitted by s. 29 and Sch. *ibid.* (w.e.f. 1-11-1956). ## 1[**Part Xiva** Tribunals 323A. Administrative tribunals.—(1) Parliament may, by law, provide for the adjudication or trial by administrative tribunals of disputes and complaints with respect to recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or of any State or of any local or other authority within the territory of India or under the control of the Government of India or of any corporation owned or controlled by the Government. (2) A law made under clause (1) may— (a) provide for the establishment of an administrative tribunal for the Union and a separate administrative tribunal for each State or for two or more States; (b) specify the jurisdiction, powers (including the power to punish for contempt) and authority which may be exercised by each of the said tribunals; (c) provide for the procedure (including provisions as to limitation and rules of evidence) to be followed by the said tribunals; (d) exclude the jurisdiction of all courts, except the jurisdiction of the Supreme Court under article 136, with respect to the disputes or complaints referred to in clause (1); (e) provide for the transfer to each such administrative tribunal of any cases pending before any court or other authority immediately before the establishment of such tribunal as would have been within the jurisdiction of such tribunal if the causes of action on which such suits or proceedings are based had arisen after such establishment; (f) repeal or amend any order made by the President under clause (3) of article 371D; (g) contain such supplemental, incidental and consequential provisions (including provisions as to fees) as Parliament may deem necessary for the effective functioning of, and for the speedy disposal of ______________________________________________ (Part XIVA.—Tribunals) cases by, and the enforcement of the orders of, such tribunals. (3) The provisions of this article shall have effect notwithstanding anything in any other provision of this Constitution or in any other law for the time being in force. 323B. Tribunals for other matters.—(1) The appropriate Legislature may, by law, provide for the adjudication or trial by tribunals of any disputes, complaints, or offences with respect to all or any of the matters specified in clause (2) with respect to which such Legislature has power to make laws. (2) The matters referred to in clause (1) are the following, namely:— (a) levy, assessment, collection and enforcement of any tax; (b) foreign exchange, import and export across customs frontiers; (c) industrial and labour disputes; (d) land reforms by way of acquisition by the State of any estate as defined in article 31A or of any rights therein or the extinguishment or modification of any such rights or by way of ceiling on agricultural land or in any other way; (e) ceiling on urban property; (f) elections to either House of Parliament or the House or either House of the Legislature of a State, but excluding the matters referred to in article 329 and article 329A; (g) production, procurement, supply and distribution of food-stuffs (including edible oilseeds and oils) and such other goods as the President may, by public notification, declare to be essential goods for the purpose of this article and control of prices of such goods; 1[(h) rent, its regulation and control and tenancy issues including the right, title and interest of landlords and tenants;] 2[(i)] offences against laws with respect to any of the matters specified in sub-clauses (a) to 3[(h)] and fees in respect of any of those matters; 1[(j)] any matter incidental to any of the matters specified in sub-clauses (a) to 2[(i)]. (3) A law made under clause (1) may— (a) provide for the establishment of a hierarchy of tribunals; (b) specify the jurisdiction, powers (including the power to punish for contempt) and authority which may be exercised by each of the said tribunals; (c) provide for the procedure (including provisions as to limitation and rules of evidence) to be followed by the said tribunals; (d) exclude the jurisdiction of all courts, except the jurisdiction of the Supreme Court under article 136, with respect to all or any of the matters falling within the jurisdiction of the said tribunals; (e) provide for the transfer to each such tribunal of any cases pending before any court or any other authority immediately before the establishment of such tribunal as would have been within the jurisdiction of such tribunal if the causes of action on which such suits or proceedings are based had arisen after such establishment; (f) contain such supplemental, incidental and consequential provisions (including provisions as to fees) as the appropriate Legislature may deem necessary for the effective functioning of, and for the speedy disposal of cases by, and the enforcement of the orders of, such tribunals. (4) The provisions of this article shall have effect notwithstanding anything in any other provision of this Constitution or in any other law for the time being in force. Explanation.—In this article, "appropriate Legislature", in relation to any matter, means Parliament or, as the case may be, a State Legislature competent to make laws with respect to such matter in accordance with the provisions of Part XI.] ## ______________________________________________ Part Xv Elections 324. Superintendence, direction and control of elections to be vested in an Election Commission.—(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of, all elections to Parliament and to the Legislature of every State and of elections to the offices of President and Vice-President held under this Constitution 1*** shall be vested in a Commission (referred to in this Constitution as the Election Commission). (2) The Election Commission shall consist of the Chief Election Commissioner and such number of other Election Commissioners, if any, as the President may from time to time fix and the appointment of the Chief Election Commissioner and other Election Commissioners shall, subject to the provisions of any law made in that behalf by Parliament, be made by the President. (3) When any other Election Commissioner is so appointed the Chief Election Commissioner shall act as the Chairman of the Election Commission. (4) Before each general election to the House of the People and to the Legislative Assembly of each State, and before the first general election and thereafter before each biennial election to the Legislative Council of each State having such Council, the President may also appoint after consultation with the Election Commission such Regional Commissioners as he may consider necessary to assist the Election Commission in the performance of the functions conferred on the Commission by clause (1). (5) Subject to the provisions of any law made by Parliament, the conditions of service and tenure of office of the Election Commissioners and the Regional Commissioners shall be such as the President may by rule determine: Provided that the Chief Election Commissioner shall not be removed from his office except in like manner and on the like grounds as a Judge of the Supreme Court and the conditions of service of the Chief Election Commissioner shall not be varied to his disadvantage after his appointment: ______________________________________________ ## (Part Xv.—Elections) Provided further that any other Election Commissioner or a Regional Commissioner shall not be removed from office except on the recommendation of the Chief Election Commissioner. (6) The President, or the Governor 1*** of a State, shall, when so requested by the Election Commission, make available to the Election Commission or to a Regional Commissioner such staff as may be necessary for the discharge of the functions conferred on the Election Commission by clause (1). 325. No person to be ineligible for inclusion in, or to claim to be included in a special, electoral roll on grounds of religion, race, caste or sex.—There shall be one general electoral roll for every territorial constituency for election to either House of Parliament or to the House or either House of the Legislature of a State and no person shall be ineligible for inclusion in any such roll or claim to be included in any special electoral roll for any such constituency on grounds only of religion, race, caste, sex or any of them. 326. Elections to the House of the People and to the Legislative Assemblies of States to be on the basis of adult suffrage.—The elections to the House of the People and to the Legislative Assembly of every State shall be on the basis of adult suffrage; that is to say, every person who is a citizen of India and who is not less than 2[eighteen years] of age on such date as may be fixed in that behalf by or under any law made by the appropriate Legislature and is not otherwise disqualified under this Constitution or any law made by the appropriate Legislature on the ground of non-residence, unsoundness of mind, crime or corrupt or illegal practice, shall be entitled to be registered as a voter at any such election. 327. Power of Parliament to make provision with respect to elections to Legislatures.—Subject to the provisions of this Constitution, Parliament may from time to time by law make provision with respect to all matters relating to, or in connection with, elections to either House of Parliament or to the House or either House of the Legislature of a State including the preparation of electoral rolls, the delimitation of constituencies and all other matters necessary for securing the due constitution of such House or Houses. ______________________________________________ 1. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 2. Subs. by the Constitution (Sixty-first Amendment) Act, 1988, s. 2, for "twenty-one years" (w.e.f. 28-3-1989). ## (Part Xv.—Elections) 328. Power of Legislature of a State to make provision with respect to elections to such Legislature.—Subject to the provisions of this Constitution and in so far as provision in that behalf is not made by Parliament, the Legislature of a State may from time to time by law make provision with respect to all matters relating to, or in connection with, the elections to the House or either House of the Legislature of the State including the preparation of electoral rolls and all other matters necessary for securing the due constitution of such House or Houses. 329. Bar to interference by courts in electoral matters.— 1[Notwithstanding anything in this Constitution 2***—] (a) the validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies, made or purporting to be made under article 327 or article 328, shall not be called in question in any court; (b) no election to either House of Parliament or to the House or either House of the Legislature of a State shall be called in question except by an election petition presented to such authority and in such manner as may be provided for by or under any law made by the appropriate Legislature. 3**329A.** [Special provision as to elections to Parliament in the case of Prime Minister and Speaker.].—Omitted by the Constitution (Forty-fourth Amendment) *Act, 1978, s.* 36 (*w.e.f.* 20-6-1979). ## ______________________________________________ Part Xvi Special Provisions Relating To Certain Classes 330. Reservation Of Seats For Scheduled Castes And Scheduled Tribes in the House of the People.—(1) Seats shall be reserved in the House of the People for - (a) the Scheduled Castes; 1[(b) the Scheduled Tribes except the Scheduled Tribes in the autonomous districts of Assam; and] (c) the Scheduled Tribes in the autonomous districts of Assam. (2) The number of seats reserved in any State 2[or Union territory] for the Scheduled Castes or the Scheduled Tribes under clause (1) shall bear, as nearly as may be, the same proportion to the total number of seats allotted to that State 2[or Union territory] in the House of the People as the population of the Scheduled Castes in the State 2[or Union territory] or of the Scheduled Tribes in the State 2[or Union territory] or part of the State 2[or Union territory], as the case may be, in respect of which seats are so reserved, bears to the total population of the State 2[or Union territory]. 3[(3) Notwithstanding anything contained in clause (2), the number of seats reserved in the House of the People for the Scheduled Tribes in the autonomous districts of Assam shall bear to the total number of seats allotted to that State a proportion not less than the population of the Scheduled Tribes in the said autonomous districts bears to the total population of the State.] 4[*Explanation.—*In this article and in article 332, the expression "population" means the population as ascertained at the last preceding census of which the relevant figures have been published: Provided that the reference in this *Explanation* to the last preceding census of which the relevant figures have been published shall, until the relevant figures for the first census taken after the year 5[2026] have been published, be construed as a reference to the 6[2001] census.] ______________________________________________ ## (Part Xvi.—Special Provisions Relating To Certain Classes) 331. Representation of the Anglo-Indian Community in the House of the People.—Notwithstanding anything in article 81, the President may, if he is of opinion that the Anglo-Indian community is not adequately represented in the House of the People, nominate not more than two members of that community to the House of the People. 332. Reservation of seats for Scheduled Castes and Scheduled Tribes in the Legislative Assemblies of the States.—(1) Seats shall be reserved for the Scheduled Castes and the Scheduled Tribes, 1[except the Scheduled Tribes in the autonomous districts of Assam], in the Legislative Assembly of every State 2***. (2) Seats shall be reserved also for the autonomous districts in the Legislative Assembly of the State of Assam. (3) The number of seats reserved for the Scheduled Castes or the Scheduled Tribes in the Legislative Assembly of any State under clause (1) shall bear, as nearly as may be, the same proportion to the total number of seats in the Assembly as the population of the Scheduled Castes in the State or of the Scheduled Tribes in the State or part of the State, as the case may be, in respect of which seats are so reserved, bears to the total population of the State. 3[(3A) Notwithstanding anything contained in clause (3), until the taking effect, under article 170, of the re-adjustment, on the basis of the first census after the year 4[2026], of the number of seats in the Legislative Assemblies of the States of Arunachal Pradesh, Meghalaya, Mizoram and Nagaland, the seats which shall be reserved for the Scheduled Tribes in the Legislative Assembly of any such State shall be,— (a) if all the seats in the Legislative Assembly of such State in existence on the date of coming into force of the Constitution (Fiftyseventh Amendment) Act, 1987 (hereafter in this clause referred to as the existing Assembly) are held by members of the Scheduled Tribes, all the seats except one; (b) in any other case, such number of seats as bears to the total number of seats, a proportion not less than the number (as on the said date) of members belonging to the Scheduled Tribes in the existing Assembly bears to the total number of seats in the existing Assembly.] ## ______________________________________________ (Part Xvi.—Special Provisions Relating To Certain Classes) 1[(3B) Notwithstanding anything contained in clause (3), until the re-adjustment, under article 170, takes effect on the basis of the first census after the year 2[2026], of the number of seats in the Legislative Assembly of the State of Tripura, the seats which shall be reserved for the Scheduled Tribes in the Legislative Assembly shall be, such number of seats as bears to the total number of seats, a proportion not less than the number, as on the date of coming into force of the Constitution (Seventy-second Amendment) Act, 1992, of members belonging to the Scheduled Tribes in the Legislative Assembly in existence on the said date bears to the total number of seats in that Assembly.] (4) The number of seats reserved for an autonomous district in the Legislative Assembly of the State of Assam shall bear to the total number of seats in that Assembly a proportion not less than the population of the district bears to the total population of the State. (5) The constituencies for the seats reserved for any autonomous district of Assam shall not comprise any area outside that district 3***. (6) No person who is not a member of a Scheduled Tribe of any autonomous district of the State of Assam shall be eligible for election to the Legislative Assembly of the State from any constituency of that district 3***: 4[Provided that for elections to the Legislative Assembly of the State of Assam, the representation of the Scheduled Tribes and non-Scheduled Tribes in the constituencies included in the Bodoland Territorial Areas District, so notified, and existing prior to the constitution of Bodoland Territorial Areas District, shall be maintained.] 333. Representation of the Anglo-Indian community in the Legislative Assemblies of the States.—Notwithstanding anything in article 170, the Governor 5*** of a State may, if he is of opinion that the Anglo-Indian community needs representation in the Legislative Assembly of the State and is not adequately represented therein, 6[nominate one member of that community to the Assembly]. ______________________________________________ 2. Subs. by the Constitution (Eighty-fourth Amendment) Act, 2001, s. 7, for "2000" (w.e.f. 21-2-2002). 3. Certain words omitted by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71 (w.e.f. 21-1-1972). 4. Ins. by the Constitution (Ninetieth Amendment) Act, 2003, s. 2 (w.e.f. 28-9-2003). 5. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 6. Subs. by the Constitution (Twenty-third Amendment) Act, 1969, s. 4, for "nominate such number of members of the community to the Assembly as he considers appropriate" (w.e.f. 23-1-1970). ## (Part Xvi.—Special Provisions Relating To Certain Classes) 334. 1[Reservation of seats and special representation to cease after certain period].—Notwithstanding anything in the foregoing provisions of this Part, the provisions of this Constitution relating to— (a) the reservation of seats for the Scheduled Castes and the Scheduled Tribes in the House of the People and in the Legislative Assemblies of the States; and (b) the representation of the Anglo-Indian community in the House of the People and in the Legislative Assemblies of the States by nomination, shall cease to have effect on the expiration of a period of 2[eighty years in respect of clause (a) and seventy years in respect of clause (b)] from the commencement of this Constitution: Provided that nothing in this article shall affect any representation in the House of the People or in the Legislative Assembly of a State until the dissolution of the then existing House or Assembly, as the case may be. 335. Claims of Scheduled Castes and Scheduled Tribes to services and posts.—The claims of the members of the Scheduled Castes and the Scheduled Tribes shall be taken into consideration, consistently with the maintenance of efficiency of administration, in the making of appointments to services and posts in connection with the affairs of the Union or of a State: 3[Provided that nothing in this article shall prevent in making of any provision in favour of the members of the Scheduled Castes and the Scheduled Tribes for relaxation in qualifying marks in any examination or lowering the standards of evaluation, for reservation in matters or promotion to any class or classes of services or posts in connection with the affairs of the Union or of a State.] 336. Special provision for Anglo-Indian community in certain services.—(1) During the first two years after the commencement of this Constitution, appointments of members of the Anglo-Indian community to posts in the railway, customs, postal and telegraph services of the Union shall be made on the same basis as immediately before the fifteenth day of August, 1947. ______________________________________________ 2. Subs. by s. 2, *ibid.,* for "seventy years" (w.e.f. 25-1-2020). The words "seventy years" subs. for "sixty years" by the Constitution (Ninety-fifth Amendment) Act, 2009, s.2 (w.e.f. 25-1-2010). The words "sixty years" subs. for "fifty years" by the Constitution (Seventy-ninth Amendment) Act, 1999, s. 2 (w.e.f. 25-1-2000). The words "fifty years" subs. for "forty years" by the Constitution (Sixty-second Amendment) Act, 1989, s. 2 (w.e.f. 20-12-1989). The words "forty years" subs. for "thirty years" by the Constitution (Forty-fifth Amendment) Act, 1980, s. 2 (w.e.f. 25-1-1980). 3. Ins. by the Constitution (Eighty-second Amendment) Act, 2000, s. 2 (w.e.f. 8-9-2000). ## (Part Xvi.—Special Provisions Relating To Certain Classes) During every succeeding period of two years, the number of posts reserved for the members of the said community in the said services shall, as nearly as possible, be less by ten per cent. than the numbers so reserved during the immediately preceding period of two years: Provided that at the end of ten years from the commencement of this Constitution all such reservations shall cease. (2) Nothing in clause (1) shall bar the appointment of members of the Anglo-Indian community to posts other than, or in addition to, those reserved for the community under that clause if such members are found qualified for appointment on merit as compared with the members of other communities. 337. Special provision with respect to educational grants for the benefit of Anglo-Indian community.—During the first three financial years after the commencement of this Constitution, the same grants, if any, shall be made by the Union and by each State 1*** for the benefit of the Anglo-Indian community in respect of education as were made in the financial year ending on the thirty-first day of March, 1948. During every succeeding period of three years the grants may be less by ten per cent. than those for the immediately preceding period of three years: Provided that at the end of ten years from the commencement of this Constitution such grants, to the extent to which they are a special concession to the Anglo-Indian community, shall cease: Provided further that no educational institution shall be entitled to receive any grant under this article unless at least forty per cent. of the annual admissions therein are made available to members of communities other than the Anglo-Indian community. 338. 2[**National Commission for Scheduled Castes].**—3[4[(1) There shall be a Commission for the Scheduled Castes to be known as the National Commission for the Scheduled Castes. ______________________________________________ 3. Subs. by the Constitution (Sixty-fifth Amendment) Act, 1990, s. 2, for cls. (1) and (2) (w.e.f. 12-3-1992). 4. Subs. by the Constitution (Eighty-ninth Amendment) Act, 2003, s. 2, for cls. (1) and (2) (w.e.f. 19-2-2004). ## (Part Xvi.—Special Provisions Relating To Certain Classes) (2) Subject to the provisions of any law made in this behalf by Parliament, the Commission shall consist of a Chairperson, Vice-Chairperson and three other Members and the conditions of service and tenure of office of the Chairperson, Vice-Chairperson and other Members so appointed shall be such as the President may by rule determine.] (3) The Chairperson, Vice-Chairperson and other Members of the Commission shall be appointed by the President by warrant under his hand and seal. (4) The Commission shall have the power to regulate its own procedure. (5) It shall be the duty of the Commission— (a) to investigate and monitor all matters relating to the safeguards provided for the Scheduled Castes 1*** under this Constitution or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards; (b) to inquire into specific complaints with respect to the deprivation of rights and safeguards of the Scheduled Castes 1***; (c) to participate and advise on the planning process of socio-economic development of the Scheduled Castes 1*** and to evaluate the progress of their development under the Union and any State; (d) to present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards; (e) to make in such reports recommendations as to the measures that should be taken by the Union or any State for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the Scheduled Castes 1***; and (f) to discharge such other functions in relation to the protection, welfare and development and advancement of the Scheduled Castes 1*** as the President may, subject to the provisions of any law made by Parliament, by rule specify. (6) The President shall cause all such reports to be laid before each House of Parliament along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the Union and the reasons for the non-acceptance, if any, of any of such recommendations. ______________________________________________ ## (Part Xvi.—Special Provisions Relating To Certain Classes) (7) Where any such report, or any part thereof, relates to any matter with which any State Government is concerned, a copy of such report shall be forwarded to the Governor of the State who shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any of such recommendations. (8) The Commission shall, while investigating any matter referred to in sub-clause (a) or inquiring into any complaint referred to in sub-clause (b) of clause (5), have all the powers of a civil court trying a suit and in particular in respect of the following matters, namely :— (a) summoning and enforcing the attendance of any person from any part of India and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; (e) issuing commissions for the examination of witnesses and documents; (f) any other matter which the President may, by rule, determine. (9) The Union and every State Government shall consult the Commission on all major policy matters affecting Scheduled Castes 1***]. 2[(10)] In this article, references to the Scheduled Castes 1*** shall be construed as including references 3*** to the Anglo-Indian community. Amendment) Act, 2018, s. 2 (w.e.f. 15-8-2018). ## (Part Xvi.—Special Provisions Relating To Certain Classes) 1[**338A. National Commission for Scheduled Tribes.—**(1) There shall be a Commission for the Scheduled Tribes to be known as the National Commission for the Scheduled Tribes. (2) Subject to the provisions of any law made in this behalf by Parliament, the Commission shall consist of a Chairperson, Vice-Chairperson and three other Members and the conditions of service and tenure of office of the Chairperson, Vice-Chairperson and other Members so appointed shall be such as the President may by rule determine. (3) The Chairperson, Vice-Chairperson and other Members of the Commission shall be appointed by the President by warrant under his hand and seal. (4) The Commission shall have the power to regulate its own procedure. (5) It shall be the duty of the Commission— (a) to investigate and monitor all matters relating to the safeguards provided for the Scheduled Tribes under this Constitution or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards; (b) to inquire into specific complaints with respect to the deprivation of rights and safeguards of the Scheduled Tribes; (c) to participate and advise on the planning process of socioeconomic development of the Scheduled Tribes and to evaluate the progress of their development under the Union and any State; (d) to present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards; (e) to make in such reports recommendations as to the measures that should be taken by the Union or any State for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the Scheduled Tribes; and (f) to discharge such other functions in relation to the protection, welfare and development and advancement of the Scheduled Tribes as the President may, subject to the provisions of any law made by ______________________________________________ ## (Part Xvi.—Special Provisions Relating To Certain Classes) Parliament, by rule specify. (6) The President shall cause all such reports to be laid before each House of Parliament along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the Union and the reasons for the non-acceptance, if any, of any such recommendations. (7) Where any such report, or any part thereof, relates to any matter with which any State Government is concerned, a copy of such report shall be forwarded to the Governor of the State who shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any of such recommendations. (8) The Commission shall, while investigating any matter referred to in sub-clause (a) or inquiring into any complaint referred to in sub-clause (b) of clause (5), have all the powers of a civil court trying a suit and in particular in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person from any part of India and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; (e) issuing commissions for the examination of witnesses and documents; (f) any other matter which the President may, by rule, determine. (9) The Union and every State Government shall consult the Commission on all major policy matters affecting Scheduled Tribes.] 1[338B. **National Commission for Backward Classes.**—(1) There shall be a Commission for the socially and educationally backward classes to be known as the National Commission for Backward Classes. (2) Subject to the provisions of any law made in this behalf by Parliament, the Commission shall consist of a Chairperson, Vice-Chairperson and three other Members and the conditions of service and tenure of office of the Chairperson, Vice-Chairperson and other Members so appointed shall be such as the President may by rule determine. (3) The Chairperson, Vice-Chairperson and other Members of the Commission shall be appointed by the President by warrant under his hand and ______________________________________________ ## (Part Xvi.—Special Provisions Relating To Certain Classes) seal. (4) The Commission shall have the power to regulate its own procedure. (5) It shall be the duty of the Commission— (a) to investigate and monitor all matters relating to the safeguards provided for the socially and educationally backward classes under this Constitution or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards; (b) to inquire into specific complaints with respect to the deprivation of rights and safeguards of the socially and educationally backward classes; (c) to participate and advise on the socio-economic development of the socially and educationally backward classes and to evaluate the progress of their development under the Union and any State; (d) to present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards; (e) to make in such reports the recommendations as to the measures that should be taken by the Union or any State for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the socially and educationally backward classes; and (f) to discharge such other functions in relation to the protection, welfare and development and advancement of the socially and educationally backward classes as the President may, subject to the provisions of any law made by Parliament, by rule specify. (6) The President shall cause all such reports to be laid before each House of Parliament along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the Union and the reasons for the non-acceptance, if any, of any such recommendations. (7) Where any such report, or any part thereof, relates to any matter with which any State Government is concerned, a copy of such report shall be forwarded to the State Government which shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, it any, of any of such recommendations. (8) The Commission shall, while investigating any matter referred to in sub-clause (a) or inquiring into any complaint referred to in sub-clause (b) of clause (5), have all the powers of a civil court trying a suit and in particular in ## (Part Xvi.—Special Provisions Relating To Certain Classes) respect of the following matters, namely :— (a) summoning and enforcing the attendance of any person from any part of India and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; (e) issuing commissions for the examination of witnesses and documents; (f) any other matter which the President may by rule, determine. (9) The Union and every State Government shall consult the Commission on all major policy matters affecting the socially and educationally backward classes:] 1[Provided that nothing in this clause shall apply for the purposes of clause (3) of article 342A.] 339. Control of the Union over the administration of Scheduled Areas and the welfare of Scheduled Tribes.—(1) The President may at any time and shall, at the expiration of ten years from the commencement of this Constitution by order appoint a Commission to report on the administration of the Scheduled Areas and the welfare of the Scheduled Tribes in the States 2***. The order may define the composition, powers and procedure of the Commission and may contain such incidental or ancillary provisions as the President may consider necessary or desirable. (2) The executive power of the Union shall extend to the giving of directions to 3[a State] as to the drawing up and execution of schemes specified in the direction to be essential for the welfare of the Scheduled Tribes in the State. 340. Appointment of a Commission to investigate the conditions of backward classes.—(1) The President may by order appoint a Commission consisting of such persons as he thinks fit to investigate the conditions of socially and educationally backward classes within the territory of India and the difficulties under which they labour and to make recommendations as to the steps that should be taken by the Union or any State to remove such difficulties and to improve their condition and as to the grants that should be made for the purpose by the Union or any State and the conditions subject to which such grants should be made, and the order appointing such Commission shall define ______________________________________________ 1. Ins. by the Constitution (One Hundred and Fifth Amendment) Act, 2021, s. 2 (w.e.f. 15-9-2021). 2. The words and letters for "specified in Part A or Part B of the First Schedule" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 3. Subs. by s. 29 and Sch. *ibid.* for "any such State" (w.e.f. 1-11-1956). ## (Part Xvi.—Special Provisions Relating To Certain Classes) the procedure to be followed by the Commission. (2) A Commission so appointed shall investigate the matters referred to them and present to the President a report setting out the facts as found by them and making such recommendations as they think proper. (3) The President shall cause a copy of the report so presented together with a memorandum explaining the action taken thereon to be laid before each House of Parliament. 341. Scheduled Castes.—(1) The President 1[may with respect to any State 2[or Union territory], and where it is a State 3***, after consultation with the Governor 4*** thereof], by public notification5, specify the castes, races or tribes or parts of or groups within castes, races or tribes which shall for the purposes of this Constitution be deemed to be Scheduled Castes in relation to that State 2[or Union territory, as the case may be.] (2) Parliament may by law include in or exclude from the list of Scheduled Castes specified in a notification issued under clause (1) any caste, race or tribe or part of or group within any caste, race or tribe, but save as aforesaid a notification issued under the said clause shall not be varied by any subsequent notification. consultation with the Governor or Rajpramukh of a State" (w.e.f. 18-6-1951). 2. Ins. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 3. The words and letters "specified in Part A or Part B of the First Schedule" omitted by s. 29 and Sch,.*ibid.* (w.e.f. 1-11-1956). 4. The words "or Rajpramukh" omitted by s. 29 and Sch., *ibid.* (w.e.f. 1-11-1956). 5. See the Constitution (Scheduled Castes) Order, 1950 (C.O. 19), the Constitution (Scheduled Castes) (Union Territories) Order, 1951 (C.O. 32), the Constitution (Jammu and Kashmir) Scheduled Castes Order, 1956 (C.O. 52), the Constitution (Dadra and Nagar Haveli) (Scheduled Castes) Order, 1962 (C.O. 64), the Constitution (Pondicherry) Scheduled Castes Order, 1964 (C.O. 68), the Constitution (Goa, Daman and Diu) Scheduled Castes Order, 1968 (C.O. 81) and the Constitution (Sikkim) Scheduled Castes Order, 1978 (C.O. 110). ## (Part Xvi.—Special Provisions Relating To Certain Classes) 342. Scheduled Tribes.—(1) The President 1[may with respect to any State 2[or Union territory], and where it is a State 3***, after consultation with the Governor 3*** thereof], by public notification4, specify the tribes or tribal communities or parts of or groups within tribes or tribal communities which shall for the purposes of this Constitution be deemed to be Scheduled Tribes in relation to that State 2[or Union territory, as the case may be.] (2) Parliament may by law include in or exclude from the list of Scheduled Tribes specified in a notification issued under clause (1) any tribe or tribal community or part of or group within any tribe or tribal community, but save as aforesaid a notification issued under the said clause shall not be varied by any subsequent notification. 5[**342A. Socially and educationally backward classes.**—(1) The President may with respect to any State or Union territory, and where it is a State, after consultation with the Governor thereof, by public notification, specify 6[the socially and educationally backward classes in the Central List which shall for the purposes of the Central Government] be deemed to be socially and educationally backward classes in relation to that State or Union territory, as the case may be. (2) Parliament may by law include in or exclude from the Central List of socially and educationally backward classes specified in a notification issued under clause (1) any socially and educationally backward class, but save as aforesaid a notification issued under the said clause shall not be varied by any ______________________________________________ 4. See the Constitution (Scheduled Tribes) Order, 1950 (C.O. 22), the Constitution (Scheduled Tribes) (Union Territories) Order, 1951 (C.O. 33), the Constitution (Andaman and Nicobar Islands) (Scheduled Tribes) Order, 1959 (C.O. 58), Constitution (Dadra and Nagar Haveli) (Scheduled Tribes) Order, 1962 (C.O. 65), the Constitution (Scheduled Tribes) (Uttar Pradesh) Order, 1967 (C.O. 78), the Constitution (Goa, Daman and Diu) Scheduled Tribes Order, 1968 (C.O. 82), the Constitution (Nagaland) Scheduled Tribes Order, 1970 (C.O. 88) the Constitution (Sikkim) Scheduled Tribes Order, 1978 (C.O. 111). 5. Art.342A ins. by the Constitution (One Hundred and Second Amendment) Act, 2018, s. 4 (w.e.f. 15-8-2018). 6. Subs. by the Constitution (One Hundred and Fifth Amendment) Act, 2021, s. 3, for "the socially and educationally backward classes which shall for the purposes of this Constitution" (w.e.f. 15-9-2021). ## (Part Xvi.—Special Provisions Relating To Certain Classes) subsequent notification.] 1*[Explanation*.—For the purposes of clauses (1) and (2), the expression "Central List" means the list of socially and educationally backward classes prepared and maintained by and for the Central Government. (3) Notwithstanding any contained in clauses (1) and (2), every State or Union territory may, by law, prepare and maintain, for its own purposes, a list of socially and educationally backward classes, entries in which may be different from the Central List.] ______________________________________________ ## Part Xvii Official Language Chapter I.—Language Of The Union 343. Official language of the Union.—(1) The official language of the Union shall be Hindi in Devanagari script. The form of numerals to be used for the official purposes of the Union shall be the international form of Indian numerals. (2) Notwithstanding anything in clause (1), for a period of fifteen years from the commencement of this Constitution, the English language shall continue to be used for all the official purposes of the Union for which it was being used immediately before such commencement: Provided that the President may, during the said period, by order1 authorise the use of the Hindi language in addition to the English language and of the Devanagari form of numerals in addition to the international form of Indian numerals for any of the official purposes of the Union. (3) Notwithstanding anything in this article, Parliament may by law provide for the use, after the said period of fifteen years, of— (a) the English language, or (b) the Devanagari form of numerals, for such purposes as may be specified in the law. 344. Commission and Committee of Parliament on official language.—(1) The President shall, at the expiration of five years from the commencement of this Constitution and thereafter at the expiration of ten years from such commencement, by order constitute a Commission which shall consist of a Chairman and such other members representing the different languages specified in the Eighth Schedule as the President may appoint, and the order shall define the procedure to be followed by the Commission. (2) It shall be the duty of the Commission to make recommendations to the President as to— (a) the progressive use of the Hindi language for the official purposes of the Union; (b) restrictions on the use of the English language for all or any of the official purposes of the Union; (c) the language to be used for all or any of the purposes mentioned in article 348; ______________________________________________ 1. See C.O. 41. (Part XVII—LANGUAGE) (d) the form of numerals to be used for any one or more specified purposes of the Union; (e) any other matter referred to the Commission by the President as regards the official language of the Union and the language for communication between the Union and a State or between one State and another and their use. (3) In making their recommendations under clause (2), the Commission shall have due regard to the industrial, cultural and scientific advancement of India, and the just claims and the interests of persons belonging to the non-Hindi speaking areas in regard to the public services. (4) There shall be constituted a Committee consisting of thirty members, of whom twenty shall be members of the House of the People and ten shall be members of the Council of States to be elected respectively by the members of the House of the People and the members of the Council of States in accordance with the system of proportional representation by means of the single transferable vote. (5) It shall be the duty of the Committee to examine the recommendations of the Commission constituted under clause (1) and to report to the President their opinion thereon. (6) Notwithstanding anything in article 343, the President may, after consideration of the report referred to in clause (5), issue directions in accordance with the whole or any part of that report. ## Chapter Ii.—Regional Languages 345. Official language or languages of a State.—Subject to the provisions of articles 346 and 347, the Legislature of a State may by law adopt any one or more of the languages in use in the State or Hindi as the language or languages to be used for all or any of the official purposes of that State: Provided that, until the Legislature of the State otherwise provides by law, the English language shall continue to be used for those official purposes within the State for which it was being used immediately before the commencement of this Constitution. 346. Official language for communication between one State and another or between a State and the Union.—The language for the time being authorised for use in the Union for official purposes shall be the official language for communication between one State and another State and between a State and the Union: (Part XVII—LANGUAGE) Provided that if two or more States agree that the Hindi language should be the official language for communication between such States, that language may be used for such communication. 347. Special provision relating to language spoken by a section of the population of a State.—On a demand being made in that behalf the President may, if he is satisfied that a substantial proportion of the population of a State desire the use of any language spoken by them to be recognised by that State, direct that such language shall also be officially recognised throughout that State or any part thereof for such purpose as he may specify. ## Chapter Iii.—Language Of The Supreme Court, High Courts, Etc. 348. Language to be used in the Supreme Court and in the High Courts and for Acts, Bills, etc.—(1) Notwithstanding anything in the foregoing provisions of this Part, until Parliament by law otherwise provides— (a) all proceedings in the Supreme Court and in every High Court, (b) the authoritative texts— (i) of all Bills to be introduced or amendments thereto to be moved in either House of Parliament or in the House or either House of the Legislature of a State, (ii) of all Acts passed by Parliament or the Legislature of a State and of all Ordinances promulgated by the President or the Governor 1*** of a State, and (iii) of all orders, rules, regulations and bye-laws issued under this Constitution or under any law made by Parliament or the Legislature of a State, shall be in the English language. (2) Notwithstanding anything in sub-clause (a) of clause (1), the Governor 1*** of a State may, with the previous consent of the President, authorise the use of the Hindi language, or any other language used for any official purposes of the State, in proceedings in the High Court having its principal seat in that State: ______________________________________________ (Part XVII—LANGUAGE) Provided that nothing in this clause shall apply to any judgment, decree or order passed or made by such High Court. (3) Notwithstanding anything in sub-clause (b) of clause (1), where the Legislature of a State has prescribed any language other than the English language for use in Bills introduced in, or Acts passed by, the Legislature of the State or in Ordinances promulgated by the Governor 1*** of the State or in any order, rule, regulation or bye-law referred to in paragraph (iii) of that sub-clause, a translation of the same in the English language published under the authority of the Governor 1*** of the State in the Official Gazette of that State shall be deemed to be the authoritative text thereof in the English language under this article. 349. Special procedure for enactment of certain laws relating to language.—During the period of fifteen years from the commencement of this Constitution, no Bill or amendment making provision for the language to be used for any of the purposes mentioned in clause (1) of article 348 shall be introduced or moved in either House of Parliament without the previous sanction of the President, and the President shall not give his sanction to the introduction of any such Bill or the moving of any such amendment except after he has taken into consideration the recommendations of the Commission constituted under clause (1) of article 344 and the report of the Committee constituted under clause (4) of that article. ## Chapter Iv.—Special Directives 350. Language to be used in representations for redress of grievances.—Every person shall be entitled to submit a representation for the redress of any grievance to any officer or authority of the Union or a State in any of the languages used in the Union or in the State, as the case may be. 2[350A. Facilities for instruction in mother-tongue at primary stage.—It shall be the endeavour of every State and of every local authority within the State to provide adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups; and the President may issue such directions to any State as he considers necessary or proper for securing the provision of such facilities. ______________________________________________ 1. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, (Part XVII—LANGUAGE) 350B. Special Officer for linguistic minorities.—(1) There shall be a Special Officer for linguistic minorities to be appointed by the President. (2) It shall be the duty of the Special Officer to investigate all matters relating to the safeguards provided for linguistic minorities under this Constitution and report to the President upon those matters at such intervals as the President may direct, and the President shall cause all such reports to be laid before each House of Parliament, and sent to the Governments of the States concerned.] 351. Directive for development of the Hindi language.—It shall be the duty of the Union to promote the spread of the Hindi language, to develop it so that it may serve as a medium of expression for all the elements of the composite culture of India and to secure its enrichment by assimilating without interfering with its genius, the forms, style and expressions used in Hindustani and in the other languages of India specified in the Eighth Schedule, and by drawing, wherever necessary or desirable, for its vocabulary, primarily on Sanskrit and secondarily on other languages. ## Part Xviii Emergency Provisions 352. Proclamation of Emergency.—(1) If the President is satisfied that a grave emergency exists whereby the security of India or of any part of the territory thereof is threatened, whether by war or external aggression or 1[armed rebellion], he may, by Proclamation, make a declaration to that effect 2[in respect of the whole of India or of such part of the territory thereof as may be specified in the Proclamation.] 3[*Explanation.*—A Proclamation of Emergency declaring that the security of India or any part of the territory thereof is threatened by war or by external aggression or by armed rebellion may be made before the actual occurrence of war or of any such aggression or rebellion, if the President is satisfied that there is imminent danger thereof.] 4[(2) A Proclamation issued under clause (1) may be varied or revoked by a subsequent Proclamation. (3) The President shall not issue a Proclamation under clause (1) or a Proclamation varying such Proclamation unless the decision of the Union Cabinet (that is to say, the Council consisting of the Prime Minister and other Ministers of Cabinet rank appointed under article 75) that such a Proclamation may be issued has been communicated to him in writing. (4) Every Proclamation issued under this article shall be laid before each House of Parliament and shall, except where it is a Proclamation revoking a previous Proclamation, cease to operate at the expiration of one month unless before the expiration of that period it has been approved by resolutions of both Houses of Parliament: ______________________________________________ ## (Part Xviii.—Emergency Provisions) Provided that if any such Proclamation (not being a Proclamation revoking a previous Proclamation) is issued at a time when the House of the People has been dissolved, or the dissolution of the House of the People takes place during the period of one month referred to in this clause, and if a resolution approving the Proclamation has been passed by the Council of States, but no resolution with respect to such Proclamation has been passed by the House of the People before the expiration of that period, the Proclamation shall cease to operate at the expiration of thirty days from the date on which the House of the People first sits after its reconstitution, unless before the expiration of the said period of thirty days a resolution approving the Proclamation has been also passed by the House of the People. (5) A Proclamation so approved shall, unless revoked, cease to operate on the expiration of a period of six months from the date of the passing of the second of the resolutions approving the Proclamation under clause (4): Provided that if and so often as a resolution approving the continuance in force of such a Proclamation is passed by both Houses of Parliament the Proclamation shall, unless revoked, continue in force for a further period of six months from the date on which it would otherwise have ceased to operate under this clause: Provided further that if the dissolution of the House of the People takes place during any such period of six months and a resolution approving the continuance in force of such Proclamation has been passed by the Council of States but no resolution with respect to the continuance in force of such Proclamation has been passed by the House of the People during the said period, the Proclamation shall cease to operate at the expiration of thirty days from the date on which the House of the People first sits after its reconstitution unless before the expiration of the said period of thirty days, a resolution approving the continuance in force of the Proclamation has been also passed by the House of the People. (6) For the purposes of clauses (4) and (5), a resolution may be passed by either House of Parliament only by a majority of the total membership of that House and by a majority of not less than two-thirds of the Members of that House present and voting. (7) Notwithstanding anything contained in the foregoing clauses, the President shall revoke a Proclamation issued under clause (1) or a Proclamation varying such Proclamation if the House of the People passes a resolution disapproving, or, as the case may be, disapproving the continuance in force of, such Proclamation. (8) Where a notice in writing signed by not less than one-tenth of the total number of members of the House of the People has been given, of their intention to move a resolution for disapproving, or, as the case may be, for disapproving the continuance in force of, a Proclamation issued under clause (1) or a Proclamation varying such Proclamation,— (a) to the Speaker, if the House is in session; or (b) to the President, if the House is not in session, a special sitting of the House shall be held within fourteen days from the date on which such notice is received by the Speaker, or, as the case may be, by the President, for the purpose of considering such resolution.] 1[(9) The power conferred on the President by this article shall include the power to issue different Proclamations on different grounds, being war or external aggression or 2[armed rebellion] or imminent danger of war or external aggression or 2[armed rebellion], whether or not there is a Proclamation already issued by the President under clause (1) and such Proclamation is in operation. 1* * * * * * * *] 353. Effect of Proclamation **of Emergency.**—While a Proclamation of Emergency is in operation, then— (a) notwithstanding anything in this Constitution, the executive power of the Union shall extend to the giving of directions to any State as to the manner in which the executive power thereof is to be exercised; (b) the power of Parliament to make laws with respect to any matter shall include power to make laws conferring powers and imposing duties, or authorising the conferring of powers and the imposition of duties, upon the Union or officers and authorities of the Union as respects that matter, notwithstanding that it is one which is not enumerated in the Union List: omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 37 (w.e.f. 20-6- 1979). 1[Provided that where a Proclamation of Emergency is in operation only in any part of the territory of India,— (i) the executive power of the Union to give directions under clause (a), and (ii) the power of Parliament to make laws under clause (b), shall also extend to any State other than a State in which or in any part of which the Proclamation of Emergency is in operation if and in so far as the security of India or any part of the territory thereof is threatened by activities in or in relation to the part of the territory of India in which the Proclamation of Emergency is in operation.] 354. Application of provisions relating to distribution of revenues while a Proclamation of Emergency is in operation.—(1) The President may, while a Proclamation of Emergency is in operation, by order direct that all or any of the provisions of articles 268 to 279 shall for such period, not extending in any case beyond the expiration of the financial year in which such Proclamation ceases to operate, as may be specified in the order, have effect subject to such exceptions or modifications as he thinks fit. (2) Every order made under clause (1) shall, as soon as may be after it is made, be laid before each House of Parliament. 355. Duty of the Union to protect States against external aggression and internal disturbance.—It shall be the duty of the Union to protect every State against external aggression and internal disturbance and to ensure that the Government of every State is carried on in accordance with the provisions of this Constitution. 356. Provisions in case of failure of constitutional machinery in States.—(1) If the President, on receipt of a report from the Governor 2*** of a State or otherwise, is satisfied that a situation has arisen in which the Government of the State cannot be carried on in accordance with the provisions of this Constitution, the President may by Proclamation— ______________________________________________ ## (Part Xviii.—Emergency Provisions) (a) assume to himself all or any of the functions of the Government of the State and all or any of the powers vested in or exercisable by the Governor 1*** or any body or authority in the State other than the Legislature of the State; (b) declare that the powers of the Legislature of the State shall be exercisable by or under the authority of Parliament; (c) make such incidental and consequential provisions as appear to the President to be necessary or desirable for giving effect to the objects of the Proclamation, including provisions for suspending in whole or in part the operation of any provisions of this Constitution relating to any body or authority in the State: Provided that nothing in this clause shall authorise the President to assume to himself any of the powers vested in or exercisable by a High Court, or to suspend in whole or in part the operation of any provision of this Constitution relating to High Courts. (2) Any such Proclamation may be revoked or varied by a subsequent Proclamation. (3) Every Proclamation under this article shall be laid before each House of Parliament and shall, except where it is a Proclamation revoking a previous Proclamation, cease to operate at the expiration of two months unless before the expiration of that period it has been approved by resolutions of both Houses of Parliament: Provided that if any such Proclamation (not being a Proclamation revoking a previous Proclamation) is issued at a time when the House of the People is dissolved or the dissolution of the House of the People takes place during the period of two months referred to in this clause, and if a resolution approving the Proclamation has been passed by the Council of States, but no resolution with respect to such Proclamation has been passed by the House of the People before the expiration of that period, the Proclamation shall cease to operate at the expiration of thirty days from the date on which the House of the People first sits after its reconstitution unless before the expiration of the said period of thirty days a resolution approving the Proclamation has been also passed by the House of the People. ______________________________________________ (4) A Proclamation so approved shall, unless revoked, cease to operate on the expiration of a period of 1[six months from the date of issue of the Proclamation]: Provided that if and so often as a resolution approving the continuance in force of such a Proclamation is passed by both Houses of Parliament, the Proclamation shall, unless revoked, continue in force for a further period of 2[six months] from the date on which under this clause it would otherwise have ceased to operate, but no such Proclamation shall in any case remain in force for more than three years: Provided further that if the dissolution of the House of the People takes place during any such period of 2[six months] and a resolution approving the continuance in force of such Proclamation has been passed by the Council of States, but no resolution with respect to the continuance in force of such Proclamation has been passed by the House of the People during the said period, the Proclamation shall cease to operate at the expiration of thirty days from the date on which the House of the People first sits after its reconstitution unless before the expiration of the said period of thirty days a resolution approving the continuance in force of the Proclamation has been also passed by the House of the People: 3[Provided also that in the case of the Proclamation issued under clause (1) on the 11th day of May, 1987 with respect to the State of Punjab, the reference in the first proviso to this clause to "three years" shall be construed as a reference to 4[five years].] for "one year", respectively (w.e.f. 20-6-1979). 3. Ins. by the Constitution (Sixty-fourth Amendment) Act, 1990, s. 2 (w.e.f. 16-4-1990). 4. Subs. by the Constitution (Sixty-seventh Amendment) Act, 1990, s. 2 (w.e.f. 4-10-1990) and further subs. by the Constitution (Sixty-eighth Amendment) Act, 1991, s. 2 (w.e.f. 12-3-1991). ## (Part Xviii.—Emergency Provisions) 1[(5) Notwithstanding anything contained in clause (4), a resolution with respect to the continuance in force of a Proclamation approved under clause (3) for any period beyond the expiration of one year from the date of issue of such Proclamation shall not be passed by either House of Parliament unless— (a) a Proclamation of Emergency is in operation, in the whole of India or, as the case may be, in the whole or any part of the State, at the time of the passing of such resolution, and (b) the Election Commission certifies that the continuance in force of the Proclamation approved under clause (3) during the period specified in such resolution is necessary on account of difficulties in holding general elections to the Legislative Assembly of the State concerned:] 2[Provided that nothing in this clause shall apply to the Proclamation issued under clause (1) on the 11th day of May, 1987 with respect to the State of Punjab.] 357. Exercise of legislative powers under Proclamation issued under article 356.—(1) Where by a Proclamation issued under clause (1) of article 356, it has been declared that the powers of the Legislature of the State shall be exercisable by or under the authority of Parliament, it shall be competent— (a) for Parliament to confer on the President the power of the Legislature of the State to make laws, and to authorise the President to delegate, subject to such conditions as he may think fit to impose, the power so conferred to any other authority to be specified by him in that behalf; (b) for Parliament, or for the President or other authority in whom such power to make laws is vested under sub-clause (a), to make laws conferring powers and imposing duties, or authorising the conferring of powers and the imposition of duties, upon the Union or officers and authorities thereof; (c) for the President to authorise when the House of the People is not in session expenditure from the Consolidated Fund of the State pending the sanction of such expenditure by Parliament. 1978, s. 38, for cl. (5) (w.e.f. 20-6-1979). 2. Proviso omitted by the Constitution (Sixty-third Amendment) Act, 1989, s. 2 (w.e.f. 6- 1-1990) and subsequently ins. by the Constitution (Sixty-fourth Amendment) Act, 1990, s. 2 (w.e.f. 16-4-1990). ## 1[(2) Any law made in exercise of the power of the Legislature of the State by Parliament or the President or other authority referred to in sub-clause (a) of clause (1) which Parliament or the President or such other authority would not, but for the issue of a Proclamation under article 356, have been competent to make shall, after the Proclamation has ceased to operate, continue in force until altered or repealed or amended by a competent Legislature or other authority.] 358. Suspension of provisions of article 19 during emergencies.— 2[(1)] 3[While a Proclamation of Emergency declaring that the security of India or any part of the territory thereof is threatened by war or by external aggression is in operation], nothing in article 19 shall restrict the power of the State as defined in Part III to make any law or to take any executive action which the State would but for the provisions contained in that Part be competent to make or to take, but any law so made shall, to the extent of the incompetency, cease to have effect as soon as the Proclamation ceases to operate, except as respects things done or omitted to be done before the law so ceases to have effect: 4[Provided that 5[where such Proclamation of Emergency] is in operation only in any part of the territory of India, any such law may be made, or any such executive action may be taken, under this article in relation to or in any State or Union territory in which or in any part of which the Proclamation of Emergency is not in operation, if and in so far as the security of India or any part of the territory thereof is threatened by activities in or in relation to the part of the territory of India in which the Proclamation of Emergency is in operation.] 6[(2) Nothing in clause (1) shall apply— ______________________________________________ 3. Subs. by s. 39, *ibid*, for "While a Proclamation of Emergency is in operation" (w.e.f. 20-6-1979). 4. Added by the Constitution (Forty-second Amendment) Act, 1976, s. 52 (w.e.f. 3-1- 1977). 5. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 39, for "where a Proclamation of Emergency" (w.e.f. 20-6-1979). 6. Ins. by s. 39, *ibid*. (w.e.f. 20-6-1979). (a) to any law which does not contain a recital to the effect that such law is in relation to the Proclamation of Emergency in operation when it is made; or (b) to any executive action taken otherwise than under a law containing such a recital.] 359. Suspension of the enforcement of the rights conferred by Part III during emergencies.—(1) Where a Proclamation of Emergency is in operation, the President may by order declare that the right to move any court for the enforcement of such of 1[the rights conferred by Part III (except articles 20 and 21)] as may be mentioned in the order and all proceedings pending in any court for the enforcement of the rights so mentioned shall remain suspended for the period during which the Proclamation is in force or for such shorter period as may be specified in the order. 2[(1A) While an order made under clause (1) mentioning any of 1[the rights conferred by Part III (except articles 20 and 21)] is in operation, nothing in that Part conferring those rights shall restrict the power of the State as defined in the said Part to make any law or to take any executive action which the State would but for the provisions contained in that Part be competent to make or to take, but any law so made shall, to the extent of the incompetency, cease to have effect as soon as the order aforesaid ceases to operate, except as respects things done or omitted to be done before the law so ceases to have effect:] 3[Provided that where a Proclamation of Emergency is in operation only in any part of the territory of India, any such law may be made, or any such executive action may be taken, under this article in relation to or in any State or Union territory in which or in any part of which the Proclamation of Emergency is not in operation, if and in so far as the security of India or any part of the territory thereof is threatened by activities in or in relation to the part of the territory of India in which the Proclamation of Emergency is in operation.] ______________________________________________ conferred by Part III" (w.e.f. 20-6-1979). 2. Ins. by the Constitution (Thirty-eighth Amendment) Act, 1975, s. 7 (with retrospective effect). 3. Added by the Constitution (Forty-second Amendment) Act, 1976, s. 53 (w.e.f. 3-1-1977). 1[(1B) Nothing in clause (1A) shall apply— (a) to any law which does not contain a recital to the effect that such law is in relation to the Proclamation of Emergency in operation when it is made; or (b) to any executive action taken otherwise than under a law containing such a recital.] (2) An order made as aforesaid may extend to the whole or any part of the territory of India: 2[Provided that where a Proclamation of Emergency is in operation only in a part of the territory of India, any such order shall not extend to any other part of the territory of India unless the President, being satisfied that the security of India or any part of the territory thereof is threatened by activities in or in relation to the part of the territory of India in which the Proclamation of Emergency is in operation, considers such extension to be necessary.] (3) Every order made under clause (1) shall, as soon as may be after it is made, be laid before each House of Parliament. 3**359A.** [*Application of this Part to the State of Punjab.*].—Omitted by the Constitution (Sixty-third Amendment) *Act,* 1989, s. 3 (*w.e.f.* 6-1-1990). 360. Provisions as to financial emergency.—(1) If the President is satisfied that a situation has arisen whereby the financial stability or credit of India or of any part of the territory thereof is threatened, he may by a Proclamation make a declaration to that effect. 4[(2) A Proclamation issued under clause (1)— (a) may be revoked or varied by a subsequent Proclamation; (b) shall be laid before each House of Parliament; ______________________________________________ and ceased to operate on the expiry of a period of two years from the commencement of that Act, i.e. 30th day of March, 1988. 4. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 41, for cl. (2) (w.e.f. 20-6-1979). ## (Part Xviii.—Emergency Provisions) (c) shall cease to operate at the expiration of two months, unless before the expiration of that period it has been approved by resolutions of both Houses of Parliament: Provided that if any such Proclamation is issued at a time when the House of the People has been dissolved or the dissolution of the House of the People takes place during the period of two months referred to in sub-clause (c), and if a resolution approving the Proclamation has been passed by the Council of States, but no resolution with respect to such Proclamation has been passed by the House of the People before the expiration of that period, the Proclamation shall cease to operate at the expiration of thirty days from the date on which the House of the People first sits after its reconstitution unless before the expiration of the said period of thirty days a resolution approving the Proclamation has been also passed by the House of the People.] (3) During the period any such Proclamation as is mentioned in clause (1) is in operation, the executive authority of the Union shall extend to the giving of directions to any State to observe such canons of financial propriety as may be specified in the directions, and to the giving of such other directions as the President may deem necessary and adequate for the purpose. (4) Notwithstanding anything in this Constitution— (a) any such direction may include— (i) a provision requiring the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of a State; (ii) a provision requiring all Money Bills or other Bills to which the provisions of article 207 apply to be reserved for the consideration of the President after they are passed by the Legislature of the State; (b) it shall be competent for the President during the period any Proclamation issued under this article is in operation to issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union including the Judges of the Supreme Court and the High Courts. 1[(5) * * * * *] ______________________________________________ ## Part Xix Miscellaneous 361. Protection Of President And Governors And Rajpramukhs.—(1) The President, or the Governor or Rajpramukh of a State, shall not be answerable to any court for the exercise and performance of the powers and duties of his office or for any act done or purporting to be done by him in the exercise and performance of those powers and duties: Provided that the conduct of the President may be brought under review by any court, tribunal or body appointed or designated by either House of Parliament for the investigation of a charge under article 61: Provided further that nothing in this clause shall be construed as restricting the right of any person to bring appropriate proceedings against the Government of India or the Government of a State. (2) No criminal proceedings whatsoever shall be instituted or continued against the President, or the Governor 1*** of a State, in any court during his term of office. (3) No process for the arrest or imprisonment of the President, or the Governor 1*** of a State, shall issue from any court during his term of office. (4) No civil proceedings in which relief is claimed against the President, or the Governor 1*** of a State, shall be instituted during his term of office in any court in respect of any act done or purporting to be done by him in his personal capacity, whether before or after he entered upon his office as President, or as Governor 1*** of such State, until the expiration of two months next after notice in writing has been delivered to the President or the Governor 1***, as the case may be, or left at his office stating the nature of the proceedings, the cause of action therefor, the name, description and place of residence of the party by whom such proceedings are to be instituted and the relief which he claims. ______________________________________________ 1[361A. Protection of publication of proceedings of Parliament and State Legislatures.—(1) No person shall be liable to any proceedings, civil or criminal, in any court in respect of the publication in a newspaper of a substantially true report of any proceedings of either House of Parliament or the Legislative Assembly, or, as the case may be, either House of the Legislature, of a State, unless the publication is proved to have been made with malice: Provided that nothing in this clause shall apply to the publication of any report of the proceedings of a secret sitting of either House of Parliament or the Legislative Assembly, or, as the case may be, either House of the Legislature, of a State. (2) Clause (1) shall apply in relation to reports or matters broadcast by means of wireless telegraphy as part of any programme or service provided by means of a broadcasting station as it applies in relation to reports or matters published in a newspaper. Explanation.—In this article, "newspaper" includes a news agency report containing material for publication in a newspaper.] ## 2[361B. Disqualification For Appointment On Remunerative Political post.—A member of a House belonging to any political party who is disqualified for being a member of the House under paragraph 2 of the Tenth Schedule shall also be disqualified to hold any remunerative political post for duration of the period commencing from the date of his disqualification till the date on which the term of his office as such member would expire or till the date on which he contests an election to a House and is declared elected, whichever is earlier. Explanation. - For the purposes of this article,— (a) the expression "House" has the meaning assigned to it in clause (a) of paragraph 1 of the Tenth Schedule; (b) the expression "remunerative political post" means any office— (i) under the Government of India or the Government of a State where the salary or remuneration for such office is paid ______________________________________________ 1. Art. 361A ins. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 42 (Part XIX.—MISCELLANEOUS) out of the public revenue of the Government of India or the Government of the State, as the case may be; or (ii) under a body, whether incorporated or not, which is wholly or partially owned by the Government of India or the Government of State, and the salary or remuneration for such office is paid by such body, except where such salary or remuneration paid is compensatory in nature.] 362. [*Rights and privileges of Rulers of Indian States.*].—Omitted by the Constitution (Twenty-sixth Amendment) Act, 1971, s. 2 (w.e.f. 28-12-1971). 363. Bar to interference by courts in disputes arising out of certain treaties, agreements, etc.—(1) Notwithstanding anything in this Constitution but subject to the provisions of article 143, neither the Supreme Court nor any other court shall have jurisdiction in any dispute arising out of any provision of a treaty, agreement, covenant, engagement, *sanad* or other similar instrument which was entered into or executed before the commencement of this Constitution by any Ruler of an Indian State and to which the Government of the Dominion of India or any of its predecessor Governments was a party and which has or has been continued in operation after such commencement, or in any dispute in respect of any right accruing under or any liability or obligation arising out of any of the provisions of this Constitution relating to any such treaty, agreement, covenant, engagement, *sanad* or other similar instrument. (2) In this article— (a) "Indian State" means any territory recognised before the commencement of this Constitution by His Majesty or the Government of the Dominion of India as being such a State; and (b) "Ruler" includes the Prince, Chief or other person recognised before such commencement by His Majesty or the Government of the Dominion of India as the Ruler of any Indian State. 1[363A. Recognition granted to Rulers of Indian States to cease and privy purses to be abolished.—Notwithstanding anything in this Constitution or in any law for the time being in force— (a) the Prince, Chief or other person who, at any time before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, was recognised by the President as the Ruler of an Indian State or any person who, at any time before such commencement, was recognised by the President as the successor of such ruler shall, on and ______________________________________________ from such commencement, cease to be recognised as such Ruler or the successor of such Ruler; (b) on and from the commencement of the Constitution (Twentysixth Amendment) Act, 1971, privy purse is abolished and all rights, liabilities and obligations in respect of *privy purse* are extinguished and accordingly the Ruler or, as the case may be, the successor of such Ruler, referred to in clause (a) or any other person shall not be paid any sum as *privy purse*.] 364. Special provisions as to major ports and aerodromes.—(1) Notwithstanding anything in this Constitution, the President may by public notification direct that as from such date as may be specified in the notification— (a) any law made by Parliament or by the Legislature of a State shall not apply to any major port or aerodrome or shall apply thereto subject to such exceptions or modifications as may be specified in the notification, or (b) any existing law shall cease to have effect in any major port or aerodrome except as respects things done or omitted to be done before the said date, or shall in its application to such port or aerodrome have effect subject to such exceptions or modifications as may be specified in the notification. (2) In this article— (a) "major port" means a port declared to be a major port by or under any law made by Parliament or any existing law and includes all areas for the time being included within the limits of such port; (b) "aerodrome" means aerodrome as defined for the purposes of the enactments relating to airways, aircraft and air navigation. 365. Effect of failure to comply with, or to give effect to, directions given by the Union.—Where any State has failed to comply with, or to give effect to, any directions given in the exercise of the executive power of the Union under any of the provisions of this Constitution, it shall be lawful for the President to hold that a situation has arisen in which the Government of the State cannot be carried on in accordance with the provisions of this Constitution. 366. Definitions.—In this Constitution, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say— ## (Part Xix.—Miscellaneous) (1) "agricultural income" means agricultural income as defined for the purposes of the enactments relating to Indian income-tax; (2) "an Anglo-Indian" means a person whose father or any of whose other male progenitors in the male line is or was of European descent but who is domiciled within the territory of India and is or was born within such territory of parents habitually resident therein and not established there for temporary purposes only; (3) "article" means an article of this Constitution; (4) "borrow" includes the raising of money by the grant of annuities, and "loan" shall be construed accordingly; 1[(4A)* * * *] (5) "clause" means a clause of the article in which the expression occurs; (6) "corporation tax" means any tax on income, so far as that tax is payable by companies and is a tax in the case of which the following conditions are fulfilled:— (a) that it is not chargeable in respect of agricultural income; (b) that no deduction in respect of the tax paid by companies is, by any enactments which may apply to the tax, authorised to be made from dividends payable by the companies to individuals; (c) that no provision exists for taking the tax so paid into account in computing for the purposes of Indian income-tax the total income of individuals receiving such dividends, or in computing the Indian income-tax payable by, or refundable to, such individuals; (7) "corresponding Province", "corresponding Indian State" or "corresponding State" means in cases of doubt such Province, Indian State or State as may be determined by the President to be the corresponding Province, the corresponding Indian State or the ______________________________________________ 1. Cl. (4A) was ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 54 corresponding State, as the case may be, for the particular purpose in question; (8) "debt" includes any liability in respect of any obligation to repay capital sums by way of annuities and any liability under any guarantee, and "debt charges" shall be construed accordingly; (9) "estate duty" means a duty to be assessed on or by reference to the principal value, ascertained in accordance with such rules as may be prescribed by or under laws made by Parliament or the Legislature of a State relating to the duty, of all property passing upon death or deemed, under the provisions of the said laws, so to pass; (10) "existing law" means any law, Ordinance, order, bye-law, rule or regulation passed or made before the commencement of this Constitution by any Legislature, authority or person having power to make such a law, Ordinance, order, bye-law, rule or regulation; (11) "Federal Court" means the Federal Court constituted under the Government of India Act, 1935; (12) "goods" includes all materials, commodities, and articles; 1[(12A) "goods and services tax" means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption] ; (13) "guarantee" includes any obligation undertaken before the commencement of this Constitution to make payments in the event of the profits of an undertaking falling short of a specified amount; (14) "High Court" means any Court which is deemed for the purposes of this Constitution to be a High Court for any State and includes— (a) any Court in the territory of India constituted or reconstituted under this Constitution as a High Court, and (b) any other Court in the territory of India which may be declared by Parliament by law to be a High Court for all or any of the purposes of this Constitution; ______________________________________________ ## (Part Xix.—Miscellaneous) (15) "Indian State" means any territory which the Government of the Dominion of India recognised as such a State; (16) "Part" means a Part of this Constitution; (17) "pension" means a pension, whether contributory or not, of any kind whatsoever payable to or in respect of any person, and includes retired pay so payable; a gratuity so payable and any sum or sums so payable by way of the return, with or without interest thereon or any other addition thereto, of subscriptions to a provident fund; (18) "Proclamation of Emergency" means a Proclamation issued under clause (1) of article 352; (19) "public notification" means a notification in the Gazette of India, or, as the case may be, the Official Gazette of a State; (20) "railway" does not include— (a) a tramway wholly within a municipal area, or (b) any other line of communication wholly situate in one State and declared by Parliament by law not to be a railway; 1[(21)* * * *] 2[(22) "Ruler" means the Prince, Chief or other person who, at any time before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, was recognised by the President as the Ruler of an Indian State or any person who, at any time before such commencement, was recognised by the President as the successor of such Ruler;] (23) "Schedule" means a Schedule to this Constitution; (24) "Scheduled Castes" means such castes, races or tribes or parts of or groups within such castes, races or tribes as are deemed under article 341 to be Scheduled Castes for the purposes of this Constitution; (25) "Scheduled Tribes" means such tribes or tribal communities or parts of or groups within such tribes or tribal communities as are ______________________________________________ 1. Cl. (21) omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 2. Subs. by the Constitution (Twenty-sixth Amendment) Act, 1971, s. 4 (w.e.f. 28-12-1971). deemed under article 342 to be Scheduled Tribes for the purposes of this Constitution; (26) "securities" includes stock; 1* * * 2[(26A) "Services" means anything other than goods; (26B) "State" with reference to articles 246A, 268, 269, 269A and article 279A includes a Union territory with Legislature] ; 3[(26C) "socially and educationally backward classes" means such backward classes as are so deemed under article 342A for the purposes of the Central Government or the State or Union territory, as the case may be] ; (27) "sub-clause" means a sub-clause of the clause in which the expression occurs; (28) "taxation" includes the imposition of any tax or impost, whether general or local or special, and "tax" shall be construed accordingly; (29) "tax on income" includes a tax in the nature of an excess profits tax; 4[(29A) "tax on the sale or purchase of goods" includes— (a) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (c) a tax on the delivery of goods on hire-purchase or any system of payment by instalments; (d) a tax on the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; ______________________________________________ 9-2016). 3. Cl. (26C) was ins. by the Constitution (One Hundred and Second Amendment) Act, 2018, s.5 (w.e.f. 14-8-2018) and subsequently subs. by the Constitution (One Hundred and Fifth Amendment) Act, 2021, s. 4 (w.e.f. 15-9-2021). 4. Cl.(29A) ins. by the Constitution (Forty-sixth Amendment) Act, 1982, s. 4 (w.e.f. 2-2-1983). (Part XIX.—MISCELLANEOUS) (e) a tax on the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; (f) a tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made;] 1[(30) "Union territory" means any Union territory specified in the First Schedule and includes any other territory comprised within the territory of India but not specified in that Schedule.] 367. Interpretation.—(1) Unless the context otherwise requires, the General Clauses Act, 1897, shall, subject to any adaptations and modifications that may be made therein under article 372, apply for the interpretation of this Constitution as it applies for the interpretation of an Act of the Legislature of the Dominion of India. (2) Any reference in this Constitution to Acts or laws of, or made by, Parliament, or to Acts or laws of, or made by, the Legislature of a State 2***, shall be construed as including a reference to an Ordinance made by the President or, to an Ordinance made by a Governor 3***, as the case may be. (3) For the purposes of this Constitution "foreign State" means any State other than India: Provided that, subject to the provisions of any law made by Parliament, the President may by order4 declare any State not to be a foreign State for such purposes as may be specified in the order. 5[(4) * * * *] ______________________________________________ 1. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. for cl. (30) (w.e.f. 1-11-1956). 2. The words and letters "specified in Part A or Part B of the First Schedule" omitted by s. 29 and Sch., *ibid.* (w.e.f. 1-11-1956). 3. The words "or Rajpramukh" omitted by s. 29 and Sch.,*ibid*. (w.e.f. 1-11-1956). 4. See the Constitution (Declaration as to Foreign States) Order, 1950 (C.O. 2). 5. Added by the Constitution (Application to Jammu and Kashmir) Order, 2019 (C.O. 272)(w.e.f.5-8-2019). For the text of this C.O., see Appendix II. ## Part Xx Amendment Of The Constitution 368. 1[Power of Parliament to amend the Constitution and procedure therefor].— 2[(1) Notwithstanding anything in this Constitution, Parliament may in exercise of its constituent power amend by way of addition, variation or repeal any provision of this Constitution in accordance with the procedure laid down in this article.] 3[(2)] An amendment of this Constitution may be initiated only by the introduction of a Bill for the purpose in either House of Parliament, and when the Bill is passed in each House by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting, 4[it shall be presented to the President who shall give his assent to the Bill and thereupon] the Constitution shall stand amended in accordance with the terms of the Bill: Provided that if such amendment seeks to make any change in— (a) article 54, article 55, article 73, 5[ article 162, article 241 or article 279A]; or (b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part XI; or (c) any of the Lists in the Seventh Schedule; or (d) the representation of States in Parliament; or (e) the provisions of this article, the amendment shall also require to be ratified by the Legislatures of not less than one-half of the States 1*** by resolutions to that effect passed by those Legislatures before the Bill making provision for such amendment is presented to the President for assent. 2[(3) Nothing in article 13 shall apply to any amendment made under this article.] 3[(4) No amendment of this Constitution (including the provisions of Part III) made or purporting to have been made under this article [whether before or after the commencement of section 55 of the Constitution (Forty-second Amendment) Act, 1976] shall be called in question in any court on any ground. (5) For the removal of doubts, it is hereby declared that there shall be no limitation whatever on the constituent power of Parliament to amend by way of addition, variation or repeal the provisions of this Constitution under this article.] ## ______________________________________________ Part Xxi 1[Temporary, Transitional And Special Provisions] 369. Temporary power to Parliament to make laws with respect to certain matters in the State List as if they were matters in the Concurrent List.—Notwithstanding anything in this Constitution, Parliament shall, during a period of five years from the commencement of this Constitution, have power to make laws with respect to the following matters as if they were enumerated in the Concurrent List, namely:— (a) trade and commerce within a State in, and the production, supply and distribution of, cotton and woollen textiles, raw cotton (including ginned cotton and unginned cotton or *kapas*), cotton seed, paper (including newsprint), food-stuffs (including edible oilseeds and oil), cattle fodder (including oil-cakes and other concentrates), coal (including coke and derivatives of coal), iron, steel and mica; (b) offences against laws with respect to any of the matters mentioned in clause (a), jurisdiction and powers of all courts except the Supreme Court with respect to any of those matters, and fees in respect of any of those matters but not including fees taken in any court, but any law made by Parliament, which Parliament would not but for the provisions of this article have been competent to make, shall, to the extent of the incompetency, cease to have effect on the expiration of the said period, except as respects things done or omitted to be done before the expiration thereof. ______________________________________________ 1[370. Temporary provisions with respect to the State of Jammu and Kashmir.—(1) Notwithstanding anything in this Constitution,— (a) the provisions of article 238 shall not apply in relation to the State of Jammu and Kashmir; (b) the power of Parliament to make laws for the said State shall be limited to— (i) those matters in the Union List and the Concurrent List which, in consultation with the Government of the State, are declared by the President to correspond to matters specified in the Instrument of Accession governing the accession of the State to the Dominion of India as the matters with respect to which the Dominion Legislature may make laws for that State; and ## ______________________________________________ 1. In Exercise Of The Powers Conferred By Clause (3) Of Article 370 Read With Clause (1) Of article 370 of the Constitution of India, the President, on the recommendation of Parliament, is pleased to declare that, as from the 6th August, 2019 all clauses of said article 370 shall cease to be operative except the following which shall read as under, namely:— "370. All provisions of this Constitution, as amended from time to time, without any modifications or exceptions, shall apply to the State of Jammu and Kashmir notwithstanding anything contrary contained in article 152 or article 308 or any other article of this Constitution or any other provision of the Constitution of Jammu and Kashmir or any law, document, judgment, ordinance, order, by-law, rule, regulation, notification, custom or usage having the force of law in the territory of India, or any other instrument, treaty or agreement as envisaged under article 363 or otherwise.". [See Appendix III (C.O.273)]. * In exercise of the powers conferred by clause (3) of the Constitution of India, the President, on the recommendation of the Constituent Assembly of the State of Jammu and Kashmir, declared that, as from the 17th day of November, 1952, the said art. 370 shall be operative with the modification that for the *Explanation* in cl. (1) thereof, the following *Explanation* is substituted, namely:— "Explanation.– For the purposes of this article, the Government of the State means the person for the time being recognised by the President on the recommendation of the Legislative Assembly of the State as the *Sadar-I Riyasat of Jammu and Kashmir, acting on the advice of the Council of Ministers of the State for the time being in office.". (C.O. 44, dated the 15th November, 1952). *Now "Governor". (Part XXI.—Temporary, Transitional and Special Provisions) (ii) such other matters in the said Lists as, with the concurrence of the Government of the State, the President may by order specify. Explanation.—For the purposes of this article, the Government of the State means the person for the time being recognised by the President as the Maharaja of Jammu and Kashmir acting on the advice of the Council of Ministers for the time being in office under the Maharaja's Proclamation dated the fifth day of March, 1948; (c) the provisions of article 1 and of this article shall apply in relation to that State; (d) such of the other provisions of this Constitution shall apply in relation to that State subject to such exceptions and modifications as the President may by order specify: Provided that no such order which relates to the matters specified in the Instrument of Accession of the State referred to in paragraph (i) of sub-clause (b) shall be issued except in consultation with the Government of the State: Provided further that no such order which relates to matters other than those referred to in the last preceding proviso shall be issued except with the concurrence of that Government. (2) If the concurrence of the Government of the State referred to in paragraph (ii) of sub-clause (b) of clause (1) or in the second proviso to sub-clause (d) of that clause be given before the Constituent Assembly for the purpose of framing the Constitution of the State is convened, it shall be placed before such Assembly for such decision as it may take thereon. (3) Notwithstanding anything in the foregoing provisions of this article, the President may, by public notification, declare that this article shall cease to be operative or shall be operative only with such exceptions and modifications and from such date as he may specify: Provided that the recommendation of the Constituent Assembly of the State referred to in clause (2) shall be necessary before the President issues such a notification. ______________________________________________  See the Constitution (Application to Jammu and Kashmir) Order, 2019 (C.O. 272) in 1[**371. Special provision with respect to the States of** 2*** Maharashtra and Gujarat.—3[(1)* * * * *] (2) Notwithstanding anything in this Constitution, the President may by order made with respect to 4[the State of Maharashtra or Gujarat], provide for any special responsibility of the Governor for— (a) the establishment of separate development boards for Vidarbha, Marathwada, 5[and the rest of Maharashtra or, as the case may be], Saurashtra, Kutch and the rest of Gujarat with the provision that a report on the working of each of these boards will be placed each year before the State Legislative Assembly; (b) the equitable allocation of funds for developmental expenditure over the said areas, subject to the requirements of the State as a whole; and (c) an equitable arrangement providing adequate facilities for technical education and vocational training, and adequate opportunities for employment in services under the control of the State Government, in respect of all the said areas, subject to the requirements of the State as a whole.] 6[**371A. Special provision with respect to the State of Nagaland.—**(1) Notwithstanding anything in this Constitution,— (a) no Act of Parliament in respect of— (i) religious or social practices of the Nagas, (ii) Naga customary law and procedure, (iii) administration of civil and criminal justice involving decisions according to Naga customary law, (iv) ownership and transfer of land and its resources, shall apply to the State of Nagaland unless the Legislative Assembly of Nagaland by a resolution so decides; Act, 1973, s. 2 (w.e.f. 1-7-1974). 3. Cl. (1) omitted by s. 2, *ibid.* (w.e.f. 1-7-1974). 4. Subs. by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 85, for "the State of Bombay" (w.e.f. 1-5-1960). 5. Subs. by s. 85, *ibid.,* for "the rest of Maharashtra" (w.e.f. 1-5-1960). 6. Art. 371A ins. by the Constitution (Thirteenth Amendment) Act, 1962, s. 2 (w.e.f. 1-12-1963). ## (Part Xxi.—Temporary, Transitional And Special Provisions) (b) the Governor of Nagaland shall have special responsibility with respect to law and order in the State of Nagaland for so long as in his opinion internal disturbances occurring in the Naga Hills-Tuensang Area immediately before the formation of that State continue therein or in any part thereof and in the discharge of his functions in relation thereto the Governor shall, after consulting the Council of Ministers, exercise his individual judgment as to the action to be taken: Provided that if any question arises whether any matter is or is not a matter as respects which the Governor is under this sub-clause required to act in the exercise of his individual judgment, the decision of the Governor in his discretion shall be final, and the validity of anything done by the Governor shall not be called in question on the ground that he ought or ought not to have acted in the exercise of his individual judgment: Provided further that if the President on receipt of a report from the Governor or otherwise is satisfied that it is no longer necessary for the Governor to have special responsibility with respect to law and order in the State of Nagaland, he may by order direct that the Governor shall cease to have such responsibility with effect from such date as may be specified in the order; (c) in making his recommendation with respect to any demand for a grant, the Governor of Nagaland shall ensure that any money provided by the Government of India out of the Consolidated Fund of India for any specific service or purpose is included in the demand for a grant relating to that service or purpose and not in any other demand; (d) as from such date as the Governor of Nagaland may by public notification in this behalf specify, there shall be established a regional council for the Tuensang district consisting of thirty-five members and the Governor shall in his discretion make rules providing for— (i) the composition of the regional council and the manner in which the members of the regional council shall be chosen: Provided that the Deputy Commissioner of the Tuensang district shall be the Chairman *ex officio* of the regional council and the Vice-Chairman of the regional council shall be elected by the members thereof from amongst themselves; (ii) the qualifications for being chosen as, and for being, members of the regional council; (iii) the term of office of, and the salaries and allowances, if any, to be paid to members of, the regional council; (Part XXI.—Temporary, Transitional and Special Provisions) (iv) the procedure and conduct of business of the regional council; (v) the appointment of officers and staff of the regional council and their conditions of services; and (vi) any other matter in respect of which it is necessary to make rules for the constitution and proper functioning of the regional council. (2) Notwithstanding anything in this Constitution, for a period of ten years from the date of the formation of the State of Nagaland or for such further period as the Governor may, on the recommendation of the regional council, by public notification specify in this behalf,— (a) the administration of the Tuensang district shall be carried on by the Governor; (b) where any money is provided by the Government of India to the Government of Nagaland to meet the requirements of the State of Nagaland as a whole, the Governor shall in his discretion arrange for an equitable allocation of that money between the Tuensang district and the rest of the State; (c) no Act of the Legislature of Nagaland shall apply to Tuensang district unless the Governor, on the recommendation of the regional council, by public notification so directs and the Governor in giving such direction with respect to any such Act may direct that the Act shall in its application to the Tuensang district or any part thereof have effect subject to such exceptions or modifications as the Governor may specify on the recommendation of the regional council: Provided that any direction given under this sub-clause may be given so as to have retrospective effect; (d) the Governor may make regulations for the peace, progress and good government of the Tuensang district and any regulations so made may repeal or amend with retrospective effect, if necessary, any Act of Parliament or any other law which is for the time being applicable to that district; (e) (i) one of the members representing the Tuensang district in the Legislative Assembly of Nagaland shall be appointed Minister for Tuensang affairs by the Governor on the advice of the Chief Minister and the Chief Minister in tendering his advice shall act on the recommendation of the majority of the members as aforesaid1; ______________________________________________ 1. Paragraph 2 of the Constitution (Removal of Difficulties) Order No. X provides (w.e.f. 1-12-1963) that article 371A of the Constitution of India shall have effect as if the following proviso were added to paragraph (i) of sub-clause (e) of clause (2) thereof, namely:— "Provided that the Governor may, on the advice of the Chief Minister, appoint any person as Minister for Tuensang affairs to act as such until such time as persons are chosen in accordance with law to fill the seats allocated to the Tuensang district, in the Legislative Assembly of Nagaland.". ## (Part Xxi.—Temporary, Transitional And Special Provisions) (ii) the Minister for Tuensang affairs shall deal with, and have direct access to the Governor on, all matters relating to the Tuensang district but he shall keep the Chief Minister informed about the same; (f) notwithstanding anything in the foregoing provisions of this clause, the final decision on all matters relating to the Tuensang district shall be made by the Governor in his discretion; (g) in articles 54 and 55 and clause (4) of article 80, references to the elected members of the Legislative Assembly of a State or to each such member shall include references to the members or member of the Legislative Assembly of Nagaland elected by the regional council established under this article; (h) in article 170— (i) clause (1) shall, in relation to the Legislative Assembly of Nagaland, have effect as if for the word "sixty", the word "fortysix" had been substituted; (ii) in the said clause, the reference to direct election from territorial constituencies in the State shall include election by the members of the regional council established under this article; (iii) in clauses (2) and (3), references to territorial constituencies shall mean references to territorial constituencies in the Kohima and Mokokchung districts. (3) If any difficulty arises in giving effect to any of the foregoing provisions of this article, the President may by order do anything (including any adaptation or modification of any other article) which appears to him to be necessary for the purpose of removing that difficulty: Provided that no such order shall be made after the expiration of three years from the date of the formation of the State of Nagaland. Explanation..—In this article, the Kohima, Mokokchung and Tuensang districts shall have the same meanings as in the State of Nagaland Act, 1962.] 1[371B. **Special provision with respect to the State of Assam.**— Notwithstanding anything in this Constitution, the President may, by order made with respect to the State of Assam, provide for the constitution and functions of a committee of the Legislative Assembly of the State consisting of ______________________________________________ ## (Part Xxi.—Temporary, Transitional And Special Provisions) members of that Assembly elected from the tribal areas specified in 1[Part I] of the table appended to paragraph 20 of the Sixth Schedule and such number of other members of that Assembly as may be specified in the order and for the modifications to be made in the rules of procedure of that Assembly for the constitution and proper functioning of such committee.] 2[**371C. Special provision with respect to the State of Manipur.—**(1) Notwithstanding anything in this Constitution, the President may, by order made with respect to the State of Manipur, provide for the constitution and functions of a committee of the Legislative Assembly of the State consisting of members of that Assembly elected from the Hill Areas of that State, for the modifications to be made in the rules of business of the Government and in the rules of procedure of the Legislative Assembly of the State and for any special responsibility of the Governor in order to secure the proper functioning of such committee. (2) The Governor shall annually, or whenever so required by the President, make a report to the President regarding the administration of the Hill Areas in the State of Manipur and the executive power of the Union shall extend to the giving of directions to the State as to the administration of the said areas. Explanation.—In this article, the expression "Hill Areas" means such areas as the President may, by order, declare to be Hill areas.] 3[371D. Special provisions with respect to 4[the State of Andhra Pradesh or the State of Telangana].—5[(1) The President may by order made with respect to the State of Andhra Pradesh or the State of Telangana, provide, having regard to the requirement of each State, for equitable opportunities and facilities for the people belonging to different parts of such State, in the matter of public employment and in the matter of education, and different provisions may be made for various parts of the States.] (2) An order made under clause (1) may, in particular,— 2. Art. 371C ins. by the Constitution (Twenty-seventh Amendment) Act, 1971, s. 5 (w.e.f. 15-2-1972). 3. Arts. 371D and 371E ins. by the Constitution (Thirty-second Amendment) Act, 1973, s. 3 (w.e.f. 1-7-1974). 4. Subs. by the Andhra Pradesh Reorganisation Act, 2014 (6 of 2014), s. 97, for "the State of Andhra Pradesh" (w.e.f. 2-6-2014). 5. Subs. by s. 97, *ibid*. for cl. (1) (w.e.f. 2-6-2014). ## (Part Xxi.—Temporary, Transitional And Special Provisions) (a) require the State Government to organise any class or classes of posts in a civil service of, or any class or classes of civil posts under, the State into different local cadres for different parts of the State and allot in accordance with such principles and procedure as may be specified in the order the persons holding such posts to the local cadres so organised; (b) specify any part or parts of the State which shall be regarded as the local area— (i) for direct recruitment to posts in any local cadre (whether organised in pursuance of an order under this article or constituted otherwise) under the State Government; (ii) for direct recruitment to posts in any cadre under any local authority within the State; and (iii) for the purposes of admission to any University within the State or to any other educational institution which is subject to the control of the State Government; (c) specify the extent to which, the manner in which and the conditions subject to which, preference or reservation shall be given or made— (i) in the matter of direct recruitment to posts in any such cadre referred to in sub-clause (b) as may be specified in this behalf in the order; (ii) in the matter of admission to any such University or other educational institution referred to in sub-clause (b) as may be specified in this behalf in the order, to or in favour of candidates who have resided or studied for any period specified in the order in the local area in respect of such cadre, University or other educational institution, as the case may be. (3) The President may, by order, provide for the constitution of an Administrative Tribunal for 1[the State of Andhra Pradesh and for the State of Telangana] to exercise such jurisdiction, powers and authority [including any jurisdiction, power and authority which immediately before the commencement of the Constitution (Thirty-second Amendment) Act, 1973, was exercisable by any court (other than the Supreme Court) or by any tribunal or other authority] as may be specified in the order with respect to the following matters, namely:— ______________________________________________ 1. Subs. by the Andhra Pradesh Reorganisation Act, 2014 (6 of 2014), s. 97, for "the ## (Part Xxi.—Temporary, Transitional And Special Provisions) (a) appointment, allotment or promotion to such class or classes of posts in any civil service of the State, or to such class or classes of civil posts under the State, or to such class or classes of posts under the control of any local authority within the State, as may be specified in the order; (b) seniority of persons appointed, allotted or promoted to such class or classes of posts in any civil service of the State, or to such class or classes of civil posts under the State, or to such class or classes of posts under the control of any local authority within the State, as may be specified in the order; (c) such other conditions of service of persons appointed, allotted or promoted to such class or classes of posts in any civil service of the State or to such class or classes of civil posts under the State or to such class or classes of posts under the control of any local authority within the State, as may be specified in the order. (4) An order made under clause (3) may— (a) authorise the Administrative Tribunal to receive representations for the redress of grievances relating to any matter within its jurisdiction as the President may specify in the order and to make such orders thereon as the Administrative Tribunal deems fit; (b) contain such provisions with respect to the powers and authorities and procedure of the Administrative Tribunal (including provisions with respect to the powers of the Administrative Tribunal to punish for contempt of itself) as the President may deem necessary; (c) provide for the transfer to the Administrative Tribunal of such classes of proceedings, being proceedings relating to matters within its jurisdiction and pending before any court (other than the Supreme Court) or tribunal or other authority immediately before the commencement of such order, as may be specified in the order; (d) contain such supplemental, incidental and consequential provisions (including provisions as to fees and as to limitation, evidence or for the application of any law for the time being in force subject to any exceptions or modifications) as the President may deem necessary. ## (Part Xxi.—Temporary, Transitional And Special Provisions) (5) The Order of the Administrative Tribunal finally disposing of any case shall become effective upon its confirmation by the State Government or on the expiry of three months from the date on which the order is made, whichever is earlier: Provided that the State Government may, by special order made in writing and for reasons to be specified therein, modify or annul any order of the Administrative Tribunal before it becomes effective and in such a case, the order of the Administrative Tribunal shall have effect only in such modified form or be of no effect, as the case may be. (6) Every special order made by the State Government under the proviso to clause (5) shall be laid, as soon as may be after it is made, before both Houses of the State Legislature. (7) The High Court for the State shall not have any powers of superintendence over the Administrative Tribunal and no court (other than the Supreme Court) or tribunal shall exercise any jurisdiction, power or authority in respect of any matter subject to the jurisdiction, power or authority of, or in relation to, the Administrative Tribunal. (8) If the President is satisfied that the continued existence of the Administrative Tribunal is not necessary, the President may by order abolish the Administrative Tribunal and make such provisions in such order as he may deem fit for the transfer and disposal of cases pending before the Tribunal immediately before such abolition. (9) Notwithstanding any judgment, decree or order of any court, tribunal or other authority,— (a) no appointment, posting, promotion or transfer of any person— (i) made before the 1st day of November, 1956, to any post under the Government of, or any local authority within, the State of Hyderabad as it existed before that date; or (ii) made before the commencement of the Constitution (Thirty-second Amendment) Act, 1973, to any post under the Government of, or any local or other authority within, the State of Andhra Pradesh; and (b) no action taken or thing done by or before any person referred to in sub-clause (a), ______________________________________________  *In P. Sambamurthy and Others Vs. State of Andhra Pradesh and Others* (1987) shall be deemed to be illegal or void or ever to have become illegal or void merely on the ground that the appointment, posting, promotion or transfer of such person was not made in accordance with any law, then in force, providing for any requirement as to residence within the State of Hyderabad or, as the case may be, within any part of the State of Andhra Pradesh, in respect of such appointment, posting, promotion or transfer. (10) The provisions of this article and of any order made by the President thereunder shall have effect notwithstanding anything in any other provision of this Constitution or in any other law for the time being in force. 371E. Establishment of Central University in Andhra Pradesh.— Parliament may by law provide for the establishment of a University in the State of Andhra Pradesh.] 1[371F. Special provisions with respect to the State of Sikkim.— Notwithstanding anything in this Constitution,— (a) the Legislative Assembly of the State of Sikkim shall consist of not less than thirty members; (b) as from the date of commencement of the Constitution (Thirtysixth Amendment) Act, 1975 (hereafter in this article referred to as the appointed day)— (i) the Assembly for Sikkim formed as a result of the elections held in Sikkim in April, 1974 with thirty-two members elected in the said elections (hereinafter referred to as the sitting members) shall be deemed to be the Legislative Assembly of the State of Sikkim duly constituted under this Constitution; (ii) the sitting members shall be deemed to be the members of the Legislative Assembly of the State of Sikkim duly elected under this Constitution; and (iii) the said Legislative Assembly of the State of Sikkim shall exercise the powers and perform the functions of the Legislative Assembly of a State under this Constitution; ______________________________________________ ## (Part Xxi.—Temporary, Transitional And Special Provisions) (c) in the case of the Assembly deemed to be the Legislative Assembly of the State of Sikkim under clause (b), the references to the period of 1[five years], in clause (1) of article 172 shall be construed as references to a period of 2[four years] and the said period of 2[four years] shall be deemed to commence from the appointed day; (d) until other provisions are made by Parliament by law, there shall be allotted to the State of Sikkim one seat in the House of the People and the State of Sikkim shall form one parliamentary constituency to be called the parliamentary constituency for Sikkim; (e) the representative of the State of Sikkim in the House of the People in existence on the appointed day shall be elected by the members of the Legislative Assembly of the State of Sikkim; (f) Parliament may, for the purpose of protecting the rights and interests of the different sections of the population of Sikkim make provision for the number of seats in the Legislative Assembly of the State of Sikkim which may be filled by candidates belonging to such sections and for the delimitation of the assembly constituencies from which candidates belonging to such sections alone may stand for election to the Legislative Assembly of the State of Sikkim; (g) the Governor of Sikkim shall have special responsibility for peace and for an equitable arrangement for ensuring the social and economic advancement of different sections of the population of Sikkim and in the discharge of his special responsibility under this clause, the Governor of Sikkim shall, subject to such directions as the President may, from time to time, deem fit to issue, act in his discretion; (h) all property and assets (whether within or outside the territories comprised in the State of Sikkim) which immediately before the appointed day were vested in the Government of Sikkim or in any other authority or in any person for the purposes of the Government of Sikkim shall, as from the appointed day, vest in the Government of the State of Sikkim; ______________________________________________ (w.e.f. 3-1-1977) and further subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 43, for "six years" (w.e.f. 6-9-1979). 2. Subs. by s. 56, *ibid.*, for "four years" (w.e.f. 3-1-1977) and further subs. by s. 43, *ibid.*, for "five years", respectively (w.e.f. 6-9-1979). ## (Part Xxi.—Temporary, Transitional And Special Provisions) (i) the High Court functioning as such immediately before the appointed day in the territories comprised in the State of Sikkim shall, on and from the appointed day, be deemed to be the High Court for the State of Sikkim; (j) all courts of civil, criminal and revenue jurisdiction, all authorities and all officers, judicial, executive and ministerial, throughout the territory of the State of Sikkim shall continue on and from the appointed day to exercise their respective functions subject to the provisions of this Constitution; (k) all laws in force immediately before the appointed day in the territories comprised in the State of Sikkim or any part thereof shall continue to be in force therein until amended or repealed by a competent Legislature or other competent authority; (l) for the purpose of facilitating the application of any such law as is referred to in clause (k) in relation to the administration of the State of Sikkim and for the purpose of bringing the provisions of any such law into accord with the provisions of this Constitution, the President may, within two years from the appointed day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon, every such law shall have effect subject to the adaptations and modifications so made, and any such adaptation or modification shall not be questioned in any court of law; (m) neither the Supreme Court nor any other court shall have jurisdiction in respect of any dispute or other matter arising out of any treaty, agreement, engagement or other similar instrument relating to Sikkim which was entered into or executed before the appointed day and to which the Government of India or any of its predecessor Governments was a party, but nothing in this clause shall be construed to derogate from the provisions of article 143; (n) the President may, by public notification, extend with such restrictions or modifications as he thinks fit to the State of Sikkim any enactment which is in force in a State in India at the date of the notification; (o) if any difficulty arises in giving effect to any of the foregoing provisions of this article, the President may, by order, do anything (including any adaptation or modification of any other article) which appears to him to be necessary for the purpose of removing that difficulty: ______________________________________________ ## (Part Xxi.—Temporary, Transitional And Special Provisions) Provided that no such order shall be made after the expiry of two years from the appointed day; (p) all things done and all actions taken in or in relation to the State of Sikkim or the territories comprised therein during the period commencing on the appointed day and ending immediately before the date on which the Constitution (Thirty-sixth Amendment) Act, 1975, receives the assent of the President shall, in so far as they are in conformity with the provisions of this Constitution as amended by the Constitution (Thirty-sixth Amendment) Act, 1975, be deemed for all purposes to have been validly done or taken under this Constitution as so amended.] 1[371G. Special provision with respect to the State of Mizoram.— Notwithstanding anything in this Constitution,— (a) no Act of Parliament in respect of— (i) religious or social practices of the Mizos, (ii) Mizo customary law and procedure, (iii) administration of civil and criminal justice involving decisions according to Mizo customary law, (iv) ownership and transfer of land, shall apply to the State of Mizoram unless the Legislative Assembly of the State of Mizoram by a resolution so decides: Provided that nothing in this clause shall apply to any Central Act in force in the Union territory of Mizoram immediately before the commencement of the Constitution (Fifty-third Amendment) Act, 1986; (b) the Legislative Assembly of the State of Mizoram shall consist of not less than forty members.] 2[371H. Special provision with respect to the State of Arunachal Pradesh.—Notwithstanding anything in this Constitution,— (a) the Governor of Arunachal Pradesh shall have special responsibility with respect to law and order in the State of Arunachal Pradesh and in the discharge of his functions in relation thereto, the Governor shall, after consulting the Council of Ministers, exercise his individual judgment as to the action to be taken: ## ______________________________________________ (Part Xxi.—Temporary, Transitional And Special Provisions) Provided that if any question arises whether any matter is or is not a matter as respects which the Governor is under this clause required to act in the exercise of his individual judgment, the decision of the Governor in his discretion shall be final, and the validity of anything done by the Governor shall not be called in question on the ground that he ought or ought not to have acted in the exercise of his individual judgment: Provided further that if the President on receipt of a report from the Governor or otherwise is satisfied that it is no longer necessary for the Governor to have special responsibility with respect to law and order in the State of Arunachal Pradesh, he may by order direct that the Governor shall cease to have such responsibility with effect from such date as may be specified in the order; (b) the Legislative Assembly of the State of Arunachal Pradesh shall consist of not less than thirty members.] 1[371-I. Special provision with respect to the State of Goa.— Notwithstanding anything in this Constitution, the Legislative Assembly of the State of Goa shall consist of not less than thirty members.] 2[**371J. Special provisions with respect to the State of Karnataka.—** (1) The President may, by order made with respect to the State of Karnataka, provide for any special responsibility of the Governor for— (a) establishment of a separate development board for Hyderabad- Karnataka region with the provision that a report on the working of the board will be placed each year before the State Legislative Assembly; (b) equitable allocation of funds for developmental expenditure over the said region, subject to the requirements of the State as a whole; and (c) equitable opportunities and facilities for the people belonging to the said region, in matters of public employment, education and vocational training, subject to the requirements of the State as a whole. (2) An order made under sub- clause (c) of clause (1) may provide for— (a) reservation of a proportion of seats educational and vocational training institutions in the Hyderabad-Karnataka region for students who belong to that region by birth or by domicile; and ______________________________________________ 1. Art.37-I ins. by the Constitution (Fifty-sixth Amendment) Act, 1987, s. 2 ## (Part Xxi.—Temporary, Transitional And Special Provisions) (b) identification of posts or classes of posts under the State Government and in any body or organisation under the control of the State Government in the Hyderabad-Karnataka region and reservation of a proportion of such posts for persons who belong to that region by birth or by domicile and for appointment thereto by direct recruitment or by promotion or in any other manner as may be specified in the order.] 372. Continuance in force of existing laws and their adaptation.—(1) Notwithstanding the repeal by this Constitution of the enactments referred to in article 395 but subject to the other provisions of this Constitution, all the law in force in the territory of India immediately before the commencement of this Constitution shall continue in force therein until altered or repealed or amended by a competent Legislature or other competent authority. (2) For the purpose of bringing the provisions of any law in force in the territory of India into accord with the provisions of this Constitution, the President may by order make such adaptations and modifications of such law, whether by way of repeal or amendment, as may be necessary or expedient, and provide that the law shall, as from such date as may be specified in the order, have effect subject to the adaptations and modifications so made, and any such adaptation or modification shall not be questioned in any court of law. (3) Nothing in clause (2) shall be deemed— (a) to empower the President to make any adaptation or modification of any law after the expiration of 1[three years] from the commencement of this Constitution; or (b) to prevent any competent Legislature or other competent authority from repealing or amending any law adapted or modified by the President under the said clause. ______________________________________________ India, Extraordinary, Part II, Section 3, p. 287, notification No. S.R.O. 1140B, dated the 2nd July, 1952, Gazette of India, Extraordinary, Part II, Section 3, p. 616/1, and the Adaptation of the Travancore-Cochin Land Acquisition Laws Order, 1952, dated the 20th November, 1952, Gazette of India, Extraordinary, Part II, Section 3, p. 923. 1. Subs. by the Constitution (First Amendment) Act, 1951, s. 12 for "two years" (w.e.f. 18-6-1951). (Part XXI.—Temporary, Transitional and Special Provisions) Explanation I.—The expression "law in force" in this article shall include a law passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that it or parts of it may not be then in operation either at all or in particular areas. Explanation II.—Any law passed or made by a Legislature or other competent authority in the territory of India which immediately before the commencement of this Constitution had extra-territorial effect as well as effect in the territory of India shall, subject to any such adaptations and modifications as aforesaid, continue to have such extra-territorial effect. Explanation III.—Nothing in this article shall be construed as continuing any temporary law in force beyond the date fixed for its expiration or the date on which it would have expired if this Constitution had not come into force. Explanation IV.—An Ordinance promulgated by the Governor of a Province under section 88 of the Government of India Act, 1935, and in force immediately before the commencement of this Constitution shall, unless withdrawn by the Governor of the corresponding State earlier, cease to operate at the expiration of six weeks from the first meeting after such commencement of the Legislative Assembly of that State functioning under clause (1) of article 382, and nothing in this article shall be construed as continuing any such Ordinance in force beyond the said period. 1[**372A. Power of the President to adapt laws.**—(1) For the purposes of bringing the provisions of any law in force in India or in any part thereof, immediately before the commencement of the Constitution (Seventh Amendment) Act, 1956, into accord with the provisions of this Constitution as amended by that Act, the President may by order made before the first day of November, 1957, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and provide that the law shall, as from such date as may be specified in the order, have effect subject to the adaptations and modifications so made, and any such adaptation or modification shall not be questioned in any court of law. (2) Nothing in clause (1) shall be deemed to prevent a competent Legislature or other competent authority from repealing or amending any law adapted or modified by the President under the said clause.] ______________________________________________ ## (Part Xxi.—Temporary, Transitional And Special Provisions) 373. Power of President to make order in respect of persons under preventive detention in certain cases.—Until provision is made by Parliament under clause (7) of article 22, or until the expiration of one year from the commencement of this Constitution, whichever is earlier, the said article shall have effect as if for any reference to Parliament in clauses (4) and (7) thereof there were substituted a reference to the President and for any reference to any law made by Parliament in those clauses there were substituted a reference to an order made by the President. 374. Provisions as to Judges of the Federal Court and proceedings pending in the Federal Court or before His Majesty in Council.—(1) The Judges of the Federal Court holding office immediately before the commencement of this Constitution shall, unless they have elected otherwise, become on such commencement the Judges of the Supreme Court and shall thereupon be entitled to such salaries and allowances and to such rights in respect of leave of absence and pension as are provided for under article 125 in respect of the Judges of the Supreme Court. (2) All suits, appeals and proceedings, civil or criminal, pending in the Federal Court at the commencement of this Constitution shall stand removed to the Supreme Court, and the Supreme Court shall have jurisdiction to hear and determine the same, and the judgments and orders of the Federal Court delivered or made before the commencement of this Constitution shall have the same force and effect as if they had been delivered or made by the Supreme Court. (3) Nothing in this Constitution shall operate to invalidate the exercise of jurisdiction by His Majesty in Council to dispose of appeals and petitions from, or in respect of, any judgment, decree or order of any court within the territory of India in so far as the exercise of such jurisdiction is authorised by law, and any order of His Majesty in Council made on any such appeal or petition after the commencement of this Constitution shall for all purposes have effect as if it were an order or decree made by the Supreme Court in the exercise of the jurisdiction conferred on such Court by this Constitution. (4) On and from the commencement of this Constitution the jurisdiction of the authority functioning as the Privy Council in a State specified in Part B of the First Schedule to entertain and dispose of appeals and petitions from or in respect of any judgment, decree or order of any court within that State shall cease, and all appeals and other proceedings pending before the said authority at such commencement shall be transferred to, and disposed of by, the Supreme Court. (5) Further provision may be made by Parliament by law to give effect to the provisions of this article. ## (Part Xxi.—Temporary, Transitional And Special Provisions) 375. Courts, authorities and officers to continue to function subject to the provisions of the Constitution.—All courts of civil, criminal and revenue jurisdiction, all authorities and all officers, judicial, executive and ministerial, throughout the territory of India, shall continue to exercise their respective functions subject to the provisions of this Constitution. 376. Provisions as to Judges of High Courts.—(1) Notwithstanding anything in clause (2) of article 217, the Judges of a High Court in any Province holding office immediately before the commencement of this Constitution shall, unless they have elected otherwise, become on such commencement the Judges of the High Court in the corresponding State, and shall thereupon be entitled to such salaries and allowances and to such rights in respect of leave of absence and pension as are provided for under article 221 in respect of the Judges of such High Court. 1[Any such Judge shall, notwithstanding that he is not a citizen of India, be eligible for appointment as Chief Justice of such High Court, or as Chief Justice or other Judge of any other High Court.] (2) The Judges of a High Court in any Indian State corresponding to any State specified in Part B of the First Schedule holding office immediately before the commencement of this Constitution shall, unless they have elected otherwise, become on such commencement the Judges of the High Court in the State so specified and shall, notwithstanding anything in clauses (1) and (2) of article 217 but subject to the proviso to clause (1) of that article, continue to hold office until the expiration of such period as the President may by order determine. (3) In this article, the expression "Judge" does not include an acting Judge or an additional Judge. 377. Provisions as to Comptroller and Auditor-General of India.—The Auditor-General of India holding office immediately before the commencement of this Constitution shall, unless he has elected otherwise, become on such commencement the Comptroller and Auditor-General of India and shall thereupon be entitled to such salaries and to such rights in respect of leave of absence and pension as are provided for under clause (3) of article 148 in respect of the Comptroller and Auditor-General of India and be entitled to continue to hold office until the expiration of his term of office as determined under the provisions which were applicable to him immediately before such commencement. ______________________________________________ ## (Part Xxi.—Temporary, Transitional And Special Provisions) 378. Provisions as to Public Service Commissions.—(1) The members of the Public Service Commission for the Dominion of India holding office immediately before the commencement of this Constitution shall, unless they have elected otherwise, become on such commencement the members of the Public Service Commission for the Union and shall, notwithstanding anything in clauses (1) and (2) of article 316 but subject to the proviso to clause (2) of that article, continue to hold office until the expiration of their term of office as determined under the rules which were applicable immediately before such commencement to such members. (2) The Members of a Public Service Commission of a Province or of a Public Service Commission serving the needs of a group of Provinces holding office immediately before the commencement of this Constitution shall, unless they have elected otherwise, become on such commencement the members of the Public Service Commission for the corresponding State or the members of the Joint State Public Service Commission serving the needs of the corresponding States, as the case may be, and shall, notwithstanding anything in clauses (1) and (2) of article 316 but subject to the proviso to clause (2) of that article, continue to hold office until the expiration of their term of office as determined under the rules which were applicable immediately before such commencement to such members. 1[378A. Special provision as to duration of Andhra Pradesh Legislative Assembly.—Notwithstanding anything contained in article 172, the Legislative Assembly of the State of Andhra Pradesh as constituted under the provisions of sections 28 and 29 of the States Reorganisation Act, 1956, shall, unless sooner dissolved, continue for a period of five years from the date referred to in the said section 29 and no longer and the expiration of the said period shall operate as a dissolution of that Legislative Assembly.] 379. [Provisions as to provisional Parliament and the Speaker and Deputy Speaker thereof.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 380. [Provision as to President.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 381. [Council of Ministers of the President.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 382. [Provisions as to provisional Legislatures for States in Part A of the First Schedule.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 383. [Provision as to Governors of Provinces.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). ______________________________________________ ## (Part Xxi.—Temporary, Transitional And Special Provisions) 384. [Council of Ministers of the Governors.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 385. [Provision as to provisional Legislatures in States in Part B of the First Schedule.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 386. [Council of Ministers for States in Part B of the First Schedule.].— Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 387. [Special provision as to determination of population for the purposes of certain elections.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 388. [Provisions as to the filling of casual vacancies in the provisional Parliament and provisional Legislatures of the States.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 389. [Provision as to Bills pending in the Dominion Legislatures and in the Legislatures of Provinces and Indian States.] Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 390. [Money received or raised or expenditure incurred between the commencement of the Constitution and the 31st day of March, 1950.—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11- 1956). 391. [Power of the President to amend the First and Fourth Schedules in certain contingencies.].—Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 392. Power of the President to remove difficulties.—(1) The President may, for the purpose of removing any difficulties, particularly in relation to the transition from the provisions of the Government of India Act, 1935, to the provisions of this Constitution, by order direct that this Constitution shall, during such period as may be specified in the order, have effect subject to such adaptations, whether by way of modification, addition or omission, as he may deem to be necessary or expedient: Provided that no such order shall be made after the first meeting of Parliament duly constituted under Chapter II of Part V. (2) Every order made under clause (1) shall be laid before Parliament. (3) The powers conferred on the President by this article, by article 324, by clause (3) of article 367 and by article 391 shall, before the commencement of this Constitution, be exercisable by the Governor-General of the Dominion of India. ## Short Title, Commencement, 1[Authoritative Text In Hindi] And Repeals 393. Short title.—This Constitution may be called the Constitution of India. 394. Commencement.—This article and articles 5, 6, 7, 8, 9, 60, 324, 366, 367, 379, 380, 388, 391, 392 and 393 shall come into force at once, and the remaining provisions of this Constitution shall come into force on the twenty-sixth day of January, 1950, which day is referred to in this Constitution as the commencement of this Constitution. 2[**394A. Authoritative text in the Hindi language.**—(1) The President shall cause to be published under his authority,— (a) the translation of this Constitution in the Hindi language, signed by the members of the Constituent Assembly, with such modifications as may be necessary to bring it in conformity with the language, style and terminology adopted in the authoritative texts of Central Acts in the Hindi language, and incorporating therein all the amendments of this Constitution made before such publication; and (b) the translation in the Hindi language of every amendment of this Constitution made in the English language. (2) The translation of this Constitution and of every amendment thereof published under clause (1) shall be construed to have the same meaning as the original thereof and if any difficulty arises in so construing any part of such translation, the President shall cause the same to be revised suitably. (3) The translation of this Constitution and of every amendment thereof published under this article shall be deemed to be, for all purposes, the authoritative text thereof in the Hindi language.] 395. Repeals.—The Indian Independence Act, 1947, and the Government of India Act, 1935, together with all enactments amending or supplementing the latter Act, but not including the Abolition of Privy Council Jurisdiction Act, 1949, are hereby repealed. ______________________________________________ ## 1[**First Schedule** [Articles 1 And 4] I. The States | Name | Territories | |----------------------------------------------------------------|----------------| | 1. | Andhra | | Pradesh | | | 2 | | | [The territories specified in sub-section ( | 1 | | the Andhra State Act, 1953, sub-section ( | 1 | | the States Reorganisation Act, 1956, the First Schedule to | | | the Andhra Pradesh and Madras (Alteration of Boundaries) | | | Act, 1959, and the Schedule to the Andhra Pradesh and | | | Mysore (Transfer of Territory) Act, 1968, but excluding | | | the territories specified in the Second Schedule to the | | | Andhra Pradesh and Madras (Alteration of Boundaries) | | | Act, 1959 | | | ] | | | | | | 3 | | | [and the territories specified in section 3 of | | | the Andhra Pradesh Reorganisation Act, 2014 | ] | | 2. Assam | The | | commencement of this Constitution were comprised in the | | | Province of Assam, the Khasi States and the Assam Tribal | | | Areas, but excluding the territories specified in the | | | Schedule to the Assam (Alteration of Boundaries) Act, | | | 1951 | | | 4 | | | [and the territories specified in sub-section ( | 1 | | section 3 of the State of Nagaland Act, 1962] | | | 5 | | | [and the | | | territories specified in sections 5, 6 and 7 of the North- | | | Eastern Areas (Reorganisation) Act, 1971] | | | 6 | | | [and the | | | territories referred to in Part I of the Second Schedule to | | | the Constitution (One Hundredth Amendment) Act, | | | 2015, notwithstanding anything contained in clause ( | a | | of section 3 of the Constitution (Ninth Amendment) | | | Act, 1960, so far as it relates to the territories referred to | | | in Part I of the Second Schedule to the Constitution | | | (One Hundredth Amendment) Act, 2015.] | | 4. Added by the State of Nagaland Act, 1962 (27 of 1962), s. 4 (w.e.f. 1-12-1963). 5. Added by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 9 (w.e.f. 21-1-1972). 6. Added by the Constitution (One Hundredth Amendment) Act, 2015, s. 3 (w.e.f. 31-7-2015). For the text of the Act, see Appendix I. ## (First Schedule) Name Territories 3. Bihar 1[The territories which immediately before the commencement of this Constitution were either comprised in the Province of Bihar or were being administered as if they formed part of that Province and the territories specified in clause (a) of sub-section (1) of section 3 of the Bihar and Uttar Pradesh (Alteration of Boundaries) Act, 1968, but excluding the territories specified in sub-section (1) of section 3 of the Bihar and West Bengal (Transfer of Territories) Act, 1956, and the territories specified in clause (b) of sub-section (1) of section 3 of the first mentioned Act 2[and the territories specified in section 3 of the Bihar Reorganisation Act, 2000].] 3[4. Gujarat The territories referred to in sub-section (1) of section 3 of the Bombay Reorganisation Act, 1960.] 5. Kerala The territories specified in sub-section (1) of section 5 of the States Reorganisation Act, 1956. 6. Madhya Pradesh The territories specified in sub-section (1) of section 9 of the States Reorganisation Act, 1956 4[and the First Schedule to the Rajasthan and Madhya Pradesh (Transfer of Territories) Act, 1959], 5[but excluding the territories specified in section 3 of the Madhya Pradesh Reorganisation Act, 2000.] ## ______________________________________________ 1. Subs. By The Bihar And Uttar Pradesh (Alteration Of Boundaries) Act, 1968 (24 of 1968), s. 4, for the former entry (w.e.f. 10-6-1970). 2. Added by the Bihar Reorganisation Act, 2000 (30 of 2000), s. 5 (w.e.f. 15-11- 2000). 3. Subs. by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 4 (w.e.f. 1-5-1960). 4. Ins. by the Rajasthan and Madhya Pradesh (Transfer of Territories) Act, 1959 (47 of 1959), s. 4 (w.e.f. 1-10-1959). 5. Added by the Madhya Pradesh Reorganisation Act, 2000 (28 of 2000), s. 5 (w.e.f. 1-11-2000). ## (First Schedule) Name Territories The territories which immediately before the 1[7. Tamil Nadu] commencement of this Constitution were either comprised in the Province of Madras or were being administered as if they formed part of that Province and the territories specified in section 4 of the States Reorganisation Act, 1956, 2[and the Second Schedule to the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959], but excluding the territories specified in sub-section (1) of section 3 and sub-section (1) of section 4 of the Andhra State Act, 1953 and 3[the territories specified in clause (b) of sub-section (1) of section 5, section 6 and clause (d) of sub-section (1) of section 7 of the States Reorganisation Act, 1956 and the territories specified in the First Schedule to the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959.] 4[8. Maharashtra The territories specified in sub-section (1) of section 8 of the States Reorganisation Act, 1956, but excluding the territories referred to in sub-section (1) of section 3 of the Bombay Reorganisation Act, 1960.] 5[6[9.] Karnataka] The territories specified in sub-section (1) of section 7 of the States Reorganisation Act, 1956 7[but excluding the territory specified in the Schedule to the Andhra Pradesh and Mysore (Transfer of Territory) Act, 1968.] ______________________________________________ 1. Subs. by the Madras State (Alteration of Name) Act, 1968 (53 of 1968), s. 5, for "7. Madras" (w.e.f. 14-1-1969). 2. Ins. by the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959 (56 of 1959), s. 6 (w.e.f. 1-4-1960). 3. Subs. by s. 6, *ibid.,* for certain words (w.e.f. 1-4-1960). 4. Ins. by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 4 (w.e.f. 1-5-1960). 5. Subs. by the Mysore State (Alteration of Name) Act, 1973 (31 of 1973), s. 5, for "9. Mysore" (w.e.f. 1-11-1973). 6. Entries 8 to 14 renumbered as entries 9 to 15 by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 4 (w.e.f. 1-5-1960). 7. Ins. by the Andhra Pradesh and Mysore (Transfer of Territory) Act, 1968 (36 of 1968), s. 4 (w.e.f. 1-10-1968). ## (First Schedule) Name Territories 1[10.] 2[Odisha] The territories which immediately before the commencement of this Constitution were either comprised in the Province of Orissa or were being administered as if they formed part of that Province. 1[11.] Punjab The territories specified in section 11 of the States Reorganisation Act, 1956 3[and the territories referred to in Part II of the First Schedule to the Acquired Territories (Merger) Act, 1960] 4[but excluding the territories referred to in Part II of the First Schedule to the Constitution (Ninth Amendment) Act, 1960] 5[and the territories specified in sub-section (1) of section 3, section 4 and sub-section (1) of section 5 of the Punjab Reorganisation Act, 1966.] 1[12.] Rajasthan The territories specified in section 10 of the States Reorganisation Act, 1956 6[but excluding the territories specified in the First Schedule to the Rajasthan and Madhya Pradesh (Transfer of Territories) Act, 1959]. ## ______________________________________________ 1. Entries 8 To 14 Renumbered As Entries 9 To 15 By The Bombay Reorganisation Act, 1960 (11 of 1960), s. 4 (w.e.f. 1-5-1960). 2. Subs. by the Orissa (Alteration of Name) Act, 2011 (15 of 2011), s. 6, for "Orissa" (w.e.f. 1-11-2011). 3. Ins. by the Acquired Territories (Merger) Act, 1960 (64 of 1960), s. 4 (w.e.f. 17-1-1961). 4. Added by the Constitution (Ninth Amendment) Act, 1960, s. 3 (w.e.f. 17-1-1961). 5. Added by the Punjab Reorganisation Act, 1966 (31 of 1966), s. 7 (w.e.f. 1-11- 1966). 6. Ins. by the Rajasthan and Madhya Pradesh (Transfer of Territories) Act, 1959 (47 of 1959), s. 4 (w.e.f. 1-10-1959). ## (First Schedule) Name Territories 1[13.] Uttar Pradesh 2[The territories which immediately before the commencement of this Constitution were either comprised in the Province known as the United Provinces or were being administered as if they formed part of that Province, the territories specified in clause (b) of sub-section (1) of section 3 of the Bihar and Uttar Pradesh (Alteration of Boundaries) Act, 1968, and the territories specified in clause (b) of sub-section (1) of section 4 of the Haryana and Uttar Pradesh (Alteration of Boundaries) Act, 1979, but excluding the territories specified in clause (a) of sub-section (1) of section 3 of the Bihar and Uttar Pradesh (Alteration of Boundaries) Act, 1968, 3[and the territories specified in section 3 of the Uttar Pradesh Reorganisation Act, 2000] and the territories specified in clause (a) of sub-section (1) of section 4 of the Haryana and Uttar Pradesh (Alteration of Boundaries) Act, 1979.] 1[14.] West Bengal The territories which immediately before the commencement of this Constitution were either comprised in the Province of West Bengal or were being administered as if they formed part of that Province and the territory of Chandernagore as defined in clause (c) of section 2 of the Chandernagore (Merger) Act, 1954 and also the territories specified in sub-section (1) of section 3 of the Bihar and West Bengal (Transfer of Territories) Act, 1956 4[and also the territories referred to in Part III of the First Schedule but excluding the territories referred to in Part III of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015, notwithstanding anything contained in clause (c) of section 3 of the Constitution (Ninth Amendment) Act, 1960, so far as it relates to the territories referred to in Part III of the First Schedule and the territories referred to in Part III of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015.] ## ______________________________________________ (First Schedule) Name Territories 1[2[** * * *]] 3[4[15.] Nagaland The territories specified in sub-section (1) of section 3 of the State of Nagaland Act, 1962.] 3[5[16.] Haryana 6[The territories specified in sub-section (1) of section 3 of the Punjab Reorganisation Act, 1966 and the territories specified in clause (a) of sub-section (1) of section 4 of the Haryana and Uttar Pradesh (Alteration of Boundaries) Act, 1979, but excluding the territories specified in clause (v) of sub-section (1) of section 4 of that Act.]] The territories which immediately before the 3[7[17.] Himachal Pradesh commencement of this Constitution were being administered as if they were Chief Commissioners' Provinces under the names of Himachal Pradesh and Bilaspur and the territories specified in sub-section (1) of section 5 of the Punjab Reorganisation Act, 1966.] 3[8[18.] Manipur The territory which immediately before the commencement of this Constitution was being administered as if it were a Chief Commissioner's Province under the name of Manipur.] 1. **Entry 15 relating to Jammu and Kashmir deleted by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 6 (w.e.f. 31-10-2019). 2. Entries 8 to 14 renumbered as 9 to 15 by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 4 (w.e.f. 1-5-1960). 3. Entries 16 to 29 renumbered as entries 15 to 28 by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 6 (w.e.f. 31-10-2019). 4 Ins. by the State of Nagaland Act, 1962 (27 of 1962), s. 4 (w.e.f. 1-12-1963). 5. Ins. by the Punjab Reorganisation Act, 1966 (31 of 1966), s. 7 (w.e.f. 1-11-1966) and the entry therein subsequently amended by the Haryana and Uttar Pradesh (Alteration of Boundaries) Act, 1979 (31 of 1979), s. 5 (w.e.f. 15-9-1983). 6. Subs. by the Haryana and Uttar Pradesh (Alteration of Boundaries) Act, 1979 (31 of 1979), s. 5, for the entry against "17. Haryana" (w.e.f. 15-9-1983). 7. Ins. by the State of Himachal Pradesh Act, 1970 (53 of 1970), s. 4 (w.e.f. 25-1-1971). 8. Ins. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 9 (w.e.f. 21-1-1972). ## (First Schedule) Name Territories 1[19.] Tripura The territory which immediately before the commencement of this Constitution was being administered as if it were a Chief Commissioner's Province under the name of Tripura 2[and the territories referred to in Part II of the First Schedule to the Constitution (One Hundredth Amendment) Act, 2015, notwithstanding anything contained in clause (d) of section 3 of the Constitution (Ninth Amendment) Act, 1960, so far as it relates to the territories referred to in Part II of the First Schedule to the Constitution (One Hundredth Amendment) Act, 2015.] 1[20.] Meghalaya The territories specified in section 5 of the North-Eastern Areas (Reorganisation) Act, 1971] 2[and the territories referred to in Part I of the First Schedule but excluding the territories referred to in Part II of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015.] 1[3[21.] Sikkim The territories which immediately before the commencement of the Constitution (Thirty-sixth Amendment) Act, 1975, were comprised in Sikkim.] 1[4[22.] Mizoram The territories specified in section 6 of the North-Eastern Areas (Reorganisation) Act, 1971.] 1[5[23.] Arunachal Pradesh The territories specified in section 7 of the North-Eastern Areas (Reorganisation) Act, 1971.] 1[6[24.] Goa The territories specified in section 3 of the Goa, Daman and Diu Reorganisation Act, 1987.] ## ______________________________________________ 1. Entries 16 To 29 Renumbered As Entries 15 To 28 By The Jammu And Kashmir Reorganisation Act, 2019 (34 of 2019), s. 6 (w.e.f. 31-10-2019). 2. Added by the Constitution (One Hundredth Amendment) Act, 2015, s. 3 (w.e.f. 31-7-2015). For the text of the Act, see Appendix I. 3. Ins. by the Constitution (Thirty-sixth Amendment) Act, 1975, s. 2 (w.e.f. 26-4-1975). 4. Ins. by the State of Mizoram Act, 1986 (34 of 1986), s. 4 (w.e.f. 20-2-1987). 5. Ins. by the State of Arunachal Pradesh Act, 1986 (69 of 1986), s. 4 (w.e.f. 20-2-1987). 6. Ins. by the Goa, Daman and Diu Reorganisation Act, 1987 (18 of 1987), s. 5 (w.e.f. 30-5-1987). Name Territories 1[2[25.] Chhattisgarh The territories specified in section 3 of the Madhya Pradesh Reorganisation Act, 2000.] 1[3[26.] 4[Uttarakhand] The territories specified in section 3 of the Uttar Pradesh Reorganisation Act, 2000.] 1[5[27.] Jharkhand The territories specified in section 3 of the Bihar Reorganisation Act, 2000.] 1[6[28.] Telangana The territories specified in section 3 of the Andhra Pradesh Reorganisation Act, 2014.] ## Ii. The Union Territories | | | | | | Name | Extent | |--------------------------------------------------------|-----------|-----------|--------------------------|-------------|---------|-----------| | 1. Delhi | The | territory | which | immediately | before | the | | commencement of this Constitution was comprised in the | | | | | | | | Chief Commissioner's Province of Delhi. | | | | | | | | 7 | | | | | | | | [* | * | * | * *] | | | | | 8 | | | | | | | | [2.] | | | | | | | | The Andaman | | | | | | | | The | territory | which | immediately | before | the | | | and Nicobar | | | | | | | | Islands | | | | | | | | | | | | | | | | commencement of this Constitution was comprised in | | | | | | | | the Chief Commissioner's Province of the | | | | | | | | Andaman and Nicobar Islands. | | | | | | | ______________________________________________ 1. Entries 16 to 29 renumbered as entries 15 to 28 by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 6 (w.e.f. 31-10-2019). 2. Added by the Madhya Pradesh Reorganisation Act, 2000 (28 of 2000), s. 5 (w.e.f. 1-11-2000). 3. Ins. by the Uttar Pradesh Reorganisation Act, 2000 (29 of 2000), s. 5 (w.e.f. 9-11-2000). 4. Subs. by the Uttaranchal (Alteration of Name) Act, 2006 (52 of 2006), s. 4, for the word "Uttaranchal" (w.e.f. 1-1-2007). 5. Added by the Bihar Reorganisation Act, 2000 (30 of 2000), s. 5 (w.e.f. 15-11- 2000). 6. Ins. by the Andhra Pradesh Reorganisation Act, 2014 (6 of 2014) , s. 10 (w.e.f. 2-6-2014). 7. Entry 2 relating to Himachal Pradesh omitted and entries 3 to 10 renumbered as entries 2 to 9 respectively by the State of Himachal Pradesh Act, 1970 (53 of 1970), s. 4 (w.e.f. 25-1-1971) and subsequently entries relating to Manipur and Tripura (i.e. entries 2 and 3) omitted by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971) s. 9 (w.e.f. 21-1-1972). 8. Entries 4 to 9 renumbered as entries 2 to 7 by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 9 (w.e.f. 21-1-1972). ## (First Schedule) Name Territories 1[3.] 2[Lakshadweep] The territory specified in section 6 of the States Reorganisation Act, 1956. 3[1[4.] Dadra and Nagar Haveli and Daman and Diu The territory which immediately before the eleventh day of August, 1961 was comprised in Free Dadra and Nagar Haveli and the territories specified in section 4 of the Goa, Daman and Diu Reorganisation Act, 1987.] 4[1[*] 3[ * * * *] 5[1[6.] 6[Puducherry] The territories which immediately before the sixteenth day of August, 1962, were comprised in the French Establishments in India known as Pondicherry, Karikal, Mahe and Yanam.] 7[1[7.] Chandigarh The territories specified in section 4 of the Punjab Reorganisation Act, 1966.] ______________________________________________ 1. Entries 4 to 9 renumbered as entries 2 to 7 (respectively) by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 9 (w.e.f. 21-1-1972). 2. Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Act, 1973 (34 of 1973), s. 5, for "The Laccadive, Minicoy and Amindivi Islands" (w.e.f. 1-11-1973). 3. Entry 4 relating to Dadra and Nagar Haveli was ins. by the Constitution (Tenth Amendment ) Act, 1961, s. 2 (w.e.f. 11-8-1961) and subsequently subs. by the Dadra and Nagar Haveli and Daman and Diu (Merger of Union territories) Act, 2019 (44 of 2019), s. 5, for entries 4 and 5 (w.e.f. 26-1-2020). 4. Subs. by the Goa, Daman and Diu (Reorganisation) Act, 1987 (18 of 1987), s. 5, for entry 5 (w.e.f. 30-5-1987). 5. Ins. by the Constitution (Fourteenth Amendment) Act, 1962, s. 3 (with retrospective effect). 6. Subs. by the Pondicherry (Alteration of Name) Act, 2006 (44 of 2006), s. 5 for "Pondicherry" (w.e.f. 1-10-2006). 7. Ins. by the Punjab Reorganisation Act, 1966 (31 of 1966), s. 7 (w.e.f. 1-11-1966). Name Territories 1[* * * * *] 1[* * * * *] 2[8. Jammu and Kashmir The territories specified in section 4 of the Jammu and Kashmir Reorganisation Act, 2019. 9. Ladakh The territories specified in section 3 of the Jammu and Kashmir Reorganisation Act, 2019.] ## ______________________________________________ 1. Entry 8 Relating To Mizoram Omitted And Entry 9 Relating To Arunachal Pradesh renumbered as entry 8 by the State of Mizoram Act, 1986 (34 of 1986), s. 4 2. Ins. by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 6 (w.e.f. 31-10-2019). [Articles 59(3), 65(3), 75(6), 97, 125, 148(3), 158(3), 164 (5), 186 and 221] ## Part A Provisions As To The President And The Governors Of States 1*** 1. There shall be paid to the President and to the Governors of the States 1*** the following emoluments per mensem, that is to say:— The President …… 10,000 rupees. The Governor of a State …… 5,500 rupees. 2. There shall also be paid to the President and to the Governors of the States 2*** such allowances as were payable respectively to the Governor- General of the Dominion of India and to the Governors of the corresponding Provinces immediately before the commencement of this Constitution. 3. The President and the Governors of 3[the States] throughout their respective terms of office shall be entitled to the same privileges to which the Governor- General and the Governors of the corresponding Provinces were respectively entitled immediately before the commencement of this Constitution. 4. While the Vice-President or any other person is discharging the functions of, or is acting as, President, or any person is discharging the functions of the Governor, he shall be entitled to the same emoluments, allowances and privileges as the President or the Governor whose functions he discharges or for whom he acts, as the case may be. 4* * * * * ______________________________________________  Now five lakh rupees, *vide* the Finance Act, 2018 (13 of 2018), s. 137. (w.e.f. 1-1-2016).  Now three lakh fifty thousand rupees, by s. 161, *ibid.* (w.e.f. 1-1-2016). 2. The words "so specified" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 3. Subs. by s. 29 and Sch., *ibid.*, for "such states" (w.e.f. 1-11-1956). 4. Part B omitted by s. 29 and Sch., *ibid*. (w.e.f. 1-11-1956). ## Part C Provisions As To The Speaker And The Deputy Speaker Of The House OF THE PEOPLE AND THE CHAIRMAN AND THE DEPUTY CHAIRMAN OF THE COUNCIL OF STATES AND THE SPEAKER AND THE DEPUTY SPEAKER OF THE LEGISLATIVE ASSEMBLY 1*** AND THE CHAIRMAN AND THE DEPUTY CHAIRMAN OF THE LEGISLATIVE COUNCIL OF 2[A STATE] 7. There shall be paid to the Speaker of the House of the People and the Chairman of the Council of States such salaries and allowances as were payable to the Speaker of the Constituent Assembly of the Dominion of India immediately before the commencement of this Constitution, and there shall be paid to the Deputy Speaker of the House of the People and to the Deputy Chairman of the Council of States such salaries and allowances as were payable to the Deputy Speaker of the Constituent Assembly of the Dominion of India immediately before such commencement. 8. There shall be paid to the Speaker and the Deputy Speaker of the Legislative Assembly 3*** and to the Chairman and the Deputy Chairman of the Legislative Council of 4[a State] such salaries and allowances as were payable respectively to the Speaker and the Deputy Speaker of the Legislative Assembly and the President and the Deputy President of the Legislative Council of the corresponding Province immediately before the commencement of this Constitution and, where the corresponding Province had no Legislative Council immediately before such commencement, there shall be paid to the Chairman and the Deputy Chairman of the Legislative Council of the State such salaries and allowances as the Governor of the State may determine. ## Part D ______________________________________________ Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch.(w.e.f. 1-11-1956). 2. Subs. by s. 29 and Sch., *ibid.*, for "any such State." (w.e.f. 1-11-1956). 3. The words and letter "of a State specified in Part A of the First Schedule" omitted by s. 29 and Sch., *ibid.* (w.e.f. 1-11-1956). 4. Subs. by s. 29 and Sch., *ibid.*, for "such State" (w.e.f. 1-11-1956). ## Provisions As To The Judges Of The Supreme Court And Of The High Courts 1*** 9. (1) There shall be paid to the Judges of the Supreme Court, in respect of time spent on actual service, salary at the following rates per mensem, that is to say:— | The Chief Justice .. | | |-------------------------------|------| | 2 | | | [10,000 rupees.]. | | |  | | | | | | Any other Judge .. | | | 3 | | | [9,000 rupees.]. | | |  | | | | | Provided that if a Judge of the Supreme Court at the time of his appointment is in receipt of a pension (other than a disability or wound pension) in respect of any previous service under the Government of India or any of its predecessor Governments or under the Government of a State or any of its predecessor Governments, his salary in respect of service in the Supreme Court 4[shall be reduced— (a) by the amount of that pension, and (b) if he has, before such appointment, received in lieu of a portion of the pension due to him in respect of such previous service the commuted value thereof, by the amount of that portion of the pension, and (c) if he has, before such appointment, received a retirement gratuity in respect of such previous service, by the pension equivalent of that gratuity.] (2) Every Judge of the Supreme Court shall be entitled without payment of rent to the use of an official residence. (3) Nothing in sub-paragraph (2) of this paragraph shall apply to a Judge who, immediately before the commencement of this Constitution,— (a) was holding office as the Chief Justice of the Federal Court and has become on such commencement the Chief Justice of the Supreme ______________________________________________  Now two lakh eighty thousand rupees, *vide* the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018 (10 of 2018), s. 6 (w.e.f. 1-1-2016). 3. Subs. by the Constitution (Fifty-fourth Amendment) Act, 1986, s. 4, for "4,000 rupees" (w.e.f. 1-4-1986).  Now two lakh fifty thousand rupees, *vide* the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018 (10 of 2018), s. 6 (w.e.f. 1-1-2016). 4. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 25(b), for "shall be reduced by the amount of that pension" (w.e.f. 1-11-1956). Court under clause (1) of article 374, or (b) was holding office as any other Judge of the Federal Court and has on such commencement become a Judge (other than the Chief Justice) of the Supreme Court under the said clause, during the period he holds office as such Chief Justice or other Judge, and every Judge who so becomes the Chief Justice or other Judge of the Supreme Court shall, in respect of time spent on actual service as such Chief Justice or other Judge, as the case may be, be entitled to receive in addition to the salary specified in sub-paragraph (1) of this paragraph as special pay an amount equivalent to the difference between the salary so specified and the salary which he was drawing immediately before such commencement. (4) Every Judge of the Supreme Court shall receive such reasonable allowances to reimburse him for expenses incurred in travelling on duty within the territory of India and shall be afforded such reasonable facilities in connection with travelling as the President may from time to time prescribe. (5) The rights in respect of leave of absence (including leave allowances) and pension of the Judges of the Supreme Court shall be governed by the provisions which, immediately before the commencement of this Constitution, were applicable to the Judges of the Federal Court. 10. (1) 1[There shall be paid to the Judges of High Courts, in respect of time spent on actual service, salary at the following rates per mensem, that is to say,— The Chief Justice .. 2[9,000 rupees] Any other Judge .. 3[8,000 rupees]: Provided that if a Judge of a High Court at the time of his appointment is in receipt of a pension (other than a disability or wound pension) in respect of any ______________________________________________ (w.e.f. 1-4-1986).  Now two lakh fifty thousand rupees, *vide* the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018 (10 of 2018), s. 2 (w.e.f. 1-1-2016). 3. Subs. by the Constitution (Fifty-fourth Amendment) Act, 1986, s. 4, for "3,500 rupees" (w.e.f. 1-4-1986).  Now two lakh twenty-five thousand rupees, *vide* the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018 (10 of 2018), s. 2 (w.e.f. 1-1-2016). ## (Second Schedule) previous service under the Government of India or any of its predecessor Governments or under the Government of a State or any of its predecessor Governments, his salary in respect of service in the High Court shall be reduced— (a) by the amount of that pension, and (b) if he has, before such appointment, received in lieu of a portion of the pension due to him in respect of such previous service the commuted value thereof, by the amount of that portion of the pension, and (c) if he has, before such appointment, received a retirement gratuity in respect of such previous service, by the pension equivalent of that gratuity.] (2) Every person who immediately before the commencement of this Constitution— (a) was holding office as the Chief Justice of a High Court in any Province and has on such commencement become the Chief Justice of the High Court in the corresponding State under clause (1) of article 376, or (b) was holding office as any other Judge of a High Court in any Province and has on such commencement become a Judge (other than the Chief Justice) of the High Court in the corresponding State under the said clause, shall, if he was immediately before such commencement drawing a salary at a rate higher than that specified in sub-paragraph (1) of this paragraph, be entitled to receive in respect of time spent on actual service as such Chief Justice or other Judge, as the case may be, in addition to the salary specified in the said sub-paragraph as special pay an amount equivalent to the difference between the salary so specified and the salary which he was drawing immediately before such commencement. 1[(3) Any person who, immediately before the commencement of the Constitution (Seventh Amendment) Act, 1956, was holding office as the Chief Justice of the High Court of a State specified in Part B of the First Schedule and has on such commencement become the Chief Justice of the High Court of a State specified in the said Schedule as amended by the said Act, shall, if he was immediately before such commencement drawing any amount as allowance in addition to his salary, be entitled to receive in respect of time spent on actual service as such Chief Justice, the same amount as allowance in addition to the salary specified in sub-paragraph (1) of this paragraph.]. 11. In this Part, unless the context otherwise requires,— (a) the expression "Chief Justice" includes an acting Chief Justice, ______________________________________________ and a "Judge" includes an *ad hoc* Judge; (b) "actual service" includes— (i) time spent by a Judge on duty as a Judge or in the performance of such other functions as he may at the request of the President undertake to discharge; (ii) vacations, excluding any time during which the Judge is absent on leave; and (iii) joining time on transfer from a High Court to the Supreme Court or from one High Court to another. ## Part E Provisions As To The Comptroller And Auditor-General Of India 12. (1) There shall be paid to the Comptroller and Auditor-General of India a salary at the rate of *four thousand rupees per mensem. (2) The person who was holding office immediately before the commencement of this Constitution as Auditor-General of India and has become on such commencement the Comptroller and Auditor-General of India under article 377 shall in addition to the salary specified in sub-paragraph (1) of this paragraph be entitled to receive as special pay an amount equivalent to the difference between the salary so specified and the salary which he was drawing as Auditor-General of India immediately before such commencement. (3) The rights in respect of leave of absence and pension and the other conditions of service of the Comptroller and Auditor-General of India shall be governed or shall continue to be governed, as the case may be, by the provisions which were applicable to the Auditor-General of India immediately before the commencement of this Constitution and all references in those provisions to the Governor-General shall be construed as references to the President. ______________________________________________ [Articles 75(4), 99, 124(6), 148(2), 164(3), 188 and 219] ## Forms Of Oaths Or Affirmations I Form of oath of office for a Minister for the Union:— "I, A. B., do swear in the name of God that I will bear true faith solemnly affirm and allegiance to the Constitution of India as by law established, 1[that I will uphold the sovereignty and integrity of India,] that I will faithfully and conscientiously discharge my duties as a Minister for the Union and that I will do right to all manner of people in accordance with the Constitution and the law, without fear or favour, affection or ill-will." ## Ii Form of oath of secrecy for a Minister for the Union:— "I, A.B., do swear in the name of God that I will not directly or solemnly affirm indirectly communicate or reveal to any person or persons any matter which shall be brought under my consideration or shall become known to me as a Minister for the Union except as may be required for the due discharge of my duties as such Minister." ## 2[Iii A Form of oath or affirmation to be made by a candidate for election to Parliament:— ______________________________________________ "I, A.B., having been nominated as a candidate to fill a seat in the Council of States (or the House of the People) do swear in the name of God solemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established and that I will uphold the sovereignty and integrity of India." ## B Form of oath or affirmation to be made by a member of Parliament:— "I, A.B., having been elected (or nominated) a member of the Council of States (or the House of the People) do swear in the name of God solemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established, that I will uphold the sovereignty and integrity of India and that I will faithfully discharge the duty upon which I am about to enter."] ## Iv Form of oath or affirmation to be made by the Judges of the Supreme Court and the Comptroller and Auditor-General of India:— "I, A.B., having been appointed Chief Justice (or a Judge) of the Supreme Court of India (or Comptroller and Auditor-General of India) do swear in the name of God that I will bear true faith and solemnly affirm faith and allegiance to the Constitution of India as by law established, 1[that I will uphold the sovereignty and integrity of India,] that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws." ______________________________________________ ## V Form of oath of office for a Minister for a State:— "I, A.B., do swear in the name of God that I will bear true faith solemnly affirm and allegiance to the Constitution of India as by law established, 1[that I will uphold the sovereignty and integrity of India,] that I will faithfully and conscientiously discharge my duties as a Minister for the State of ..........and that I will do right to all manner of people in accordance with the Constitution and the law without fear or favour, affection or ill-will." ## Vi Form of oath of secrecy for a Minister for a State:— "I, A.B., do swear in the name of God that I will not directly or solemnly affirm indirectly communicate or reveal to any person or persons any matter which shall be brought under my consideration or shall become known to me as a Minister for the State of ....................except as may be required for the due discharge of my duties as such Minister." ## 2[Vii A Form of oath or affirmation to be made by a candidate for election to the Legislature of a State:— "I, A.B., having been nominated as a candidate to fill a seat in the Legislative Assembly (or Legislative Council), do swear in the name of God that I will bear true faith and solemnly affirm allegiance to the Constitution of India as by law established and that I will uphold the sovereignty and integrity of India." ______________________________________________ 1. Ins. by the Constitution (Sixteenth Amendment) Act, 1963, s. 5 (w.e.f. 5-10-1963). ## B Form of oath or affirmation to be made by a member of the Legislature of a State:— "I, A.B., having been elected (or nominated) a member of the Legislative Assembly (or Legislative Council), do swear in the name of God that solemnly affirm I will bear true faith and allegiance to the Constitution of India as by law established, that I will uphold the sovereignty and integrity of India and that I will faithfully discharge the duty upon which I am about to enter."] ## Viii Form of oath or affirmation to be made by the Judges of a High Court:— "I, A.B., having been appointed Chief Justice (or a Judge) of the High Court at (or of) ……….….. do swear in the name of God that I will bear solemnly affirm true faith and allegiance to the Constitution of India as by law established, 1[that I will uphold the sovereignty and integrity of India,] that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws." ______________________________________________ ## 1[Fourth Schedule [Articles 4(1) And 80(2)] Allocation Of Seats In The Council Of States To each State or Union territory specified in the first column of the following table, there shall be allotted the number of seats specified in the second column thereof opposite to that State or that Union territory, as the case may be: ## Table | 1. | Andhra Pradesh | |---------|-------------------| | 2 | | | [11] | | | 3 | | | [2. | Telangana | | 4 | | | [3.] | Assam 7 | | 4 | | | [4.] | Bihar | | 5 | | | [16] | | | 6 | | | [ | | | 4 | | | [5.] | Jharkhand | | 7 | | | [ | | | 8 | | | [ | | | 4 | | | [6.] | Goa 1]] | | 9 | | | [ | | | 8 | | | [ | | | 4 | | | [7.] | Gujarat 11]] | | 10 | | | [ | | | 8 | | | [ | | | 4 | | | [8.] | Haryana 5]] | | 8 | | | [ | | | 4 | | | [9.] | Kerala 9 | | | | | | | ______________________________________________ (b)(w.e.f. 30-5-1987). 8. Entries 4 to 29 renumbered as entries 5 to 30 by the Bihar Reorganisation Act, 2000 (30 of 2000), s. 7 (w.e.f. 15-11-2000). 9. Subs. by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 6, for entry "4" (w.e.f. 1-5-1960). 10. Ins. by the Punjab Reorganisation Act, 1966 (31 of 1966), s. 9 (w.e.f. 1-11-1966). (Fourth Schedule) 1[2[10.]] Madhya Pradesh ........................................................... 3[11] 4[1[2[11.] Chhattisgarh ................................................................ 5]] 5[1[2[12.] Tamil Nadu ................................................................6[18]] 7[1[2[13.] Maharashtra ................................................................19]] 8[1[2[14.] Karnataka ................................................................ 12]] 1[2[15.] 9[Odisha] ................................................................ 10] 1[2[16.] Punjab ........................................................................... 10[7] 1[2[17.] Rajasthan ................................................................ 10] 1[2[18.] Uttar Pradesh ................................................................ 11[31] 12[1[2[19.] 13[Uttarakhand] ...............................................................3]] 1[2[20.] West Bengal ................................................................ 16] 14[1[2[** * * * ................................................................*] 15[16[1[2[21.] Nagaland ................................................................ 1]] ______________________________________________ 1. Entries 4 to 29 renumbered as entries 5 to 30 by the Bihar Reorganisation Act, 2000 (30 of 2000), s. 7 (w.e.f. 15-11-2000). 2. Entries 2 to 30 renumbered as entries 3 to 31 respectively by the Andhra Pradesh Reorganisation Act, 2014, s. 12 (w.e.f. 2-6-2014). 3. Subs. by the Madhya Pradesh Reorganisation Act, 2000 (28 of 2000), s. 7, for "16" (w.e.f. 1-11-2000). 4. Ins. by s. 7, *ibid*. (w.e.f. 1-11-2000). 5. Subs. by the Madras State (Alteration of Name) Act, 1968 (53 of 1968), s. 5, for "8. Madras" (renumbered as *11) (w.e.f. 14-1-1969). 6. Subs. by the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959 (56 of 1959), s. 8, for "17" (w.e.f. 1-4-1960). 7. Ins. by the Bombay Reorganisation Act, 1960 (11 of 1960), s. 6 (w.e.f. 1-5-1960). 8. Subs. by the Mysore State (Alteration of Name) Act, 1973 (31 of 1973), s. 5, for "10. Mysore" (w.e.f. 1-11-1973). 9. Subs. by the Orissa (Alteration of Name) Act, 2011 (15 of 2011), s. 7 for "Orissa" (w.e.f. 1-11-2011). 10. Subs. by the Punjab Reorganisation Act, 1966 (31 of 1966), s. 9 for "11" (w.e.f. 1-11-1966). 11. Subs. by the Uttar Pradesh Reorganisation Act, 2000 (29 of 2000), s. 7 for "34" (w.e.f. 9-11-2000). 12. Ins. by s. 7, *ibid.* (w.e.f. 9-11-2000). 13. Subs. by the Uttaranchal (Alteration of Name) Act, 2006 (52 of 2006), s. 5 for "Uttaranchal" (w.e.f. 1-1-2007). 14. ** Entry 21 relating to Jammu and Kashmir deleted by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 8 (w.e.f. 31-10-2019). 15. Entries 22 to 31 re-numbered as entries 21 to 30, respectively by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 8 (w.e.f. 31-10-2019). 16. Ins. by the State of Nagaland Act, 1962 (27 of 1962), s. 6 (w.e.f. 1-12-1963). (Fourth Schedule) Himachal Pradesh ..........................................................3]]] 1[2[3[4[22.] .] 3[2[4[23.] Manipur .........................................................................1] 3[2[4[24.] Tripura ...........................................................................1]] 3[2[4[25.] Meghalaya ................................................................ 1]] 5[3[2[4[26.] Sikkim ............................................................................1]] 6[3[2[4[27.] Mizoram ................................................................ 1]] 7[3[2[4[28.] Arunachal Pradesh .........................................................1]] 3[2[4[29.] Delhi ..............................................................................3] 3[2[4[30.] 8[Puducherry] ................................................................1]] 9[3[2[4[31. Jammu and Kashmir .......................................................4] Total 10[233] ## ______________________________________________ 1. Ins. by the State of Himachal Pradesh Act, 1970 (53 of 1970), s. 5 (w.e.f. 25-1-1971). 2. Entries 4 to 29 renumbered as entries 5 to 30 by the Bihar Reorganisation Act, 2000 (30 of 2000), s. 7 (w.e.f. 15-11-2000). 3. Entries 2 to 30 renumbered as entries 3 to 31 respectively by the Andhra Pradesh Reorganisation Act, 2014 (6 of 2014), s. 12 (w.e.f. 2-6-2014). 4. Entries 22 to 31 renumbered as entries 21 to 30 respectively by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 8 (w.e.f. 31-10-2019). 5. Ins. by the Constitution (Thirty-sixth Amenement) Act, 1975, s. 4 (w.e.f. 26-4-1975). 6. Ins. by the State of Mizoram Act, 1986 (34 of 1986), s. 5 (w.e.f. 20-2-1987). 7. Ins. by the State of Arunachal Pradesh Act, 1986 (69 of 1986), s. 5 (w.e.f. 20-2-1987). 1987). 8. Subs. by the Pondicherry (Alteration of Name) Act, 2006 (44 of 2006) s. 4, for "Pondicherry" (w.e.f. 1-10-2006). 9. Ins. by the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), s. 8 (w.e.f. 31-10-2019). 10. Subs. by the Goa, Daman and Diu Reorganisation Act, 1987 (18 of 1987), s. 6, for "232" (w.e.f. 30-5-1987). # Fifth Schedule [Article 244(1)] Provisions As To The Administration And Control Of Scheduled Areas And Scheduled Tribes ## Part A General 1. **Interpretation**.—In this Schedule, unless the context otherwise requires, the expression "State" 1*** does not include the 2[States of Assam 3[, 4[Meghalaya, Tripura and Mizoram.]]] 2. Executive power of a State in Scheduled Areas.—Subject to the provisions of this Schedule, the executive power of a State extends to the Scheduled Areas therein. 3. Report by the Governor 5*** to the President regarding the administration of Scheduled Areas.—The Governor 5*** of each State having Scheduled Areas therein shall annually, or whenever so required by the President, make a report to the President regarding the administration of the Scheduled Areas in that State and the executive power of the Union shall extend to the giving of directions to the State as to the administration of the said areas. ## Part B Administration And Control Of Scheduled Areas And Scheduled Tribes 4. Tribes Advisory Council.—(1) There shall be established in each State having Scheduled Areas therein and, if the President so directs, also in any State having Scheduled Tribes but not Scheduled Areas therein, a Tribes Advisory Council consisting of not more than twenty members of whom, as nearly as may be, three-fourths shall be the representatives of the Scheduled Tribes in the Legislative Assembly of the State: ______________________________________________ 1. The words and letters "means a State specified in Part A or Part B of the First Schedule but" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). 2. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71, for "State of Assam" (w.e.f. 21-1-1972). 3. Subs. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 3, for "and Meghalaya" (w.e.f. 1-4-1985). 4. Subs. by the State of Mizoram Act, 1986 (34 of 1986), s. 39, for "Meghalaya and Tripura" (w.e.f. 20-2-1987). 5. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956). Provided that if the number of representatives of the Scheduled Tribes in the Legislative Assembly of the State is less than the number of seats in the Tribes Advisory Council to be filled by such representatives, the remaining seats shall be filled by other members of those tribes. (2) It shall be the duty of the Tribes Advisory Council to advise on such matters pertaining to the welfare and advancement of the Scheduled Tribes in the State as may be referred to them by the Governor 1***. (3) The Governor 2*** may make rules prescribing or regulating, as the case may be,— (a) the number of members of the Council, the mode of their appointment and the appointment of the Chairman of the Council and of the officers and servants thereof; (b) the conduct of its meetings and its procedure in general; and (c) all other incidental matters. 5. Law applicable to Scheduled Areas.—(1) Notwithstanding anything in this Constitution, the Governor 1*** may by public notification direct that any particular Act of Parliament or of the Legislature of the State shall not apply to a Scheduled Area or any part thereof in the State or shall apply to a Scheduled Area or any part thereof in the State subject to such exceptions and modifications as he may specify in the notification and any direction given under this sub-paragraph may be given so as to have retrospective effect. (2) The Governor may make regulations for the peace and good government of any area in a State which is for the time being a Scheduled Area. In particular and without prejudice to the generality of the foregoing power, such regulations may— (a) prohibit or restrict the transfer of land by or among members of the Scheduled Tribes in such area; (b) regulate the allotment of land to members of the Scheduled Tribes in such area; ## ______________________________________________ (Fifth Schedule) (c) regulate the carrying on of business as money-lender by persons who lend money to members of the Scheduled Tribes in such area. (3) In making any such regulation as is referred to in sub-paragraph (2) of this paragraph, the Governor 1*** may repeal or amend any Act of Parliament or of the Legislature of the State or any existing law which is for the time being applicable to the area in question. (4) All regulations made under this paragraph shall be submitted forthwith to the President and, until assented to by him, shall have no effect. (5) No regulation shall be made under this paragraph unless the Governor 1** making the regulation has, in the case where there is a Tribes Advisory Council for the State, consulted such Council. ## Part C Scheduled Areas 6. Scheduled Areas.—(1) In this Constitution, the expression "Scheduled Areas" means such areas as the President may by order  declare to be Scheduled Areas. (2) The President may at any time by order— (a) direct that the whole or any specified part of a Scheduled Area shall cease to be a Scheduled Area or a part of such an area; 2[(aa) increase the area of any Scheduled Area in a State after consultation with the Governor of that State;] (b) alter, but only by way of rectification of boundaries, any Scheduled Area; ______________________________________________ Scheduled Areas (Cessor) Order, 1955 (C.O. 50). 2. Ins. by the Fifth Schedule to the Constitution (Amendment) Act, 1976 (101 of 1976), s. 2 (w.e.f. 7-9-1976). (c) on any alteration of the boundaries of a State or on the admission into the Union or the establishment of a new State, declare any territory not previously included in any State to be, or to form part of, a Scheduled Area; 1[(d) rescind, in relation to any State or States, any order or orders made under this paragraph, and in consultation with the Governor of the State concerned, make fresh orders redefining the areas which are to be Scheduled Areas;] and any such order may contain such incidental and consequential provisions as appear to the President to be necessary and proper, but save as aforesaid, the order made under sub-paragraph (1) of this paragraph shall not be varied by any subsequent order. ## Part D Amendment Of The Schedule 7. Amendment of the Schedule.—(1) Parliament may from time to time by law amend by way of addition, variation or repeal any of the provisions of this Schedule and, when the Schedule is so amended, any reference to this Schedule in this Constitution shall be construed as a reference to such Schedule as so amended. (2) No such law as is mentioned in sub-paragraph (1) of this paragraph shall be deemed to be an amendment of this Constitution for the purposes of article 368. ______________________________________________ ## Sixth Schedule # [Articles 244(2) And 275(1)] Provisions As To The Administration Of Tribal Areas In 1[The States Of Assam, Meghalaya, Tripura and Mizoram] 21. **Autonomous districts and autonomous regions.**—(1) Subject to the provisions of this paragraph, the tribal areas in each item of 3[4[Parts I, II and IIA] and in Part III] of the table appended to paragraph 20 of this Schedule shall be an autonomous district. (2) If there are different Scheduled Tribes in an autonomous district, the Governor may, by public notification, divide the area or areas inhabited by them into autonomous regions. (3) The Governor may, by public notification,— (a) include any area in 3[any of the Parts] of the said table, (b) exclude any area from 3[any of the Parts] of the said table, (c) create a new autonomous district, (d) increase the area of any autonomous district, (e) diminish the area of any autonomous district, (f) unite two or more autonomous districts or parts thereof so as to form one autonomous district, 5[(ff) alter the name of any autonomous district], (g) define the boundaries of any autonomous district: ______________________________________________ 1. Subs. by the State of Mizoram Act, 1986 (34 of 1986), s. 39, for certain words (w.e.f. 20-2-1987). 2. Paragraph 1 has been amended in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 2003 (44 of 2003), s. 2, so as to insert the following proviso after sub-paragraph (2), namely :— "Provided that nothing in this sub-paragraph shall apply to the Bodoland Territorial Areas District" (w.e.f. 7-9-2003). 3. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for "Part A" (w.e.f. 21-1-1972). 4. Subs. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 4, for "Part I and II" (w.e.f. 1-4-1985). 5. Ins. by the Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969), s. 74 and Fourth Sch. (w.e.f. 2-4-1970). Provided that no order shall be made by the Governor under clauses (c), (d), (e) and (f) of this sub-paragraph except after consideration of the report of a Commission appointed under sub-paragraph (1) of paragraph 14 of this Schedule: 1[Provided further that any order made by the Governor under this sub-paragraph may contain such incidental and consequential provisions (including any amendment of paragraph 20 and of any item in any of the Parts of the said Table) as appear to the Governor to be necessary for giving effect to the provisions of the order.] ## 22. **Constitution Of District Councils And Regional Councils.**— 3[(1) There shall be a District Council for each autonomous district consisting of not more than thirty members, of whom not more than four persons shall be nominated by the Governor and the rest shall be elected on the basis of adult suffrage.] ## ______________________________________________ 1. Ins. By The North-Eastern Areas (Reorganisation) Act, 1971 (81 Of 1971), S. 71(I) And Eighth Sch. (w.e.f. 21-1-1972). 2. Paragraph 2 has been amended in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 2003(44 of 2003), s. 2, so as to insert the following proviso after sub-paragraph (1), namely: - "Provided that the Bodoland Territorial Council shall consist of not more than forty-six members of whom forty shall be elected on the basis of adult suffrage, of whom thirty shall be reserved for the Scheduled Tribes, five for non-tribal communities, five open for all communities and the remaining six shall be nominated by the Governor having same rights and privileges as other members, including voting rights, from amongst the un-represented communities of the Bodoland Territorial Areas District, of which at least two shall be women:" Paragraph 2 has been amended in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 1995(42 of 1995), s.2, so as to insert the following proviso in sub-paragraph (3), namely :— "Provided that the District Council constituted for the North Cachar Hills District shall be called as the North Cachar Hills Autonomous Council and the District Council constituted for the Karbi Anglong District shall be called as the Karbi Anglong Autonomous Council." Paragraph 2 has been amended in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 2003(44 of 2003), s. 2, so as to insert the following proviso after the existing proviso in sub-paragraph (3), namely:— "Provided further that the District Council constituted for the Bodoland Territorial Areas District shall be called the Bodoland Territorial Council." 3. Subs. by the Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969), s. 74 and Fourth Sch., for sub-paraghaph (1) (w.e.f. 2-4-1970). (2) There shall be a separate Regional Council for each area constituted an autonomous region under sub-paragraph (2) of paragraph 1 of this Schedule. (3) Each District Council and each Regional Council shall be a body corporate by the name respectively of "the District Council of (name of district)" and "the Regional Council of (*name of region*)", shall have perpetual succession and a common seal and shall by the said name sue and be sued. (4) Subject to the provisions of this Schedule, the administration of an autonomous district shall, in so far as it is not vested under this Schedule in any Regional Council within such district, be vested in the District Council for such district and the administration of an autonomous region shall be vested in the Regional Council for such region. (5) In an autonomous district with Regional Councils, the District Council shall have only such powers with respect to the areas under the authority of the Regional Council as may be delegated to it by the Regional Council in addition to the powers conferred on it by this Schedule with respect to such areas. (6) The Governor shall make rules for the first constitution of District Councils and Regional Councils in consultation with the existing tribal Councils or other representative tribal organisations within the autonomous districts or regions concerned, and such rules shall provide for— (a) the composition of the District Councils and Regional Councils and the allocation of seats therein; (b) the delimitation of territorial constituencies for the purpose of elections to those Councils; (c) the qualifications for voting at such elections and the preparation of electoral rolls therefor; (d) the qualifications for being elected at such elections as members of such Councils; (e) the term of office of members of 1[Regional Councils]; ______________________________________________ (f) any other matter relating to or connected with elections or nominations to such Councils; (g) the procedure and the conduct of business 1[(including the power to act notwithstanding any vacancy)] in the District and Regional Councils; (h) the appointment of officers and staff of the District and Regional Councils. 1[(6A) The elected members of the District Council shall hold office for a term of five years from the date appointed for the first meeting of the Council after the general elections to the Council, unless the District Council is sooner dissolved under paragraph 16 and a nominated member shall hold office at the pleasure of the Governor: Provided that the said period of five years may, while a Proclamation of Emergency is in operation or if circumstances exist which, in the opinion of the Governor, render the holding of elections impracticable, be extended by the Governor for a period not exceeding one year at a time and in any case where a Proclamation of Emergency is in operation not extending beyond a period of six months after the Proclamation has ceased to operate: Provided further that a member elected to fill a casual vacancy shall hold office only for the remainder of the term of office of the member whom he replaces.] (7) The District or the Regional Council may after its first constitution make rules 1[with the approval of the Governor] with regard to the matters specified in sub-paragraph (6) of this paragraph and may also make rules 1[with like approval] regulating— (a) the formation of subordinate local Councils or Boards and their procedure and the conduct of their business; and (b) generally all matters relating to the transaction of business pertaining to the administration of the district or region, as the case may be: ______________________________________________ Provided that until rules are made by the District or the Regional Council under this sub-paragraph the rules made by the Governor under sub-paragraph (6) of this paragraph shall have effect in respect of elections to, the officers and staff of, and the procedure and the conduct of business in, each such Council. ## 1* * * * 23. Powers Of The District Councils And Regional Councils To Make Laws.—(1) The Regional Council For An Autonomous Region In ______________________________________________ 1. Second Proviso Omitted By S. 74 And Fourth Sch. Of The Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969) (w.e.f. 2-4-1970). 2. Paragraph 3 has been amended in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 2003 (44 of 2003), s. 2, so as to substitute sub-paragraph (3) as under (w.e.f. 7-9-2003),— "(3) Save as otherwise provided in sub-paragraph (2) of paragraph 3A or sub-paragraph (2) of paragraph 3B, all laws made under this paragraph or sub-paragraph (1) of paragraph 3A or sub-paragraph (1) of paragraph 3B shall be submitted forthwith to the Governor and, until assented to by him, shall have no effect." . After paragraph 3, the following paragraph has been inserted in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 1995 (42 of 1995), s. 2 (w.e.f. 12-9-1995), namely: - "3A. Additional powers of the North Cachar Hills Autonomous Council and the Karbi Anglong Autonomous Council to make laws.—(1) Without prejudice to the provisions of paragraph 3, the North Cachar Hills Autonomous Council and the Karbi Anglong Autonomous Council within their respective districts, shall have power to make laws with respect to— (a) industries, subject to the provisions of entries 7 and 52 of List I of the Seventh Schedule; (b) communications, that is to say, roads, bridges, ferries and other means of communication not specified in List I of the Seventh Schedule; municipal tramways, ropeways, inland waterways and traffic thereon subject to the provisions of List I and List III of the Seventh Schedule with regard to such waterways; vehicles other than mechanically propelled vehicles; (c) preservation, protection and improvement of stock and prevention of animal diseases; veterinary training and practice; cattle pounds; (d) primary and secondary education; (e) agriculture, including agricultural education and research, protection against pests and prevention of plant diseases; (f) fisheries; ## (Foot-Note Continue),— (g) water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of entry 56 of List I of the Seventh Schedule; (h) social security and social insurance; employment and unemployment; (i) flood control schemes for protection of villages, paddy fields, markets, towns, etc. (not of technical nature); (j) theatre and dramatic performances, cinemas subject to the provisions of entry 60 of List I of the Seventh Schedule; sports, entertainments and amusements; (k) public health and sanitation, hospitals and dispensaries; (l) minor irrigation; (m) trade and commerce in, and the production supply and distribution of, food stuffs, cattle fodder, raw cotton and raw jute; (n) libraries, museums and other similar institutions controlled or financed by the State; ancient and historical monuments and records other than those declared by or under any law made by Parliament to be of national importance; and (o) alienation of land. (2) All laws made by the North Cachar Hills Autonomous Council and the Karbi Anglong Autonomous Council under paragraph 3 or under this paragraph shall, in so far as they relate to matters specified in List III of the Seventh Schedule, be submitted forthwith to the Governor who shall reserve the same for the consideration of the President. (3) When a law is reserved for the consideration of the President, the President shall declare either that he assents to the said law or that he withholds assent therefrom: Provided that the President may direct the Governor to return the law to the North Cachar Hills Autonomous Council or the Karbi Anglong Autonomous Council, as the case may be, together with a message requesting that the said Council will reconsider the law or any specified provisions thereof and, in particular, will, consider the desirability of introducing any such amendments as he may recommend in his message and, when the law is so returned, the said Council shall consider the law accordingly within a period of six months from the date of receipt of such message and, if the law is again passed by the said Council with or without amendment it shall be presented again to the President for his consideration.". After paragraph 3A, the following paragraph has been inserted in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 2003 (44 of 2003), s. 2 (w.e.f. 7-9-2003), namely:— "3B. **Additional powers of the Bodoland Territorial Council to make laws.**—(1) Without prejudice to the provisions of paragraph 3, the Bodoland Territorial Council within its areas shall have power to make laws with respect to :— (i) agriculture, including agricultural education and research, protection against pests and prevention of plant diseases; (ii) animal husbandry and veterinary, that is to say, preservation, protection and improvement of stock and prevention of animal diseases, veterinary training and practice, cattle pounds; (iii) co-operation; (iv) cultural affairs; (v) education, that is to say, primary education, higher secondary including vocational training, adult education, college education (general); (vi) fisheries; (vii) flood control for protection ## (Foot-note continue),— of village, paddy fields, markets and towns (not of technical nature); (viii) Food and civil supply; (ix) forests (other than reserved forests); (x) handloom and textile; (xi) health and family welfare, (xii) intoxicating liquors, opium and derivatives, subject to the provisions of entry 84 of List I of the Seventh Schedule; (xiii) irrigation; (xiv) labour and employment; (xv) land and revenue; (xvi) library services (financed and controlled by the State Government); (xvii) lotteries (subject to the provisions of entry 40 of List I of the Seventh Schedule), theatres, dramatic performances and cinemas (subject to the provisions of entry 60 of List I of the Seventh Schedule); (xviii) markets and fairs; (xix) municipal corporation, improvement trust, district boards and other local authorities; (xx) museum and archaeology institutions controlled or financed by the State, ancient and historical monuments and records other than those declared by or under any law made by Parliament to be of national importance; (xxi) panchayat and rural development; (xxii) planning and development; (xxiii) printing and stationery; (xxiv) public health engineering; (xxv) public works department; (xxvi) publicity and public relations; (xxvii) registration of births and deaths; (xxviii) relief and rehabilitation; (xxix) sericulture; (xxx) small, cottage and rural industry subject to the provisions of entries 7 and 52 of List I of the Seventh Schedule; (xxxi) social Welfare; (xxxii) soil conservation; (xxxiii) sports and youth welfare; (xxxiv) statistics; (xxxv) tourism; (xxxvi) transport (roads, bridges, ferries and other means of communications not specified in List I of the Seventh Schedule, municipal tramways, ropeways, inland waterways and traffic thereon subject to the provision of List I and List III of the Seventh Schedule with regard to such waterways, vehicles other than mechanically propelled vehicles); (xxxvii) tribal research institute controlled and financed by the State Government; (xxxviii) urban development—town and country planning; (xxxix) weights and measures subject to the provisions of entry 50 of List I of the Seventh Schedule; and (xl) Welfare of plain tribes and backward classes: Provided that nothing in such laws shall— (a) extinguish or modify the existing rights and privileges of any citizen in respect of his land at the date of commencement of this Act; and (b) disallow and citizen from acquiring land either by way of inheritance, allotment, settlement or by any other way of transfer if such citizen is otherwise eligible for such acquisition of land within the Bodoland Territorial Areas District. (2) All laws made under paragraph 3 or under this paragraph shall in so far as they relate to matters specified in List III of the Seventh Schedule, be submitted forthwith to the Governor who shall reserve the same for the consideration of the President. (3) When a law is reserved for the consideration of the President, the President shall declare either that he assents to the said law or that he withholds assent therefrom: Provided that the President may direct the Governor to return the law to the Bodoland Territorial Council, together with the message requesting that the said Council will reconsider the law or any specified provisions thereof and, in particular, will consider the desirability of introducing any such amendments as he may recommend in his message and, when the law is so returned, the said Council shall consider the law accordingly within a period of six months from the date of receipt of such message and, if the law is again passed by the said Council with or without amendments it shall be presented again to the President for his consideration.". respect of all areas within such region and the District Council for an autonomous district in respect of all areas within the district except those which are under the authority of Regional Councils, if any, within the district shall have power to make laws with respect to— (a) the allotment, occupation or use, or the setting apart, of land, other than any land which is a reserved forest for the purposes of agriculture or grazing or for residential or other non-agricultural purposes or for any other purpose likely to promote the interests of the inhabitants of any village or town: Provided that nothing in such laws shall prevent the compulsory acquisition of any land, whether occupied or unoccupied, for public purposes 1[by the Government of the State concerned] in accordance with the law for the time being in force authorising such acquisition; (b) the management of any forest not being a reserved forest; (c) the use of any canal or water-course for the purpose of agriculture; (d) the regulation of the practice of *jhum* or other forms of shifting cultivation; (e) the establishment of village or town committees or councils and their powers; (f) any other matter relating to village or town administration, including village or town police and public health and sanitation; (g) the appointment or succession of Chiefs or Headmen; (h) the inheritance of property; 2[(i) marriage and divorce;] (j) social customs. (2) In this paragraph, a "reserved forest" means any area which is a reserved forest under the Assam Forest Regulation, 1891, or under any other law for the time being in force in the area in question. (3) All laws made under this paragraph shall be submitted forthwith to the Governor and, until assented to by him, shall have no effect. ______________________________________________ Fourth Sch., for cl. (i) (w.e.f. 2-4-1970). 14. Administration of justice in autonomous districts and autonomous regions.—(1) The Regional Council for an autonomous region in respect of areas within such region and the District Council for an autonomous district in respect of areas within the district other than those which are under the authority of the Regional Councils, if any, within the district may constitute village councils or courts for the trial of suits and cases between the parties all of whom belong to Scheduled Tribes within such areas, other than suits and cases to which the provisions of sub-paragraph (1) of paragraph 5 of this Schedule apply, to the exclusion of any court in the State, and may appoint suitable persons to be members of such village councils or presiding officers of such courts, and may also appoint such officers as may be necessary for the administration of the laws made under paragraph 3 of this Schedule. (2) Notwithstanding anything in this Constitution, the Regional Council for an autonomous region or any court constituted in that behalf by the Regional Council or, if in respect of any area within an autonomous district there is no Regional Council, the District Council for such district, or any court constituted in that behalf by the District Council, shall exercise the powers of a court of appeal in respect of all suits and cases triable by a village council or court constituted under sub-paragraph (1) of this paragraph within such region or area, as the case may be, other than those to which the provisions of sub-paragraph (1) of paragraph 5 of this Schedule apply, and no other court except the High Court and the Supreme Court shall have jurisdiction over such suits or cases. (3) The High Court 2*** shall have and exercise such jurisdiction over the suits and cases to which the provisions of sub-paragraph (2) of this paragraph apply as the Governor may from time to time by order specify. (4) A Regional Council or District Council, as the case may be, may with the previous approval of the Governor make rules regulating - so as to insert the following sub-paragraph after sub-paragraph (5), namely:— "(6) Nothing in this paragraph shall apply to the Bodoland Territorial Council constituted under the proviso to sub-paragraph (3) of paragraph 2 of this Schedule." . 2. The words "of Assam" omitted by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch. (w.e.f. 21-1-1972). (a) the constitution of village councils and courts and the powers to be exercised by them under this paragraph; (b) the procedure to be followed by village councils or courts in the trial of suits and cases under sub-paragraph (1) of this paragraph; (c) the procedure to be followed by the Regional or District Council or any court constituted by such Council in appeals and other proceedings under sub-paragraph (2) of this paragraph; (d) the enforcement of decisions and orders of such councils and courts; (e) all other ancillary matters for the carrying out of the provisions of sub-paragraphs (1) and (2) of this paragraph. 1[(5) On and from such date as the President may, 2[after consulting the Government of the State concerned], by notification appoint in this behalf, this paragraph shall have effect in relation to such autonomous district or region as may be specified in the notification, as if— (i) in sub-paragraph (1), for the words "between the parties all of whom belong to Scheduled Tribes within such areas, other than suits and cases to which the provisions of sub-paragraph (1) of paragraph 5 of this Schedule apply,", the words "not being suits and cases of the nature referred to in sub-paragraph (1) of paragraph (5) of this Schedule, which the Governor may specify in this behalf," had been substituted; (ii) sub-paragraphs (2) and (3) had been omitted; (iii) in sub-paragraph (4)— (a) for the words "A Regional Council or District Council, as the case may be, may with the previous approval of the Governor make rules regulating", the words "the Governor may make rules regulating" had been substituted; and (b) for clause (a), the following clause had been substituted, namely:— "(a) the constitution of village councils and courts, the powers to be exercised by them under this paragraph ______________________________________________ 2. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for certain words (w.e.f. 21-1-1972). and the courts to which appeals from the decisions of village councils and courts shall lie;"; (c) for clause (c), the following clause had been substituted, namely:— "(c) the transfer of appeals and other proceedings pending before the Regional or District Council or any court constituted by such Council immediately before the date appointed by the President under sub-paragraph (5);"; and (d) in clause (e), for the words, brackets and figures "sub-paragraphs (1) and (2)", the word, brackets and figure "sub-paragraph (1)" had been substituted.] 5. Conferment of powers under the Code of Civil Procedure, 1908, and the Code of Criminal Procedure, 18981, on the Regional and District Councils and on certain courts and officers for the trial of certain suits, cases and offences.—(1) The Governor may, for the trial of suits or cases arising out of any law in force in any autonomous district or region being a law specified in that behalf by the Governor, or for the trial of offences punishable with death, transportation for life, or imprisonment for a term of not less than five years under the Indian Penal Code or under any other law for the time being applicable to such district or region, confer on the District Council or the Regional Council having authority over such district or region or on courts constituted by such District Council or on any officer appointed in that behalf by the Governor, such powers under the Code of Civil Procedure, 1908, or, as the case may be, the Code of Criminal Procedure, 18981, as he deems appropriate, and thereupon the said Council, court or officer shall try the suits, cases or offences in exercise of the powers so conferred. (2) The Governor may withdraw or modify any of the powers conferred on a District Council, Regional Council, court or officer under sub-paragraph (1) of this paragraph. (3) Save as expressly provided in this paragraph, the Code of Civil Procedure, 1908, and the Code of Criminal Procedure, 18981, shall not apply to the trial of any suits, cases or offences in an autonomous district or in any autonomous region to which the provisions of this paragraph apply. 1[(4) On and from the date appointed by the President under subparagraph (5) of paragraph 4 in relation to any autonomous district or autonomous region, nothing contained in this paragraph shall, in its application to that district or region, be deemed to authorise the Governor to confer on the District Council or Regional Council or on courts constituted by the District Council any of the powers referred to in sub-paragraph (1) of this paragraph.] 2[6. Powers of the District Council to establish primary schools, etc.— (1) The District Council for an autonomous district may establish, construct, or manage primary schools, dispensaries, markets, 3[cattle pounds], ferries, fisheries, roads, road transport and waterways in the district and may, with the previous approval of the Governor, make regulations for the regulation and control thereof and, in particular, may prescribe the language and the manner in which primary education shall be imparted in the primary schools in the district. (2) The Governor may, with the consent of any District Council, entrust either conditionally or unconditionally to that Council or to its officers functions in relation to agriculture, animal husbandry, community projects, co-operative societies, social welfare, village planning or any other matter to which the executive power of the State 4*** extends. 7. **District and Regional Funds**.—(1) There shall be constituted for each autonomous district, a District Fund and for each autonomous region, a Regional Fund to which shall be credited all moneys received respectively by the District Council for that district and the Regional Council for that region in the course of the administration of such district or region, as the case may be, in accordance with the provisions of this Constitution. ______________________________________________ ponds" (w.e.f. 20-12-1974). 4. The words "of Assam or Meghalaya, as the case may be," omitted by the North- Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch. (w.e.f. 21-1-1972). 1[(2) The Governor may make rules for the management of the District Fund, or, as the case may be, the Regional Fund and for the procedure to be followed in respect of payment of money into the said Fund, the withdrawal of moneys therefrom, the custody of moneys therein and any other matter connected with or ancillary to the matters aforesaid. (3) The accounts of the District Council or, as the case may be, the Regional Council shall be kept in such form as the Comptroller and Auditor-General of India may, with the approval of the President, prescribe. (4) The Comptroller and Auditor-General shall cause the accounts of the District and Regional Councils to be audited in such manner as he may think fit, and the reports of the Comptroller and Auditor-General relating to such accounts shall be submitted to the Governor who shall cause them to be laid before the Council.] 8. Powers to assess and collect land revenue and to impose taxes.—(1) The Regional Council for an autonomous region in respect of all lands within such region and the District Council for an autonomous district in respect of all lands within the district except those which are in the areas under the authority of Regional Councils, if any, within the district, shall have the power to assess and collect revenue in respect of such lands in accordance with the principles for the time being followed 2[by the Government of the State in assessing lands for the purpose of land revenue in the State generally.] (2) The Regional Council for an autonomous region in respect of areas within such region and the District Council for an autonomous district in respect of all areas in the district except those which are under the authority of Regional Councils, if any, within the district, shall have power to levy and collect taxes on lands and buildings, and tolls on persons resident within such areas. (3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that is to say - (a) taxes on professions, trades, callings and employments; (b) taxes on animals, vehicles and boats; ______________________________________________ 1. Subs. by the Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969), s. 74 and Fourth Sch., for sub-paragraph (2) (w.e.f. 2-4-1970). 2. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for certain words (w.e.f. 21-1-1972). (c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; 1*** (d) taxes for the maintenance of schools, dispensaries or roads; 2[and] 3[(e) taxes on entertainment and amusements.] (4) A Regional Council or District Council, as the case may be, may make regulations to provide for the levy and collection of any of the taxes specified in sub-paragraphs (2) and (3) of this paragraph 4[and every such regulation shall be submitted forthwith to the Governor and, until assented to by him, shall have no effect]. 59. Licences or leases for the purpose of prospecting for, or extraction of, minerals.—(1) Such share of the royalties accruing each year from licences or leases for the purpose of prospecting for, or the extraction of, minerals granted by 6[the Government of the State] in respect of any area within an autonomous district as may be agreed upon between 6[the Government of the State] and the District Council of such district shall be made over to that District Council. (2) If any dispute arises as to the share of such royalties to be made over to a District Council, it shall be referred to the Governor for determination and the amount determined by the Governor in his discretion shall be deemed to be the amount payable under sub-paragraph (1) of this paragraph to the District Council and the decision of the Governor shall be final. ______________________________________________ 5. Paragraph 9 has been amended in its application to the States of Tripura and Mizoram by the Sixth Schedule to the Constitution (Amendment) Act, 1988 (67 of 1988), s. 2 (w.e.f. 16-12-1988), so as to insert the following sub-paragraph after sub-paragraph (2), namely:— "(3) The Governor may, by order, direct that the share of royalties to be made over to a District Council under this paragraph shall be made over to that Council within a period of one year from the date of any agreement under sub-paragraph (1) or, as the case may be, of any determination under sub-paragraph (2).". 6. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for "the Government of Assam" (w.e.f. 21-1-1972). ## 110. Power Of District Council To Make Regulations For The Control of money-lending and trading by non-tribals.—(1) The District Council of an autonomous district may make regulations for the regulation and control of money-lending or trading within the district by persons other than Scheduled Tribes resident in the district. (2) In particular and without prejudice to the generality of the foregoing power, such regulations may— (a) prescribe that no one except the holder of a licence issued in that behalf shall carry on the business of money-lending; (b) prescribe the maximum rate of interest which may be charged or be recovered by a money-lender; (c) provide for the maintenance of accounts by money-lenders and for the inspection of such accounts by officers appointed in that behalf by the District Council; (d) prescribe that no person who is not a member of the Scheduled Tribes resident in the district shall carry on wholesale or retail business in any commodity except under a licence issued in that behalf by the District Council : (a) in the heading, the words "by non-tribals" shall be omitted; (b) in sub-paragraph (1), the words "other than Scheduled Tribes" shall be omitted; (c) in sub-paragraph (2), for clause (d), the following clause shall be substituted, namely:— "(d) prescribe that no person resident in the district shall carry on any trade, whether wholesale or retail, except under a licence issued in that behalf by the District Council:". the following sub-paragraph after sub-paragraph (3), namely:— "(4) Nothing in this paragraph shall apply to the Bodoland Territorial Council constituted under the proviso to sub-paragraph (3) of paragraph 2 of this Schedule.". ## (Sixth Schedule) Provided that no regulations may be made under this paragraph unless they are passed by a majority of not less than three-fourths of the total membership of the District Council: Provided further that it shall not be competent under any such regulations to refuse the grant of a licence to a money-lender or a trader who has been carrying on business within the district since before the time of the making of such regulations. (3) All regulations made under this paragraph shall be submitted forthwith to the Governor and, until assented to by him, shall have no effect. 11. Publication of laws, rules and regulations made under the Schedule.—All laws, rules and regulations made under this Schedule by a District Council or a Regional Council shall be published forthwith in the Official Gazette of the State and shall on such publication have the force of law. 112. 2[Application of Acts of Parliament and of the Legislature of the State of Assam to autonomous districts and autonomous regions in the State of Assam].— (1) Notwithstanding anything in this Constitution, - 2. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for the heading (w.e.f. 21-1-1972). (a) no Act of the 1[Legislature of the State of Assam] in respect of any of the matters specified in paragraph 3 of this Schedule as matters with respect to which a District Council or a Regional Council may make laws, and no Act of the 1[Legislature of the State of Assam] prohibiting or restricting the consumption of any non-distilled alcoholic liquor shall apply to any autonomous district or autonomous region 2[in that State] unless in either case the District Council for such district or having jurisdiction over such region by public notification so directs, and the District Council in giving such direction with respect to any Act may direct that the Act shall in its application to such district or region or any part thereof have effect subject to such exceptions or modifications as it thinks fit; (b) the Governor may, by public notification, direct that any Act of Parliament or of the 1[Legislature of the State of Assam] to which the provisions of clause (a) of this sub-paragraph do not apply shall not apply to an autonomous district or an autonomous region 2[in that State], or shall apply to such district or region or any part thereof subject to such exceptions or modifications as he may specify in the notification. (2) Any direction given under sub-paragraph (1) of this paragraph may be given so as to have retrospective effect. ## 3[12A. Application Of Acts Of Parliament And Of The Legislature Of the State of Meghalaya to autonomous districts and autonomous regions in the State of Meghalaya.—Notwithstanding anything in this Constitution,— ______________________________________________ ## (Sixth Schedule) (a) if any provision of a law made by a District or Regional Council in the State of Meghalaya with respect to any matter specified in sub-paragraph (1) of paragraph 3 of this Schedule or if any provision of any regulation made by a District Council or a Regional Council in that State under paragraph 8 or paragraph 10 of this Schedule, is repugnant to any provision of a law made by the Legislature of the State of Meghalaya with respect to that matter, then, the law or regulation made by the District Council or, as the case may be, the Regional Council whether made before or after the law made by the Legislature of the State of Meghalaya, shall, to the extent of repugnancy, be void and the law made by the Legislature of the State of Meghalaya shall prevail; (b) the President may, with respect to any Act of Parliament, by notification, direct that it shall not apply to an autonomous district or an autonomous region in the State of Meghalaya, or shall apply to such district or region or any part thereof subject to such exceptions or modifications as he may specify in the notification and any such direction may be given so as to have retrospective effect.] 1[12AA. Application of Acts of Parliament and of the Legislature of the State of Tripura to the autonomous districts and autonomous regions in the State of Tripura.—Notwithstanding anything in this Constitution,— (a) no Act of the Legislature of the State of Tripura in respect of any of the matters specified in paragraph 3 of this Schedule as matters with respect to which a District Council or a Regional Council may make laws, and no Act of the Legislature of the State of Tripura prohibiting or restricting the consumption of any non-distilled alcoholic liquor shall apply to the autonomous district or an autonomous region in that State unless, in either case, the District Council for that district or having jurisdiction over such region by public notification so directs, and the District Council in giving such direction with respect to any Act may direct that the Act shall, in its application to that district or such region or any part thereof have effect subject to such exceptions or modifications as it thinks fit; ______________________________________________ 1. Paragraph 12AA ins. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 4 (b) the Governor may, by public notification, direct that any Act of the Legislature of the State of Tripura to which the provisions of clause (a) of this sub-paragraph do not apply, shall not apply to the autonomous district or an autonomous region in that State, or shall apply to that district or such region, or any part thereof, subject to such exceptions or modifications, as he may specify in the notification; (c) the President may, with respect to any Act of Parliament, by notification, direct that it shall not apply to the autonomous district or an autonomous region in the State of Tripura, or shall apply to such district or region or any part thereof, subject to such exceptions or modifications as he may specify in the notification and any such direction may be given so as to have retrospective effect.] 1[12B. Application of Acts of Parliament and of the Legislature of the State of Mizoram to autonomous districts and autonomous regions in the State of Mizoram.—Notwithstanding anything in this Constitution,— (a) no Act of the Legislature of the State of Mizoram in respect of any of the matters specified in paragraph 3 of this Schedule as matters with respect to which a District Council or a Regional Council may make laws, and no Act of the Legislature of the State of Mizoram prohibiting or restricting the consumption of any non-distilled alcoholic liquor shall apply to any autonomous district or autonomous region in that State unless, in either case, the District Council for such district or having jurisdiction over such region, by public notification, so directs, and the District Council, in giving such direction with respect to any Act, may direct that the Act shall, in its application to such district or region or any part thereof, have effect subject to such exceptions or modifications as it thinks fit; (b) the Governor may, by public notification, direct that any Act of the Legislature of the State of Mizoram to which the provisions of clause (a) of this sub-paragraph do not apply, shall not apply to an autonomous district or an autonomous region in that State, or shall apply to such district or region, or any part thereof, subject to such exceptions or modifications, as he may specify in the notification; (c) the President may, with respect to any Act of Parliament, by notification, direct that it shall not apply to an autonomous district or an autonomous region in the State of Mizoram, or shall apply to such district or region or any part thereof, subject to such exceptions or modifications as he may specify in the notification and any such direction may be given so as to have retrospective effect.] 13. Estimated receipts and expenditure pertaining to autonomous districts to be shown separately in the annual financial statement.—The estimated receipts and expenditure pertaining to an autonomous district which are to be credited to, or is to be made from, the Consolidated Fund of the State 1*** shall be first placed before the District Council for discussion and then after such discussion be shown separately in the annual financial statement of the State to be laid before the Legislature of the State under article 202. 214. Appointment of Commission to inquire into and report on the administration of autonomous districts and autonomous regions.— (1) The Governor may at any time appoint a Commission to examine and report on any matter specified by him relating to the administration of the autonomous districts and autonomous regions in the State, including matters specified in clauses (c), (d), (e) and (f) of sub-paragraph (3) of paragraph 1 of this Schedule, or may appoint a Commission to inquire into and report from time to time on the administration of autonomous districts and autonomous regions in the State generally and in particular on— (a) the provision of educational and medical facilities and communications in such districts and regions; (b) the need for any new or special legislation in respect of such districts and regions; and (c) the administration of the laws, rules and regulations made by the District and Regional Councils; and define the procedure to be followed by such Commission. Sixth Schedule to the Constitution (Amendment) Act, 1995 (42 of 1995), s. 2 (w.e.f.12.9.1995) as under:— 'in paragraph 14, in sub-paragraph (2), the words "with the recommendations of the Governor with respect thereto" shall be omitted.'. (2) The report of every such Commission with the recommendations of the Governor with respect thereto shall be laid before the Legislature of the State by the Minister concerned together with an explanatory memorandum regarding the action proposed to be taken thereon by 1[the Government of the State.] (3) In allocating the business of the Government of the State among his Ministers the Governor may place one of his Ministers specially in charge of the welfare of the autonomous districts and autonomous regions in the State. 215. Annulment or suspension of acts and resolutions of District and Regional Councils.—(1) If at any time the Governor is satisfied that an act or resolution of a District or a Regional Council is likely to endanger the safety of India 3[or is likely to be prejudicial to public order], he may annul or suspend such act or resolution and take such steps as he may consider necessary (including the suspension of the Council and the assumption to himself of all or any of the powers vested in or exercisable by the Council) to prevent the commission or continuance of such act, or the giving of effect to such resolution. (2) Any order made by the Governor under sub-paragraph (1) of this paragraph together with the reasons therefor shall be laid before the Legislature of the State as soon as possible and the order shall, unless revoked by the Legislature of the State, continue in force for a period of twelve months from the date on which it was so made: Provided that if and so often as a resolution approving the continuance in force of such order is passed by the Legislature of the State, the order shall unless cancelled by the Governor continue in force for a further period of twelve months from the date on which under this paragraph it would otherwise have ceased to operate. ______________________________________________ 1. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for "the Government of Assam" (w.e.f. 21-1-1972). 2. Paragraph 15 has been amended in its application to the States of Tripura and Mizoram by the Sixth Schedule to the Constitution (Amendment) Act, 1988 (67 of 1988), s. 2 (w.e.f. 16-12-1988), as under,— 'In paragraph 15, in sub-paragraph (2),- (a) in the opening paragraph, for the words "by the Legislature of the State", the words "by him" shall be substituted; (b) the proviso shall be omitted.'. 3. Ins. by the Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969), s. 74 and Fourth Sch. (w.e.f. 2-4-1970). 116. **Dissolution of a District or a Regional Council.**— 2[(1)] The Governor may on the recommendation of a Commission appointed under paragraph 14 of this Schedule by public notification order the dissolution of a District or a Regional Council, and— (a) direct that a fresh general election shall be held immediately for the reconstitution of the Council, or (b) subject to the previous approval of the Legislature of the State assume the administration of the area under the authority of such Council himself or place the administration of such area under the Commission appointed under the said paragraph or any other body considered suitable by him for a period not exceeding twelve months: Provided that when an order under clause (a) of this paragraph has been made, the Governor may take the action referred to in clause (b) of this paragraph with regard to the administration of the area in question pending the reconstitution of the Council on fresh general election: Provided further that no action shall be taken under clause (b) of this paragraph without giving the District or the Regional Council, as the case may be, an opportunity of placing its views before the Legislature of the State. '(a) in sub-paragraph (1), the words "subject to the previous approval of the Legislature of the State" occurring in clause (b), and the second proviso shall be omitted; (b) for sub-paragraph (3), the following sub-paragraph shall be substituted, namely:— "(3) Every order made under sub-paragraph (1) or sub-paragraph (2) of this paragraph, along with the reasons therefor shall be laid before the Legislature of the State.".'. 2. Paragraph 16 renumbered as sub-paragraph (1) thereof by the Assam Reorganisation (Meghalaya) Act, 1969 (55 of 1969), s. 74 and Fourth Sch. (w.e.f. 2-4-1970). 1[(2) If at any time the Governor is satisfied that a situation has arisen in which the administration of an autonomous district or region cannot be carried on in accordance with the provisions of this Schedule, he may, by public notification, assume to himself all or any of the functions or powers vested in or exercisable by the District Council or, as the case may be, the Regional Council and declare that such functions or powers shall be exercisable by such person or authority as he may specify in this behalf, for a period not exceeding six months: Provided that the Governor may by a further order or orders extend the operation of the initial order by a period not exceeding six months on each occasion. (3) Every order made under sub-paragraph (2) of this paragraph with the reasons therefor shall be laid before the Legislature of the State and shall cease to operate at the expiration of thirty days from the date on which the State Legislature first sits after the issue of the order, unless, before the expiry of that period it has been approved by that State Legislature.] 217. Exclusion of areas from autonomous districts in forming constituencies in such districts.—For the purposes of elections to 3[the Legislative Assembly of Assam or Meghalaya] 4[or Tripura] 5[or Mizoram], the Governor may by order declare that any area within an autonomous district 6[in the State of Assam or Meghalaya 4[or Tripura] 5[or Mizoram], as the case may be,] shall not form part of any constituency to fill a seat or seats in the Assembly reserved for any such district but shall form part of a constituency to fill a seat or seats in the Assembly not so reserved to be specified in the order. 7[18.* * * * *] ______________________________________________ 2. Paragraph 17 has been amended in its application to the State of Assam by the Sixth Schedule to the Constitution (Amendment) Act, 2003 (44 of 2003), s. 2 (w.e.f. 7-9-2003), so as to insert the following proviso, namely:— "Provided that nothing in this paragraph shall apply to the Bodoland Territorial Areas District.". 3. Subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for "the Legislative Assembly of Assam" (w.e.f. 21-1-1972). 4. Ins. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 4 (w.e.f. 1-4-1985). 5. Ins. by the State of Mizoram Act, 1986 (34 of 1986), s. 39 (w.e.f. 20-2-1987). 6. Ins. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for "the Legislative Assembly of Assam" (w.e.f. 21-1-1972). 7. Paragraph 18 omitted by s. 71(i) and Eighth Sch., *ibid.* (w.e.f. 21-1-1972). 119. **Transitional provisions.**—(1) As soon as possible after the commencement of this Constitution the Governor shall take steps for the constitution of a District Council for each autonomous district in the State under this Schedule and, until a District Council is so constituted for an autonomous district, the administration of such district shall be vested in the Governor and the following provisions shall apply to the administration of the areas within such district instead of the foregoing provisions of this Schedule, namely:— (a) no Act of Parliament or of the Legislature of the State shall apply to any such area unless the Governor by public notification so directs; and the Governor in giving such a direction with respect to any Act may direct that the Act shall, in its application to the area or to any specified part thereof, have effect subject to such exceptions or modifications as he thinks fit; (b) the Governor may make regulations for the peace and good government of any such area and any regulations so made may repeal or amend any Act of Parliament or of the Legislature of the State or any existing law which is for the time being applicable to such area. (2) Any direction given by the Governor under clause (a) of sub-paragraph (1) of this paragraph may be given so as to have retrospective effect. (3), namely :— '(4) As soon as possible after the commencement of this Act an Interim Executive Council for Bodoland Territorial Areas District in Assam shall be formed by the Governor from amongst leaders of the Bodo movement, including the signatories to the Memorandum of Settlement, and shall provide adequate representation to the non-tribal communities in that area: Provided that Interim Council shall be for a period of six months during which endeavour to hold the election to the Council shall be made. Explanation.—For the purposes of this sub-paragraph, the expression "Memorandum of Settlement" means the Memorandum signed on the 10th day of February, 2003 between Government of India, Government of Assam and Bodo Liberation Tigers.'. (3) All regulations made under clause (b) of sub-paragraph (1) of this paragraph shall be submitted forthwith to the President and, until assented to by him, shall have no effect. 1[20. **Tribal areas.**—(1) The areas specified in Parts I, II 2[, IIA] and III of the table below shall respectively be the tribal areas within the State of Assam, the State of Meghalaya 2[, the State of Tripura] and the 3[State] of Mizoram. (2) 4[Any reference in Part I, Part II or Part III of the table below] to any district shall be construed as a reference to the territories comprised within the autonomous district of that name existing immediately before the day appointed under clause (b) of section 2 of the North-Eastern Areas (Reorganisation) Act, 1971: Provided that for the purposes of clauses (e) and (f) of sub-paragraph (1) of paragraph 3, paragraph 4, paragraph 5, paragraph 6, sub-paragraph (2), clauses (a), (b) and (d) of sub-paragraph (3) and sub-paragraph (4) of paragraph 8 and clause (d) of sub-paragraph (2) of paragraph 10 of this Schedule, no part of the area comprised within the municipality of Shillong shall be deemed to be within the 5[Khasi Hills District]. 2[(3) The reference in Part IIA in the table below to the "Tripura Tribal Areas District" shall be construed as a reference to the territory comprising the tribal areas specified in the First Schedule to the Tripura Tribal Areas Autonomous District Council Act, 1979.] ______________________________________________ 1. Paragraph 20 subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s. 71(i) and Eighth Sch., for paragraph 20 (w.e.f. 21-1-1972). 2. Ins. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 4 (w.e.f. 1-4-1985). 3. Subs. by the State of Mizoram Act, 1986 (34 of 1986), s. 39, for "Union territory" (w.e.f. 20-2-1987). 4. Subs. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 4, for "Any reference in the table below" (w.e.f. 1-4-1985). 5. Subs. by the Government of Meghalaya Notification No. DCA 31/72/11, dated the 14th June, 1973, Gazette of Meghalaya, Pt. VA, dated 23-6-1973, p. 200. PART I 1. The North Cachar Hills District. 2. 1[The Karbi Anglong District.] 2[3. The Bodoland Territorial Areas District.] PART II 3[1. Khasi Hills District. 2. Jaintia Hills District.] 3. The Garo Hills District. 4[PART **IIA]** Tripura Tribal Areas District] Part III 5* * * 6[1. The Chakma District. 7[2. The Mara District. 3. The Lai District.]] 8[20A. Dissolution of the Mizo District Council.—(1) Notwithstanding anything in this Schedule, the District Council of the Mizo District existing immediately before the prescribed date (hereinafter referred to as the Mizo District Council) shall stand dissolved and cease to exist. ## ______________________________________________ 1. Subs. by the Government of Assam Notification No. TAD/R/115/74/47, dated 14-10-1976 for "The Mikir Hills District". 2. Ins. by the Sixth Schedule to the Constitution (Amendment) Act, 2003 (44 of 2003), s. 2 (w.e.f. 7-9-2003). 3. Subs. by the Government of Meghalaya Notification No. DCA 31/72/11, dated the 14th June, 1973, Gazette of Meghalaya, Pt. VA, dated 23-6-1973, p. 200. 4. Ins. by the Constitution (Forty-ninth Amendment) Act, 1984, s. 4 (w.e.f. 1-4-1985). 5. The words "The Mizo District." omitted by the Government of Union Territories (Amendment) Act, 1971 (83 of 1971), s. 13 (w.e.f. 16-2-1972). 6. Ins. by the Mizoram District Councils (Miscellaneous Provisions) Order, 1972, published in the Mizoram Gazette, 1972, dated the 5th May, 1972, Vol. I, Pt. II, p.17 (w.e.f. 29-4-1972). 7. Subs. by the Sixth Schedule to the Constitution (Amendment) Act, 1988 (67 of 1988), s. 2, for serial numbers 2 and 3 and the entries relating thereto (w.e.f. 16-12-1988). 8. Paragraph 20A subs. by the North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), s.14, for paragraph 20 and further subs. by the Government of Union Territories (Amendment) Act, 1971 (83 of 1971), s. 13, for paragraph 20A (w.e.f. 16- 2-1972). ## (Sixth Schedule) (2) The Administrator of the Union territory of Mizoram may, by one or more orders, provide for all or any of the following matters, namely:— (a) the transfer, in whole or in part, of the assets, rights and liabilities of the Mizo District Council (including the rights and liabilities under any contract made by it) to the Union or to any other authority; (b) the substitution of the Union or any other authority for the Mizo District Council, or the addition of the Union or any other authority, as a party to any legal proceedings to which the Mizo District Council is a party; (c) the transfer or re-employment of any employees of the Mizo District Council to or by the Union or any other authority, the terms and conditions of service applicable to such employees after such transfer or re-employment; (d) the continuance of any laws, made by the Mizo District Council and in force immediately before its dissolution, subject to such adaptations and modifications, whether by way of repeal or amendment, as the Administrator may make in this behalf, until such laws are altered, repealed or amended by a competent Legislature or other competent authority; (e) such incidental, consequential and supplementary matters as the Administrator considers necessary. Explanation.—In this paragraph and in paragraph 20B of this Schedule, the expression "prescribed date" means the date on which the Legislative Assembly of the Union territory of Mizoram is duly constituted under and in accordance with the provisions of the Government of Union Territories Act, 1963.] 1[*20B. Autonomous regions in the Union territory of Mizoram to be autonomous districts and transitory provisions consequent thereto.—(1) Notwithstanding anything in this Schedule,— (a) every autonomous region existing immediately before the prescribed date in the Union territory of Mizoram shall, on and from that date, be an autonomous district in that Union territory (hereafter referred to as the corresponding new district) and the Administrator thereof may, by one or more orders, direct that such consequential ______________________________________________ 1.Subs. by the Government of Union Territories (Amendment) Act, 1971 (83 of 1971), s. 13, for paragraph 20A (w.e.f. 16-2-1972). * After paragraph 20B, the following paragraph has been inserted in its application to the State of Assam by the Sixth Schedule to the Constitution of India (Amendment) Act,1995 (42 of 1995), s.2 (w.e.f. 12-2-1995), namely:- "20BA. Exercise of discretionary powers by the Governor in the discharge of his functions.—The Governor in the discharge of his functions under sub-paragraphs (2) and (3) of paragraph 1, sub-paragraphs (1), (6), sub-paragraph (6A) excluding the first proviso and sub-paragraph (7) of paragraph 2, sub-paragraph (3) of paragraph 3, sub-paragraph (4) of paragraph 4, paragraph 5, sub-paragraph (1) of paragraph 6, subparagraph (2) of paragraph 7, sub-paragraph (4) of paragraph 8, sub-paragraph (3) of paragraph 9, sub-paragraph (3) of paragraph 10, sub-paragraph (1) of paragraph 14, sub-paragraph (1) of paragraph 15 and sub-paragraphs (1) and (2) of paragraph 16 of this Schedule, shall, after consulting the Council of Ministers and the North Cachar Hills Autonomous Council or the Karbi Anglong Autonomous Council, as the case may be, take such action as he considers necessary in his discretion.". * After paragraph 20B, the following paragraph has been inserted in its application to the State of Tripura and Mizoram, by the Sixth Schedule to the Constitution (Amendment) Act, 1988 (67 of 1988), s.2 (16-12-1988), namely:- "20BB. Exercise of discretionary powers by the Governor in the discharge of his functions.—The Governor, in the discharge of his functions under subparagraphs (2) and (3) of paragraph 1, sub-paragraphs (1) and (7) of paragraph 2, subparagraph (3) of paragraph 3, sub-paragraph (4) of paragraph 4, paragraph 5, subparagraph (1) of paragraph 6, sub-paragraph (2) of paragraph 7, sub-paragraph (3) of paragraph 9, sub-paragraph (1) of paragraph 14, sub-paragraph (1) of paragraph 15 and sub-paragraphs (1) and (2) of paragraph 16 of this Schedule, shall, after consulting the Council of Ministers, and if he thinks it necessary, the District Council or the Regional Council concerned, take such action as he considers necessary in his discretion.". amendments as are necessary to give effect to the provisions of this clause shall be made in paragraph 20 of this Schedule (including Part III of the table appended to that paragraph) and thereupon the said paragraph and the said Part III shall be deemed to have been amended accordingly; (b) every Regional Council of an autonomous region in the Union territory of Mizoram existing immediately before the prescribed date (hereafter referred to as the existing Regional Council) shall, on and from that date and until a District Council is duly constituted for the corresponding new district, be deemed to be the District Council of that district (hereafter referred to as the corresponding new District Council). (2) Every member whether elected or nominated of an existing Regional Council shall be deemed to have been elected or, as the case may be, nominated to the corresponding new District Council and shall hold office until a District Council is duly constituted for the corresponding new district under this Schedule. (3) Until rules are made under sub-paragraph (7) of paragraph 2 and subparagraph (4) of paragraph 4 of this Schedule by the corresponding new District Council, the rules made under the said provisions by the existing Regional Council and in force immediately before the prescribed date shall have effect in relation to the corresponding new District Council subject to such adaptations and modifications as may be made therein by the Administrator of the Union territory of Mizoram. (4) The Administrator of the Union territory of Mizoram may, by one or more orders, provide for all or any of the following matters, namely:— (a) the transfer in whole or in part of the assets, rights and liabilities of the existing Regional Council (including the rights and liabilities under any contract made by it) to the corresponding new District Council; (b) the substitution of the corresponding new District Council for the existing Regional Council as a party to the legal proceedings to which the existing Regional Council is a party; (c) the transfer or re-employment of any employees of the existing Regional Council to or by the corresponding new District Council, the terms and conditions of service applicable to such employees after such transfer or re-employment; (d) the continuance of any laws made by the existing Regional Council and in force immediately before the prescribed date, subject to such adaptations and modifications, whether by way of repeal or amendment, as the Administrator may make in this behalf until such laws are altered, repealed or amended by a competent Legislature or other competent authority; (e) such incidental, consequential and supplementary matters as the Administrator considers necessary. 1[20C. **Interpretation**.—Subject to any provision made in this behalf, the provisions of this Schedule shall, in their application to the Union territory of Mizoram, have effect— (1) as if references to the Governor and Government of the State were references to the Administrator of the Union territory appointed under article 239, references to State (except in the expression "Government of the State") were references to the Union territory of Mizoram and references to the State Legislature were references to the Legislative Assembly of the Union territory of Mizoram; (2) as if— (a) in sub-paragraph (5) of paragraph 4, the provision for consultation with the Government of the State concerned had been omitted; (b) in sub-paragraph (2) of paragraph 6, for the words "to which the executive power of the State extends", the words "with respect to which the Legislative Assembly of the Union territory of Mizoram has power to make laws" had been substituted; (c) in paragraph 13, the words and figures "under article 202" had been omitted.] 21. **Amendment of the Schedule**.—(1) Parliament may from time to time by law amend by way of addition, variation or repeal any of the provisions of this Schedule and, when the Schedule is so amended, any reference to this Schedule in this Constitution shall be construed as a reference to such Schedule as so amended. (2) No such law as is mentioned in sub-paragraph (1) of this paragraph shall be deemed to be an amendment of this Constitution for the purposes of article 368. ______________________________________________ ## Seventh Schedule (Article 246) List I—Union List 1. Defence of India and every part thereof including preparation for defence and all such acts as may be conducive in times of war to its prosecution and after its termination to effective demobilisation. 2. Naval, military and air forces; any other armed forces of the Union. 1[2A. Deployment of any armed force of the Union or any other force subject to the control of the Union or any contingent or unit thereof in any State in aid of the civil power; powers, jurisdiction, privileges and liabilities of the members of such forces while on such deployment.] 3. Delimitation of cantonment areas, local self-government in such areas, the constitution and powers within such areas of cantonment authorities and the regulation of house accommodation (including the control of rents) in such areas. 4. Naval, military and air force works. 5. Arms, firearms, ammunition and explosives. 6. Atomic energy and mineral resources necessary for its production. 7. Industries declared by Parliament by law to be necessary for the purpose of defence or for the prosecution of war. 8. Central Bureau of Intelligence and Investigation. 9. Preventive detention for reasons connected with Defence, Foreign Affairs, or the security of India; persons subjected to such detention. 10. Foreign affairs; all matters which bring the Union into relation with any foreign country. 11. Diplomatic, consular and trade representation. 12. United Nations Organisation. 13. Participation in international conferences, associations and other bodies and implementing of decisions made thereat. 14. Entering into treaties and agreements with foreign countries and implementing of treaties, agreements and conventions with foreign countries. ______________________________________________ 15. War and peace. 16. Foreign jurisdiction. 17. Citizenship, naturalisation and aliens. 18. Extradition. 19. Admission into, and emigration and expulsion from, India; passports and visas. 20. Pilgrimages to places outside India. 21. Piracies and crimes committed on the high seas or in the air; offences against the law of nations committed on land or the high seas or in the air. 22. Railways. 23. Highways declared by or under law made by Parliament to be national highways. 24. Shipping and navigation on inland waterways, declared by Parliament by law to be national waterways, as regards mechanically propelled vessels; the rule of the road on such waterways. 25. Maritime shipping and navigation, including shipping and navigation on tidal waters; provision of education and training for the mercantile marine and regulation of such education and training provided by States and other agencies. 26. Lighthouses, including lightships, beacons and other provision for the safety of shipping and aircraft. 27. Ports declared by or under law made by Parliament or existing law to be major ports, including their delimitation, and the constitution and powers of port authorities therein. 28. Port quarantine, including hospitals connected therewith; seamen's and marine hospitals. 29. Airways; aircraft and air navigation; provision of aerodromes; regulation and organisation of air traffic and of aerodromes; provision for aeronautical education and training and regulation of such education and training provided by States and other agencies. 30. Carriage of passengers and goods by railway, sea or air, or by national waterways in mechanically propelled vessels. 31. Posts and telegraphs; telephones, wireless, broadcasting and other like forms of communication. 32. Property of the Union and the revenue therefrom, but as regards property situated in a State 1*** subject to legislation by the State, save in so far as Parliament by law otherwise provides. 2[33* * * * *] 34. Courts of wards for the estates of Rulers of Indian States. 35. Public debt of the Union. 36. Currency, coinage and legal tender; foreign exchange. 37. Foreign loans. 38. Reserve Bank of India. 39. Post Office Savings Bank. 40. Lotteries organised by the Government of India or the Government of a State. 41. Trade and commerce with foreign countries; import and export across customs frontiers; definition of customs frontiers. 42. Inter-State trade and commerce. 43. Incorporation, regulation and winding up of trading corporations, including banking, insurance and financial corporations, but not including co-operative societies. 44. Incorporation, regulation and winding up of corporations, whether trading or not, with objects not confined to one State, but not including universities. 45. Banking. 46. Bills of exchange, cheques, promissory notes and other like instruments. 47. Insurance. 48. Stock exchanges and futures markets. 49. Patents, inventions and designs; copyright; trade-marks and merchandise marks. 50. Establishment of standards of weight and measure. 51. Establishment of standards of quality for goods to be exported out of India or transported from one State to another. 52. Industries, the control of which by the Union is declared by Parliament by law to be expedient in the public interest. 53. Regulation and development of oilfields and mineral oil resources; petroleum and petroleum products; other liquids and substances declared by Parliament by law to be dangerously inflammable. 54. Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest. 55. Regulation of labour and safety in mines and oilfields. 56. Regulation and development of inter-State rivers and river valleys to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest. 57. Fishing and fisheries beyond territorial waters. 58. Manufacture, supply and distribution of salt by Union agencies; regulation and control of manufacture, supply and distribution of salt by other agencies. 59. Cultivation, manufacture, and sale for export, of opium. 60. Sanctioning of cinematograph films for exhibition. 61. Industrial disputes concerning Union employees. 62. The institutions known at the commencement of this Constitution as the National Library, the Indian Museum, the Imperial War Museum, the Victoria Memorial and the Indian War Memorial, and any other like institution financed by the Government of India wholly or in part and declared by Parliament by law to be an institution of national importance. 63. The institutions known at the commencement of this Constitution as the Benares Hindu University, the Aligarh Muslim University and the 1[Delhi University; the University established in pursuance of article 371E;] any other institution declared by Parliament by law to be an institution of national importance. ______________________________________________ 64. Institutions for scientific or technical education financed by the Government of India wholly or in part and declared by Parliament by law to be institutions of national importance. 65. Union agencies and institutions for— (a) professional, vocational or technical training, including the training of police officers; or (b) the promotion of special studies or research; or (c) scientific or technical assistance in the investigation or detection of crime. 66. Co-ordination and determination of standards in institutions for higher education or research and scientific and technical institutions. 67. Ancient and historical monuments and records, and archaeological sites and remains, 1[declared by or under law made by Parliament] to be of national importance. 68. The Survey of India, the Geological, Botanical, Zoological and Anthropological Surveys of India; Meteorological organisations. 69. Census. 70. Union Public Service; All-India Services; Union Public Service Commission. 71. Union pensions, that is to say, pensions payable by the Government of India or out of the Consolidated Fund of India. 72. Elections to Parliament, to the Legislatures of States and to the offices of President and Vice-President; the Election Commission. 73. Salaries and allowances of members of Parliament, the Chairman and Deputy Chairman of the Council of States and the Speaker and Deputy Speaker of the House of the People. 74. Powers, privileges and immunities of each House of Parliament and of the members and the Committees of each House; enforcement of attendance of persons for giving evidence or producing documents before committees of Parliament or commissions appointed by Parliament. 75. Emoluments, allowances, privileges, and rights in respect of leave of absence, of the President and Governors; salaries and allowances of the Ministers for the Union; the salaries, allowances, and rights in respect of leave of absence and other conditions of service of the Comptroller and Auditor- General of India. ______________________________________________ 76. Audit of the accounts of the Union and of the States. 77. Constitution, organisation, jurisdiction and powers of the Supreme Court (including contempt of such Court), and the fees taken therein; persons entitled to practise before the Supreme Court. 78. Constitution and organisation 1[(including vacations)] of the High Courts except provisions as to officers and servants of High Courts; persons entitled to practise before the High Courts. 2[79. Extension of the jurisdiction of a High Court to, and exclusion of the jurisdiction of a High Court from, any Union territory.] 80. Extension of the powers and jurisdiction of members of a police force belonging to any State to any area outside that State, but not so as to enable the police of one State to exercise powers and jurisdiction in any area outside that State without the consent of the Government of the State in which such area is situated; extension of the powers and jurisdiction of members of a police force belonging to any State to railway areas outside that State. 81. Inter-State migration; inter-State quarantine. 82. Taxes on income other than agricultural income. 83. Duties of customs including export duties. 3[84. Duties of excise on the following goods manufactured or produced in India, namely:— (a) petroleum crude; (b) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e) aviation turbine fuel; and (f) tobacco and tobacco products.] 85. Corporation tax. effect). 2. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. for entry 79 (w.e.f. 1-11-1956). 3. Subs. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 17(a)(i) for entry 84 (w.e.f. 16-9-2016). 86. Taxes on the capital value of the assets, exclusive of agricultural land, of individuals and companies; taxes on the capital of companies. 87. Estate duty in respect of property other than agricultural land. 88. Duties in respect of succession to property other than agricultural land. 89. Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares and freights. 90. Taxes other than stamp duties on transactions in stock exchanges and futures markets. 91. Rates of stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts. 1[92. * * * * * *] 2[92A. Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce.] 3[92B. Taxes on the consignments of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce.] 4[92C. * * * * * *] 93. Offences against laws with respect to any of the matters in this List. 94. Inquires, surveys and statistics for the purpose of any of the matters in this List. 95. Jurisdiction and powers of all courts, except the Supreme Court, with respect to any of the matters in this List; admiralty jurisdiction. 96. Fees in respect of any of the matters in this List, but not including fees taken in any court. 97. Any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists. ______________________________________________ 1. Entry 92 omitted by the Constitution (One Hundred and First Amendment) Act, 2016, s. 17(a)(ii) (w.e.f. 16-9-2016). 2. Ins. by the Constitution (Sixth Amendment) Act, 1956, s. 2 (w.e.f. 11-9-1956). 3. Ins.by the Constitution (Forty-sixth Amendment) Act, 1982, s. 5 (w.e.f. 2-2-1983). 4. Entry 92C was ins. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 4 (date not notified) and omitted by the Constitution (One Hundred and First Amendment) Act, 2016, s. 17(a)(ii) (w.e.f. 16-9-2016). ## List Ii—State List 1. Public order (but not including 1[the use of any naval, military or air force or any other armed force of the Union or of any other force subject to the control of the Union or of any contingent or unit thereof] in aid of the civil power). 2[2. Police (including railway and village police) subject to the provisions of entry 2A of List I.] 3. 3*** Officers and servants of the High Court; procedure in rent and revenue courts; fees taken in all courts except the Supreme Court. 4. Prisons, reformatories, Borstal institutions and other institutions of a like nature, and persons detained therein; arrangements with other States for the use of prisons and other institutions. 5. Local government, that is to say, the constitution and powers of municipal corporations, improvement trusts, districts boards, mining settlement authorities and other local authorities for the purpose of local self-government or village administration. 6. Public health and sanitation; hospitals and dispensaries. 7. Pilgrimages, other than pilgrimages to places outside India. 8. Intoxicating liquors, that is to say, the production, manufacture, possession, transport, purchase and sale of intoxicating liquors. 9. Relief of the disabled and unemployable. 10. Burials and burial grounds; cremations and cremation grounds. 4[11* * * * *] 12. Libraries, museums and other similar institutions controlled or financed by the State; ancient and historical monuments and records other than those 5[declared by or under law made by Parliament] to be of national importance. 3. Certain words omitted by s. 57, *ibid.* (w.e.f. 3-1-1977). 4. Entry 11 omitted by s. 57, *ibid*. (w.e.f. 3-1-1977). 5. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 27, for "declared by Parliament by law" (w.e.f. 1-11-1956). 13. Communications, that is to say, roads, bridges, ferries, and other means of communication not specified in List I; municipal tramways; ropeways; inland waterways and traffic thereon subject to the provisions of List I and List III with regard to such waterways; vehicles other than mechanically propelled vehicles. 14. Agriculture, including agricultural education and research, protection against pests and prevention of plant diseases. 15. Preservation, protection and improvement of stock and prevention of animal diseases; veterinary training and practice. 16. Pounds and the prevention of cattle trespass. 17. Water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of entry 56 of List I. 18. Land, that is to say, rights in or over land, land tenures including the relation of landlord and tenant, and the collection of rents; transfer and alienation of agricultural land; land improvement and agricultural loans; colonization. 1[19* * * * * 20* * * * *] 21. Fisheries. 22. Courts of wards subject to the provisions of entry 34 of List I; encumbered and attached estates. 23. Regulation of mines and mineral development subject to the provisions of List I with respect to regulation and development under the control of the Union. 24. Industries subject to the provisions of 2[entries 7 and 52] of List I. 25. Gas and gas-works. 26. Trade and commerce within the State subject to the provisions of entry 33 of List III. 2. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 28 for "entry 52" (w.e.f. 1-11-1956). ## 27. Production, supply and distribution of goods subject to the provisions of entry 33 of List III. 28. Markets and fairs. 1[29* * * * *] 30. Money-lending and money-lenders; relief of agricultural indebtedness. 31. Inns and inn-keepers. 32. Incorporation, regulation and winding up of corporations, other than those specified in List I, and universities; unincorporated trading, literary, scientific, religious and other societies and associations; co-operative societies. 33. Theatres and dramatic performances; cinemas subject to the provisions of entry 60 of List I; sports, entertainments and amusements. 34. Betting and gambling. 35. Works, lands and buildings vested in or in the possession of the State. 2[36* * * * *] 37. Elections to the Legislature of the State subject to the provisions of any law made by Parliament. 38. Salaries and allowances of members of the Legislature of the State, of the Speaker and Deputy Speaker of the Legislative Assembly and, if there is a Legislative Council, of the Chairman and Deputy Chairman thereof. 39. Powers, privileges and immunities of the Legislative Assembly and of the members and the committees thereof, and, if there is a Legislative Council, of that Council and of the members and the committees thereof; enforcement of attendance of persons for giving evidence or producing documents before committees of the Legislature of the State. 40. Salaries and allowances of Ministers for the State. 41. State public services; State Public Service Commission. 42. State pensions, that is to say, pensions payable by the State or out of the Consolidated Fund of the State. 43. Public debt of the State. 44. Treasure trove. 45. Land revenue, including the assessment and collection of revenue, the maintenance of land records, survey for revenue purposes and records of rights, and alienation of revenues. 46. Taxes on agricultural income. 47. Duties in respect of succession to agricultural land. 48. Estate duty in respect of agricultural land. 49. Taxes on lands and buildings. 50. Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development. 51. Duties of excise on the following goods manufactured or produced in the State and countervailing duties at the same or lower rates on similar goods manufactured or produced elsewhere in India:— (a) alcoholic liquors for human consumption; (b) opium, Indian hemp and other narcotic drugs and narcotics, but not including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry. 1[52. * * * * * *] 53. Taxes on the consumption or sale of electricity. 2[54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods.] 3[55. * * * * * *] 56. Taxes on goods and passengers carried by road or on inland waterways. ## ______________________________________________ 1. Entry 52 Omitted By The Constitution (One Hundred And First Amendment) Act, 2016, s. 17(b)(i) (w.e.f. 16-9-2016). 2. Subs. by the Constitution (Sixth Amendment) Act, 1956, s. 2 (w.e.f. 11-9-1956) and further subs. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 17(b)(ii) (w.e.f. 16-9-2016). 3. Entry 55 omitted by the Constitution (One Hundred and First Amendment) Act, 2016, s. 17(b)(iii) (w.e.f. 16-9-2016). 57. Taxes on vehicles, whether mechanically propelled or not, suitable for use on roads, including tramcars subject to the provisions of entry 35 of List III. 58. Taxes on animals and boats. 59. Tolls. 60. Taxes on professions, trades, callings and employments. 61. Capitation taxes. 1[62. Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or a District Council.] 63. Rates of stamp duty in respect of documents other than those specified in the provisions of List I with regard to rates of stamp duty. 64. Offences against laws with respect to any of the matters in this List. 65. Jurisdiction and powers of all courts, except the Supreme Court, with respect to any of the matters in this List. 66. Fees in respect of any of the matters in this List, but not including fees taken in any court. ## List Iii—Concurrent List 1. Criminal law, including all matters included in the Indian Penal Code at the commencement of this Constitution but excluding offences against laws with respect to any of the matters specified in List I or List II and excluding the use of naval, military or air forces or any other armed forces of the Union in aid of the civil power. 2. Criminal procedure, including all matters included in the Code of Criminal Procedure at the commencement of this Constitution. 3. Preventive detention for reasons connected with the security of a State, the maintenance of public order, or the maintenance of supplies and services essential to the community; persons subjected to such detention. 4. Removal from one State to another State of prisoners, accused persons and persons subjected to preventive detention for reasons specified in entry 3 of this List. ______________________________________________ 5. Marriage and divorce; infants and minors; adoption; wills, intestacy and succession; joint family and partition; all matters in respect of which parties in judicial proceedings were immediately before the commencement of this Constitution subject to their personal law. 6. Transfer of property other than agricultural land; registration of deeds and documents. 7. Contracts, including partnership, agency, contracts of carriage, and other special forms of contracts, but not including contracts relating to agricultural land. 8. Actionable wrongs. 9. Bankruptcy and insolvency. 10. Trust and Trustees. 11. Administrators-general and official trustees. 1[11A. Administration of Justice; constitution and organisation of all courts, except the Supreme Court and the High Courts.] 12. Evidence and oaths; recognition of laws, public acts and records, and judicial proceedings. 13. Civil procedure, including all matters included in the Code of Civil Procedure at the commencement of this Constitution, limitation and arbitration. 14. Contempt of court, but not including contempt of the Supreme Court. 15. Vagrancy; nomadic and migratory tribes. 16. Lunacy and mental deficiency, including places for the reception or treatment of lunatics and mental deficients. 17. Prevention of cruelty to animals. 1[17A. Forests. 17B. Protection of wild animals and birds.] 18. Adulteration of foodstuffs and other goods. 19. Drugs and poisons, subject to the provisions of entry 59 of List I with respect to opium. 20. Economic and social planning. 1[20A. Population control and family planning.] ______________________________________________ 21. Commercial and industrial monopolies, combines and trusts. 22. Trade unions; industrial and labour disputes. 23. Social security and social insurance; employment and unemployment. 24. Welfare of labour including conditions of work, provident funds, employers' liability, workmen's compensation, invalidity and old age pensions and maternity benefits. 1[25. Education, including technical education, medical education and universities, subject to the provisions of entries 63, 64, 65 and 66 of List I; vocational and technical training of labour.] 26. Legal, medical and other professions. 27. Relief and rehabilitation of persons displaced from their original place of residence by reason of the setting up of the Dominions of India and Pakistan. 28. Charities and charitable institutions, charitable and religious endowments and religious institutions. 29. Prevention of the extension from one State to another of infectious or contagious diseases or pests affecting men, animals or plants. 30. Vital statistics including registration of births and deaths. 31. Ports other than those declared by or under law made by Parliament or existing law to be major ports. 32. Shipping and navigation on inland waterways as regards mechanically propelled vessels, and the rule of the road on such waterways, and the carriage of passengers and goods on inland waterways subject to the provisions of List I with respect to national waterways. 2[33. Trade and commerce in, and the production, supply and distribution of,— (a) the products of any industry where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest, and imported goods of the same kind as such products; (b) foodstuffs, including edible oilseeds and oils; (c) cattle fodder, including oilcakes and other concentrates; (d) raw cotton, whether ginned or unginned, and cotton seed; and (w.e.f. 22-2-1955). (e) raw jute.] 1[33A. Weights and measures except establishment of standards.] 34. Price control. 35. Mechanically propelled vehicles including the principles on which taxes on such vehicles are to be levied. 36. Factories 37. Boilers. 38. Electricity. 39. Newspapers, books and printing presses. 40. Archaeological sites and remains other than those 2[declared by or under law made by Parliament] to be of national importance. 41. Custody, management and disposal of property (including agricultural land) declared by law to be evacuee property. 3[42. Acquisition and requisitioning of property.] 43. Recovery in a State of claims in respect of taxes and other public demands, including arrears of land-revenue and sums recoverable as such arrears, arising outside that State. 44. Stamp duties other than duties or fees collected by means of judicial stamps, but not including rates of stamp duty. 45. Inquiries and statistics for the purposes of any of the matters specified in List II or List III. 46. Jurisdiction and powers of all courts, except the Supreme Court, with respect to any of the matters in this List. 47. Fees in respect of any of the matters in this List, but not including fees taken in any court. 1. Assamese. 2. Bengali. 1[3. Bodo. 4. Dogri.] 2[5.] Gujarati. 3[6.] Hindi. 3[7.] Kannada. 3[8.] Kashmiri. 4[3[9.] Konkani.] 1[10. Maithili.] 5[11.] Malayalam. 4[6[12.] Manipuri.] 6[13.] Marathi. 4[6[14.] Nepali.] 6[15.] 7[Odia]. 6[16.] Punjabi. 6[17.] Sanskrit. 2. Entry 3 renumbered as entry 5 by s. 2, *ibid.* (w.e.f. 7-1-2004). 3. Entries 4 to 7 renumbered as entries 6 to 9 by s. 2, *ibid.* (w.e.f. 7-1-2004). 4. Ins. by the Constitution (Seventy-first Amendment) Act, 1992, s.2 (w.e.f. 31-8-1992). 5. Entry 8 renumbered as entry 11 by the Constitution (Ninety-second Amendment) Act, 2003, s. 2 (w.e.f. 7-1-2004). 6. Entries 9 to 14 renumbered as entries 12 to 17 by s. 2, *ibid.* (w.e.f. 7-1-2004). (w.e.f. 23-9-2011). 1[18. Santhali.] 2[3[19.] Sindhi.] 4[20.] Tamil. 4[21.] Telugu. 4[22.] Urdu. ## ______________________________________________ 1[Ninth Schedule (Article 31B) 1. The Bihar Land Reforms Act, 1950 (Bihar Act XXX of 1950). 2. The Bombay Tenancy and Agricultural Lands Act, 1948 (Bombay Act LXVII of 1948). 3. The Bombay Maleki Tenure Abolition Act, 1949 (Bombay Act LXI of 1949). 4. The Bombay Taluqdari Tenure Abolition Act, 1949 (Bombay Act LXII of 1949). 5. The Panch Mahals Mehwassi Tenure Abolition Act, 1949 (Bombay Act LXIII of 1949). 6. The Bombay Khoti Abolition Act, 1950 (Bombay Act VI of 1950). 7. The Bombay Paragana and Kulkarni Watan Abolition Act, 1950 (Bombay Act LX of 1950). 8. The Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950 (Madhya Pradesh Act I of 1951). 9. The Madras Estates (Abolition and Conversion into Ryotwari) Act, 1948 (Madras Act XXVI of 1948). 10. The Madras Estates (Abolition and Conversion into Ryotwari) Amendment Act, 1950 (Madras Act I of 1950). 11. The Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 (Uttar Pradesh Act I of 1951). 12. The Hyderabad (Abolition of Jagirs) Regulation, 1358F (No. LXIX of 1358, Fasli). 13. The Hyderabad Jagirs (Commutation) Regulation, 1359F (No. XXV of 1359, Fasli).] 2[14. The Bihar Displaced Persons Rehabilitation (Acquisition of Land) Act, 1950 (Bihar Act XXXVIII of 1950). 15. The United Provinces Land Acquisition (Rehabilitation of Refugees) Act, 1948 (U.P. Act XXVI of 1948). 16. The Resettlement of Displaced Persons (Land Acquisition) Act, 1948 (Act LX of 1948). 17. Sections 52A to 52G of the Insurance Act, 1938 (Act IV of 1938), as inserted by section 42 of the Insurance (Amendment) Act, 1950 (Act XLVII of 1950). 18. The Railway Companies (Emergency Provisions) Act, 1951 (Act LI of 1951). 19. Chapter III-A of the Industries (Development and Regulation) Act, 1951 (Act LXV of 1951), as inserted by section 13 of the Industries (Development and Regulation) Amendment Act, 1953 (Act XXVI of 1953). 20. The West Bengal Land Development and Planning Act, 1948 (West Bengal Act XXI of 1948), as amended by West Bengal Act XXIX of 1951.] 1[21. The Andhra Pradesh Ceiling on Agricultural Holdings Act, 1961 (Andhra Pradesh Act X of 1961). 22. The Andhra Pradesh (Telangana Area) Tenancy and Agricultural Lands (Validation) Act, 1961 (Andhra Pradesh Act XXI of 1961). 23. The Andhra Pradesh (Telangana Area) Ijara and Kowli Land Cancellation of Irregular Pattas and Abolition of Concessional Assessment Act, 1961 (Andhra Pradesh Act XXXVI of 1961). 24. The Assam State Acquisition of Lands belonging to Religious or Charitable Institution of Public Nature Act, 1959 (Assam Act IX of 1961). 25. The Bihar Land Reforms (Amendment) Act, 1953 (Bihar Act XX of 1954). 26. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (Bihar Act XII of 1962), except section 28 of this Act. 27. The Bombay Taluqdari Tenure Abolition (Amendment) Act, 1954 (Bombay Act I of 1955). 28. The Bombay Taluqdari Tenure Abolition (Amendment) Act, 1957 (Bombay Act XVIII of 1958). 29. The Bombay Inams (Kutch Area) Abolition Act, 1958 (Bombay Act XCVIII of 1958). 30. The Bombay Tenancy and Agricultural Lands (Gujarat Amendment) Act, 1960 (Gujarat Act XVI of 1960). 31. The Gujarat Agricultural Lands Ceiling Act, 1960 (Gujarat Act XXVI of 1961). 32. The Sagbara and Mehwassi Estates (Proprietary Rights Abolition, etc.) Regulation, 1962 (Gujarat Regulation I of 1962). ______________________________________________ 1. Entries 21 to 64 and Explanation added by the Constitution (Seventeenth Amendment) 33. The Gujarat Surviving Alienations Abolition Act, 1963 (Gujarat Act XXXIII of 1963), except in so far as this Act relates to an alienation referred to in sub-clause (d) of clause (3) of section 2 thereof. 34. The Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961 (Maharashtra Act XXVII of 1961). 35. The Hyderabad Tenancy and Agricultural Lands (Re-enactment, Validation and Further Amendment) Act, 1961 (Maharashtra Act XLV of 1961). 36. The Hyderabad Tenancy and Agricultural Lands Act, 1950 (Hyderabad Act XXI of 1950). 37. The Jenmikaram Payment (Abolition) Act, 1960 (Kerala Act III of 1961). 38. The Kerala Land Tax Act, 1961 (Kerala Act XIII of 1961). 39. The Kerala Land Reforms Act, 1963 (Kerala Act I of 1964). 40. The Madhya Pradesh Land Revenue Code, 1959 (Madhya Pradesh Act XX of 1959). 41. The Madhya Pradesh Ceiling on Agricultural Holdings Act, 1960 (Madhya Pradesh Act XX of 1960). 42. The Madras Cultivating Tenants Protection Act, 1955 (Madras Act XXV of 1955). 43. The Madras Cultivating Tenants (Payment of Fair Rent) Act, 1956 (Madras Act XXIV of 1956). 44. The Madras Occupants of Kudiyiruppu (Protection from Eviction) Act, 1961 (Madras Act XXXVIII of 1961). 45. The Madras Public Trusts (Regulation of Administration of Agricultural Lands) Act, 1961 (Madras Act LVII of 1961). 46. The Madras Land Reforms (Fixation of Ceiling on Land) Act, 1961 (Madras Act LVIII of 1961). 47. The Mysore Tenancy Act, 1952 (Mysore Act XIII of 1952). 48. The Coorg Tenants Act, 1957 (Mysore Act XIV of 1957). 49. The Mysore Village Offices Abolition Act, 1961 (Mysore Act XIV of 1961). 50. The Hyderabad Tenancy and Agricultural Lands (Validation) Act, 1961 (Mysore Act XXXVI of 1961). 51. The Mysore Land Reforms Act, 1961 (Mysore Act X of 1962). 52. The Orissa Land Reforms Act, 1960 (Orissa Act XVI of 1960). 53. The Orissa Merged Territories (Village Offices Abolition) Act, 1963 (Orissa Act X of 1963). 54. The Punjab Security of Land Tenures Act, 1953 (Punjab Act X of 1953). 55. The Rajasthan Tenancy Act, 1955 (Rajasthan Act III of 1955). 56. The Rajasthan Zamindari and Biswedari Abolition Act, 1959 (Rajasthan Act VIII of 1959). 57. The Kumaun and Uttarakhand Zamindari Abolition and Land Reforms Act, 1960 (Uttar Pradesh Act XVII of 1960). 58. The Uttar Pradesh Imposition of Ceiling on Land Holdings Act, 1960 (Uttar Pradesh Act I of 1961). 59. The West Bengal Estates Acquisition Act, 1953 (West Bengal Act I of 1954). 60. The West Bengal Land Reforms Act, 1955 (West Bengal Act X of 1956). 61. The Delhi Land Reforms Act, 1954 (Delhi Act VIII of 1954). 62. The Delhi Land Holdings (Ceiling) Act, 1960 (Central Act 24 of 1960). 63. The Manipur Land Revenue and Land Reforms Act, 1960 (Central Act 33 of 1960). 64. The Tripura Land Revenue and Land Reforms Act, 1960 (Central Act 43 of 1960). 1[65. The Kerala Land Reforms (Amendment) Act, 1969 (Kerala Act 35 of 1969). 66. The Kerala Land Reforms (Amendment) Act, 1971 (Kerala Act 25 of 1971).] 2[67. The Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973 (Andhra Pradesh Act 1 of 1973). 68. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Act, 1972 (Bihar Act I of 1973). (w.e.f. 7-9-1974). 69. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Act, 1973 (Bihar Act IX of 1973). 70. The Bihar Land Reforms (Amendment) Act, 1972 (Bihar Act V of 1972). 71. The Gujarat Agricultural Lands Ceiling (Amendment) Act, 1972 (Gujarat Act 2 of 1974). 72. The Haryana Ceiling on Land Holdings Act, 1972 (Haryana Act 26 of 1972). 73. The Himachal Pradesh Ceiling on Land Holdings Act, 1972 (Himachal Pradesh Act 19 of 1973). 74. The Kerala Land Reforms (Amendment) Act, 1972 (Kerala Act 17 of 1972). 75. The Madhya Pradesh Ceiling on Agricultural Holdings (Amendment) Act, 1972 (Madhya Pradesh Act 12 of 1974). 76. The Madhya Pradesh Ceiling on Agricultural Holdings (Second Amendment) Act, 1972 (Madhya Pradesh Act 13 of 1974). 77. The Mysore Land Reforms (Amendment) Act, 1973 (Karnataka Act 1 of 1974). 78. The Punjab Land Reforms Act, 1972 (Punjab Act 10 of 1973). 79. The Rajasthan Imposition of Ceiling on Agricultural Holdings Act, 1973 (Rajasthan Act 11 of 1973). 80. The Gudalur Janmam Estates (Abolition and Conversion into Ryotwari) Act, 1969 (Tamil Nadu Act 24 of 1969). 81. The West Bengal Land Reforms (Amendment) Act, 1972 (West Bengal Act XII of 1972). 82. The West Bengal Estates Acquisition (Amendment) Act, 1964 (West Bengal Act XXII of 1964). 83. The West Bengal Estates Acquisition (Second Amendment) Act, 1973 (West Bengal Act XXXIII of 1973). 84. The Bombay Tenancy and Agricultural Lands (Gujarat Amendment) Act, 1972 (Gujarat Act 5 of 1973). 85. The Orissa Land Reforms (Amendment) Act, 1974 (Orissa Act 9 of 1974). 86. The Tripura Land Revenue and Land Reforms (Second Amendment) Act,1974 (Tripura Act 7 of 1974).] 1[287* * * * *] 88. The Industries (Development and Regulation) Act, 1951 (Central Act 65 of 1951). 89. The Requisitioning and Acquisition of Immovable Property Act, 1952 (Central Act 30 of 1952). 90. The Mines and Minerals (Regulation and Development) Act, 1957 (Central Act 67 of 1957). 91. The Monopolies and Restrictive Trade Practices Act, 1969 (Central Act 54 of 1969). 2[92* * * * *] 93. The Coking Coal Mines (Emergency Provisions) Act, 1971 (Central Act 64 of 1971). 94. The Coking Coal Mines (Nationalisation) Act, 1972 (Central Act 36 of 1972). 95. The General Insurance Business (Nationalisation) Act, 1972 (Central Act 57 of 1972). 96. The Indian Copper Corporation (Acquisition of Undertaking) Act, 1972 (Central Act 58 of 1972). 97. The Sick Textile Undertakings (Taking Over of Management) Act, 1972 (Central Act 72 of 1972). 98. The Coal Mines (Taking Over of Management) Act, 1973 (Central Act 15 of 1973). 99. The Coal Mines (Nationalisation) Act, 1973 (Central Act 26 of 1973). 100. The Foreign Exchange Regulation Act, 1973 (Central Act 46 of 1973). 101. The Alcock Ashdown Company Limited (Acquisition of Undertakings) Act, 1973 (Central Act 56 of 1973). ______________________________________________ 1. Entries 87 to 124 ins. by the Constitution (Thirty-ninth Amendment) Act, 1975, s. 5 (w.e.f. 10-8-1975). 2. Entries 87 and 92 omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 44 (w.e.f. 20-6-1979). 102. The Coal Mines (Conservation and Development) Act, 1974 (Central Act 28 of 1974). 103. The Additional Emoluments (Compulsory Deposit) Act, 1974 (Central Act 37 of 1974). 104. The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (Central Act 52 of 1974). 105. The Sick Textile Undertakings (Nationalisation) Act, 1974 (Central Act 57 of 1974). 106. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1964 (Maharashtra Act XVI of 1965). 107. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1965 (Maharashtra Act XXXII of 1965). 108. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1968 (Maharashtra Act XVI of 1968). 109. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Second Amendment) Act, 1968 (Maharashtra Act XXXIII of 1968). 110. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1969 (Maharashtra Act XXXVII of 1969). 111. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Second Amendment) Act, 1969 (Maharashtra Act XXXVIII of 1969). 112. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1970 (Maharashtra Act XXVII of 1970). 113. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1972 (Maharashtra Act XIII of 1972). 114. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1973 (Maharashtra Act L of 1973). 115. The Orissa Land Reforms (Amendment) Act, 1965 (Orissa Act 13 of 1965). 116. The Orissa Land Reforms (Amendment) Act, 1966 (Orissa Act 8 of 1967). 117. The Orissa Land Reforms (Amendment) Act, 1967 (Orissa Act 13 of 1967). 118. The Orissa Land Reforms (Amendment) Act, 1969 (Orissa Act 13 of 1969). 119. The Orissa Land Reforms (Amendment) Act, 1970 (Orissa Act 18 of 1970). 120. The Uttar Pradesh Imposition of Ceiling on Land Holdings (Amendment) Act, 1972 (Uttar Pradesh Act 18 of 1973). 121. The Uttar Pradesh Imposition of Ceiling on Land Holdings (Amendment) Act, 1974 (Uttar Pradesh Act 2 of 1975). 122. The Tripura Land Revenue and Land Reforms (Third Amendment) Act, 1975 (Tripura Act 3 of 1975). 123.The Dadra and Nagar Haveli Land Reforms Regulation, 1971 (3 of 1971). 124. The Dadra and Nagar Haveli Land Reforms (Amendment) Regulation, 1973 (5 of 1973).] 1[125. Section 66A and Chapter IVA of the Motor Vehicles Act, 1939 (Central Act 4 of 1939). 126. The Essential Commodities Act, 1955 (Central Act 10 of 1955). 127. The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (Central Act 13 of 1976). 128. The Bonded Labour System (Abolition) Act, 1976 (Central Act 19 of 1976). 129. The Conservation of Foreign Exchange and Prevention of Smuggling Activities (Amendment) Act, 1976 (Central Act 20 of 1976). ## 2130* * * * * 131. The Levy Sugar Price Equalisation Fund Act, 1976 (Central Act 31 Of 1976). 132. The Urban Land (Ceiling and Regulation) Act, 1976 (Central Act 33 of 1976). ______________________________________________ 1. Entries 125 to 188 ins. by the Constitution (Fortieth Amendment) Act, 1976, s. 3 (w.e.f. 27-5-1976).  *See* now the relevant provisions of the Motor Vehicles Act, 1988 (59 of 1988). 2. Entry 130 omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 44 (w.e.f. 20-6-1979). 133. The Departmentalisation of Union Accounts (Transfer of Personnel) Act, 1976 (Central Act 59 of 1976). 134. The Assam Fixation of Ceiling on Land Holdings Act, 1956 (Assam Act I of 1957). 135. The Bombay Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958 (Bombay Act XCIX of 1958). 136. The Gujarat Private Forests (Acquisition) Act, 1972 (Gujarat Act 14 of 1973). 137. The Haryana Ceiling on Land Holdings (Amendment) Act, 1976 (Haryana Act 17 of 1976). 138. The Himachal Pradesh Tenancy and Land Reforms Act, 1972 (Himachal Pradesh Act 8 of 1974). 139. The Himachal Pradesh Village Common Lands Vesting and Utilisation Act, 1974 (Himachal Pradesh Act 18 of 1974). 140. The Karnataka Land Reforms (Second Amendment and Miscellaneous Provisions) Act, 1974 (Karnataka Act 31 of 1974). 141. The Karnataka Land Reforms (Second Amendment) Act, 1976 (Karnataka Act 27 of 1976). 142. The Kerala Prevention of Eviction Act, 1966 (Kerala Act 12 of 1966). 143. The Thiruppuvaram Payment (Abolition) Act, 1969 (Kerala Act 19 of 1969). 144. The Sreepadam Lands Enfranchisement Act, 1969 (Kerala Act 20 of 1969). 145. The Sree Pandaravaka Lands (Vesting and Enfranchisement) Act, 1971 (Kerala Act 20 of 1971). 146. The Kerala Private Forests (Vesting and Assignment) Act, 1971 (Kerala Act 26 of 1971). 147. The Kerala Agricultural Workers Act, 1974 (Kerala Act 18 of 1974). 148. The Kerala Cashew Factories (Acquisition) Act, 1974 (Kerala Act 29 of 1974). 149. The Kerala Chitties Act, 1975 (Kerala Act 23 of 1975). 150. The Kerala Scheduled Tribes (Restriction on Transfer of Lands and Restoration of Alienated Lands) Act, 1975 (Kerala Act 31 of 1975). ## (Ninth Schedule) 151. The Kerala Land Reforms (Amendment) Act, 1976 (Kerala Act 15 of 1976). 152. The Kanam Tenancy Abolition Act, 1976 (Kerala Act 16 of 1976). 153. The Madhya Pradesh Ceiling on Agricultural Holdings (Amendment) Act, 1974 (Madhya Pradesh Act 20 of 1974). 154. The Madhya Pradesh Ceiling on Agricultural Holdings (Amendment) Act, 1975 (Madhya Pradesh Act 2 of 1976). 155. The West Khandesh Mehwassi Estates (Proprietary Rights Abolition, etc.) Regulation, 1961 (Maharashtra Regulation 1 of 1962). 156. The Maharashtra Restoration of Lands to Scheduled Tribes Act, 1974 (Maharashtra Act XIV of 1975). 157. The Maharashtra Agricultural Lands (Lowering of Ceiling on Holdings) and (Amendment) Act, 1972 (Maharashtra Act XXI of 1975). 158. The Maharashtra Private Forest (Acquisition) Act, 1975 (Maharashtra Act XXIX of 1975). 159. The Maharashtra Agricultural Lands (Lowering of Ceiling on Holdings) and (Amendment) Amendment Act, 1975 (Maharashtra Act XLVII of 1975). 160. The Maharashtra Agricultural Lands (Ceiling on Holdings) (Amendment) Act, 1975 (Maharashtra Act II of 1976). 161. The Orissa Estates Abolition Act, 1951 (Orissa Act I of 1952). 162. The Rajasthan Colonisation Act, 1954 (Rajasthan Act XXVII of 1954). 163. The Rajasthan Land Reforms and Acquisition of Landowners' Estates Act, 1963 (Rajasthan Act 11 of 1964). 164. The Rajasthan Imposition of Ceiling on Agricultural Holdings (Amendment) Act, 1976 (Rajasthan Act 8 of 1976). 165. The Rajasthan Tenancy (Amendment) Act, 1976 (Rajasthan Act 12 of 1976). 166. The Tamil Nadu Land Reforms (Reduction of Ceiling on Land) Act, 1970 (Tamil Nadu Act 17 of 1970). 167. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1971 (Tamil Nadu Act 41 of 1971). 168. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1972 (Tamil Nadu Act 10 of 1972). 169. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Second Amendment Act, 1972 (Tamil Nadu Act 20 of 1972). 170. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Third Amendment Act, 1972 (Tamil Nadu Act 37 of 1972). 171. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Fourth Amendment Act, 1972 (Tamil Nadu Act 39 of 1972). 172. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Sixth Amendment Act, 1972 (Tamil Nadu Act 7 of 1974). 173. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Fifth Amendment Act, 1972 (Tamil Nadu Act 10 of 1974). 174. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1974 (Tamil Nadu Act 15 of 1974). 175. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Third Amendment Act, 1974 (Tamil Nadu Act 30 of 1974). 176. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Second Amendment Act, 1974 (Tamil Nadu Act 32 of 1974). 177. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1975 (Tamil Nadu Act 11 of 1975). 178. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Second Amendment Act, 1975 (Tamil Nadu Act 21 of 1975). 179. Amendments made to the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 (Uttar Pradesh Act I of 1951) by the Uttar Pradesh Land Laws (Amendment) Act, 1971 (Uttar Pradesh Act 21 of 1971) and the Uttar Pradesh Land Laws (Amendment) Act, 1974 (Uttar Pradesh Act 34 of 1974). 180. The Uttar Pradesh Imposition of Ceiling on Land Holdings (Amendment) Act, 1976 (Uttar Pradesh Act 20 of 1976). 181. The West Bengal Land Reforms (Second Amendment) Act, 1972 (West Bengal Act XXVIII of 1972). 182. The West Bengal Restoration of Alienated Land Act, 1973 (West Bengal Act XXIII of 1973). 183. The West Bengal Land Reforms (Amendment) Act, 1974 (West Bengal Act XXXIII of 1974). 184. The West Bengal Land Reforms (Amendment) Act, 1975 (West Bengal Act XXIII of 1975). 185. The West Bengal Land Reforms (Amendment) Act, 1976 (West Bengal Act XII of 1976). 186. The Delhi Land Holdings (Ceiling) Amendment Act, 1976 (Central Act 15 of 1976). 187. The Goa, Daman and Diu Mundkars (Protection from Eviction) Act, 1975 (Goa, Daman and Diu Act 1 of 1976). 188. The Pondicherry Land Reforms (Fixation of Ceiling on Land) Act, 1973 (Pondicherry Act 9 of 1974).] 1[189. The Assam (Temporarily Settled Areas) Tenancy Act, 1971 (Assam Act XXIII of 1971). 190. The Assam (Temporarily Settled Areas) Tenancy (Amendment) Act, 1974 (Assam Act XVIII of 1974). 191. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Amending Act, 1974 (Bihar Act 13 of 1975). 192. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Act, 1976 (Bihar Act 22 of 1976). 193. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Act, 1978 (Bihar Act VII of 1978). 194. The Land Acquisition (Bihar Amendment) Act, 1979 (Bihar Act 2 of 1980). 195. The Haryana Ceiling on Land Holdings (Amendment) Act, 1977 (Haryana Act 14 of 1977). 196. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1978 (Tamil Nadu Act 25 of 1978). 197. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1979 (Tamil Nadu Act 11 of 1979). ______________________________________________ 1. Entries 189 to 202 were ins. by the Constitution (Forty-seventh Amendment) Act, 1984, s. 2 (w.e.f. 26-8-1984). ## (Ninth Schedule) 198. The Uttar Pradesh Zamindari Abolition Laws (Amendment) Act, 1978 (Uttar Pradesh Act 15 of 1978). 199. The West Bengal Restoration of Alienated Land (Amendment) Act, 1978 (West Bengal Act XXIV of 1978). 200. The West Bengal Restoration of Alienated Land (Amendment) Act, 1980 (West Bengal Act LVI of 1980). 201. The Goa, Daman and Diu Agricultural Tenancy Act, 1964 (Goa, Daman and Diu Act 7 of 1964). 202. The Goa, Daman and Diu Agricultural Tenancy (Fifth Amendment) Act, 1976 (Goa, Daman and Diu Act 17 of 1976).] 1[203. The Andhra Pradesh Scheduled Areas Land Transfer Regulation, 1959 (Andhra Pradesh Regulation 1 of 1959). 204. The Andhra Pradesh Scheduled Areas Laws (Extension and Amendment) Regulation, 1963 (Andhra Pradesh Regulation 2 of 1963). 205. The Andhra Pradesh Scheduled Areas Land Transfer (Amendment) Regulation, 1970 (Andhra Pradesh Regulation 1 of 1970). 206. The Andhra Pradesh Scheduled Areas Land Transfer (Amendment) Regulation, 1971 (Andhra Pradesh Regulation 1 of 1971). 207. The Andhra Pradesh Scheduled Areas Land Transfer (Amendment) Regulation, 1978 (Andhra Pradesh Regulation 1 of 1978). 208. The Bihar Tenancy Act, 1885 (Bihar Act 8 of 1885). 209. The Chota Nagpur Tenancy Act, 1908 (Bengal Act 6 of 1908) (Chapter VIII—sections 46, 47, 48, 48A and 49; Chapter X—sections 71, 71A and 71B; and Chapter XVIII—sections 240, 241 and 242). 210. The Santhal Parganas Tenancy (Supplementary Provisions) Act, 1949 (Bihar Act 14 of 1949) except section 53. 211. The Bihar Scheduled Areas Regulation, 1969 (Bihar Regulation 1 of 1969). 212. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Act, 1982 (Bihar Act 55 of 1982). ______________________________________________ 1. Entries 203 to 257 were ins. by the Constitution (Sixty-sixth Amendment) Act, 1990, ## (Ninth Schedule) 213. The Gujarat Devasthan Inams Abolition Act, 1969 (Gujarat Act 16 of 1969). 214. The Gujarat Tenancy Laws (Amendment) Act, 1976 (Gujarat Act 37 of 1976). 215. The Gujarat Agricultural Lands Ceiling (Amendment) Act, 1976 (President's Act 43 of 1976). 216. The Gujarat Devasthan Inams Abolition (Amendment) Act, 1977 (Gujarat Act 27 of 1977). 217. The Gujarat Tenancy Laws (Amendment) Act, 1977 (Gujarat Act 30 of 1977). 218. The Bombay Land Revenue (Gujarat Second Amendment) Act, 1980 (Gujarat Act 37 of 1980). 219. The Bombay Land Revenue Code and Land Tenure Abolition Laws (Gujarat Amendment) Act, 1982 (Gujarat Act 8 of 1982). 220. The Himachal Pradesh Transfer of Land (Regulation) Act, 1968 (Himachal Pradesh Act 15 of 1969). 221. The Himachal Pradesh Transfer of Land (Regulation) (Amendment) Act, 1986 (Himachal Pradesh Act 16 of 1986). 222. The Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978 (Karnataka Act 2 of 1979). 223. The Kerala Land Reforms (Amendment) Act, 1978 (Kerala Act 13 of 1978). 224. The Kerala Land Reforms (Amendment) Act, 1981 (Kerala Act 19 of 1981). 225. The Madhya Pradesh Land Revenue Code (Third Amendment) Act, 1976 (Madhya Pradesh Act 61 of 1976). 226. The Madhya Pradesh Land Revenue Code (Amendment) Act, 1980 (Madhya Pradesh Act 15 of 1980). 227. The Madhya Pradesh Akrishik Jot Uchchatam Seema Adhiniyam, 1981 (Madhya Pradesh Act 11 of 1981). 228. The Madhya Pradesh Ceiling on Agricultural Holdings (Second Amendment) Act, 1976 (Madhya Pradesh Act 1 of 1984). 229. The Madhya Pradesh Ceiling on Agricultural Holdings (Amendment) Act, 1984 (Madhya Pradesh Act 14 of 1984). ## (Ninth Schedule) 230. The Madhya Pradesh Ceiling on Agricultural Holdings (Amendment) Act, 1989 (Madhya Pradesh Act 8 of 1989). 231. The Maharashtra Land Revenue Code, 1966 (Maharashtra Act 41 of 1966), sections 36, 36A and 36B. 232. The Maharashtra Land Revenue Code and the Maharashtra Restoration of Lands to Scheduled Tribes (Second Amendment) Act, 1976 (Maharashtra Act 30 of 1977). 233. The Maharashtra Abolition of Subsisting Proprietary Rights to Mines and Minerals in certain Lands Act, 1985 (Maharashtra Act 16 of 1985). 234. The Orissa Scheduled Areas Transfer of Immovable Property (by Scheduled Tribes) Regulation, 1956 (Orissa Regulation 2 of 1956). 235. The Orissa Land Reforms (Second Amendment) Act, 1975 (Orissa Act 29 of 1976). 236. The Orissa Land Reforms (Amendment) Act, 1976 (Orissa Act 30 of 1976). 237. The Orissa Land Reforms (Second Amendment) Act, 1976 (Orissa Act 44 of 1976). 238. The Rajasthan Colonisation (Amendment) Act, 1984 (Rajasthan Act 12 of 1984). 239. The Rajasthan Tenancy (Amendment) Act, 1984 (Rajasthan Act 13 of 1984). 240. The Rajasthan Tenancy (Amendment) Act, 1987 (Rajasthan Act 21 of 1987). 241. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Second Amendment Act, 1979 (Tamil Nadu Act 8 of 1980). 242. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1980 (Tamil Nadu Act 21 of 1980). 243. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1981 (Tamil Nadu Act 59 of 1981). 244. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Second Amendment Act, 1983 (Tamil Nadu Act 2 of 1984). 245. The Uttar Pradesh Land Laws (Amendment) Act, 1982 (Uttar Pradesh Act 20 of 1982). 246. The West Bengal Land Reforms (Amendment) Act, 1965 (West Bengal Act 18 of 1965). 247. The West Bengal Land Reforms (Amendment) Act, 1966 (West Bengal Act 11 of 1966). 248. The West Bengal Land Reforms (Second Amendment) Act, 1969 (West Bengal Act 23 of 1969). 249. The West Bengal Estate Acquisition (Amendment) Act, 1977 (West Bengal Act 36 of 1977). 250. The West Bengal Land Holding Revenue Act, 1979 (West Bengal Act 44 of 1979). 251. The West Bengal Land Reforms (Amendment) Act, 1980 (West Bengal Act 41 of 1980). 252. The West Bengal Land Holding Revenue (Amendment) Act, 1981 (West Bengal Act 33 of 1981). 253. The Calcutta Thikka Tenancy (Acquisition and Regulation) Act, 1981 (West Bengal Act 37 of 1981). 254. The West Bengal Land Holding Revenue (Amendment) Act, 1982 (West Bengal Act 23 of 1982). 255. The Calcutta Thikka Tenancy (Acquisition and Regulation) (Amendment) Act, 1984 (West Bengal Act 41 of 1984). 256. The Mahe Land Reforms Act, 1968 (Pondicherry Act 1 of 1968). 257. The Mahe Land Reforms (Amendment) Act, 1980 (Pondicherry Act 1 of 1981).] 1[257A. The Tamil Nadu Backward Classes, Scheduled Castes and Scheduled Tribes (Reservation of Seats in Educational Institutions and of appointments or posts in the Services under the State) Act, 1993 (Tamil Nadu Act 45 of 1994).] ______________________________________________ ## (Ninth Schedule) 1[258. The Bihar Privileged Persons Homestead Tenancy Act, 1947 (Bihar Act 4 of 1948). 259. The Bihar Consolidation of Holdings and Prevention of Fragmentation Act, 1956 (Bihar Act 22 of 1956). 260. The Bihar Consolidation of Holdings and Prevention of Fragmentation (Amendment) Act, 1970 (Bihar Act 7 of 1970). 261. The Bihar Privileged Persons Homestead Tenancy (Amendment) Act, 1970 (Bihar Act 9 of 1970). 262. The Bihar Consolidation of Holdings and Prevention of Fragmentation (Amendment) Act, 1973 (Bihar Act 27 of 1975). 263. The Bihar Consolidation of Holdings and Prevention of Fragmentation (Amendment) Act, 1981 (Bihar Act 35 of 1982). 264. The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) (Amendment) Act, 1987 (Bihar Act 21 of 1987). 265. The Bihar Privileged Persons Homestead Tenancy (Amendment) Act, 1989 (Bihar Act 11 of 1989). 266. The Bihar Land Reforms (Amendment) Act, 1989 (Bihar Act 11 of 1990). 267. The Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) (Amendment) Act, 1984 (Karnataka Act 3 of 1984). 268. The Kerala Land Reforms (Amendment) Act, 1989 (Kerala Act 16 of 1989). 269. The Kerala Land Reforms (Second Amendment) Act, 1989 (Kerala Act 2 of 1990). 270. The Orissa Land Reforms (Amendment) Act, 1989 (Orissa Act 9 of 1990). 271. The Rajasthan Tenancy (Amendment) Act, 1979 (Rajasthan Act 16 of 1979). 272. The Rajasthan Colonisation (Amendment) Act, 1987 (Rajasthan Act 2 of 1987). 273. The Rajasthan Colonisation (Amendment) Act, 1989 (Rajasthan Act 12 of 1989). ______________________________________________ ## (Ninth Schedule) 274. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1983 (Tamil Nadu Act 3 of 1984). 275. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Amendment Act, 1986 (Tamil Nadu Act 57 of 1986). 276. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Second Amendment Act, 1987 (Tamil Nadu Act 4 of 1988). 277. The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) (Amendment) Act, 1989 (Tamil Nadu Act 30 of 1989). 278. The West Bengal Land Reforms (Amendment) Act, 1981 (West Bengal Act 50 of 1981). 279. The West Bengal Land Reforms (Amendment) Act, 1986 (West Bengal Act 5 of 1986). 280. The West Bengal Land Reforms (Second Amendment) Act, 1986 (West Bengal Act 19 of 1986). 281. The West Bengal Land Reforms (Third Amendment) Act, 1986 (West Bengal Act 35 of 1986). 282. The West Bengal Land Reforms (Amendment) Act, 1989 (West Bengal Act 23 of 1989). 283. The West Bengal Land Reforms (Amendment) Act, 1990 (West Bengal Act 24 of 1990). 284. The West Bengal Land Reforms Tribunal Act, 1991 (West Bengal Act 12 of 1991).] Explanation.—Any acquisition made under the Rajasthan Tenancy Act, 1955 (Rajasthan Act 3 of 1955), in contravention of the second proviso to clause (1) of article 31A shall, to the extent of the contravention, be void.] ## 1[Tenth Schedule [Articles 102(2) And 191(2)] Provisions As To Disqualification On Ground Of Defection 1. **Interpretation.—**In this Schedule, unless the context otherwise requires,— (a) "House" means either House of Parliament or the Legislative Assembly or, as the case may be, either House of the Legislature of a State; (b) "legislature party", in relation to a member of a House belonging to any political party in accordance with the provisions of paragraph 2 or 2*** paragraph 4, means the group consisting of all the members of that House for the time being belonging to that political party in accordance with the said provisions; (c) "original political party", in relation to a member of a House, means the political party to which he belongs for the purposes of subparagraph (1) of paragraph 2; (d) "paragraph" means a paragraph of this Schedule. 2. **Disqualification on ground of defection.—**(1) Subject to the provisions of 3[paragraphs 4 and 5], a member of a House belonging to any political party shall be disqualified for being a member of the House— (a) if he has voluntarily given up his membership of such political party; or (b) if he votes or abstains from voting in such House contrary to any direction issued by the political party to which he belongs or by any person or authority authorised by it in this behalf, without obtaining, in either case, the prior permission of such political party, person or authority and such voting or abstention has not been condoned by such political party, person or authority within fifteen days from the date of such voting or abstention. Explanation.—For the purposes of this sub-paragraph,— (a) an elected member of a House shall be deemed to belong to the political party, if any, by which he was set up as a candidate for election as such member; (b) a nominated member of a House shall,— 3. Subs. by s. 5, *ibid.,* for "paragraphs 3, 4 and 5". (w.e.f. 1-1-2004). (Tenth Schedule) (i) where he is a member of any political party on the date of his nomination as such member, be deemed to belong to such political party; (ii) in any other case, be deemed to belong to the political party of which he becomes, or, as the case may be, first becomes, a member before the expiry of six months from the date on which he takes his seat after complying with the requirements of article 99 or, as the case may be, article 188. (2) An elected member of a House who has been elected as such otherwise than as a candidate set up by any political party shall be disqualified for being a member of the House if he joins any political party after such election. (3) A nominated member of a House shall be disqualified for being a member of the House if he joins any political party after the expiry of six months from the date on which he takes his seat after complying with the requirements of article 99 or, as the case may be, article 188. (4) Notwithstanding anything contained in the foregoing provisions of this paragraph, a person who, on the commencement of the Constitution (Fiftysecond Amendment) Act, 1985, is a member of a House (whether elected or nominated as such) shall,— (i) where he was a member of political party immediately before such commencement, be deemed, for the purposes of sub-paragraph (1) of this paragraph, to have been elected as a member of such House as a candidate set up by such political party; (ii) in any other case, be deemed to be an elected member of the House who has been elected as such otherwise than as a candidate set up by any political party for the purposes of sub-paragraph (2) of this paragraph or, as the case may be, be deemed to be a nominated member of the House for the purposes of sub-paragraph (3) of this paragraph. 1* * * * * 4. Disqualification on ground of defection not to apply in case of merger.—(1) A member of a House shall not be disqualified under subparagraph (1) of paragraph 2 where his original political party merges with another political party and he claims that he and any other members of his original political party— (a) have become members of such other political party or, as the case may be, of a new political party formed by such merger; or (b) have not accepted the merger and opted to function as a separate group, ______________________________________________ (Tenth Schedule) and from the time of such merger, such other political party or new political party or group, as the case may be, shall be deemed to be the political party to which he belongs for the purposes of sub-paragraph (1) of paragraph 2 and to be his original political party for the purposes of this sub-paragraph. (2) For the purposes of sub-paragraph (1) of this paragraph, the merger of the original political party of a member of a House shall be deemed to have taken place if, and only if, not less than two-thirds of the members of the legislature party concerned have agreed to such merger. 5. Exemption.—Notwithstanding anything contained in this Schedule, a person who has been elected to the office of the Speaker or the Deputy Speaker of the House of the People or the Deputy Chairman of the Council of States or the Chairman or the Deputy Chairman of the Legislative Council of a State or the Speaker or the Deputy Speaker of the Legislative Assembly of a State, shall not be disqualified under this Schedule,— (a) if he, by reason of his election to such office, voluntarily gives up the membership of the political party to which he belonged immediately before such election and does not, so long as he continues to hold such office thereafter, rejoin that political party or become a member of another political party; or (b) if he, having given up by reason of his election to such office his membership of the political party to which he belonged immediately before such election, rejoins such political party after he ceases to hold such office. 6. Decision on questions as to disqualification on ground of defection.—(1) If any question arises as to whether a member of a House has become subject to disqualification under this Schedule, the question shall be referred for the decision of the Chairman or, as the case may be, the Speaker of such House and his decision shall be final: Provided that where the question which has arisen is as to whether the Chairman or the Speaker of a House has become subject to such disqualification, the question shall be referred for the decision of such member of the House as the House may elect in this behalf and his decision shall be final. (2) All proceedings under sub-paragraph (1) of this paragraph in relation to any question as to disqualification of a member of a House under this Schedule shall be deemed to be proceedings in Parliament within the meaning of article 122 or, as the case may be, proceedings in the Legislature of a State within the meaning of article 212. *7. **Bar of jurisdiction of courts.—**Notwithstanding anything in this Constitution, no court shall have any jurisdiction in respect of any matter connected with the disqualification of a member of a House under this Schedule. 8. **Rules.—**(1) Subject to the provisions of sub-paragraph (2) of this paragraph, the Chairman or the Speaker of a House may make rules for giving effect to the provisions of this Schedule, and in particular, and without prejudice to the generality of the foregoing, such rules may provide for— (a) the maintenance of registers or other records as to the political parties, if any, to which different members of the House belong; (b) the report which the leader of a legislature party in relation to a member of a House shall furnish with regard to any condonation of the nature referred to in clause (b) of sub-paragraph (1) of paragraph 2 in respect of such member, the time within which and the authority to whom such report shall be furnished; (c) the reports which a political party shall furnish with regard to admission to such political party of any members of the House and the officer of the House to whom such reports shall be furnished; and (d) the procedure for deciding any question referred to in subparagraph (1) of paragraph 6 including the procedure for any inquiry which may be made for the purpose of deciding such question. (2) The rules made by the Chairman or the Speaker of a House under sub-paragraph (1) of this paragraph shall be laid as soon as may be after they are made before the House for a total period of thirty days which may be comprised in one session or in two or more successive sessions and shall take effect upon the expiry of the said period of thirty days unless they are sooner approved with or without modifications or disapproved by the House and where they are so approved, they shall take effect on such approval in the form in which they were laid or in such modified form, as the case may be, and where they are so disapproved, they shall be of no effect. (3) The Chairman or the Speaker of a House may, without prejudice to the provisions of article 105 or, as the case may be, article 194, and to any other power which he may have under this Constitution direct that any wilful contravention by any person of the rules made under this paragraph may be dealt with in the same manner as a breach of privilege of the House.] ______________________________________________ ## 1[Eleventh Schedule (Article 243G) 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. ______________________________________________ 29. Maintenance of community assets.] ## 1[Twelfth Schedule (Article 243W) 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries.] ## ______________________________________________ Appendix I The Constitution ( One Hundredth Amendment) Act, 2015 [28*th May*, 2015.] An Act further to amend the Constitution of India to give effect to the acquiring of territories by India and transfer of certain territories to Bangladesh in pursuance of the agreement and its protocol entered into between the Governments of India and Bangladesh. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— 1. **Short title.**—This Act may be called the Constitution (One Hundredth Amendment) Act, 2015. 2. Definitions.—In this Act,— (a) "acquired territory" means so much of the territories comprised in the India-Bangladesh agreement and its protocol and referred to in the First Schedule as are demarcated for the purpose of being acquired by India from Bangladesh in pursuance of the agreement and its protocol referred to in clause (c); (b) "appointed day" means such date as the Central Government may, by notification in the Official Gazette, appoint as the date for acquisition of territories from Bangladesh and transfer of the territories to Bangladesh in pursuance of the India-Bangladesh agreement and its protocol, after causing the territories to be so acquired and transferred as referred to in the First Schedule and Second Schedule and demarcated for the purpose; (c) "India-Bangladesh agreement" means the agreement between the Government of the Republic of India and the Government of the People's Republic of Bangladesh concerning the Demarcation of the Land Boundary between India and Bangladesh and Related Matters dated the 16th day of May, 1974, Exchange of Letters dated the 26th day of December, 1974, the 30th day of December, 1974, the 7th day of October, 1982, the 26th day of March, 1992 and protocol to the said agreement dated the 6th day of September, 2011, entered into between the Governments of India and Bangladesh, the relevant extracts of which are set out in the Third Schedule; ______________________________________________  31st day of July, 2015, vide notification No. S.O. 2094(E), dated 31st July, 2015. ## (Appendix I) (d) "transferred territory", means so much of the territories comprised in the India-Bangladesh agreement and its protocol and referred to in the Second Schedule as are demarcated for the purpose of being transferred by India to Bangladesh in pursuance of the agreements and its protocol referred to in clause (c). 3. Amendment of First Schedule to Constitution.— As from the appointed day, in the First Schedule to the Constitution,— (a) in the paragraph relating to the territories of the State of Assam, the words, brackets and figures "and the territories referred to in Part I of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015, notwithstanding anything contained in clause (a) of section 3 of the Constitution (Ninth Amendment) Act, 1960, so far as it relates to the territories referred to in Part I of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015", shall be added at the end; (b) in the paragraph relating to the territories of the State of West Bengal, the words, brackets and figures "and also the territories referred to in Part III of the First Schedule but excluding the territories referred to in Part III of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015, notwithstanding anything contained in clause (c) of section 3 of the Constitution (Ninth Amendment) Act, 1960, so far as it relates to the territories referred to in Part III of the First Schedule and the territories referred to in Part III of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015", shall be added at the end; (c) in the paragraph relating to the territories of the State of Meghalaya, the words, brackets and figures "and the territories referred to in Part I of the First Schedule but excluding the territories referred to in Part II of the Second Schedule to the Constitution (One Hundredth Amendment) Act, 2015", shall be added at the end; (d) in the paragraph relating to the territories of the State of Tripura, the words, brackets and figures "and the territories referred to in Part II of the First Schedule to the Constitution (One Hundredth Amendment) Act, 2015, notwithstanding anything contained in clause (d) of section 3 of the Constitution (Ninth Amendment) Act, 1960, so far as it relates to the territories referred to in Part II of the First Schedule to the Constitution (One Hundredth Amendment) Act, 2015", shall be added at the end. ## The First Schedule [*See* sections 2(a), 2*(b)* and 3] ## Pa R T I The acquired territory in relation to Article 2 of the agreement dated the 16th day of May, 1974 and Article 3 (I) (b) (ii) (iii) (iv) (v) of the protocol dated the 6th day of September, 2011. ## Pa Rt I I The acquired territory in relation to Article 2 of the agreement dated the 16th day of May, 1974 and Article 3 (I) (c) (i) of the protocol dated the 6th day of September, 2011. ## Part Iii The acquired territory in relation to Articles 1(12) and 2 of the agreement dated the 16th day of May, 1974 and Articles 2 (II), 3 (I) (a) (iii) (iv) (v) (vi) of the protocol dated the 6th day of September, 2011. ## The Second Schedule [*See* Sections 2(B), 2*(D)* And 3] Pa R T I The transferred territory in relation to Article 2 of the agreement dated 16th day of May, 1974 and Article 3 (I) (d) (i) (ii) of the protocol dated 6th day of September, 2011. ## Pa Rt I I The transferred territory in relation to Article 2 of the agreement dated the 16th day of May, 1974 and Article 3 (I) (b) (i) of the protocol dated 6th day of September, 2011. ## Part Iii The transferred territory in relation to Articles 1(12) and 2 of the agreement dated the 16th day of May, 1974 and Articles 2 (II), 3 (I) (a) (i) (ii) (vi) of the protocol dated the 6th day of September, 2011. ## The Third Schedule [*See* section 2(c)] ## I. Extracts From The Agreement Between Government Of The Republic Of India And The Government Of The People'S Republic Of Bangladesh Concerning The Demarcation Of The Land Boundary Between India And Bangladesh And Related Matters Dated The 16Th Day Of May, 1974 Article 1 (12): ENCLAVES The Indian enclaves in Bangladesh and the Bangladesh enclaves in India should be exchanged expeditiously, excepting the enclaves mentioned in paragraph 14 without claim to compensation for the additional area going to Bangladesh. Article 2: The Governments of India and Bangladesh agree that territories in adverse possession in areas already demarcated in respect of which boundary strip maps are already prepared, shall be exchanged within six months of the signing of the boundary strip maps by the plenipotentiaries. They may sign the relevant maps as early as possible as and in any case not later than the 31st December, 1974. Early measures may be taken to print maps in respect of other areas where demarcation has already taken place. These should be printed by the 31st May, 1975 and signed by the plenipotentiaries thereafter in order that the exchange of adversely held possessions in these areas may take place by the 31st December, 1975. In sectors still to be demarcated, transfer of territorial jurisdiction may take place within six months of the signature by plenipotentiaries on the concerned boundary strip maps. ## Ii. Extracts From The Protocol To The Agreement Between The Government Of The Republic Of India And The Government Of The People'S Republic Of Bangladesh Concerning The Demarcation Of The Land Boundary Between India And Bangladesh And Related Matters, Dated The 6Th Day Of September, 2011 Article 2: (II) Article 1 Clause 12 of the 1974 Agreement shall be implemented as follows:— Enclaves 111 Indian Enclaves in Bangladesh and 51 Bangladesh Enclaves in India as per the jointly verified cadastral enclave maps and signed at the level of DGLR&S, Bangladesh and DLR&S, West Bengal (India) in April, 1997, shall be exchanged without claim to compensation for the additional areas going to Bangladesh. Article 3: (I) Article 2 of the 1974 Agreement shall be implemented as follows:— The Government of India and the Government of Bangladesh agree that the boundary shall be drawn as a fixed boundary for territories held in Adverse Possession as determined through joint survey and fully depicted in the respective adversely possessed land area Index Map (APL map) finalised by the Land Records and Survey Departments of both the countries between December, 2010 and August, 2011, which are fully described in clause (a) to (d) below. The relevant strip maps shall be printed and signed by the Plenipotentiaries and transfer of territorial jurisdiction shall be completed simultaneously with the exchange of enclaves. The demarcation of the boundary, as depicted in the above-mentioned Index Maps, shall be as under:— ## (A) West Bengal Sector (i) *Bousmari - Madhugari (Kushtia-Nadia) area* The boundary shall be drawn from the existing Boundary Pillar Nos. 154/5-S to 157/1-S to follow the centre of old course of river Mathabanga, as depicted in consolidation map of 1962, as surveyed jointly and agreed in June, 2011. (ii) *Andharkota (Kushtia-Nadia) area* The boundary shall be drawn from existing Boundary Pillar No. 152/5-S to Boundary Pillar No. 153/1-S to follow the edge of existing River Mathabanga as jointly surveyed and agreed in June, 2011. ## (iii) *Pakuria (Kushtia-Nadia) area* The boundary shall be drawn from existing Boundary Pillar No. 151/1-S to Boundary Pillar No. 152/2-S to follow the edge of River Mathabanga as jointly surveyed and agreed in June, 2011. (iv) *Char Mahishkundi (Kushtia-Nadia) area* The boundary shall be drawn from existing Boundary Pillar No. 153/1-S to Boundary Pillar No. 153/9-S to follow the edge of River Mathabanga as jointly surveyed and agreed in June, 2011. (v) Haripal/Khutadah/Battoli/Sapameri/LNpur (Patari) (Naogaon-Malda) area The boundary shall be drawn as line joining from existing Boundary Pillar No. 242/S/13, to Boundary Pillar No. 243/7-S/5 and as jointly surveyed and agreed in June, 2011. (vi) *Berubari (Panchagarh-Jalpaiguri area)* The boundary in the area Berubari (Panchagarh-Jalpaiguri) adversely held by Bangladesh, and Berubari and Singhapara-Khudipara (Panchagarh-Jalpaiguri), adversely held by India shall be drawn as jointly demarcated during 1996-1998. ## (B) Meghalaya Sector (i) *Lobachera-Nuncherra* The boundary from existing Boundary Pillar No. 1315/4-S to Boundary Pillar No. 1315/15-S in Lailong - Balichera, Boundary Pillar No. 1316/1-S to Boundary Pillar No. 1316/11-S in Lailong- Noonchera, Boundary Pillar No. 1317 to Boundary Pillar No. 1317/13-S in Lailong- Lahiling and Boundary Pillar No. 1318/1-S to Boundary Pillar No. 1318/2-S in Lailong- Lobhachera shall be drawn to follow the edge of tea gardens as jointly surveyed and agreed in December, 2010. (ii) *Pyrdiwah/ Padua Area* The boundary shall be drawn from existing Boundary Pillar No. 1270/1-S as per jointly surveyed and mutually agreed line till Boundary Pillar No. 1271/1-T. The Parties agree that the Indian Nationals from Pyrdiwah village shall be allowed to draw water from Piyang River near point No. 6 of the agreed Map. (iii) *Lyngkhat Area* (aa) Lyngkhat-I/Kulumcherra and Lyngkhat- II/ Kulumcherra The boundary shall be drawn from existing Boundary Pillar No. 1264/4-S to Boundary Pillar No. 1265 and BP No. 1265/6-S to 1265/9-S as per jointly surveyed and mutually agreed line. (ab) Lyngkhat-III/Sonarhat The boundary shall be drawn from existing Boundary Pillar No. 1266/13-S along the nallah southwards till it meets another nallah in the east-west direction, thereafter it shall run along the northern edge of the nallah in east till it meets the existing International Boundary north of Reference Pillar Nos.1267/4-R-B and 1267/3-R-I. (iv) *Dawki/Tamabil area* The boundary shall be drawn by a straight line joining existing Boundary Pillar Nos. 1275/1-S to Boundary Pillar Nos. 1275/7-S. The Parties agree to fencing on 'zero line' in this area. (v) *Naljuri/Sreepur Area* (aa) Naljuri I The boundary shall be a line from the existing Boundary Pillar No. 1277/2-S in southern direction up to three plots as depicted in the strip Map No. 166 till it meets the nallah flowing from Boundary Pillar No. 1277/5-T, thereafter it will run along the western edge of the nallah in the southern direction up to 2 plots on the Bangladesh side, thereafter it shall run eastwards till it meets a line drawn in southern direction from Boundary Pillar No. 1277/4-S. (ab) *Naljuri III* The boundary shall be drawn by a straight line from existing Boundary Pillar No. 1278/2-S to Boundary Pillar No. 1279/ 3-S. (vi) *Muktapur/ Dibir Hawor Area* The Parties agree that the Indian Nationals shall be allowed to visit Kali Mandir and shall also be allowed to draw water and exercise fishing rights in the water body in the Muktapur / Dibir Hawor area from the bank of Muktapur side. ## (C) Tripura Sector Chandannagar-Champarai Tea Garden area in Tripura/ Moulvi Bazar sector The boundary shall be drawn along Sonaraichhera river from existing Boundary Pillar No. 1904 to Boundary Pillar No. 1905 as surveyed jointly and agreed in July, 2011. ## (D) Assam Sector (i) *Kalabari (Boroibari) area in Assam sector* The boundary shall be drawn from existing Boundary Pillar No. 1066/24-T to Boundary Pillar No. 1067/16-T as surveyed jointly and agreed in August, 2011. (ii) *Pallathal area in Assam sector* The boundary shall be drawn from existing Boundary Pillar No. 1370/3-S to 1371/ 6-S to follow the outer edge of the tea garden and from Boundary Pillar No. 1372 to 1373/2-S along outer edge of the pan plantation. III. LIST OF EXCHANGE OF ENCLAVES BETWEEN INDIA AND BANGLADESH IN PURSUANT TO ARTICLE 1 (12) OF THE AGREEMENT DATED 16TH MAY, 1974 AND THE PROTOCOL TO THE AGREEMENT DATED 6TH SEPTEMBER, 2011 ## A. Exchangeable Indian Enclaves In Bangladesh With Area Sl. Name of Chhits No. Chhit No. Lying within Police station Bangladesh Lying within Police station W. Bengal Area in acres 1 2 3 4 5 6 ## A. *Enclaves With Independent Chhits* | 1. | Garati | 75 | Pochagar | Haldibari | 58.23 | |-------|------------------|-------|-------------|--------------|----------| | 2 | Garati | 76 | Pochagar | Haldibari | 0.79 | | 3 | Garati | 77 | Pochagar | Haldibari | 18 | | 4 | Garati | 78 | Pochagar | Haldibari | 958.66 | | 5 | Garati | 79 | Pochagar | Haldibari | 1.74 | | 6 | Garati | 80 | Pochagar | Haldibari | 73.75 | | 7 | Bingimari Part-I | 73 | Pochagar | Haldibari | 6.07 | | 1 | 2 | 3 | 4 | 5 | 6 | |---------------|----------------|-----------|---------|-----------|-------------| | 8. | Nazirganja | 41 | Boda | Haldibari | 58.32 | | 9. | Nazirganja | 42 | Boda | Haldibari | 434.29 | | 10. | Nazirganja | 44 | Boda | Haldibari | 53.47 | | 11. | Nazirganja | 45 | Boda | Haldibari | 1.07 | | 12. | Nazirganja | 46 | Boda | Haldibari | 17.95 | | 13. | Nazirganja | 47 | Boda | Haldibari | 3.89 | | 14. | Nazirganja | 48 | Boda | Haldibari | 73.27 | | 15. | Nazirganja | 49 | Boda | Haldibari | 49.05 | | 16. | Nazirganja | 50 | Boda | Haldibari | 5.05 | | 17. | Nazirganja | 51 | Boda | Haldibari | 0.77 | | 18. | Nazirganja | 52 | Boda | Haldibari | 1.04 | | 19. | Nazirganja | 53 | Boda | Haldibari | 1.02 | | 20. | Nazirganja | 54 | Boda | Haldibari | 3.87 | | 21. | Nazirganja | 55 | Boda | Haldibari | 12.18 | | 22. | Nazirganja | 56 | Boda | Haldibari | 54.04 | | 23. | Nazirganja | 57 | Boda | Haldibari | 8.27 | | 24. | Nazirganja | 58 | Boda | Haldibari | 14.22 | | 25. | Nazirganja | 60 | Boda | Haldibari | 0.52 | | 26. | Putimari | 59 | Boda | Haldibari | 122.8 | | 27. | Daikhata Chhat | 38 | Boda | Haldibari | 499.21 | | 28. | Salbari | 37 | Boda | Haldibari | 1188.93 | | 29. | Kajal Dighi | 36 | Boda | Haldibari | 771.44 | | 30. | Nataktoka | 32 | Boda | Haldibari | 162.26 | | 31. | Nataktoka | 33 | Boda | Haldibari | 0.26 | | 35 | Boda | Haldibari | 0.83 | 32. | | | Beuladanga | | | | | | | Chhat | | | | | | | 3 | Debiganj | Haldibari | 1752.44 | 33. | | | Balapara | | | | | | | Iagrabar | | | | | | | 30 | Dimla | Haldibari | 7.71 | 34. | | | Bara | | | | | | | Khankikharija | | | | | | | Citaldaha | | | | | | | 1 | 2 | 3 | 4 | 5 | 6 | |---------------|----------------|-----------|---------|-----------------|-------------| | 29 | Dimla | Haldibari | 36.83 | 35. | Bara | | Khankikharija | | | | | | | Citaldaha | | | | | | | 36. | Barakhangir | 28 | Dimla | Haldibari | 30.53 | | 37. | Nagarjikobari | 31 | Dimla | Haldibari | 33.41 | | 38. | Kuchlibari | 26 | Patgram | Mekliganj | 5.78 | | 39. | Kuchlibari | 27 | Patgram | Mekliganj | 2.04 | | Patgram | Mekliganj | 4.35 | 40. | Bara Kuchlibari | | | Fragment | | | | | | | of J.L.107 | | | | | | | of P.S | | | | | | | Mekliganj | | | | | | | 6 | Patgram | Mekliganj | 5.24 | 41. | | | Jamaldaha- | | | | | | | Balapukhari | | | | | | | 115/2 | Patgram | Mekliganj | 0.32 | 42. | | | Uponchowki | | | | | | | kuchlibari | | | | | | | 7 | Patgram | Mekliganj | 44.04 | 43. | | | Uponchowki | | | | | | | kuchlibari | | | | | | | 44. | Bhothnri | 11 | Patgram | Mekliganj | 36.83 | | 45. | Balapukhari | 5 | Patgram | Mekliganj | 55.91 | | 46. | Bara Khangir | 4 | Patgram | Mekliganj | 50.51 | | 47. | Bara Khangir | 9 | Patgram | Mekliganj | 87.42 | | 48. | Chhat Bogdokra | 10 | Patgram | Mekliganj | 41.7 | | 49. | Ratanpur | 11 | Patgram | Mekliganj | 58.91 | | 50. | Bogdokra | 12 | Patgram | Mekliganj | 25.49 | | Patgram | Mekliganj | 0.88 | 51. | Fulker Dabri | | | Fragment | | | | | | | of J.L. 107 | | | | | | | of P.S | | | | | | | Mekliganj | | | | | | | 1 | 2 | 3 | 4 | 5 | 6 | |---------------|---------------|-----------|---------|-------------|-----------| | 52. | Kharkharia | 15 | Patgram | Mekliganj | 60.74 | | 53. | Kharkharia | 13 | Patgram | Mekliganj | 51.62 | | 54. | Lotamari | 14 | Patgram | Mekliganj | 110.92 | | 55. | Bhotbari | 16 | Patgram | Mekliganj | 205.46 | | 16A | Patgram | Mekliganj | 42.8 | 56. | | | Komat | | | | | | | Changrabandha | | | | | | | 17A | Patgram | Mekliganj | 16.01 | 57. | | | Komat | | | | | | | Changrabandha | | | | | | | 58. | Panisala | 17 | Patgram | Mekliganj | 137.66 | | 18 | Patgram | Mekliganj | 36.5 | 59. | | | Dwarikamari | | | | | | | Khasbash | | | | | | | 60. | Panisala | 153/P | Patgram | Mekliganj | 0.27 | | 61. | Panisala | 153/O | Patgram | Mekliganj | 18.01 | | 62. | Panisala | 19 | Patgram | Mekliganj | 64.63 | | 63. | Panisala | 21 | Patgram | Mekliganj | 51.4 | | 64. | Lotamari | 20 | Patgram | Mekliganj | 283.53 | | 65. | Lotamari | 22 | Patgram | Mekliganj | 98.85 | | 66. | Dwarikamari | 23 | Patgram | Mekliganj | 39.52 | | 67. | Dwarikamari | 25 | Patgram | Mekliganj | 45.73 | | 68. | Chhat Bhothat | 24 | Patgram | Mekliganj | 56.11 | | 69. | Baakata | 131 | Patgram | Hathabhanga | | | 22 | | | | | | | . | | | | | | | 35 | | | | | | | 70. | Baakata | 132 | Patgram | Hathabhanga | 11.96 | | 71. | Baakata | 130 | Patgram | Hathibhanga | 20.48 | | 72. | Bhogramguri | 133 | Patgram | Hathibhanga | 1.44 | | 73. | Chenakata | 134 | Patgram | Mekliganj | 7.81 | | 74. | Banskata | 119 | Patgram | Mathabanga | 413.81 | | 75. | Banskata | 120 | Patgram | Mathabanga | 30.75 | | 76. | Banskata | 121 | Patgram | Mathabanga | 12.15 | | 77. | Banskata | 113 | Patgram | Mathabanga | 57.86 | | 78. | Banskata | 112 | Patgram | Mathabanga | 315.04 | | 79. | Banskata | 114 | Patgram | Mathabanga | 0.77 | | 1 | 2 | 3 | 4 | 5 | 6 | |---------------|----------------|---------|--------------|------------|------------| | 80. | Banskata | 115 | Patgram | Mathabanga | 29.2 | | 81. | Banskata | 122 | Patgram | Mathabanga | 33.22 | | 82. | Banskata | 127 | Patgram | Mathabanga | 12.72 | | 83. | Banskata | 128 | Patgram | Mathabanga | 2.33 | | 84. | Banskata | 117 | Patgram | Mathabanga | 2.55 | | 85. | Banskata | 118 | Patgram | Mathabanga | 30.98 | | 86. | Banskata | 125 | Patgram | Mathabanga | 0.64 | | 87. | Banskata | 126 | Patgram | Mathabanga | 1.39 | | 88. | Banskata | 129 | Patgram | Mathabanga | 1.37 | | 89. | Banskata | 116 | Patgram | Mathabanga | 16.96 | | 90. | Banskata | 123 | Patgram | Mathabanga | 24.37 | | 91. | Banskata | 124 | Patgram | Mathabanga | 0.28 | | 92. | Gotamari Chhit | 135 | Hatibandha | Sitalkuchi | 126.59 | | 93. | Gotamari Chhit | 136 | Hatibandha | Sitalkuchi | 20.02 | | 94. | Banapachai | 151 | Lalmonirhat | Dinhata | 217.29 | | 152 | Lalmonirhat | Dinhata | 81.71 | 95. | | | Banapachai | | | | | | | Bhitarkuthi | | | | | | | 96. | Dasiar Chhara | 150 | Fulbari | Dinhata | 1643.44 | | 156 | Kurigram | Dinhata | 14.27 | 97. | | | Dakurhat- | | | | | | | Dakinirkuthi | | | | | | | 98. | Kalamati | 141 | Bhurungamari | Dinhata | 21.21 | | 99. | Bhahobganj | 153 | Bhurungamari | Dinhata | 31.58 | | 100. | Baotikursa | 142 | Bhurungamari | Dinhata | 45.63 | | 101. | Bara Coachulka | 143 | Bhurungamari | Dinhata | 39.99 | | 102. | Gaochulka II | 147 | Bhurungamari | Dinhata | 0.9 | | 103. | Gaochulka I | 146 | Bhurungamari | Dinhata | 8.92 | | 104. | Dighaltari II | 145 | Bhurungamari | Dinhata | 8.81 | | 105. | Dighaltari I | 144 | Bhurungamari | Dinhata | 12.31 | | 149 | Bhurungamari | Dinhata | 17.85 | 106. | | | Chhoto | | | | | | | Garaljhora II | | | | | | | 1 | 2 | 3 | 4 | 5 | 6 | |------------------|--------------|-------------|-------|------|------------| | 148 | Bhurungamari | Dinhata | 35.74 | 107 | Chhoto | | Garaljhora I | | | | | | | | Patgram | Mathabhanga | 3.5 | 108 | | | 1 chhit | | | | | | |  | | | | | | | without | | | | | | | name & JL No. | | | | | | | at the southern | | | | | | | and of JL No. 38 | | | | | | | & southern and | | | | | | | of JL No. 39 | | | | | | | (locally known | | | | | | | as Ashokabari | | | | | | |  | | | | | | | * | | | | | | | ) | | | | | | ## Enclaves With Fragmented Chhits | 109. | (i) Bewladanga | 34 | Haldibari | Boda | 862.46 | |-------------|-------------------|-----------|--------------|----------|-----------| | | (ii) Bewladanga | Fragment | Haldibari | Debiganj | | | 110. | (i) Kotbhajni | 2 | Haldibari | Debiganj | 2012.27 | | | (ii) Kotbhajni | Fragment | Haldibari | Debiganj | | | | (iii) Kotbhajni | Fragment | Haldibari | Debiganj | | | | (iv) Kotbhajni | Fragment | Haldibari | Debiganj | | | 111. | (i) Dahala | Khagrabri | Haldibari | Debiganj | 2650.35 | | | (ii) Dahala | Fragment | Haldibari | Debiganj | | | | (iii) Dahala | Fragment | Haldibari | Debiganj | | | | | | | | | | (iv) Dahala | Fragment | Haldibari | Debiganj | | | | | | | | | | ______________________________________________  Corrected *vide* 150th (54th) India-Bangladesh Boundary Conference held at Kolkata from 29th September to 2nd October, 2002. * Corrected *vide* 152nd (56th) India-Bangladesh Boundary Conference held at Kochbihar, India from 18th—20th September, 2003. | 1 | 2 | 3 | 4 | 5 | 6 | |------|-------------|----------|-----------|----------|----------| | | (v) Dahala | Fragment | Haldibari | Debiganj | | | | (vi) Dahala | Fragment | Haldibari | Debiganj | | | | | | | 17160.63 | | The above given details of enclaves have been jointly compared and reconciled with records held by India and Bangladesh during the Indo- Bangladesh Conference held at Calcutta during 9th—12th October, 1996 as well as during joint field inspection at Jalpaiguri (West Bengal) Panchagarh (Bangladesh) sector during 21—24 November, 1996. Note: Name of enclave in Sl. No. 108 above has been identified as Ashokabari by joint ground verification during field season 1996-97. Md. Shafi Uddin Director-General, Land Records and Surveys, Bangladesh. Brig. J.R. Peter Director Land Records & Survey (*Ex-Officio*) West Bengal, India & Director, Eastern Circle Survey of India, Calcutta. ## B. Exchangeable Bangladesh Enclaves In India With Area Sl. No. J.L. No. Name of Chhits Lying within Police station W. Bengal Lying within Police station Bangladesh Area in acres 1 2 3 4 5 6 A. Enclaves with independent chhits 1. Chhit Kuchlibari Mekliganj Patgram 22 370.64 Mekliganj Patgram 24 1.83 2. Chhit Land of Kuchlibari 3. Balapukhari Mekliganj Patgram 21 331.64 Mekliganj Patgram 20 1.13 4. Chhit Land of Panbari No. 2 | 1 | 2 | 3 | 4 | 5 | 6 | |------------------|---------------------|-------------|------------|------|---------------| | 5. | Chhit Panbari | Mekliganj | Patgram | 18 | 108.59 | | 6. | Dhabalsati Mirgipur | Mekliganj | Patgram | 15 | 173.88 | | 7. | Bamandal | Mekliganj | Patgram | 11 | 2.24 | | 8. | Chhit Dhabalsati | Mekliganj | Patgram | 14 | 66.58 | | 9. | Dhabalsati | Mekliganj | Patgram | 13 | 60.45 | | 10. | Srirampur | Mekliganj | Patgram | 8 | 1.05 | | 11. | Jote Nijjama | Mekliganj | Patgram | 3 | 87.54 | | Mathabhanga | Patgram | 37 | 69.84 | 12 | Chhit Land of | | Jagatber No. 3 | | | | | | | Mathabhanga | Patgram | 35 | 30.66 | 13 | Chhit Land of | | Jagatber No.1 | | | | | | | Mathabhanga | Patgram | 36 | 27.09 | 14 | Chhit Land of | | Jagatber No. 2 | | | | | | | 15. | Chhit Kokoabari | Mathabhanga | Patgram | 47 | 29.49 | | 16. | Chhit Bhandardaha | Mathabhanga | Patgram | 67 | 39.96 | | 17. | Dhabalguri | Mathabhanga | Patgram | 52 | 12.5 | | 18. | Chhit Dhabalguri | Mathabhanga | Patgram | 53 | 22.31 | | Mathabhanga | Patgram | 70 | 1.33 | 19 | Chhit Land of | | Dhabalguri No. 3 | | | | | | | Mathabhanga | Patgram | 71 | 4.55 | 20 | Chhit Land of | | Dhabalguri No. 4 | | | | | | | Mathabhanga | Patgram | 72 | 4.12 | 21 | Chhit Land of | | Dhabalguri No. 5 | | | | | | | Mathabhanga | Patgram | 68 | 26.83 | 22 | Chhit Land of | | Dhabalguri No. 1 | | | | | | | Mathabhanga | Patgram | 69 | 13.95 | 23 | Chhit Land of | | Dhabalguri No. 2 | | | | | | | 24. | Mahishmari | Sitalkuchi | Patgram | 54 | 122.77 | | 25. | Bura Saradubi | Sitalkuchi | Hatibandha | 13 | 34.96 | | 1 | 2 | 3 | 4 | 5 | 6 | |------------|-------------------|------------|--------------|------|-----------------| | 26. | Falnapur | Sitalkuchi | Patgram | 64 | 505.56 | | 27. | Amjhol | Sitalkuchi | Hatibandha | 57 | 1.25 | | 28. | Kismat Batrigachh | Dinhata | Kaliganj | 82 | 209.95 | | 29. | Durgapur | Dinhata | Kaliganj | 83 | 20.96 | | Dinhata | Lalmonirhat | 1 | 24.54 | 30 | Bansua Khamar | | Gitaldaha | | | | | | | 31. | Poaturkuthi | Dinhata | Lalmonirhat | 37 | 589.94 | | Dinhata | Bhurungamari | 38 | 151.98 | 32 | Paschim Bakalir | | Chhara | | | | | | | Dinhata | Bhurungamari | 39 | 32.72 | 33 | Madhya Bakalir | | Chhara | | | | | | | Dinhata | Bhurungamari | 40 | 12.23 | 34 | Purba Bakalir | | Chhara | | | | | | | 35. | Madhya Masaldanga | Dinhata | Bhurungamari | 3 | 136.66 | | Dinhata | Bhurungamari | 8 | 11.87 | 36 | Madhya Chhit | | Masaldanga | | | | | | | Dinhata | Bhurungamari | 7 | 7.6 | 37 | Paschim Chhit | | Masaldanga | | | | | | | 38. | Uttar Masaldanga | Dinhata | Bhurungamari | 2 | 27.29 | | 39. | Kachua | Dinhata | Bhurungamari | 5 | 119.74 | | 40. | Uttar Bansjani | Tufanganj | Bhurungamari | 1 | 47.17 | | 41. | Chhat Tilai | Tufanganj | Bhurungamari | 17 | 81.56 | ## B. *Enclaves With Fragmented Chhits* | 42. | (i) Nalgram | Sitalkuchi | Patgarm | 65 | 1397.34 | |------------|----------------|---------------|------------|-------|---------------| | Sitalkuchi | Patgarm | 65 | | | (ii) Nalgram | | (Fragment) | | | | | | | Sitalkuchi | Patgarm | 65 | | | (iii) Nalgram | | (Fragment) | | | | | | | | | | | | | | 1 | 2 | 3 | 4 | 5 | 6 | |-------------------------|-----------------------|------------|----------|------|------------------------| | 43. | (i) Chhit Nalgram | Sitalkuchi | Patgarm | 66 | 49.5 | | Sitalkuchi | Patgarm | 66 | | | (ii) Chhit Nalgram | | (Fragment) | | | | | | | 44. | (i) Batrigachh | Dinhata | Kaliganj | 81 | 577.37 | | Dinhata | Kaliganj | 81 | | | (ii) Batrigachh | | (Fragment) | | | | | | | Dinhata | Phulbari | 9 | | | (iii) Batrigachh | | (Fragment) | | | | | | | 45. | (i) Karala | Dinhata | Phulbari | 9 | 269.91 | | | | | | | | | (ii) Karala (fragment) | | | | | | | Dinhata | Phulbari | 9 | | | | | | | | | | | | (iii) Karala (fragment) | | | | | | | Dinhata | Phulbari | 8 | | | | | 46. | (i) Sipprasad Mustati | Dinhata | Phulbari | 8 | 373.2 | | Dinhata | Phulbari | 6 | | | (ii) Sipprasad Mustati | | (Fragment) | | | | | | | Dinhata | Bhurungamari | 6 | 571.38 | 47. | (i) Dakshin | | Masaldanga | | | | | | | Dinhata | Bhurungamari | 6 | | | (ii) Dakshin | | Masaldanga | | | | | | | (Fragment) | | | | | | | Dinhata | Bhurungamari | 6 | | | (iii) Dakshin | | Masaldanga | | | | | | | (Fragment) | | | | | | | Dinhata | Bhurungamari | 6 | | | (iv) Dakshin | | Masaldanga | | | | | | | (Fragment) | | | | | | | Dinhata | Bhurungamari | 6 | | | (v) Dakshin | | Masaldanga | | | | | | | (Fragment) | | | | | | | Dinhata | Bhurungamari | 6 | | | (vi) Dakshin | | Masaldanga | | | | | | | (Fragment) | | | | | | | 1 | 2 | 3 | 4 | 5 | 6 | |-----------------------|----------------------|-----------|--------------|----------|-----------------------| | Dinhata | Bhurungamari | 4 | 29.49 | 48. | (i) Paschim | | Masaldanga | | | | | | | Dinhata | Bhurungamari | 4 | | | (ii) Paschim | | Masaldanga (Fragment) | | | | | | | Dinhata | Bhurungamari | 10 | 35.01 | 49. | (i) Purba Chhit | | Masaldanga | | | | | | | Dinhata | Bhurungamari | 10 | | | (ii) Purba Chhit | | Masaldanga (Fragment) | | | | | | | 50. | (i) Purba Masaldanga | Dinhata | Bhurungamari | 11 | 153.89 | | Dinhata | Bhurungamari | 11 | | | (ii) Purba Masaldanga | | (Fragment) | | | | | | | 51. | (i) Uttar Dhaldanga | Tufanganj | Bhurungamari | 14 | 24.98 | | Tufanganj | Bhurungamari | 14 | | | | | (ii) Uttar Dhaldanga | | | | | | | (Fragment) | | | | | | | Tufanganj | Bhurungamari | 14 | | | | | (iii) Uttar Dhaldanga | | | | | | | (Fragment) | | | | | | | | Total Area | | | 7,110.02 | | The above given details of enclaves have been jointly compared and reconciled with records held by India and Bangladesh during the Indo- Bangladesh Conference held at Calcutta during 9th—12th October, 1996 as well as during joint field inspection at Jalpaiguri (West Bengal) - Panchagarh (Bangladesh) sector during 21—24 November, 1996. Md. Shafi Uddin Director General, Land Records and Surveys, Bangladesh. Brig. J.R. Peter Director Land Records & Survey (Ex officio) West Bengal, India & Director, Eastern Circle Survey of India, Calcutta. # Appendix Ii 1The Constitution (Application To Jammu And Kashmir) Order, 2019 C.O. 272 In exercise of the powers conferred by clause (1) of article 370 of the Constitution, the President, with the concurrence of the Government of State of Jammu and Kashmir, is pleased to make the following Order:— 1. (1) This Order may be called the Constitution (Application to Jammu and Kashmir) Order, 2019. (2) It shall come into force at once, and shall thereupon supersede the Constitution (Application to Jammu and Kashmir) Order, 1954 as amended from time to time. 2. All the provisions of the Constitution, as amended from time to time, shall apply in relation to the State of Jammu and Kashmir and the exceptions and modifications subject to which they shall so apply shall be as follows:– To article 367, there shall be added the following clause, namely:― "(4) For the purposes of this Constitution as it applies in relation to the State of Jammu and Kashmir– (a) references to this Constitution or to the provisions thereof shall be construed as references to the Constitution or the provisions thereof as applied in relation to the said State; (b) references to the person for the time being recognized by the President on the recommendation of the Legislative Assembly of the State as the Sadar-i-Riyasat of Jammu and Kashmir, acting on the advice of the Council of Ministers of the State for the time being in office, shall be construed as references to the Governor of Jammu and Kashmir; (c) references to the Government of the said State shall be construed as including references to the Governor of Jammu and Kashmir acting on the advice of his Council of Ministers; and (d) in proviso to clause (3) of article 370 of this Constitution, the expression "Constituent Assembly of the State referred to in clause (2)" shall read "Legislative Assembly of the State"." ______________________________________________ ## Appendix Iii # 1Declration Under Article 370(3) Of The Constitution ## C.O. 273 In exercise of the powers conferred by clause (3) of article 370 read with clause (1) of article 370 of the Constitution of India, the President, on the recommendation of Parliament, is pleased to declare that, as from the 6th August, 2019, all clauses of the said article 370 shall cease to be operative except the following which shall read as under, namely :— "370. All provisions of this Constitution, as amended from time to time, without any modifications or exceptions, shall apply to the State of Jammu and Kashmir notwithstanding anything contrary contained in article 152 or article 308 or any other article of this Constitution or any other provision of the Constitution of Jammu and Kashmir or any law, document, judgement, ordinance, order, by-law, rule, regulation, notification, custom or usage having the force of law in the territory of India, or any other instrument, treaty or agreement as envisaged under article 363 or otherwise.". ______________________________________________
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## Demand For Grants 2017-18 Analysis Human Resource Development The Ministry of Human Resource Development consists of two departments: (i) school education and literacy, and (ii) higher education. In 2017-18, the Ministry has been allocated Rs 79,686 crore, the fourth highest allocation among all Ministries. This note presents the trends in expenditure, and discusses some of the issues related to the education sector. The Department of School Education and Literacy under the Ministry is broadly responsible for education imparted between the ages of 6 to 18 years, i.e., school education.  Elementary education is a fundamental right imparted up to class 8 for children between 6- 14 years of age. The government is mandated to provide elementary education to all children under the Right to Education (RTE) Act, 2009.  Secondary education is imparted between classes 9 to 12 for children between 14-18 years of age. In 2017-18, the Department has been allocated Rs 46,356 crore, accounting for 58% of the Ministry's total allocation. The Department of Higher Education is responsible for higher education, technical education and training, etc., for students between 18-24 years of age.  Higher education qualifies as at least nine months of education, after the completion of 12 years of schooling or equivalent. In 2017-18, the Department has been allocated Rs 33,330 crore, accounting for 42% of the Ministry's total allocation. ## Overview Of Finances1 Budget Estimates 2017-18 The Ministry has been allocated Rs 79,686 crore in 2017-18. This has been an 8% increase over the revised estimate of 2016-17. The allocation constitutes 3.7% of the central government's estimated expenditure for 2017-18. Expenditure on education by the centre and the states as a proportion of the Gross Domestic Product (GDP) has been around 3% during between 2008-09 and 2014-15.2 The Committee constituted to examine the New Education Policy has proposed 6% of GDP as the minimum expenditure on education.3 Within the Ministry, 58% of the total allocation is to the Department of School Education and Nivedita Rao [email protected] February 28, 2017 3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi - 110002 Tel: (011) 2323 4801-02, 4343 4035-36 www.prsindia.org Literacy and 42% is to the Department of Higher Education. Table 1 provides the budget related figures for the Ministry. For further details on the budgetary allocations, refer to the Annexure. % Department Actuals 2015- RE 2016- BE 2017- 16 17 18 change (RE to BE) 41,800 43,896 46,356 5.6% School Education & Literacy Higher Education 25,439 29,703 33,330 12.2% Total 67,239 73,599 79,686 8% Note: BE - Budget Estimate; RE - Revised Estimates. Sources: Demand for Grants, Ministry of Human Resource Development, Union Budget 2017-18, PRS Figure 1 depicts the major heads under which the Ministry spends its funds (as a percentage of its total allocation). Note: The category 'Others' includes other schemes and programmes under the Ministry which have an allocation of less than 2% of the total expenditure. Sources: Expenditure Budget, Vol. 2, Ministry of Human Resource Development, 2017-18; PRS. ## Department Of School Education And Literacy In 2017-18, the Department of School Education and Literacy has been allocated Rs 46,356 crore, a 5.6% increase over the revised estimates of 2016- 17.4 In 2016-17, it was budgeted to spend Rs 43,554 crore. Note that the budget estimate for 2017-18 exceeds the estimates of 2016-17 by Rs 2,802 crore. Sources: Union Budgets, 2008-17; PRS. In the past 10 years, the highest allocation was given in 2014-15 which Rs 55,115 crore. Note that in 2015-16, the allocation was reduced by 25%. This may be on account of a greater devolution of funds to the states in pursuance of the recommendations of the 14th Finance Commission. Year Budget estimate Actuals Actuals/BE (%) 2015-16 42,220 41,800 99% 2014-15 55,115 45,722 83% 2013-14 52,701 46,856 89% Sources: Union Budgets, 2015-17; PRS. Table 2 indicates the actual allocation of the Department compared with the budget estimates of that year. The utilisation has been over 80% of the budget estimates as seen in the table. Table 3 presents details of the Department's allocation in 2017-18. % RE 2016- BE 2017- Major Head Actuals 2015-16 17 18 change (RE to BE) SSA 21,661 22,500 23,500 4.4% Mid-day Meal Scheme 9,145 9,700 10,000 3.1% Autonomous Bodies 5,839 6,903 7,302 5.8% RMSA 3,563 3,700 3,830 3.5% Scholarships 281 85 602 611.2% Others 7,150 1,009 1,122 11.3% Total 41,800 43,896 46,356 5.6% Note: BE - Budget Estimate; RE - Revised Estimates. Sources: Expenditure Budget, Ministry of Human Resource Development, Union Budget 2017-18; PRS.  Allocation to Sarva Shiksha Abhiyan (SSA) in 2017-18 was increased by 4.4% (as compared with revised estimates of 2016-17) to Rs 23,500 crore. Expenditure on Mid-Day Meal Scheme (MDMS) also increased by about 3% from the revised estimates of 2016-17.  Scholarships increased by 611% in 2017-18 to a total allocation of Rs 602 crore from revised estimates of Rs 85 crore. Figure 3 provides the major heads of financial allocation under this Department for 2017-18. In 2017-18, expenditure on centrally sponsored schemes (SSA, MDMS, and RMSA) constitute 81% of the estimated spending of the Department of School Education and Literacy. Sources: Expenditure Budget, Ministry of Human Resource Development, Union Budget, 2017-18; PRS.  Sarva Shiksha Abhiyan (SSA): SSA has been implemented since 2000 to universalise elementary education and promote retention of children in the school system. After the RTE Act, 2009 was enacted, SSA was subsumed under it. RTE guarantees the right to free and compulsory elementary education for children between the ages of 6 and14 years in a neighbourhood school.5 Note that in 2016, Padhe Bharat Badhe Bharat was launched under SSA mainly to (i) improve language through early reading and writing with comprehension, and (ii) learn mathematics. It has been observed that there exists a wide gap between demand and actual allocation for the SSA and RTE.6 For example, the BE for 2016-17 was Rs 22,500 crore as against the Department's request for Rs 55,000 crore. Further, Standing Committees have recommended increased funding for the SSA and sufficient allocations for states requiring additional resources.7,8  Mid-Day Meal Scheme (MDMS): The MDMS targets children in the same age group as covered by the SSA (6 to 14 years). In addition to promoting enrolment, retention and attendance by incentivising the children to come to school for meals, the scheme also aims to improve nutritional levels among children. It covers children in government and government-aided schools. Committees have consistently highlighted low utilisation and lifting of food grains by states. On average, less than 50% of the allotted food grains have been lifted by the states.16 The Committee also notes an infrastructural shortfall for the implementation of MDMS which needs to be addressed. For example, lack of pucca buildings and separate toilet facilities for boys and girls. Note that in the case of MDMS, there are no pending UCs.9  Rashtriya Madhyamik Shiksha Abhiyan (RMSA): The RMSA is aimed at secondary education (classes 9-12). Its aims include achieving universal access to secondary education by 2017 and universal retention by 2020.10 Following a Joint Review Mission by the government and the development partners of RMSA, it was discovered that RMSA has reached a stage where an outcome orientation is needed to bring in learner achievement as a major goal of RMSA.11 This was also to bring RMSA in step with SSA and ensure 100% transition of every child from the upper primary to secondary stage. Note that under the RMSA Scheme, during 2015-16, an amount of Rs 3,562 crore out of a budgeted amount of Rs 3,565 crore was utilised, which comes to 99.9% utilisation. ## Financial Allocations To Outcomes  Enrolment, Transition And Dropout Rates Enrolment: The GER is calculated as a percentage of total number of students enrolled in a level of education (school education in this case) divided by the total population within the relevant age group. The GER at primary level is 100.1 % which has come down from 114% in 2008-09.12 This signifies a more age appropriate enrolment as a GER above 100% signifies that children not of the requisite age were also being enrolled. Note that the GER at the upper primary (91.2%), secondary (78.5%) and senior secondary (54.2 %) level has increased over a five-year period (2008- 09 to 2014-15). However, except for primary education, India's enrolment rate lags behind internationally when compared with countries like China, Russia, UK, Germany and USA.12 Note that the GER for secondary (78.5%) and senior secondary (54.2 %) level has increased over the last five-year period (2008-09 to 2014-15) but hasn't met the RMSA targets.13 Sources: Education statistics at a glance, Ministry of Human Resource Development, 2016; PRS. Transition: Transition is measured as the rate of transfer of students from one class or one level of education to the class or level above. According to the Ministry, transition rates of students are high in the lower levels of education such as elementary and secondary. The transition of students from class 8 to 9 (elementary to secondary) is the highest (92%), followed by the transition from class 5 to 6 (primary to upper primary) at 90%. However, the transition rate for higher levels, i.e. senior secondary and higher are lower in compassion. The transition rate from class 10 to 11 (secondary to senior secondary) lags behind at 67%.12 Consequently, relatively fewer students reach class 11 which is seen in the GER in senior secondary level (class 11 and 12), being the lowest within school education. One of the factors affecting transition rates may be that under the RTE, education is provided only until class eight i.e. till upper primary level. There is no legislation which mandates free and compulsory secondary education. Further, with regard to access to secondary school, for every three upper primary schools there is one secondary school.12 According to RMSA statistics, four states where the ratio of upper primary school to secondary school is a cause of concern are Uttar Pradesh, Bihar, Jharkhand and Meghalaya.14 students dis-enrolling from school in a year. Figure 5 depicts the dropout levels in school education (primary and secondary). Sources: Education statistics at a glance, Ministry of Human The highest dropout rate is at 18% at the secondary level of school education. Consequently, relatively fewer students reach class 11 which is seen in the GER in senior secondary level (class 11 and 12), being the lowest under school education. ##  Teacher Related Issues Many committees over the years have highlighted teacher vacancies as a significant issue in elementary education.3,15,8 Against a total of 19.14 lakh teacher positions sanctioned under SSA in 2011-12, only 12.01 lakh were recruited. Further, approximately 4.5 lakh untrained teachers are operating in 19 states, as on February 2015. Teacher training institutes such as DIETs are also experiencing many teacher vacancies.15 It has also been observed that there are a large number of teacher vacancies under SSA, which adversely affects the implementation of the scheme.16 It has also been noted that the presence of para/temporary teachers instead of permanent teachers contributes to the deterioration of quality of education. The Central Advisory Board of Education Committee commented that to ensure quality secondary education, para/temporary and contract teachers must be done away with. Instead, fully qualified teachers with a complete salary and benefits must be hired.17 It has been recommended that appropriate professional development programmes for teachers be designed after carrying out formal training needs assessment of teachers. Further, in classrooms, there is a need to introduce differentiated teaching that caters to multi-level learning environments.17 In the implementation of MDMS, it has been observed that the scheme has diverted the attention of teachers and students on activities related to it, rather than towards teaching and learning activities. It has been recommended that teachers should not be burdened with the task of supervising cooking and serving of mid-day meals.3 ##  Learning Outcomes In School Education The Economic Survey 2015-16 pointed out that the percentage of standard five students in government schools who are able to read a class two text has declined from 56.7% from 2007 to 42.2% in 2014. The corresponding decline in private schools is from 69% to 62.5%.18 The National Achievement Survey in 2015 for class five has also revealed that performance of students, on an average, had gone down from the previous round of the survey conducted in 2014.19 Standing Committees have recommended reconsidering the automatic promotion of students till standard eight ( no detention policy), as this may prevent a child from working hard or eliminate motivation.20 In 2016, it was recommended that the policy of no detention should be upheld only till class five (age 11 years).3 This would reverse the existing policy of no detention till class eight (age 14 years). Further, it was suggested that students should be given the choice to pick the difficulty level of the Mathematics and Science exams in class 10. In light of the learning outcomes, The Ministry and NITI Aayog are jointly working on a School Education Quality Index with the goal of institutionalising a focus on improving education outcomes at the State/UT level.21 ## Department Of Higher Education The Department of Higher Education has been allocated Rs 33,330 crore in 2017-18, a 12.2% increase over the revised estimate of 2016-17. Note that it has seen an increase of Rs 4,490 crore over the budget estimates of 2016-17. Figure 6 depicts the allocation to the Department of Higher Education since 2006-07. Between 2010-16, there has been an increase in the central budgetary allocation to higher education. Note: Revised estimates have been used for 2016-17 and budget Sources: Union Budgets, 2006-17; PRS. the actual expenditure (2013-16) (in Rs crore) Year Budget Estimate Actuals Actuals/BE (%) 2015-16 26,855 25,439 95% 2014-15 27,656 23,152 84% 2013-14 26,750 24,465 91% Note: BE - Budget Estimate. Sources: Union Budgets, 2015-17; PRS. % Actuals RE BE Major Head 2015- 2016- 2017- change (RE to 16 17 18 BE) IITs 4,365 5,389 7,856 45.8% NITs 2,513 2,875 3,440 19.7% Student Financial Aid 2,177 2,136 2,380 11.4% RUSA 1,037 1,300 1,300 0.0% IIMs 464 858 1,030 20.1% IISERs 650 780 650 -16.7% Digital India-elearning 304 517 497 -3.8% AICTE 468 481 485 0.8% IIITs 208 229 379 66.1% Grand Total 25,439 29,703 33,330 12.2% Sources: Expenditure Budget, Vol. 2, Ministry of Human Resource Development, Union Budget 2017-18; PRS.  Expenditure on Digital India e-learning has been estimated at Rs 497 crore, which is down by 3.8% over the revised estimates of 2016-17.  The allocation for Indian Institutes of Technology (IITs) has been estimated at Rs 7,856 crore in 2017-18, National Institutes of Technology (NITs) at Rs 3,440 crore and Indian Institutes of Management (IIMs) at Rs 1,030 crore.  The funding allocation for Rashtriya Uchchtar Shiksha Abhiyan (RUSA) has remained the same this year at Rs 1,300 crore (from the 2016-17 budget allocation) and has seen no change in its allocation.  It has been observed that there has been underutilisation of funds by central and state universities, including unspent balances lying with central universities.6 Committees have stressed on the need to curb delays on the part of the UGC and the MHRD in disbursing budgetary allocations to the various universities of higher education.22  Committees have noted that such a consistent trend of unspent balances is leading to lower allocations against the MHRD's demands for funds, resulting in a 'vicious circle'.23 For example, Rs 689 crore was left unspent with the autonomous bodies which get one of the highest allocations under higher education in 2016.24 This leads to a significant gap between the proposed demand and the allocation of budget to MHRD as well.25 Figure 7 below provides the major heads of financial allocation under the Department for the year 2017-18. Sources: Expenditure Budget, Ministry of Human Resource Development, Union Budget, 2017-18; PRS. ## Issues In The Higher Education Sector  Enrolment Levels In India, GER in higher education has more than doubled over a period of 11 years, going from 9% in 2002-03 to 24% in 2014-15.26 A GER of 24% implies that roughly 24% of people who should be enrolled in universities (as per the target age-group of 18-23 years) are actually enrolled. The GER for higher education in India is fairly low compared to other countries such as the UK and USA, as seen in Figure 9 below. ##  Regulatory Issues In Higher Education Indian higher education is regulated by a multiplicity of regulatory agencies, with overlapping mandates. These bodies are the University Grants Commission (UGC), All India Council for Technical Education (AICTE) and the various professional councils. Citing overregulation and under governance, various committees have highlighted the need for an overarching regulatory body by subsuming the multiple existing regulatory bodies.27,28 Such a body would be responsible for monitoring standards and licensing accreditation bodies. Recently, the TSR Subramanian Committee report (2016) on the New Education Policy also recommended bringing in the National Higher Education Promotion and Management Act which would replace the existing separate laws governing individual regulators in higher education.3 In the Union Budget of 2017-18, the Finance Minister mentioned that reforms would be undertaken concerning the functioning of UGC.29 ##  Quality Standards In Higher Education There are two accrediting institutions in higher education– namely National Board of Accreditation (NBA) established by AICTE, and the National Assessment and Accreditation Council (NAAC) established by UGC. Currently, in terms of the quality of universities, out of 759 universities, only three universities have been given an 'A+', the highest grade and 74 universities have been given an 'A' grade by the NAAC.30 Accreditation is used to determine eligibility for grants of different kinds. However, there is a need to reorient the purpose of accreditation, as one involving assessment of quality of the institution.3 A National Accreditation Board could be set up subsuming the NAAC and the NBA. This Board will provide oversight, define methodology, undertake research on accreditation and set the standards to be followed. Note that India Rankings 2016 was conducted for the first time in 2016. More than 3,500 institutions participated in the exercise and ranks were released in four categories of institutions: universities, engineering, management and pharmacy.31 ##  Fee Structure In Higher Education It has been observed that many private institutions of higher education charge exorbitant fees. In the absence of well-defined norms, fees charged by such universities have remained high.32 UGC regulates fees for courses offered in deemed universities, to an extent. They state that the fees charged shall be directly linked to the cost of running the course and the institution shall ensure non-commercialisation of education. In 2002, the Supreme Court ruled that the fees charged by private unaided educational institutes could be regulated.33 Also, while banning capitation fee (fees exceeding the tuition fee), it allowed institutes to charge a reasonable surplus. ##  Profit Motive And Private Investment In Higher Education Committee recommendations have not encouraged for-profit private educational institutions.27 However, it has been recommended that it is essential to stimulate private investment in higher education to extend educational opportunities and private intervention would be key in bridging the gap in investment from the government in the education sector. Note that in 2016, a scheme to establish 20 Indian Institutes of Information 1 Demand for Grants, Ministry of Human Resource Development, Union Budget, 2017-18. 2 Economic Survey, 2013-14, Ministry of Finance, http://indiabudget.nic.in/es2015-16/echapter-vol2.pdf. 3 "Report of the Committee for Evolution of the New Education Policy", Ministry of Human Resource Development, April 30, 2016, http://www.nuepa.org/New/download/NEP2016/ReportNEP.pdf 4 Expenditure Budget, Vol. 2, Union Budget 2017-18. 5 The Right of Children to Free and Compulsory Education (RTE) Act, 2009. 6 "280th Report: Demands for Grants 2016-17 (Demand No. 51) of the Department of School Education & Literacy", Standing Committee on Human Resource Development, April 27, 2016 7 "250th Report: Action Taken Report on 244th Report on Demands for Grants 2012-13", Department of School Education and Literacy, Standing Committee on Human Resource Development, February 26, 2013. 8 "255th Report: Action Taken Report on 250th Report on Demands for Grants 2016-17", Department of School Education and Literacy, Standing Committee on Human Resource Development, December 16, 2016. 9 Outcome Budget, 2016-17, Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/documentreports/Outcome_16-17.pdf 10 Rashtriya Madhyamik Shiksha Abhiyan, Ministry of Human Resource Development, http://rmsaindia.gov.in/en/component/rmsastates/?view=rmsasta tes&Itemid=130&id=india 11 Fourth Joint Review Mission, Rashtriya Madhyamik Shiksha Abhiyan, 2014, http://mhrd.gov.in/sites/upload_files/mhrd/files/upload_docume nt/4th%20JRM%20AM%202014%2008%2023%20FINAL%20 _2_.pdf 12 Education statistics at a glance, Ministry of Human Resource Development, 2016, http://mhrd.gov.in/sites/upload_files/mhrd/files/statistics/ESG20 16_0.pdf 13 "School Education in India, Flash Statistics", U-DISE 2014- 15, Ministry of Human Resource Development, http://www.dise.in/Downloads/Publications/Documents/U- DISE-SchoolEducationInIndia-2014-15.pdf. 14 Trends under RMSA, Rashtriya Madhyamik Shiksha Abhiyan, http://rmsaindia.gov.in/images/Trends_and_Indicators_under_R MSA.pdf 15 "253rd Report: Demands for Grants 2013-14, Demand No. 57", Department of School Education and Literacy, Standing Committee on Human Resource Development, April 26, 2013. 16 "283rd Report: The Implementation of Sarva Shiksha Abhiyan and Mid-Day-Meal Scheme', Department of School Education and Literacy, Standing Committee on Human Resource Development, December 15, 2016. 17 "Report of the CABE Committee on Girls' education and common school system", Ministry of Human Resource Development, 2005, http://mhrd.gov.in/sites/upload_files/mhrd/files/documentreports/Girls%20Education.pdf 18 Economic Survey 2015-16, Ministry of Finance, http://indiabudget.nic.in/budget2016-2017/es2014-15/echaptervol2.pdf 19 National Achievement Survey, Class V (Cycle 3) Subject Wise Reports, Technology (IIITs), on a not-for-profit Public Private Partnership basis was approved. http://www.ncert.nic.in/departments/nie/esd/pdf/NationalReport _subjectwise.pdf 20 "Report of CABE Sub Committee on Assessment on implementation of CCE and no detention provision", Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/document- reports/AssmntCCE.pdf 21 Unstarred Question no. 3218, Ministry of Human Resource Development, Lok Sabha, December 5, 2016. 22 Economic Survey 2015-16, Ministry of Finance, http://indiabudget.nic.in/budget2016-2017/es2014-15/echapter- vol2.pdf 23 "Demands for Grants 2013-14 (Demand No. 58) of the Department of Higher Education, Standing Committee on Human Resource Development, May 3, 2013, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/256.pdf. 24 "279th Report: Demands for Grants 2016-17 (Demand No. 52) of the Department of Higher Education", Standing Committee on Human Resource Development, April 27, 2016. 25 Outcome budget, 2016-17, Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/document- reports/Outcome_16-17.pdf , http://mhrd.gov.in/sites/upload_files/mhrd/files/document- reports/Outcome2016-17.pdf 26 All India Survey on Higher Education, 2014-15, Ministry of Human Resource and Development, Department of Higher Education, http://aishe.nic.in/aishe/viewDocument.action?documentId=206. 27 " Report of the Committee to Advise on Renovation and Rejuvenation of Higher Education", 2009, http://mhrd.gov.in/sites/upload_files/mhrd/files/document- reports/YPC-Report.pdf. 28 "Report to the Nation: 2006-2009", National Knowledge Commission, March 2009, http://www.aicte- india.org/downloads/nkc.pdf. 29 Budget Speech, 2017-18, Union Budget, http://indiabudget.nic.in/bspeecha.asp 30 Accreditation status, National Assessment and Accreditation Council, http://web5.kar.nic.in/naac_ec/NAAC_accreditlist_pdf.aspx. 31 Year End Review, 2016, Initiatives and Achievements of Ministry of Human Resource Development, December 30, 2017, Press Information Bureau. 32 "236th Report on the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010", Standing Committee on Human Resource Development, May 30, 2011. 33 TMA Pai Foundation vs. State of Karnataka & Ors [(1994)2SCC195]. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it. | | | % | % Change | |---------------------------------------------|---------|----------|-------------| | Budgeted | Change | Budgeted | BE ('17- | | Major Heads | | | | | Actuals | | | | | 2015-16 | 2016-17 | | | | Revised | | | | | 2016-17 | RE/BE | 2017-18 | 18)/RE('16- | | (2016-17) | 17) | | | | School Education and Literacy | 41,800 | 43,554 | 43,896 | | Scholarships | 281 | 80 | 85 | | Sarva Shiksha Abhiyan | 21,661 | 22,500 | 22,500 | | Rashtriya Madhyamik Shiksha Abhiyan | 3,563 | 3,700 | 3,700 | | Teachers Training and Adult Education | 916 | 830 | 751 | | National Programme of Mid Day Meal in | | | | | Schools | | | | | 9,145 | 9,700 | 9,700 | 0% | | Umbrella Program for Development of | | | | | Minorities | | | | | 296 | 120 | 120 | 0% | | Higher Education | 25,439 | 28,840 | 29,703 | | Student Financial Aid | 2,177 | 2,221 | 2,136 | | Digital India-e-learning | 304 | 552 | 517 | | National Institutional Ranking Framework | 5 | 5 | 0% | | Research and Innovation | 61 | 236 | 236 | | All India Council for Technical Education | 468 | 481 | 481 | | Indian Institutes of Technology | 4,365 | 4,984 | 5,389 | | Indian Institutes of Management | 464 | 730 | 858 | | National Institutes of Technology | 2,513 | 2,630 | 2,875 | | Indian Institute of Science, Education and | | | | | Research | | | | | 650 | 720 | 780 | 8% | | Indian Institutes of Information Technology | 208 | 268 | 229 | | Rashtriya Uchhatar Shiksha Abhiyan | 1,037 | 1,300 | 1,300 | | Total | 67,239 | 72,394 | 73,599 | Sources: Demand for Grants, Ministry of Human Resource Development, Union Budget, 2017-18; PRS. ## State Wise Indicators On School And Higher Education Senior Elementary Secondary State/UT Private schools Secondary PTR GPI Government schools (%) GER GER (Secondary) (%) GER Andaman & Nicobar Islands 16.91 83.1 98.82 86.64 73.96 15 0.95 Andhra Pradesh 27.55 71.61 93.79 84.28 - 19 1.03 Arunachal Pradesh 12.97 86.29 90 81.64 78.9 22 0.97 Assam 13.18 74.63 85.92 66.11 - 14 1.18 Bihar 5.04 88.66 98.23 73.37 - 57 1.14 Chandigarh 39.8 57.22 - - 87.09 14 1 Chhattisgarh 11.87 87.73 95.5 67.14 95.29 45 1.02 Dadra & Nagar Haveli 12.68 86.17 96.61 81.82 88.47 27 0.9 Daman & Diu 17.93 82.07 98.16 67.38 59.21 16 1.21 Delhi 50.86 49.14 - 78.38 72.53 28 1.01 Goa 42.47 57.52 99.42 78.62 84.64 25 0.92 Gujarat 33.43 66.56 96.91 74.31 92.64 34 0.81 Haryana 30.65 65.61 93.97 80.97 93.66 17 0.93 Himachal Pradesh 14.7 85.29 99.01 87.43 89.1 25 0.97 Jammu & Kashmir 18.07 81.93 93.38 80.08 86.06 15 0.94 Jharkhand 5.96 84.81 92.24 74.63 95.45 68 1.05 Karnataka 33.17 66.79 96.76 72.89 95.67 15 1.02 Senior Elementary Secondary State/UT Private schools Secondary PTR GPI Government schools (%) GER GER (Secondary) (%) GER Kerala 62.29 27.97 99.99 87.09 99.37 17 0.99 Lakshadweep 0 100 99.2 85.43 96.88 2 1.13 Madhya Pradesh 17.98 80.9 91.57 62.06 98.25 36 0.98 Maharashtra 36.62 62.83 98.49 86.3 97.75 22 0.95 Manipur 30.77 66.74 91.57 85.1 - 13 0.99 Meghalaya 45.11 53.57 87.28 70.29 - 13 1.18 Mizoram 32.16 67.74 91.31 69.64 91.49 9 1.01 Nagaland 25.65 74.35 92.89 72.74 87.71 19 1.06 Odisha 13.55 83.55 96.73 70.34 - 23 0.99 Puducherry 41.17 58.82 99.56 84.51 93.24 14 1.01 Punjab 25.16 70.83 96.76 88.52 93.48 17 0.99 Rajasthan 32.34 65.44 94.66 82.41 - 25 0.83 Sikkim 31.97 68.03 97.75 78.59 85.3 19 1.18 Tamil Nadu 33.34 66.35 - 91.41 96.12 21 1.04 Telangana 30.27 68.32 97.84 84.47 99.23 19 1.07 Tripura 6.91 89.23 97.62 51.05 86.62 33 1.01 Uttar Pradesh 34.82 63.54 92.87 88.3 97.14 41 0.99 Uttarakhand 24.58 73.88 96.32 82.59 94.77 17 0.97 West Bengal 10.19 86.43 96.47 77.98 90.8 28 1.19 All India 24.88 72.57 95.44 79.91 98.88 27 1.01 Note: GER: Gross Enrolment Ratio; GPI: Gender Parity Index; PTR: Pupil-Teacher Ratio Sources: Flash Statistics, District Information System for Education, 2015-16; PRS. | Government | No. of | |-------------------|-----------| | State | | | Private | | | Colleges | | | GPI | | | Andaman & | | | Nicobar Islands | | | - | 7.00 | | Andhra Pradesh | 1,933.00 | | Arunachal Pradesh | 7.00 | | Assam | 62.00 | | Bihar | 142.00 | | Chandigarh | 9.00 | | Chhattisgarh | 355.00 | | Dadra & Nagar | | | Haveli | | | 4.00 | 3.00 | | Daman & Diu | 4.00 | | Delhi | 77.00 | | Goa | 33.00 | | Gujarat | 1,624.00 | | Haryana | 658.00 | | Himachal Pradesh | 139.00 | | Jammu and | | | Kashmir | | | 162.00 | 135.00 | | Jharkhand | 98.00 | | Karnataka | 2,609.00 | | Kerala | 916.00 | | Lakshadweep | - | | Madhya Pradesh | 1,390.00 | | Maharashtra | 3,698.00 | Government State Private Colleges Colleges Manipur 35.00 48.00 3.00 0.94 35.90 19.00 Meghalaya 28.00 18.00 10.00 1.07 20.50 18.00 Mizoram 1.00 28.00 3.00 0.98 23.30 14.00 Nagaland 43.00 20.00 4.00 1.06 15.60 15.00 Odisha 704.00 355.00 21.00 0.81 17.70 19.00 Puducherry 50.00 27.00 4.00 0.93 46.00 9.00 Punjab 721.00 183.00 24.00 1.09 27.10 16.00 Rajasthan 1,731.00 459.00 64.00 0.82 20.00 22.00 Sikkim 5.00 9.00 7.00 1.14 30.30 12.00 Tamil Nadu 2,127.00 325.00 58.00 0.92 45.20 14.00 Telangana 1,784.00 214.00 20.00 0.84 36.10 14.00 Tripura 7.00 40.00 3.00 0.67 16.80 26.00 Uttar Pradesh 4,600.00 777.00 63.00 1.04 25.00 38.00 Uttarakhand 202.00 116.00 26.00 0.94 33.90 22.00 West Bengal 609.00 427.00 31.00 0.83 17.40 34.00 All India 26,567.00 7,885.00 760.00 0.92 24.30 21.00 No. of universities GPI GER PTR
65c43cfe57bc567107068273
budget_reports
## Demand For Grants 2023-24 Analysis Rural Development The Ministry of Rural Development aims to improve the quality of life in rural India and acts as the nodal agency for most development and welfare activities in rural areas of the country.1 The Ministry comprises of two Departments, the Department of Rural Development and the Department of Land Resources. The Department of Rural Development aims to enhance livelihood opportunities, provide social assistance to vulnerable sections, and develop infrastructure for rural growth.1 The Department of Land Resources aims to ensure sustainable development of rainfed cultivable and degraded lands, and optimise the use of land resources in the country.2 This note looks at the proposed expenditure for the Ministry of Rural Development for 2023-24, financial trends, and related issues with the Ministry's schemes and programmes. ## Union Budget Highlights 2023-24 In 2023-24, the Ministry of Rural Development has been allocated Rs 1,59,964 crore in 2023-24.3,4 The Department of Rural Development has been allocated Rs 1,57,545 crore, 13% less than the revised estimates of 2022-23. The Department of Land Resources has been allocated Rs 2,419 crore, which is a 92% increase over the revised estimates of 2022-23. Rural Development (in Rs crore) % Department 21-22 Actuals 22-23 RE 23-24 BE Change* Rural Development 1,60,433 1,81,122 1,57,545 -13% Land Resources 1,210 1,260 2,419 92% Total 1,61,643 1,82,382 1,59,964 -12% Note: BE is budget estimate and RE is revised estimate. *% change is change in 2023-24 BE over 2022-23 RE. Sources: Demands for Grants of the Ministry of Rural Development 2023-24; PRS. ## Policy Announcements In The Budget Speech 2023-24  Rural women organised into self-help groups (SHGs) will be empowered through the formation of large producer collectives. They will be provided raw materials and support to scale up operations.5  Outlay on the Pradhan Mantri Awas Yojana (rural and Niranjana S Menon [email protected] February 20, 2023 PRS Legislative Research  Institute for Policy Research Studies 3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi - 110002 Tel: (011) 43434035, 23234801  www.prsindia.org ## Department Of Rural Development Overview Of Finances The Department of Rural Development implements programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Gram Sadak Yojana (PMGSY), and Pradhan Mantri Awas Yojana-Gramin (PMAY-G). Between 2013-14 and 2023-24, budgetary allocation to the Department has grown at an average annual rate of 8%. In 2020-21, allocation to the Ministry was increased significantly to provide more financial support during to the COVID-19 pandemic. This increased allocation was largely towards MGNREGS and welfare schemes, such as the direct benefit transfer to women account holders under Pradhan Mantri Jan Dhan Yojana.6 Note: BE is budget estimate; actual figure for 2022-23 is revised estimate. Source: Demands for Grants of the Ministry of Rural Development for various years; PRS. Since 2015-16, actual expenditure for this Department has been higher than the budget estimates except in the year 2018-19. Since 2020-21, the actual expenditure has been more than 20% higher than the budget estimates. This is mainly due to expenditure on MGNREGS, which is a demand-based scheme. ## Major Schemes Under The Department In 2023-24, MGNREGS (38%) and PMAY-G (35%) together account for almost 75% of the budgetary allocation. This is followed by PMGSY (12%), National Rural Livelihood Mission (NRLM, 9%), and the National Social Assistance Programme (NSAP, 6%). Allocation to the MGNREGS has declined by 33% as compared to the revised estimates of 2022-23. For most other schemes, barring PMAY-G and NRLM, allocations remain constant when compared with the revised estimates of 2022-23. The Shyama Prasad Mukherjee Rurban Mission (SPMRM), which was set to end in March 2022, has not been allocated any funds in this financial year.7 % Change from 22-23 RE Scheme 21-22 Actuals 22-23 RE 23-24 BE to 23-24 BE MGNREGS 98,468 89,400 60,000 -33% PMAY-G 30,057 48,422 54,487 13% PMGSY 13,992 19,000 19,000 0% NRLM 9,383 13,336 14,129 6% NSAP 8,152 9,652 9,636 0% SPMRM 150 989 0 - CSS 205 126 113 -10% Note: CSS - Central Sector Schemes. Source: Demands for Grants of the Department of Rural Development, 2023-24; PRS. ## Key Issues And Analysis Mahatma Gandhi National Rural Employment Guarantee Scheme The National Rural Employment Guarantee Act, 2005 provides for the enhancement of livelihood security of rural households by providing at least 100 days of guaranteed work to every household every year.8 The provisions of the Act are operationalised through the MGNREGS.9 The scheme covers the entire country, except for those districts with 100% urban population. Works permitted under the scheme are related to watershed development, water conservation, agriculture, rural sanitation, flood management, etc.10 ## Reduction In Budgetary Allocation; Demand For Work Expected To Decrease Rs 60,000 crore has been allocated for MGNREGS in 2023-24.3 This is 33% lower than the revised estimates of 2022-23. However, actual expenditure on the scheme being higher than what was budgeted has been a consistent trend since 2015 (Figure 4). Despite this, in successive years, the budget estimates have been lower than the revised estimates of the previous year. The decline in allocation in 2023-24 could be indicative of the expectation that the pandemic induced job demand might have eased off. The Ministry of Rural Development has clarified that additional funds will be released for wage and material payments under the scheme whenever it is required.11 | Year | BE | Actual | |----------------|--------|-----------| | % increase of | | | | actual over BE | | | | 2015-16 | 33,713 | 37,341 | | 2016-17 | 38,500 | 48,215 | | 2017-18 | 48,000 | 55,166 | | 2018-19 | 55,000 | 61,815 | | 2019-20 | 60,000 | 71,687 | | 2020-21 | 61,500 | 1,11,170 | | 2021-22 | 73,000 | 98,468 | | 2022-23 | 73,000 | 89,400 | | 2023-24 | 60,000 | | Note: BE is budget estimate; actual figure for 2022-23 is the revised estimate. Source: Demands for Grants of the Department of Rural Development for various years; PRS. MGNREGS is a demand-driven scheme. Demand is higher during the summers and lower during harvests (Figure 5). Between 2018-19 and 2019-20, the demand for work remained largely the same, and peaked in 2020-21. The 15th Finance Commission noted that the slowdown in primary sectors, trade, and aggregate demand during the COVID-19 pandemic period severely hit rural economies.12 This was reflected in the increased demand for work under the scheme during the pandemic. Since then, demand for work has decreased. Between July and December 2022, demand reached pre-pandemic levels. The Economic Survey 2022 noted that monthly year-on-year demand for work decreased in 2021-22 and 2022-23.13 It also noted that the decrease in demand for work was due to normalisation of the rural economy as a result of resurgence of agriculture. As of February 20, 2023, 6.66 crore households have demanded employment under the scheme in 2022-23.14 Of this, employment has been offered to 6.65 crore households (99.8% of households that demanded employment), and 5.87 crore households have availed employment (88% of households that demanded employment). 8.25 crore persons have availed of employment under the scheme. Source: Work Demand Pattern, MGNREGA Dashboard, accessed on February 20, 2023; PRS. Despite the statutory guarantee of 100 days of wage employment, not all households avail work for 100 days. Over the last five years, the number of days of employment per household has averaged around 51 days.15 During the same time, the proportion of households that completed 100 days of wage employment has not crossed 10%. ## Aadhar Based Payment System Now Mandatory Under MGNREGS, payments to workers are directly credited to their bank accounts.16 This could be through bank/Post Office account details, or using the beneficiary's Aadhar number. To avail of the Aadhar Based Payment System (ABPS), Aadhaar cards have to be linked to the beneficiary's bank account and NREGS job card. After linking, the card is authenticated. Only those beneficiaries who are successfully authenticated are eligible for ABPS. The Ministry of Rural Development also decided that all payments to NREGS beneficiaries would be made through ABPS from February 1, 2023. However, as of February 20, 2023, only 44% of total workers are eligible for ABPS.17 Around 5 crore workers have not been successfully authenticated. If all future payments are made only through the ABPS, a large number of workers would need to be authenticated to ensure that they get paid. ## Pradhan Mantri Awas Yojana - Gramin PMAY-G was launched in 2016 with the aim of providing 'Housing for All' by 2022. The scheme has been extended till 2024.18 As of February 20, 2023, 2.15 crore houses have been constructed, against a target of 2.94 crore houses. Table 4 shows the house completion target and achievement for each financial year from 2016-17. However, a CAG audit (2020) of the scheme showed that 31% (183 houses out of 590 audited houses) were not being used for residential purposes.19 Year Target Achievement % Completed 2016-17 42.2 32.1 76% 2017-18 31.5 44.5 142% Phase I 2018-19 25.1 47.3 188% 2019-20 57.9 21.9 38% 2020-21 43.1 35.3 82% | | 2021-22 | 71.4 | 43.8 | 61% | |----|------------|---------|---------|--------| | | 2022-23 | 22.8 | 34.8 | 153% | Source: PMAY-G Dashboard, accessed on February 20, 2023; PRS. ## Disparity In Completion Rate Across States The average time taken to complete one house is 282 days.20 This figure varies across states, from 163 days in Arunachal Pradesh to 771 days in Lakshadweep. In nine states, the average completion time is greater than a year. Odisha has an average completion time of 269 days, one of the lowest among states.20 The state government is providing an incentive of Rs 20,000 to beneficiaries who complete construction within four months from the release of the first instalment, and Rs 10,000 to those who complete construction within six months.21 The Standing Committee (2022) recommended that states take similar measures to reduce completion time, and hence achieve the targets set for each year.21 ## Poor Uptake Of Loan Scheme Under PMAY-G, beneficiaries can avail of a home loan from financial institutions for up to Rs 70,000, with an interest subsidy of 3%. However, the loan uptake has been low, as noted by the Standing Committee on Rural Development (2021).22 Beneficiaries of PMAY-G are scattered across remote rural areas. Banking services are difficult to access in these areas, as there may be fewer bank branches. Accessing formal credit through banks and other financial institutions would require some collateral security. However, target beneficiaries under the scheme are those who do not have pucca houses. It is unlikely that they would have significant assets which could be pledged as collateral. Nonbanking finance companies and housing finance companies also charge higher interest rates on loans. The Committee (2023) urged the Ministry to launch an attractive loan product with minimum collateral and low interest rates.21 ## Pradhan Mantri Gram Sadak Yojana Rural road networks facilitate the growth of rural market centres and rural hubs.12 PMGSY, launched in December 2000, aims to provide all-weather connectivity to eligible rural habitations.23 Upgradation of existing rural roads in districts where all eligible roads have all-weather connectivity is also covered under the scheme. The scheme has been allocated Rs 19,000 crore in 2023-24, which is the same as the budget allocation and revised estimate for 2022-23. While the budget allocation has remained around Rs 19,000 crore since 2017-18, the actual expenditure has been lower (Table 5). Year Budget Estimate Actuals % Utilisation 2016-17 19,000 17,923 94% 2017-18 19,000 16,862 89% 2018-19 19,000 15,414 81% 2019-20 19,000 14,017 74% 2020-21 19,500 13,688 70% 2021-22 15,000 13,992 93% 2022-23 19,000 19,000 100% 2023-24 19,000 Note: Actual figure for 2022-23 is revised estimate. Source: Demands for Grants of the Department of Rural Development for various years; PRS. There are four verticals under PMGSY.24 Phase I targets habitats with population more than 250 people. Its tenure was extended till September 2022. Phase II, launched in 2013, targets the upgrade of 50,000 km of roads, which form through routes and rural links. Phase III, launched in 2019, aims to consolidate 1.2 lakh km of roadways through rural links. This phase will end in March 2025. The Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA) was launched as a separate vertical in 2016, and will be implemented till March 2023. PMGSY aimed to connect 1.64 lakh eligible habitations.25 As on February 17, 2023, 99% of rural habitations have been covered under PMGSY. 92% of sanctioned roads have also been completed.26 However, the CAG (2016) had noted that in several states, works were shown as completed without providing complete connectivity to habitations.27 | Vertical | Sanctioned | Completed | |-------------|---------------|--------------| | % | | | | Completed | | | | PMGSY-I | 6,45,390 | 6,36,602 | | PMGSY-II | 49,873 | 48,896 | | PMGSY-III | 99,319 | 50,727 | | RCPLWEA | 12,100 | 6,944 | | Total | 8,06,681 | 7,43,168 | Sources: PMGSY Dashboard as accessed on February 17, 2023; PRS. Issues in the tendering/contracting process The CAG (2016) and the Standing Committee on Rural Development (2021) have flagged several issues in the tendering and contracting process of roads built under PMGSY.27,28 The Standing Committee (2021) noted the issue of down-tendering in PMGSY. Bidders quote up to 25-30% less than the minimum bid amount to win the tender. To maximise profits, contractors may then construct roads that do not meet technical specifications or are of poor quality. The CAG (2016) also noted that the execution of roads with lower specifications would affect their long-term sustainability.27 The Department responded that measures have been taken to prevent down-tendering. If any inconsistencies are noticed with the bid of the successful bidder, they may be asked to produce a detailed price analysis. Since state governments are responsible for the tendering process, they have also been encouraged to ask for performance guarantees, if the bid is below a certain threshold.29 As per the Standard Bidding Document for PMGSY, the contractor may subcontract part of the construction work (up to 25% of the contract price), and part or full maintenance work on the road.30 However, the contractor will be held responsible for all work undertaken on the project. The Standing Committee noted that since sub-contractors are not held accountable for their work, they may not be concerned with the durability and quality of construction.28 ## Maintaining Quality Of Roads Roads constructed under PMGSY are covered by fiveyear maintenance contracts. During this time, contractors are responsible for road maintenance. Following this, state governments are responsible for their upkeep.12 Roads and bridges constructed under PMGSY are tested for quality while construction is in progress, post construction, and during the maintenance phase. Between April 2022 and February 2023, 10% of completed road projects have been found to be of unsatisfactory quality.31 7% of ongoing projects and 18% of projects under maintenance were also found to be unsatisfactory. The Standing Committee (2022) noted that there were several lacunae in the monitoring mechanism set up to oversee maintenance of roads in the first five years.29 They pointed out that contractors resort to cosmetic patchwork before they hand over the assets to state governments. They recommended that specific teams be formed, which would undertake periodic physical inspection of roads.29 The 15th Finance Commission noted that once state governments take over PMGSY roads, there are interstate disparities in the level of maintenance.12 The 15th Finance Commission recommended that such variations should be minimised. This could be achieved by extending the maintenance clause beyond five years. Different states have also taken unique measures to improve road maintenance (Table 7). ## Improve Road Maintenance | States | |---------------------------------| | Chhattisgarh, | | Rajasthan | | Zonal maintenance contracts are | | signed with contractors | | Uttar Pradesh, Madhya | | Pradesh, Uttarakhand | | SHGs made responsible for road | | maintenance | | Madhya Pradesh, | | Punjab, Rajasthan | | Mandi cess used for road | | maintenance | Source: 15th Finance Commission Report, Vol III; PRS. ## National Rural Livelihood Mission The Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) aims to reduce poverty by enabling poor households to access gainful employment, and by ensuring universal financial inclusion.32 The scheme involves social mobilisation through self-help groups (SHGs), promotion of SHG federations, creation of community funds, and access to credit and financial services. 29 The budgetary allocation to NRLM has increased at an average annual rate of 33% between 2013-14 and 2023-24. | | | | | Target | Achievement | % Achievement | |---------|------|-------|------|-----------|----------------|------------------| | Year | SHG | DA | SHG | DA | SHG | DA | | 2017-18 | 20.7 | 31.0 | 27.5 | 62.2 | 133% | 201% | | 2018-19 | 31.0 | 50.7 | 31.4 | 61.5 | 101% | 121% | | 2019-20 | 30.9 | 67.1 | 34.2 | 70.9 | 111% | 106% | | 2020-21 | 32.3 | 73.8 | 47.8 | 84.6 | 148% | 115% | | 2021-22 | 37.3 | 97.2 | 42.9 | 120.3 | 115% | 124% | | 2022-23 | 42.7 | 139.6 | 42.6 | 120.3 | 100% | 86% | Note: DA is disbursed amount in Rs thousand crore. Source: DAY- NRLM Bank-Linkage Dashboard, accessed on February 20, 2023; PRS. ## National Social Assistance Programme The National Social Assistance Programme was introduced in 1995, with the aim of supporting citizens who are destitute, aged, sick, or disabled.33 It comprises of five sub-schemes, (i) Indira Gandhi National Old Age Pension Scheme (IGNOAPS), (ii) Indira Gandhi National Widow Pension Scheme (IGNWPS), (iii) Indira Gandhi National Disability Pension Scheme (IGNDPS), (iv) National Family Benefit Scheme, and the (v) Annapurna scheme. The scheme extends across rural and urban areas, and is implemented by states.33 The 15th Finance Commission recommended that states coordinate with the Union Ministry of Finance to work out a minimum uniform standardised annual per capita amount to be spent on social security across the country.12 Rs 9,636 crore has been allocated to the NSAP in 2023- 24. This includes Rs 6,634 crore for the old age pension scheme, Rs 659 crore for the National Family Benefit Scheme, Rs 2,027 for the widow pension scheme, Rs 290 crore for the disability pension scheme, and Rs 10 crore for the Annapurna scheme.3 Year Budget Estimates Actuals % Utilisation 2014-15 10,618 7,084 67% 2015-16 9,074 8,616 95% 2016-17 9,500 8,854 93% 2017-18 9,500 8,694 92% 2018-19 9,975 8,418 84% 2019-20 9,200 8,692 94% 2020-21 9,197 42,443 461% 2021-22 9,200 8,152 89% 2022-23 9,652 9,652 100% 2023-24 9,636 Source: Demands for Grants of the Department of Rural Development for various years; PRS. Under IGNOAPS, senior citizens below the poverty line are entitled to a monthly pension of Rs 200 up to 79 years of age and Rs 500 thereafter.33 Despite NSAP being a 100% centrally sponsored scheme, states/UTs have added to the quantum of central assistance from their own resources.29 This ranges from Rs 50 to Rs 2,300. The Standing Committee on Rural Development (2021) recommended that this amount be increased.28 In 2022, the Department of Rural Development stated that the final decision on increasing the central assistance is contingent on consultation with States.29 ## Overview Of Finances: Department Of Land Resources The Department of Land Resources aims to ensure sustainable development of rainfed and degraded land, and implement a modern land record management system.34 of Land Resources (in Rs crore) Major Head 21-22 Actual 22-23 RE 23-24 BE % change PMKSY- WDC 941 1,000 2,200 120% DILRMP 250 239 196 -18% Secretariat 19 21 23 13% Total 1,210 1,260 2,419 92% Note: BE is budget estimate, RE is revised estimate; % change refers to the % increase of 2023-24 BE over 2022-23 RE. Source: Demands for Grants of the Department of Land Resources, 2023-24; PRS. In 2023-24, the Department of Land Resources has been allocated Rs 2,419 crore.4 This is a 92% increase over the revised estimates of 2022-23, mostly on account of a 120% increase in allocation to watershed development. Between 2013-14 and 2023-24, budgetary allocation for the Department has decreased by an average annual rate of 8%. Since 2013-14, actual spending by the Department of Land Resources has been less than the budget estimates for that year. In 2013-14, actual expenditure was 57% less than the budget estimate. Since 2020-21, actual expenditure has been at least 40% less than the budget estimate. The Standing Committee on Rural Development noted that the reduction in the budgetary allocation to the Department at the revised estimate stage reflects faulty budgetary planning.35 This has had a cascading impact, leading to a reduced level of expenditure under the schemes implemented by the Department. Funds are transferred from the Centre to States/UTs after the submission of release proposals by States/UTs. Incomplete or delayed proposals lead to lower release of Central funds. They recommended that measures be taken to improve collaboration between the Centre and States/UTs to address these issues.36 Major schemes under the Department The department implements two major schemes, (i) the Digital India Land Records Modernisation Programme (DILRMP), and (ii) Pradhan Mantri Krishi Sinchai Yojana - Watershed Development Component (PMKSY - WDC).2 The Integrated Watershed Management Programme has the objective of improving the productive potential of rainfed/degraded land, and improving the efficiency of watershed projects.37 It was amalgamated into the Krishi Sinchai Yojana (Watershed Development Component) in 2015-16. Projects taken up under this scheme include ridge area treatment, drainage line treatment, soil and moisture conservation, rain-water harvesting, and pasture development. ## Key Issues And Analysis Unspent Balances The Standing Committee on Rural Development (2022) noted high unspent balances under the PMKSY-WDC scheme (Figure 9).35 The COVID-19 pandemic, heavy rains, and delayed transfer of Central funds to State Level Nodal Agencies are cited as reasons for such high unspent balance.35,36 The Committee also noted that States/UTs are slow in the implementation of projects. This has led to the accumulation of unspent balances, and the surrendering of funds without utilisation. The Committee recommended that the implementation of the scheme be monitored more consistently. Similar unspent balances have also been noted in the DILRMP. | Year | PMKSY-WDC | DILRMP | |---------|--------------|-----------| | 2019-20 | 2255 | 399 | | 2020-21 | 1833 | 493 | | 2021-22 | 1325* | 537** | *Till December 31, 2021; **Till January 5, 2022 Source: Report 23, Standing Committee on Rural Development; PRS. ## Pradhan Mantri Krishi Sinchai Yojana - Watershed Development Component Expenditure on PMKSY-WDC is estimated to be Rs 2,200 crore in 2023-24, a 120% increase over the revised estimate of 2022-23. Since 2015-16, allocation to the scheme has grown at an average rate of 4%. However, fund utilisation has declined during this time. In 2015-16 and 2016-17, actual expenditure was between 97%-99% of the budget estimate. However, this declined to 47% in 2021-22. In 2022-23, it is expected to be 50% of the budget estimate. ## Incomplete Projects Under Pmksy-Wdc 1.0 PMKSY-WDC has been implemented in two phases.35 PMKSY-WDC 1.0 functioned from 2009-10 to 2014- 15, and PMKSY-WDC 2.0 is expected to function from 2021-22 to 2025-26. As of July 2022, 5,693 projects have been completed out of 6,382 projects sanctioned under PMKSY-WDC 1.0 (89%).38 The Standing Committee on Rural Development (2022) noted that projects under PMKSY-WDC 1.0 remained incomplete even as the second phase of the scheme was launched. 35 ## Digital India Land Records Modernisation Programme DILRMP has been allocated Rs 196 crore in 2023-24, which is an 18% decrease from the allocation for 2022- 23. Apart from three years between 2017-18 to 2019- 20), fund utilisation has remained above 90%. In 2021- 22, actual expenditure exceeded the budget estimates by Rs 100 crore. | Year | BE | Actuals | % Utilisation | |---------|-------|------------|------------------| | 2016-17 | 150 | 139 | 92% | | 2017-18 | 150 | 93 | 62% | | 2018-19 | 250 | 68 | 27% | | 2019-20 | 150 | 44 | 29% | | 2020-21 | 239 | 225 | 94% | | 2021-22 | 150 | 250 | 167% | | 2022-23 | 239 | 239 | 100% | | 2023-24 | 196 | | | Note: Actual figure for 2022-23 is the revised estimate. Source: Demands for Grants of the Department of Land Resources for various years; PRS. DILRMP and SVAMITVA Scheme SVAMITVA is a Central Sector Scheme implemented by the Ministry of Panchayati Raj. It aims to provide 'Record of Rights' to village house owners. Legal ownership rights will be issued after mapping land parcels using drone technology.39 An expert committee constituted by the Ministry of Panchayati Raj recommended that the Ministry work together with the Department of Land Resources on implementing the two schemes.40 Since the preparation of computerised land records falls under the ambit of DILRMP, funds for the preparation of record of rights should be provided under that scheme. They also recommended that all villages surveyed under SVAMITVA be prioritised under the DILRMP. ## Slow Progress Of Components DILRMP has eight major components, including computerisation of land records; survey/resurvey; and updating of survey and settlement records, and computerisation of registration.41 The Standing Committee on Rural Development (2022) noted that the different components under the scheme showed differing levels of completion.35 The need for skilled manpower, delays by state governments, and lack of timely revision of rates in some components were cited as reasons for this. They recommended that implementation be accelerated, after resolving issues with state/UT governments.35 | Activity (Unit) | Target | Achievement | |-------------------------|-----------|----------------| | % | | | | Achieved | | | | 6.57 | 6.22 | 95% | | Land record | | | | computerisation | | | | (lakh revenue villages) | | | | 5,268 | 4,910 | 93% | | Automation of sub- | | | | registrar offices | | | | (number of sub- | | | | registrar offices) | | | | 5,268 | 3,993 | 76% | | Integration of land | | | | records | | | | (number of sub- | | | | registrar offices) | | | | States for which record | | | | of rights is on the web | | | | 36 | 29 | 81% | | Survey/re-survey (lakh | | | | revenue villages) | | | | 6.57 | 0.90 | 14% | | 1.69 | 1.27 | 75% | | Digitisation of | | | | cadastral maps | | | | (crore maps) | | | | 6,865 | 3,186 | 46% | | Modern record rooms | | | | in tehsils (number of | | | | tehsils) | | | | Number of State Data | | | | Centres set up | | | | 36 | 24 | 67% | | 6.57 | 4.13 | 63% | | Textual and spatial | | | | data integration (lakh | | | | revenue villages) | | | Source: DILRMP Dashboard, as of February 20, 2023; PRS. 2023&source=national&labels=labels&Digest=kODLAkQv8M9FT6WbXb7zhA. 15 Employment Generation Progress Reports of various years, MGNREGA Dashboard, accessed on February 2, 2023, https://mnregaweb4.nic.in/netnrega/MISreport4.aspx. 16 Mahatma Gandhi National Rural Employment Guarantee Act, 2005, Master Circular, Ministry of Rural Development, https://rural.nic.in/sites/default/files/nrega/Library/Books/Master_Circular_2018_19.pdf. 17 Aadhaar Authentication Status Report, MGNREGS Dashboard, accessed on February 17, 2023, https://mnregaweb4.nic.in/netnrega/MISreport4.aspx. 18 "Cabinet approves continuation of Pradhan Mantri Awas Yojana - Gramin beyond March 2021 till March 2024", Press Information Bureau, Cabinet, December 8, 2021, https://pib.gov.in/PressReleasePage.aspx?PRID=1779325. 19 Report No. 1 of 2020, General and Social Sector for the year ended 31 March 2019, Comptroller and Auditor General of India, https://cag.gov.in/webroot/uploads/download_audit_report/2020/Report_No_1_of_2020_General_and_Social_Sector_Government_of_Rajasthan .pdf. 20 PMAY-G Dashboard, Completion Rate for Houses sanctioned across the Month, accessed on February 20, 2023, https://rhreporting.nic.in/netiay/dataanalytics/CompletionRateForHsSancRpt.aspx. 21 Report No. 21, Action Taken on Recommendations in 16th Report, Standing Committee on Rural Development and Panchayati Raj, March 16, 2023, https://loksabhadocs.nic.in/lsscommittee/Rural%20Development%20and%20Panchayati%20Raj/17_Rural_Development_and_Panchayati_Raj_2 1.pdf. 22 Report No. 16, Pradhan Mantri Awas Yojana - Gramin, Standing Committee on Rural Development and Panchayati Raj, August 5, 2021, https://loksabhadocs.nic.in/lsscommittee/Rural%20Development%20and%20Panchayati%20Raj/17_Rural_Development_16.pdf. 23 Pradhan Mantri Gram Sadak Yojana Dashboard Home, accessed on February 10, 2023, http://omms.nic.in/. 24 Unstarred Question No. 2123, Lok Sabha, Ministry of Rural Development, answered on March 15, 2022, https://pqals.nic.in/annex/178/AU2123.pdf. 25 Habitations Covered, PMGSY Dashboard, accessed on February 17, 2023, http://omms.nic.in/dbweb/Home/HabitationCoverage. 26 Road Length Completion, PMGSY Dashboard, accessed on February 17, 2023, https://app.powerbi.com/view?r=eyJrIjoiMmNlNzVkMDYtYjJmMC00MWYyLTk0M2UtNzA5MmI3ZTQwZjdjIiwidCI6IjliZjc5NjA5LWU0Z TgtNDdhZC1hYTUzLTI0NjQ2MTg1NTM4YyJ9&pageName=ReportSection6b29be769c4ff01a033b. 27 Report No. 23 of 2016, Performance Audit of Pradhan Mantri Gram Sadak Yojana, Comptroller and Auditor General of India, https://cag.gov.in/ag2/gujarat/en/audit-report/details/23927. 28 Report No. 13, Demands for Grants (2021-22), Department of Rural Development, Standing Committee on Rural Development and Panchayati Raj, March 9, 2021, https://loksabhadocs.nic.in/lsscommittee/Rural%20Development%20and%20Panchayati%20Raj/17_Rural_Development_13.pdf. 29 Report No. 22, Demands for Grants (2022-23), Department of Rural Development, Standing Committee on Rural Development and Panchayati Raj, March 16, 2022, https://loksabhadocs.nic.in/lsscommittee/Rural%20Development%20and%20Panchayati%20Raj/17_Rural_Development_and_Panchayati_Raj_2 2.pdf. 30 Standard Bidding Document for PMGSY for Construction and Maintenance, National Rural Roads Development Agency, Ministry of Rural Development, December 2015, https://urrda.uk.gov.in/upload/downloads/Download-17.pdf. 31 PMGSY National Quality Monitor Statewise Grading Abstract Report, accessed on February 17, 2023, http://omms.nic.in/#. 32 Introduction, Deendayal Antyodaya Yojana-National Rural Livelihood Mission, Ministry of Rural Development, accessed on February 10, 2023, https://aajeevika.gov.in/about/introduction. 33 About Us, National Social Assistance Programme, Ministry of Rural Development, accessed on February 10, 2023, https://nsap.nic.in/circular.do?method=aboutus. https://loksabhadocs.nic.in/lsscommittee/Rural%20Development%20and%20Panchayati%20Raj/17_Rural_Development_and_Panchayati_Raj_2 41 Operational Guidelines of Digital India Land Records Modernisation Programme (DILRMP), Ministry of Rural Development, 2019, https://dolr.gov.in/sites/default/files/Final%20%20Guideline%20of%20DILRMP%2002-01-2019.pdf. 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## Demand For Grants 2022-23 Analysis Rural Development The Ministry of Rural Development is responsible for the development of and welfare activities in rural areas. It aims at increasing livelihood opportunities, providing social safety nets, and improving infrastructure for growth. The Ministry has two departments: (i) Rural Development, and (ii) Land Resources. This note presents the budgetary allocations to the Ministry for 2022-23, and analyses various issues related to the schemes implemented by it. ## Allocation In Union Budget 2022-23 The Ministry of Rural Development has been allocated Rs 1,38,204 crore in 2022-23.1 Table 1 gives the trend in budgetary allocation towards the Ministry over the past three years. In 2022-23, the Department of Rural Development has been allocated Rs 1,35,944 crore, which is an 11% decrease from the revised estimates of 2021- 22. The Department of Land Resources has been allocated Rs 2,259 crore, which is a 52% increase over the revised estimates of 2021-22. | Department | | |--------------|----------| | 20-21 | | | Actuals | | | 21-22 | | | RE | | | 22-23 | | | BE | | | % Change | | | (22-23 BE/ | | | 21-22 RE) | | | Rural | | | Development | 1,96,417 | | Land | | | Resources | 1,176 | | Total | 1,97,593 | Note: BE is budget estimate and RE is revised estimate. Sources: Demands for Grants 2022-23, Ministry of Rural Development; PRS. ## Policy Announcements In The Budget Speech 2022-23  The one lakh crore allocation towards states for capital expenditure will include supplemental funding for priority segments of PM Gram Sadak Yojana, including support for the states' share.  Border villages will be covered under the new Vibrant Villages Programme. The activities will include construction of village infrastructure, housing, tourist centres, road connectivity, provisioning of decentralised renewable energy, direct to home access for Doordarshan and educational channels, and support for livelihood generation.  To enable affordable broadband and mobile service proliferation in rural and remote areas, five per cent of annual collections under the Universal Service Obligation Fund will be allocated.  Use of 'Kisan Drones' will be promoted for crop assessment, digitisation of land records. ## Overview Of Finances: Department Of Rural Development The Department implements schemes targeted at poverty reduction, provision of basic services, employment generation, and habitation development. Since 2012, expenditure of the Department has seen an average annual growth of 10.5%. In 2020-21, expenditure of the Department increased significantly primarily due to the additional expenditure on the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and direct benefit transfer towards PM Jan Dhan Yojana account holders. In 2020-21, while the budgeted allocation towards the Department was Rs 1,20,147 crore, the actual expenditure was 61% higher at Rs 1,96,417 crore. The Standing Committee on Rural Development (2020) had noted that the allocation to the Department is much lower than the amount demanded by the Ministry.2 Such lack of funds could affect the timely progress of the schemes. However, in 2021-22, the Committee noted that unspent balance of Rs 40,294 crore had accrued over all the schemes of the Department, which may raise questions on utilisation of the funds.3 Note: Values for 2021-22 and 2022-23 are revised estimates and budget estimates respectively. Sources: Union Budgets 2012-13 to 2022-23; PRS. ## Major Schemes Under The Department In 2022-23, 54% of the Department's expenditure is estimated to be on MGNREGS. This is followed by the rural component of Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) (15%), and Pradhan Mantri Gram Sadak Yojana (PMGSY) (14%). % Change (22-23 21-22 RE 22-23 BE Scheme 20-21 Actuals BE/ 21-22 RE) MGNREGS 1,11,170 98,000 73,000 -26% PMAY-G 19,269 20,390 20,000 -2% PMGSY 13,688 14,000 19,000 36% NRLM 9,208 11,710 13,336 14% NSAP 42,443 8,730 9,652 11% Others 639 728 956 31% Total 1,96,417 1,53,558 1,35,944 -11% Note: BE is budget estimate and RE is revised estimate. Others include projects like management support to rural development programs, socio-economic and caste census survey and centre's expenditure. Sources: Demands for Grants 2022-23, Department of Rural Development, Ministry of Rural Development; PRS. ## Key Issues And Analysis Expenditure On Mgnregs Shot Up During Covid-19 MGNREGS seeks to provide guaranteed 100 days of wage employment per year to every rural household whose adult member volunteers to do unskilled manual work.4 The scheme has statutory backing through the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The Act specifies a list of works that can be undertaken to generate employment. These are related to water conservation, land development, construction, and agriculture, among others. The scheme covers all districts of the country barring the ones with 100% urban population.5 Figure 3 shows the expenditure on the scheme from 2012-13 to 2022-23. estimates and budget estimates respectively. Sources: Union Budgets 2012-13 to 2022-23; PRS. In 2022-23, the scheme has been allocated Rs 73,000 crore. This is 26% lower than the revised estimates of 2021-22. This decline is primarily because the scheme received additional allocation in 2020-21 and 2021-22 to address the employment demand during the COVID-19 pandemic. In 2020-21, the scheme was allocated Rs 61,500 crore at the budget stage, however the actual expenditure went up to Rs 1,11,170 crore (an increase of 81%). In 2021-22, allocation to the scheme was increased to Rs 73,000 crore at the budget stage. The revised expenditure is estimated to be Rs 98,000 crore (an increase of 34%). Note that as on September 1, 2021, funds amounting to Rs 52,223 crore had already been released.6 This suggests that the actual expenditure on the scheme overshot the budget estimates due to the pandemic induced distress. However, since 2015- 16, expenditure on the scheme has consistently been higher than the amount estimated at the budget stage. Table 3 shows the trends in allocation and actual expenditure on MGNREGS since 2012-13. MGNREGS (Rs crore) Year Budgeted Actuals % utilised 2012-13 33,000 30,273 -8% 2013-14 33,000 32,992 0% 2014-15 34,000 32,977 -3% 2015-16 34,699 37,341 8% 2016-17 38,500 48,215 25% 2017-18 48,000 55,166 15% 2018-19 55,000 61,815 12% 2019-20 60,000 71,687 19% 2020-21 61,500 1,11,170 81% 2021-22 73,000 98,000 34% 2022-23 73,000 Note: The 'actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets 2012-13 to 2022-23; PRS. ## While Demand For Mgnrega Work Has Increased, Uptake Of Employment Has Been Poor Demand for work: MGNREGS is a demand driven scheme. According to the Ministry, in 2021-22 (as on December 15, 2021), 7.27 crore households had demanded employment under the scheme.7 Of these, 7.24 crore households were offered employment, while 6.36 crore households (87%) availed such employment. As per the Ministry, this could be due to better employment opportunities available elsewhere, or illness, and other such factors. The number of households engaged in MGNREGA work has increased from 5.12 crore in 2016-17 to 6.81 crore in 2021-22.8 Demand for work also shot up significantly during the pandemic. According to the Ministry, 1.85 crore persons were offered work in May 2021, which was 52% higher than the work offered in May 2019.9 The demand under MGNREGS is related to the movement of migrant labour. That is, states from which labour migrates would have seen higher demand under the scheme since migrant labourers returned to their home states during the COVID-19 pandemic. The Economic Survey 2021-22 noted that for several migrant source states such as Bihar, Madhya Pradesh, Odisha, and West Bengal the MGNREGS employment in most months of 2021 was lower than the corresponding levels in 2020.10 On the other hand, the demand for MGNREGS employment was higher for migrant recipient states like Karnataka, Maharashtra, Punjab, and Tamil Nadu for most months in 2021 over 2020.10 Employment provided: The scheme guarantees 100 days of employment. However, from 2016-17 to 2020-21, the average number of days of employment has been 48 days, with a maximum of 52 days of employment in 2020-21.11 Since 2016- 17, on average, less than 10% of the households completed 100 days of wage employment. The Standing Committee on Rural Development (2022) noted that despite MGNREGA being a demand driven scheme where workers can move to better opportunities, these figures are quite low.6 According to the Committee workers opt out of MGNREGA works due to low wage rates which hampers the amount of work completed. Year Employment days / household | 2016-17 | | 46 | |-----------|-----|-------| | 2017-18 | | 46 | | 2018-19 | | 51 | | 2019-20 | | 48 | | 2020-21 | | 52 | | 2021-22 | 45 | | Sources: Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022; PRS. Work Completed: The scheme also aims to create durable assets to improve rural livelihood through the work done while providing employment. In 2020-21 and 2021-22, while the demand for work has increased and the number of persons being employed has also increased, the percentage of work completed under the scheme has been lower than 40%.11 Sources: Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022; PRS. ## Delays In Wage Payments Have Improved But Persist; Wage Rates Are Low In A Few States Indexing of minimum wage rate: The Ministry of Rural Development notifies the MGNREGA wage rate every year for states/UTs. Each state/UT may notify wages over and above the wage-rate notified by the central government. Skilled wage rate is decided by states governments. The minimum wage rate is fixed by the central government on the basis of the Consumer Price Index-Agricultural Labourers (CPI-AL). If this is not available, the minimum wage rate fixed by the states for agricultural labourers is considered.12 The Ministry revises the wage rate every year based on changes in CPI-AL.13 The Standing Committee on Rural Development (2020) had noted that the wage rate under MGNREGS is less than the minimum wages fixed by states.2 Further, the agricultural labourers receive wages higher than the MGNREGS workers. It recommended increasing the minimum wages under MGNREGS periodically after taking inflation into account.2 Note that in March 2020, under the Pradhan Mantri Garib Kalyan Yojana, MGNREGA wage was increased from Rs 182 a day to Rs 202 a day.14 In 2021-22, till February 2022, the average wage rate was Rs 209 per day per person.15 However, in six states the average wage paid was less than the minimum wage notified by the centre (Bihar,Chhattisgarh, Madhya Pradesh, Rajasthan, Telangana, and Tripura).16 The Committee on Alignment of MGNREGS wages under the Ministry of Rural Development (2017) noted that the type of work done by agricultural labourers and MGNREGS workers is different.17 Thus, there should be difference in their minimum wages. It also noted that the Consumer Price Index-Rural was more recent and provided for higher expenditure on education and medical care compared to CPI-AL.17 It recommended using CPI-Rural instead of the existing CPI-AL for revising MGNREGS wages.17 The Standing Committee on Rural Development (2020) noted the disparity in MGNREGS wages in various states. The Committee on Alignment of MGNREGS (2017) noted that this variation is not desirable for a programme where wage component is fully funded by the centre. It recommended convergence on Schedule of Rates across states to avoid variation.17 Payment delays have reduced: Under MGNREGS wage payments must be made within 15 days of the date of closure of the muster roll.5 Delays in payments are calculated from the 16th day onwards. Table 5 shows the percentage of delayed payments out of the total payments over the past six years, and delay in payments. The proportion of delayed payments has reduced from 71.6%% in 2014-15 to 1.4% in 2021-22. The Economic Survey (2018-19) noted that the implementation of direct benefit transfer has helped in reducing delays in payments.18 However, the Standing Committee on Rural Development (2022) noted that failed transactions and non-completion of Aadhaar based payments affects timely transfer of wages.6 It also noted that there were several instances where the amount transferred does not credit to the beneficiaries' accounts and causes delays in the actual realisation of wages. Composition of delayed Year % Delayed Payment payments(%) >90 days 61-90 31-60 15-30 2014-15 71.6% 13.4% 9.8% 22.0% 26.3% 2015-16 63.1% 9.5% 8.1% 19.0% 26.5% 2016-17 56.6% 14.2% 8.4% 15.9% 18.1% 2017-18 15.5% 1.8% 0.9% 3.6% 9.2% 2018-19 10.5% 1.9% 0.7% 2.0% 5.8% 2019-20 6.2% 1.9% 0.7% 1.1% 2.6% 2020-21 3.5% 1.5% 0.3% 0.5% 1.3% 2021-22 1.4% 0.5% 0.1% 0.2% 0.6% Sources: MGNREGS MIS Report, Delayed Payments, last accessed on February 11, 2022; PRS. No unemployment allowance given in 2021- 22 so far: Currently under MGNREGS, a daily unemployment allowance is paid from state government funds (if employment is not provided by the state government within 15 days of application).4 A CAG report (2013) on the scheme had stated that this puts an additional burden on the states.19 It suggested that the Ministry of Rural Development should consider partial reimbursement of unemployment allowance.19 In recent years, the amount of unemployment allowance paid by states has reduced. In 2017- 18, the total unemployment allowance paid by 11 states was Rs 2.82 lakh.6 This further reduced to Rs 63,000 in 2018-19 (paid by eight states), and Rs 12,000 in 2019-20 (paid by four states).6 In 2020-21, only Maharashtra had paid such allowance, amounting to a total of three thousand rupees. The Standing Committee on Rural Development (2022) noted that in 2021- 22, till November 5, no states had paid such allowance.6 The Ministry had responded to this stating that in 2021-22 (as on August 31, 2021), 99.26% beneficiaries who had demanded for work had been offered the work.6 The Standing Committee (2022) noted that low or no payment of unemployment allowance is a blatant violation of the MGNREG Act.6 It noted that even though it is the states' responsibility to provide the allowance, the centre being the nodal agency should act upon this issue, and devise measures to oversee the implementation of the provision of unemployment allowance. ## Target Of Houses To Be Constructed Under Pradhan Mantri Awaas Yojana- Gramin (Pmay-G) Has Not Been Met PMAY-G has the second highest allocation in the Department's budget in 2022-23, at Rs 20,000 crore, which is 2% lower than the revised estimate of 2021-22. Since 2010-11, expenditure on the scheme has seen an average annual growth of 6%. The scheme was launched in 2016, as part of the central government's target to provide housing for all by 2022. PMAY-G subsumed the erstwhile Indira Awaas Yojana for rural housing. Note: Value for 2021-22 is revised estimate, value for 2022- 23 is budget estimate. Values for years prior to 2016-17 relate to Indira Awaas Yojana. Sources: Union Budgets from 2010-11 to 2022-23; PRS. Houses constructed: Since the scheme was announced in 2016-17, the target for construction for houses has not been met in any of the years. The rate of construction (completed vs sanctioned) has also declined since 2019-20. In 2021-22, the completion rate (till February 2021) was at 15%. Poor construction rates for 2020-21 and 2021-22 may be due to the inability to carry out construction due to the COVID-19 pandemic. The Standing Committee on Rural Development (2020) had noted that progress under the scheme has been slow.2 It observed that one of the biggest hurdles for the timely completion of houses, is delay in the release of instalments under PMAY-G to beneficiaries. It recommended the Department of Rural Development to streamline the method for the timely release of instalments and explore ways to ensure that construction of houses is completed within the targeted time frame. Increase in financial assistance under PMAY-G: Under PMAY-G, financial assistance of Rs 1,20,000 in plain areas and Rs 1,30,000 in hilly areas is provided to rural BPL households for construction of a dwelling unit. The Standing Committee on Rural Development (2019) had noted that the financial assistance provided is not proportionate with the rising inflationary cost of the construction, material and other aspects of house building.20 Further, Standing Committee on Rural Development (2020-21) noted the disparity in assistance for constructing a house in rural and urban areas (assistance of about Rs 2,50,000 per house). It noted that there are several logistical issues in rural areas that may not be there in urban areas. It recommended the Ministry to increase the assistance provided by them under the PMAY-G scheme and bring parity between the per-unit assistance in rural and urban areas.20 Coverage of the scheme: Questions have also been raised around the coverage of the scheme and whether all intended beneficiaries are included. Under PMAY-G beneficiaries are selected based on the housing deficiency and other social deprivation parameters in the Socio Economic and Caste Census, 2011 (SECC), and as verified by the Gram Sabhas. The Standing Committee on Rural Development (2021) had noted that to ensure that Gram Sabhas are making fair assessments, the rejected applicants should be cross-checked by independent agencies and more accountability be brought into the process.21 Anomalies in the SECC 2011 data could also exclude people from benefitting under the scheme. It recommended that a new strategy be designed to identify beneficiaries. ## Pradhan Mantri Gram Sadak Yojana Pradhan Mantri Gram Sadak Yojana (PMGSY) seeks to provide all-weather road connectivity to all eligible unconnected habitations, existing in the core network in rural areas of the country. The scheme has been allocated Rs 19,000 crore in 2021-22, which is an increase of 36% over the revised estimate of 2021-22. Declining fund allocation and poor utilisation: While the allocation in 2022-23 sees a significant increase from the revised estimates of last year, the expenditure on the scheme has been decreasing since 2015-16 (see Figure 8). Further since 2016-17, the Ministry has been spending less than the amount allocated at the budget stage (see Table 6). This trend of underutilisation has been worsening between 2016-17 and 2020-21. Note: Value for 2020-21 is the revised estimates. Sources: Union Budgets from 2014-15 to 2022-23; PRS. Year Budgeted Actuals % utilisation 2014-15 14,391 14,188 -1% 2015-16 14,291 18,290 28% 2016-17 19,000 17,923 -6% 2017-18 19,000 16,862 -11% 2018-19 19,000 15,414 -19% 2019-20 19,000 14,017 -26% 2020-21 19,500 13,688 -30% 2021-22 15,000 14,000 -7% 2022-23 19,000 Note: The 'Actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets from 2014-15 to 2022-23; PRS. Slow pace of work under the scheme: Till December 8, 2021, under phase I of the scheme, 6,45,627 km of road length has been sanctioned, of which, 6,10,179 km has been completed.22 PMGSY II was launched in 2013 to consolidate the existing rural road network, under which 50,000 km of road length was targeted for upgradation. As on December 8, 2021, 49,885 km has been sanctioned and 45,573 km has been constructed.22 In July 2019, PMGSY III was approved for consolidation of 1.25 lakh km roads length through routes and major rural links connecting habitations. As on December 8, 2021, 71,902 km has been sanctioned and 19,649 km has been constructed.22 Phase III is to be implemented till March 2025. | | Sanctioned | Constructed | Balance | |-----------|---------------|----------------|------------| | Phase I | 6,45,627 | 6,10,179 | 20,340 | | Phase II | 49,885 | 45,573 | 3,860 | | Phase III | 71,902 | 19,649 | 52,152 | 2021; PRS. While targets under various phases of the scheme are being met, the progress has been slow. The Standing Committee on Rural Development (2021) noted that projects under PMGSY do not get completed in the prescribed time frame.3 Such delays result in escalation of the project costs which affects the overall expenditure. Delays are also caused due to delays in obtaining clearances for projects from various ministries. In 2020, the Committee had noted that the pace of work under the scheme has been slow, especially in hilly states like Uttarakhand.2 It noted that the delay in approval of Detailed Project Reports (DPRs) is the main cause for the slow pace of the scheme. It recommended that the Department of Rural Development ensure timely preparation and approval of DPRs and increase the pace of completion of projects. Figures 9 and 10 give details of length of roads constructed and habitations connected in the last ten years, under the scheme. Note: Road length includes roads constructed under Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA). Sources: Sanctioned road length under PMGSY, Rural Dashboard, Monitoring and Accounting System (OMMS), Ministry of Rural Development, last accessed on February 11, 2022; PRS. Note: Road length includes roads constructed under Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA). Sources: Sanctioned road length under PMGSY, Rural Dashboard, Monitoring and Accounting System (OMMS), Ministry of Rural Development, last accessed on February 11, 2022; PRS. ## Issues With Contracting And Poor Maintenance Affects Quality Of Roads Built Under Pmgsy The Standing Committee on Rural Development (2021) noted that contractors tend to quote 25- 30% lower than the minimum bid amount to acquire project tenders under the scheme.3 This affects the quality of roads constructed under PMGSY. Often contracts are also sublet to petty contractors who are not involved at the time of awarding bids. This is done for further costcutting in projects and profiteering. For ensuring sustainability of roads built under PMGSY, each contractor has to provide for: (i) defect liability for five years, and (ii) paid routine maintenance after completion of work. The Standing Committee on Rural Development (2020, 2021) has consistently noted that roads constructed are not up to the prescribed standards and there has been deterioration in the roads despite the five-year warranty period.2,3 It has recommended the Ministry to ensure stricter norm compliance and hold the contractors and agencies accountable for their negligence. ## National Social Assistance Program The National Social Assistance Program (NSAP) is a welfare program comprising of sub-schemes aimed at providing assistance to citizens in case of unemployment, old age, sickness, and any form of disability. The major schemes include Indira Gandhi National Old Age Pension Scheme, Indira Gandhi National Widow Pension Scheme, and Indira Gandhi National Disability Pension Scheme. It also includes funds provided to Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders through direct benefit transfers (DBT). In 2022-23, the scheme has been allocated Rs 9,652 crore, which is a 11% increase over the revised estimates of 2021-22. The expenditure on the scheme was increased substantially in 2020-21, owing to Rs 30,945 crore spent on DBT to women account holders of PMJDY (Rs 500 for three months).23 This was an initiative under the PM Garib Kalyan Package to combat the economic effects of the COVID-19 pandemic. 20-21 Actuals 21-22 RE 22-23 BE 8,965 5,945 6,564 Indira Gandhi National Old Age Pension Scheme 1,881 1,845 2,027 Indira Gandhi National Widow Pension Scheme 375 583 675 National Family Benefit Scheme 30,944 - - DBT to PMJDY Women Account Holders Others 278 358 386 Total 42,443 8,730 9,652 Sources: Demands for Grants 2022-23, Department of Rural Development; PRS. Table 9 shows the budget estimates and actual expenditure under the scheme since 2014-15. | Year | Budgeted | Actuals | % utilised | |---------|-------------|------------|---------------| | 2014-15 | 10,635 | 7,087 | -33% | | 2015-16 | 9,082 | 8,616 | -5% | | 2016-17 | 9,500 | 8,854 | -7% | | 2017-18 | 9,500 | 8,694 | -8% | | 2018-19 | 9,975 | 8,418 | -16% | | 2019-20 | 9,200 | 8,692 | -6% | | 2020-21 | 9,197 | 42,443 | 361% | | 2021-22 | 9,200 | 8,730 | -5% | | 2022-23 | 9,652 | | | Note: The 'Actuals' figure for 2020-21 is the revised estimate. Sources: Union Budgets from 2014-15 to 2022-23; PRS. Increase of assistance amount: The Standing Committee on Rural Development (2020,21) has consistently noted that the assistance amount (ranging from Rs 200 to Rs 500 per month) under the different components of the scheme is inadequate. It recommended the Department of Rural Development to increase the assistance amounts under the scheme. PM Jan Dhan Yojana: PMJDY was launched in August 2014 to increase banking penetration, promote financial inclusion and provide at least one bank account per household across the country. As on February 2, 2022, 44.58 crore accounts have been opened under PMJDY (since its launch).24 67% of these accounts have been opened in rural and semi-urban bank branches. The remaining 33% are in urban metro centres. Deposits of Rs 1.58 lakh crore have been made and 31.38 crore RuPay debit cards have been issued.24 ## National Rural Livelihoods Mission The National Rural Livelihoods Mission (NRLM) aims to reduce poverty through promotion of diversified and gainful selfemployment and skilled wage employment opportunities. In 2022-23, the scheme has been allocated Rs 13,336 crore, which is a 14% increase over the revised estimates of 2021-22. Table 10 shows the actual expenditure by states under the scheme since 2012-13. Table 10: Expenditure under NRLM (Rs crore) Year Budgeted Actuals % utilisation 2012-13 3,915 2,195 -44% 2013-14 4,000 2,022 -49% 2014-15 4,000 1,413 -65% 2015-16 2,505 2,514 0% 2016-17 3,000 3,157 5% 2017-18 4,500 4,327 -4% 2018-19 5,750 5,783 1% 2019-20 9,024 9,022 0% 2020-21 9,210 9,208 0% 2021-22 13,678 11,710 -14% 2022-23 13,336 Note: Actuals for 2021-22 are revised estimates. From 2015-16, allocation to start-up village entrepreneurship program has also been included. Sources: Union Budgets from 2012-13 to 2022-23; PRS. Table below shows progress under components of the scheme since 2016-17. ## Groups Number of households mobilised into Self Help Groups 2016-17 74,01,665 2017-18 88,29,599 2018-19 97,37,594 2019-20 89,17,895 2020-21 62,06,775 2021-22 45,37,327 Source: Aajeevika - Deen Dayal Antyodaya Yojana - NRLM, Rural Dashboard, Ministry of Rural Development, last accessed on February 11, 2022; PRS. ## Nrlm SHGs provided Revolving Fund SHGs provided Community Investment Fund (CIF) CIF disbursed to SHG (in Rs lakh) Revolving fund disbursed to SHGs (in Rs lakh) 2016-17 1,91,734 26,762 1,35,033 80,847 2017-18 2,95,303 41,756 2,33,094 1,38,356 2018-19 4,29,557 62,221 2,73,485 1,67,613 2019-20 4,37,881 63,459 3,26,505 2,10,188 2020-21 5,03,485 72,712 4,07,600 2,47,260 2021-22 3,87,996 59,315 3,85,576 2,79,453 Source: Aajeevika - Deen Dayal Antyodaya Yojana - NRLM, Rural Dashboard, Ministry of Rural Development, last accessed on February 11, 2022; PRS. ## Overview Of Finances: Department Of Land Resources The Department of Land Resources aims to increase productivity of degraded land through integrated watershed management. It also aims to develop an integrated land information management system to improve real-time information on land, and to optimise use of land resources. It implements two key schemes: (i) Integrated Watershed Development Component of Pradhan Mantri Krishi Sinchai Yojana (WDC- PMKSY), and (ii) the Digital India Land Records Modernisation Programme (DILRMP). In 2021-22, the Department has been allocated Rs 2,259 crore, which is a 52% increase over the revised estimates of 2021-22. | Major Heads | | |---------------|-----| | 20-21 | | | Actuals | | | 21-22 | | | RE | | | 22-23 | | | BE | | | % Change | | | (22-23 BE/ | | | 21-22 RE) | | | WDC - PMKSY | 938 | | DILRMP | 225 | | Secretariat | 13 | | Total | | Note: WDC - PMKSY is the Watershed Development Component under Pradhan Mantri Krishi Sinchai Yojana. DILRMP is Digital India Land Records Modernisation Programme. BE is budget estimate and RE is revised estimate. Sources: Demands for Grants 2022-23, Department of Land Resources, Ministry of Rural Development; PRS. ## Watershed Development Component Of Pradhan Mantri Krishi Sinchai Yojana The Integrated Watershed Management Programme aims to develop rain fed portions of net cultivated area and culturable wastelands.25 In 2015, it was subsumed as one of the components of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). Activities under the Watershed Development Component are drainage line treatment, soil and moisture conservation, rain water harvesting, and afforestation, among others. The scheme has been allocated Rs 2,000 crore in 2022-23, which is a 64% increase over the revised estimate of 2021-22. Note that there has been under-utilisation of the budgeted amounts for the last five years. Slow progress of projects: The Standing Committee on Rural Development (2020, 2021) noted the slow pace of completion of projects under the scheme. As of February 10, 2022, 1,139 projects were ongoing and under various stages of implementation.26 The Standing Committee (2021) noted that projects are delayed in some states due to lack of focus by state governments and delay in release of central funds to the state level nodal agencies. The Committee recommended accelerating the pace of project completion. The centre must work with the state level nodal agencies to ensure that projects are not delayed. (Rs crore) Year Budgeted Actuals % utilised 2015-16 1,530 1,527 0% 2016-17 1,550 1,510 -3% 2017-18 2,150 1,671 -22% 2018-19 2,251 1,786 -21% 2019-20 2,066 1,467 -29% 2020-21 2,000 938 -53% 2021-22 2,000 1,216 -39% 2022-23 2,000 - Note: The 'Actuals' figure for 2021-22 is revised estimate. Sources: Union Budgets from 2015-16 to 2022-23; PRS. ## Digital India Land Records Modernisation Programme (Dilrmp) DILRMP is a part of the Digital India initiative.27 The scheme was changed into a Central Sector Scheme in April 2016.28 With this change, the scheme is now implemented by the central government with 100% of the grants coming from the centre. Major components of the programme include: (i) computerisation of all existing land records, (ii) digitisation of maps, (iii) survey/re-survey, and updating of all settlement records, and (iv) computerisation of the registration process and its integration with the land records maintenance system. In 2022-23, the scheme has been allocated Rs 239 crore which is a 4% decrease from the revised estimates of 2021-22. Over the past few years the amount allocated towards the scheme at the budget stage has typically not been fully utilised, with the actual expenditure in some years being 50% less than the amount allocated at the budget stage. However, in 2021-22, expenditure on the scheme is estimated to be 67% more than the amount allocated at the budget stage. on DILRMP (Rs crore) Year Budgeted Actuals % utilised 2015-16 90 40 -56% 2016-17 150 139 -7% 2017-18 150 93 -38% 2018-19 250 68 -73% 2019-20 150 44 -71% 2020-21 239 225 -6% 2021-22 150 250 67% 2022-23 239 - Note: The 'actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets 2015-16 to 2022-23; PRS. Progress of components under DILRMP: DILRMP is currently being implemented in all states, but with differential progress.29 While significant progress has been made across various components of the scheme, several key components are still lagging behind. Land records have been computerised for 93% of the villages.29 The record of rights have been digitised for 84% of the villages.29 Survey/re-survey work has been completed in only 12% of the villages. 68% of the 1 Demand No. 87, Department of Rural Development, Ministry of Rural Development, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe87.pdf; Demand No. 88, Department of Land Resources, Ministry of Rural Development, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe88.pdf. 3 Report No. 13, Demands for Grants (2021-22), Department of Rural Development, Standing Committee on Rural Development, March 9, 2021, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_13.pdf. 4 The National Rural Employment Guarantee Act, 2005 https://nrega.nic.in/amendments_2005_2018.pdf. 5 Mahatma Gandhi National Rural Employment Guarantee Act, 2005, Operational Guideline 2013, https://nrega.nic.in/Circular_Archive/archive/Operational_g uidelines_4thEdition_eng_2013.pdf. 6 Report No. 20, Critical Evaluation of Mahatma Gandhi National Rural Employment Guarantee Act, Standing Committee on Rural Development, 2021-22, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_and_Panch ayati_Raj_20.pdf. 7 Unstarred Question No. 3781, Lok Sabha Questions, Ministry of Rural Development, December 21, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU3781.pd f 8 Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022, http://mnregaweb4.nic.in/netnrega/MISreport4.aspx. 9 "In FY 2021, 1.85 crore persons have been offered work under MGNREGA; 52% higher than the same period in FY 2019", Ministry of Rural Development, Press Information Bureau, May 17, 2021. 10 Chapter 10, Social Infrastructure and Employment, Economic Survey 2021-22, Ministry of Finance, https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/ echap10.pdf. 11 Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022, https://ruraldiksha.nic.in/RuralDashboard/MGNREGA_New.asp x. 12 The National Rural Employment Guarantee Act, 2005, https://nrega.nic.in/amendments_2005_2018.pdf. 13 Unstarred Question No. 2219, Ministry of Rural Development, August 6, 2021, https://pqars.nic.in/annex/254/AU2219.pdf. 14 "Finance Minister announces Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus", Press Information Bureau, Ministry of Finance, March 26, 2020. 15 "Program Specific", Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022; PRS. 16 R7.2.1 Average wage As per measurement pattern during the Financial Year 2021-2022, The Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022, http://mnregaweb4.nic.in/netnrega/avg_wage_paid.aspx?fin_yea r=2021- 2022&source=national&Digest=9W1xBQWtfJS+lGqDnrVHsA. cadastral maps have been digitised. Land records and property registration has been integrated in 75% of villages. Textual and spatial data has been integrated in 56% villages. 17 "Report of the Committee on Alignment of MGNREGA Wages with Minimum Agricultural Wages." July, 2017. Ministry of Rural Development, MGNREGA Division. http://www.im4change.org/siteadmin/tinymce/uploaded/Draft% 20report%20of%20Nagesh%20Singh%20Committee%20July% 202017.pdf. 18 Effective use of technology for welfare schemes - Case of MGNREGS. Economic Survey 2018-19, Volume I. https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapte r/echap10_Vol1.pdf. 19 "Report No. 6, Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme", Comptroller and Auditor General of India, 2013, http://www.cag.gov.in/sites/default/files/audit_report_files/Unio n_Performance_Civil_Ministry_Rural_Development_6_2013.p df. 20 Report No. 1, Demands for Grants (2019-20), Ministry of Rural Development, Standing Committee on Rural Development, December 5, 2019, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_1.pdf. 21 Report No. 16, Pradhan Mantri Awaas Yojana - Gramin: PMAY-G, Standing Committee on Rural Development, August 2, 2021, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_16.pdf. 22 Starred Question No. 226, Lok Sabha Questions, Ministry of Rural Development, December 14, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AS226.pdf. 23 "Direct cash transfer to women PMJDY account holders under PM Garib Kalyan Package for the month of April 2020 in the light of COVID-19 pandemic", Ministry of Rural Development, April 3, 2020. 24 "Progress-Report, PMJDY" , last accessed on February 11, 2022, https://pmjdy.gov.in/account 25 Programme Details, Watershed Development Component Of Pradhan Mantri Krishi Sinchai Yojana (WDC-PMKSY), Department Of Land Resources, Ministry of Rural Development https://dolr.gov.in/programme-schemes/pmksy/watersheddevelopment-component-pradhan-mantri-krishi-sinchai-yojanawdc-pmksy. 26 Unstarred Question no. 1596, Lok Sabha Questions, Ministry of Jal Shakti, February 10, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AU1596.pd f. 27 Digital India Land Records Modernization Program, Department of Land Resources, Ministry of Rural Development, http://nlrmp.nic.in/faces/common/home.xhtml. 28 "Rationalization of Centrally Sponsored Scheme DILRMP as Central Sector Scheme", Department of Land Resources, Ministry of Rural Development, September 22, 2016, http://dolr.nic.in/dolr/downloads/PDFs/DILRMP%20Clarifi cations%202016-09-22.pdf. 29 Digital India Land Records Modernization Programme - MIS 2.0, last accessed on February 11, 2022, https://dilrmp.gov.in/faces/common/dashboard.xhtml. 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## Demand For Grants 2023-24 Analysis Food And Public Distribution The Ministry of Consumer Affairs, Food and Public Distribution has two Departments: (i) Food and Public Distribution, and (ii) Consumer Affairs. Allocation to the Ministry accounts for 5% of the budget of the central government in 2023-24.1 The **Department of Consumer Affairs** is responsible for spreading awareness among consumers about their rights, protecting their interests, implementing standards, and preventing black marketing.2 In 2023-24, the Department has been allocated Rs 251 crore, a 14% increase over the revised estimate of 2022-23.3 However, the allocation to the Department has declined by 87% in 2022-23 at the revised estimate stage as compared to the budget estimate stage. The **Department of Food and Public Distribution** is responsible for ensuring food security through procurement, storage, and distribution of food grains, and for regulating the sugar sector.4 In 2023- 24, the Department has been allocated Rs 2,05,514 crore (almost the entire allocation of the Ministry).5 This is a decrease of 31% as compared to the revised estimate of 2022-23. % change 2023-24 BE over Department 2021-22 Actuals 2022-23 Revised 2023-24 Budgeted 2022-23 RE Food & Public Distribution 3,04,361 2,96,304 2,05,514 -31% Consumer Affairs 2,211 220 251 14% Total 3,06,571 2,96,523 2,05,765 -31% Sources: Expenditure Budget, Union Budget 2023-24; PRS. This note examines the allocation to the Department of Food and Public Distribution. It also discusses the broad issues in the sector and key observations and recommendations made in this regard. ## Overview Of Finances Food subsidy is the largest expenditure by the Department of Food and Public Distribution. 96% of the Department's allocation in 2023-24 is towards food subsidy (see Table 7 in the Annexure for more details). The subsidy is provided to the Food Corporation of India (FCI) and states for procuring food grains from farmers at government notified prices and selling them at lower subsidised prices (known as Central Issue Prices), under the National Food Security Act (NFSA), 2013. The Act mandates coverage of up to 75% of the population in rural areas and 50% in urban areas.6,7 Beneficiary households under the Act are divided into Antyodaya Anna Yojana (AAY, i.e., the poorest of poor families) and priority households. AAY households are eligible to receive 35 kg of foodgrains per month and priority households are eligible to receive 5 kg of foodgrains per person per month at subsidised prices. The subsidy also covers the storage cost incurred by FCI in maintaining buffer stocks in order to ensure food security in the country. Figure 1 shows the expenditure on food subsidy during 2013-14 to 2023-24 as a percentage of GDP. The spending on food subsidy as a percentage of GDP decreased between 2013-14 (0.8%) and 2019-20 (0.5%). However, this downward trend was driven by releasing less subsidy than what was originally claimed by the FCI.8 Note: RE is revised estimate; BE is budget estimate. Sources: Union Budget Documents; MoSPI; PRS. The amount of unpaid subsidy to the FCI had steadily increased over the last few years. While the central government released less than claimed subsidy, it provided loans to the FCI through the National Small Savings Fund (NSSF). In the budget for 2021-22, the central government made provisions to repay the loans taken from NSSF and clear the past dues of the FCI. As a result, the expenditure on food subsidy increased sharply in 2020-21 to 2.7% of GDP. Between 2020-21 and 2022-23, food subsidy also included expenditure on account of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Under the scheme, 5 kg additional foodgrains were allocated per person per month free of cost to eligible beneficiaries at an expense of Rs 3.9 lakh crore.9 In December 2022, the Union Cabinet decided to provide foodgrains under NFSA free of cost to the eligible beneficiaries. This would be applicable for a oneyear period from January 1, 2023.10 Foodgrains Expenditure (Rs Phases crore) allocated (lakh metric tonnes) Apr 20–Jun 20 120 44,834 Jul 20-Nov 20 201 68,351 May 21-Jun 21 80 26,602 Jul 21-Nov 21 199 67,266 Dec 21-Mar 22 159 53,344 Apr 22-Sep 22 239 85,838 Oct 22-Dec 22 120 44,763 Total 1,118 3,90,998 Sources: Unstarred Question No. 1994, Rajya Sabha; PRS. ## Components Of Food **Subsidy** Expenditure on food subsidy can be classified under the following three heads (break-up in Table 3): - Subsidy to FCI: The Food Corporation of India (FCI) receives subsidy for procuring food grains from farmers at government notified prices and selling them at lower subsidised prices. It also receives subsidy for the storage cost incurred in maintaining buffer stocks. - Subsidy to states: Under the decentralised procurement scheme, states may choose to undertake the operations of procurement, storage, and distribution on behalf of FCI. In such cases, states are provided with subsidy. - Sugar subsidy: Under this, one kg of sugar per family per month is provided at subsidised rates to families covered under the Antyodaya Anna Yojana. This is less than 0.2% of the total subsidy bill. In addition, Rs 7,425 crore has been allocated as assistance to states for intra-state movement of foodgrains and margins of fair price shop dealers. In the budget for 2023-24, the subsidy allocated to the FCI and states is expected to be 36% and 17% lower as compared to the revised estimate of 2022- 23, respectively. Subsidy 2021-22 Actuals 2022-23 Revised 2023-24 Budgeted % change in 2023-24 BE over 2022- 23 RE Subsidy to FCI 2,08,929 2,14,696 1,37,207 -36% 79,790 72,283 59,793 -17% Subsidy to states (decentralised procurement) Sugar subsidy 250 216 350 62% Total 2,88,969 2,87,194 1,97,350 -31% Sources: Expenditure Budget, Union Budget 2023-24; PRS. ## Issues In The Sector Coverage Under Nfsa The NFSA provides that subsidised foodgrains be provided to up to 75% of the rural population and up to 50% of the urban population (as per the census).6 On an average, it covers 67% of the total population of the country. As per the 2011 census, the number of eligible beneficiaries covered under NFSA is around 80 crore. Who should receive food subsidy has been a key question. On one hand there have been suggestions to identify beneficiaries as per the latest population figures to increase coverage. On the other hand, experts have suggested to reduce the coverage under NFSA while increasing the entitlements for priority households. The next decadal census was to be conducted in 2021. However, due to the COVID-19 pandemic, it has been postponed until further orders.11 In the backdrop of this delay and the increase in population during the intervening period, the number of people getting food subsidy under NFSA may be less than 67% of the population. According to the population estimates prepared by the National Commission on Population, India's population as on March 1, 2021 is expected to be 136 crore as compared to 121 crore in 2011.12 Going by this estimate, the number of people who are eligible to be covered under NFSA would be around 91 crore which is more than the current number of beneficiaries receiving subsidised foodgrains. In July 2022, the Supreme Court observed that the central government should come with a formula or policy such that the benefits under NFSA are not restricted as per the 2011 census.13 The Court noted that the 'Right to Food' is a fundamental right under Article 21 of the Constitution. It recommended that the central government may use projections of population increase during 2011-2021 to ensure more needy people are covered under NFSA.13 Note that certain states run an expanded version of the PDS. According to the central government, more than six crore state ration cards exist which cover another 25 crore people over and above the NFSA mandate.14 Various experts have noted that the coverage of NFSA is high, but the allocation to priority households is low. In 2011-12, the per capita consumption of cereals in rural areas was 11.2 kg and in urban areas was 9.3 kg.15 Compared to this, under NFSA, priority households are entitled to receive 5 kg of foodgrains (primarily rice and wheat) per person per month. In the last two years, some of the consumption gap was being met through the additional allocation of foodgrains under PMGKAY, which was discontinued in December 2022. The High Level Committee on Restructuring of Food Corporation of India (2015) had recommended that the central government should rethink the coverage of population under NFSA.16 It noted that allocating 5 kg foodgrains per person to priority households made them worse off compared to the earlier framework of targeted PDS under which they were entitled to 7 kg of foodgrains per person.16 It had recommended reducing the overall coverage for NFSA to around 40% of the population. This would cover all families below the poverty line and some families above that. At the same time, it recommended increasing the allocation of foodgrains to priority households to 7 kg per person. ## Free Provision Of Foodgrains Under Nfsa Is Against Long-Standing Recommendation Of Revision Of Cip Under the National Food Security Act, 2013, food grains are allocated to the beneficiaries at the Central Issue Price (CIP). These prices have not changed since July 1, 2002.17 The Standing Committee on Food, Consumer Affairs and Public Distribution (2017) noted that the food subsidy bill has increased due to increase in MSP of wheat and rice with respect to the CIP, increased off take of food grains under targeted PDS, and implementation of NFSA in all states/UTs.18 The Economic Survey 2020-21 noted that the central government's food subsidy bill is becoming unmanageably large.19 | Food grain | NFSA | BPL | APL | |---------------|---------|--------|--------| | Rice | 3 | 5.65 | 7.95 | | Wheat | 2 | 4.15 | 6.1 | Note: BPL - Below Poverty Line, APL - Above Poverty Line. Sources: FCI; PRS. Food subsidy has three elements: (i) consumer subsidy, (ii) cost of maintaining buffer stock, and (iii) subsidy on coarse grains, regularisation of FCI's operational losses and other non-plan allocation to states.20 Consumer subsidy is the difference between the economic cost and CIP. Economic cost includes cost of procurement, acquisition, and distribution. In 2002-03, from when the CIP has been effective, the economic cost of rice was Rs 11.7 per kg and for wheat it was Rs 8.8 per kg.20 In 2023-24, the economic cost of rice is estimated to be Rs 39.2 per kg while that for wheat is estimated at Rs 27 per kg.20 The NFSA provides that the CIP may be periodically revised by the central government in a manner such that it does not exceed the minimum support price for rice, wheat, and coarse grains.6 In 2023, the central government will provide free foodgrains to all eligible beneficiaries under the NFSA.10 This distribution of foodgrains has now been renamed as PMGKAY (after the scheme which ran from April 2020 to December 2022).21 The free distribution of foodgrains under NFSA is against the recommendations given in the past with respect to the revision of the CIP. Note: Figures for 2022-23 are revised estimates and 2023-24 are budget estimates. Sources: FCI; PRS. Subsidy Note: Figures for 2022-23 are revised estimates and 2023-24 are budget estimates. Sources: FCI; PRS. The Economic Survey 2020-21 noted that while it is difficult to reduce the economic cost of food management, there is a need to consider revising CIP to reduce food subsidy bill. The 15th Finance Commission observed that the increase in economic cost of food grains will need to be partially offset by increasing CIP of subsidised foodgrains.22 Increase in expenditure on food subsidy may hinder investments in the agriculture and food sector.16 One recommendation has been to provide foodgrains at the prevailing subsidised rates only to the AAY households.16 However, the prices for priority households must be linked to MSP. The rise in economic costs is driven by periodic increases in MSP (Figure 5). ## Distribution Of Commodities Under Nfsa May Not Cater To Nutritional Requirements Of The Beneficiaries According to the National Family Health Survey - 5, 50% of the women and 48% of the men surveyed between the ages of 15-49 reported consuming pulses or beans daily.23 Around 49% of the respondents reported consuming milk or curd daily.23 One of the reforms prescribed under NFSA includes diversifying the commodities distributed under PDS over a period of time.6 However, foodgrains distributed under PDS primarily include only cereals (rice, wheat, and coarse grains). This has not changed since the Act was implemented in 2013 despite certain structural changes in consumption patterns of people. Between 1993-94 and 2011-12, the amount of protein intake by consuming cereals decreased in both rural areas and urban areas.24 There was an increase in the share of proteins consumed through items such as pulses, milk, and egg, fish and meat.24 Sources: Nutritional Intake in India 2011-12, NSSO; 15th Finance Commission; PRS. Sources: Nutritional Intake in India 2011-12, NSSO; 15th Finance Commission; PRS. Moreover, while cereals or foodgrains contain only 10% protein, their share as a percentage of total protein intake in rural and urban areas was more than 50% in 2011-12.24 Other sources of consumption such as pulses, milk, fish, and meat contain more than 20% protein but account for only 15% of total protein intake in India.24 Pulses under PMGKAY: Pulses can be a better source of protein as compared to cereals and can help improve nutrition intake for NFSA beneficiaries. Under the first phase of the PMGKAY between April to June 2020, the central government distributed one kg of pulses per household per month free of cost for NFSA beneficiaries.25 Between July to November 2020, one kg of chana was provided free of cost per family per month to beneficiaries covered under the NFSA. However, the allocation of pulses was not continued after that under PMGKAY. Between 2011-12 and 2021-22, the domestic production of pulses has increased at an annual rate of 5% as compared to the increase of 2% in the total production of foodgrains.26 However, India continues to be import dependent for meeting its domestic needs for consumption of pulses. India's import dependency for pulses in 2020-21 was 9% which is estimated to decline to 3.6% by 2030-31.27 This is in contrast to wheat and rice where the domestic production is more than sufficient to meet the domestic consumption demand. As long as India continues to be import dependent for meeting its consumption needs for pulses, it may be challenging to include them as one of the commodities given under NFSA. ## Delivery Of Food Subsidy Leakages in PDS: Leakages refer to food grains not reaching the intended beneficiaries. Note that recent data on leakages is not publicly available. The latest available data is for 2011. According to the 2011 data, leakages in PDS were estimated to be 46.7%.16,28 Leakages may be of three types: (i) pilferage or damage during transportation of food grains, (ii) diversion to non-beneficiaries at fair price shops through issue of ghost cards, and (iii) exclusion of people entitled to food grains but who are not on the beneficiary list.29,30 Exclusion errors occur when entitled beneficiaries do not get food grains. It refers to the percentage of poor households that are entitled to but do not have PDS cards. Exclusion errors had declined from 55% in 2004-05 to 41% in 2011-12.31 Inclusion errors occur when those who are ineligible get undue benefits. Inclusion errors had increased from 29% in 2004-05 to 37% in 2011-12.31 Considering the significant leakages under the PDS, the High-Level Committee (2015) had recommended the incorporation of Aadhaar and biometric authentication.16 In February 2017, the Ministry made it mandatory for beneficiaries under the National Food Security Act, 2013 to use Aadhaar as proof of identification for receiving food grains.32 However, non-linking of Aadhaar with ration cards is not a ground for cancellation of ration cards.33 The deadline for applying for Aadhaar enrolment in order to avail subsidised food grains or cash transfer of food subsidy has been extended several times and currently stands at March 31, 2023.34 According to the central government, due to measures such as digitisation of ration cards, deduplication, and identification of fake/ineligible ration cards, states/UTs have cancelled about 4.28 crore bogus cards between 2014 to 2021.33 As on February 4, 2022, 93.5% of the ration cards have been seeded with Aadhaar (of at least one member of the household).35 Note that beneficiaries may face issues with Aadhaar authentication while availing PDS benefits. According to the data submitted by UIDAI to the Supreme Court, the Aadhaar authentication failure rate (across all purposes) was 8.5% for iris scans and 6% for fingerprints.36 In its judgement, the Court held that services cannot be denied to beneficiaries due to Aadhaar authentication failure.36 is pending % FPS State/UT Total FPS Operational ePoS Automation 464 445 96% Andaman and Nicobar Islands Assam 33,987 19,078 56% Chhattisgarh 12,304 12,004 98% Sources: 18th Report, Standing Committee on Consumer Affairs, Food and Public Distribution, 2022; PRS. Automation of fair price shops (FPS) by installing electronic point of sale devices (ePoS) has been another reform which has been suggested to address leakages in PDS. This helps in transparent distribution of food grains after unique identification of beneficiaries.37 In addition to this, ePoS devices also upload the electronic records of sale transactions to centralised servers in states/UTs.37 As on February 2, 2022, 97% of all FPSs have operationalised ePoS.35 In May 2022, the Department of Food and Public Distribution revised the central assistance paid to states/UTs for meeting, among other expenses, the margins paid to FPS dealers.38 Under the revised norms, the margin of FPS dealers have been increased from 70 paise per kg to 90 paise per kg in general category states and from Rs 1.43 per kg to Rs 1.8 per kg in north-eastern, Himalayan, and island states.38 However, certain ground surveys have indicated that Aadhaar based authentication and automation of FPSs have led to problems of exclusion. For instance, a study in rural Jharkhand (2017) found that certain households were unable to pass the biometric authentication test and were hence unable to timely access their food entitlements.39 Certain households with elderly couples reported issues with fingerprint recognition. The survey also found that quantity fraud (providing less than entitled foodgrains to beneficiaries) persisted even after the implementation of PoS devices.39 Direct Benefit Transfer (DBT): The NFSA provides that one of the reforms in targeted PDS is the introduction of schemes such as cash transfer and food coupons.6 The High-Level Committee on FCI (2015) had observed that a majority of the rural population covered under NFSA are farmers or people working on farms.16 This implies that the government often procures, stores, and distributes grains to the same persons that they are buying grains from at MSP.16 The Committee recommended that it would be better to provide cash subsidy to such farmers and farm workers. This was seen to reduce the subsidy expenses of the central government while at the same time improve the effective subsidy support received by the beneficiaries.16 The Committee estimated that this would save around Rs 30,000-35,000 crore for the central government. It recommended giving cash transfers indexed to inflation.16 In September 2015, the central government started pilot projects for providing food subsidy through cash transfers. This is being implemented in Chandigarh, Puducherry and urban areas of Dadra and Nagar Haveli.40 According to the central government these pilot projects aim to: (i) reduce the need for physical movement of foodgrains, (ii) provide greater autonomy to beneficiaries to choose their consumption basket, and (iii) reduce leakages and improve targetting.40 However, even after seven years of starting the pilot projects, the uptake of DBT across states has been limited. The government of Puducherry had sought an exemption from the DBT scheme under NFSA.41 However, its request was turned down by the Centre.41 A DBT pilot project started in the Nagri block of Jharkhand was discontinued in 2018, 10 months after it was launched.42 According to news reports, a social audit of the scheme had revealed that some beneficiaries took more than four days in accessing the ration after receiving the money.42 Moreover, some beneficiaries also had to borrow money in order to be able to buy rations.42 One Nation One Ration Card (ONORC): In order to facilitate nationwide portability of NFSA entitlements, the central government has implemented the ONORC. Under the scheme, NFSA beneficiaries have the choice to lift their entitled foodgrain from any FPS across the country with their existing ration card.43 It is being implemented in all states/UTs. Between August 2019 and November 2022, more than 93 crore portability transactions were carried out under ONORC. However, only 0.6% of these accounted for inter-state transactions while the remaining were intra-state transactions.43 Bihar accounts for 31% of the total portability transactions, followed by Andhra Pradesh at 12% and Rajasthan at 11%.43 ## Procurement Of Foodgrains There are two broad procurement systems: (i) centralised and (ii) decentralised.44 Under the centralised procurement system, foodgrains are procured either directly by the FCI or by state government agencies (at MSP). Foodgrains procured by state agencies are handed over to FCI for storage, distribution, or transportation. Under decentralised procurement, state government/agencies procure, store, and distribute rice/wheat/coarse grains within the state. The excess stocks of rice and wheat are handed over to FCI in the central pool. The expenditure incurred by the states and its agencies are reimbursed by the central government. At present, 15 states undertake decentralised procurement for rice while eight states undertake the decentralised procurement of wheat.35 | | Year | Rice | Wheat | |---------|---------|---------|----------| | 2015-16 | 342.18 | | 280.88 | | 2016-17 | 381.06 | | 229.61 | | 2017-18 | 381.74 | | 308.24 | | 2018-19 | 443.99 | | 357.95 | | 2019-20 | 518.26 | | 341.32 | | 2020-21 | 602.45 | | 389.92 | | 2021-22 | 575.88 | | 433.44 | | 2022-23 | 434.83* | 187.92 | | Note: *Rice procurement data up to January 31, 2023. In 2022-23, the wheat procurement for the central pool was 57% less as compared to the procurement in 2021-22.45 This was driven by lower domestic production of wheat and sale of wheat by farmers in the open market to benefit from higher prices in the aftermath of geo-political tensions.46 As a result of the lower procurement of wheat in 2022-23, the stock of wheat in the central pool as on January 1, 2023 was 171.7 lakh metric tonnes.47 While this was above the foodgrain stocking norms of 138 lakh metric tonnes for wheat as on January 1 of each year, the actual stock in the central pool was the lowest since 2017.47,48 Decentralised procurement: The Standing Committee on Food, Consumer Affairs, and Public Distribution (2022) noted that after 24 years of starting decentralised procurement, the scheme has not been implemented by all states/UTs.35 The Department had informed the Committee that since decentralised procurement involves the state governments to make arrangement for funds, storage, and manpower, they hesitate to adopt it.35 Decentralised procurement of foodgrains is considered to be more effective as it does not require FCI to take over the stock of foodgrains and then release it to states.35 The Standing Committee recommended that all states/UTs should adopt the decentralised procurement of foodgrains. This would ensure the effective implementation of NFSA and make available foodgrains suited to local tastes for distribution under PDS.35 The Committee had recommended the central government to help states in adopting decentralised procurement. ## Storage Capacity In 2023-24, the central government has allocated Rs 104 crore for creation of storage capacity through FCI and state governments.5 FCI has its own network of storage infrastructure. Further, it also hires additional storage facilities from Central Warehousing Corporation and state warehousing corporations.49 The existing storage facilities are primarily conventional godowns where the foodgrains are stacked in bags.49 During peak procurement periods, FCI also uses cover and plinth (CAP) facilities for short-term storage of foodgrains.49 As on April 1, 2022, the storage capacity with FCI for central pool stocks was 427 lakh metric tonnes.50 The High Level Committee (2015) had recommended that CAP storage should be gradually phased out with no grain stocks remaining in CAP for more than three months.16 The Committee also recommended to replace CAP storage with silo bag technology and conventional storages wherever it was possible. Sources: 13th Report, Standing Committee on Food, Consumer Affairs and Public Distribution, 2021; PRS. The Standing Committee (2021) noted that the utilisation of hired storage capacity is much higher than the storage capacity owned by FCI.49 The Committee recommended that godowns should be hired only when it is absolutely necessary. 49 It recommended that FCI should utilise its own storage capacity to the maximum to save funds spent on renting storage space.49 The Standing Committee (2021) was informed that storage capacity is hired only when there is absolute necessity for it.49 This is the reason that hired capacity is utilised fully. Also, hired storage facility allows more flexibility in responding to changes in procurement pattern or change in offtake of food grains.49 The Standing Committee (2022) noted that physical and financial targets for construction of godowns was not met between 2019-20 and 2021-22.35 In 2021-22, against a target of 30,020 metric tonnes storage in north-eastern states, 20,000 metric tonnes was constructed up to February 8, 2022.35 In other states, no construction of godowns could be completed in 2021-22 against a target of 26,220 metric tonnes. The reasons for not meeting construction targets of godowns was cited to be: (i) COVID-19 related lockdowns, (ii) inability of state governments to timely hand over land parcels in the north east, (iii) local interference and law and order situation, and (iv) difficult geographical terrain.35 The Committee noted that inadequate storage space hampers the efficiency of the PDS. It recommended improving the pace of construction of storage godowns going ahead in both north eastern and other states.35 ## Sugarcane The Department is also responsible for formulation of policies and regulations for the sugar sector. This includes fixing the Fair and Remunerative Price (FRP) of sugarcane which is payable to farmers by sugar factories, training in sugar technology, and regulation of supply of free sale sugar. As of December 16, 2022, Rs 5,143 crore were pending in dues to sugarcane farmers for the sugar seasons (October-September) up to 2021-22.51 According to the Department, domestic production in excess of demand leads to an accumulation of sugar stock.35 In a normal sugar season, the production of sugar is around 310-320 lakh metric tonnes against domestic consumption of about 260 lakh metric tonnes.35 This causes blockage of funds and adversely affects the liquidity of sugar mills, thereby leading to accumulation of arrears to sugarcane farmers. Ethanol Blending Programme: The central government has been implementing the ethanol blended petrol (EBP) programme to increase the value addition in sugar industry and clear the arrears of sugarcane farmers.52 The National Biofuel Policy, 2018, mandated 10% blending of ethanol into motor fuel by 2022 and 20% by 2030.35 The target of achieving average 10% blending was achieved in June 2022.53 The original target has been revised to achieve 20% blending by 2025-26.35 In order to utilise the excess stock of sugarcane, the central government has permitted the production of ethanol from sugarcane juice, molasses (by-product in the production of sugar), sugar, and sugar syrup.35 The ethanol supplied to oil marketing companies (OMCs) has increased from 38 crore litre in ethanol supply year (December-November) 2013-14 to over 452 crore litre in 2021-22.53 Sugarcane prices: Certain state governments fix their own State Advised Price (SAP) at levels higher than the FRP announced by the central government. This causes further strain on the financial health of the sugar mills.54 A Task Force on Sugarcane and Sugar Industry (2020) recommended that sugarcane prices must be linked to sugar prices.54 Increases in FRP should be kept moderate and state announcing SAP should also bear the additional costs associated with it.54 The Task Force recommended a staggered payment mechanism for sugarcane. However, it should be ensured that the entire dues to the farmers are cleared within two months.54 The central government also fixes the minimum selling price for white/refined sugar. This was increased from Rs 29 per kg to Rs 31 per kg with effect from February 14, 2019.55 The task force had recommended increasing the minimum selling price of sugar to Rs 33 per kg with it being reviewed six months after notification.54 It observed that raising the selling price would help sugar mills to cover their production and maintenance costs. % change in 2023- 24 BE over 2022-23 2021-22 Actuals 2022-23 Budgeted 2022-23 Revised 2023-24 Budgeted RE Food subsidy 2,88,969 2,06,831 2,87,194 1,97,350 -31% Subsidy to Food Corporation of India (FCI) 2,08,929 1,45,920 2,14,696 1,37,207 -36% Subsidy to states (decentralised procurement) 79,790 60,561 72,283 59,793 -17% Sugar subsidy payable under PDS 250 350 216 350 62% Assistance to state agencies for intra-state movement of food grains and for margin of fair price shops' dealers 6,000 6,572 6,572 7,425 13% Investment in equity capital of FCI 2,500 1,900 1,900 - -100% 3,478 - 21 - -100% Scheme for providing assistance to Sugar Mills for expenses on marketing costs and costs of transport on export of sugar Scheme for Assistance to Sugar Mills for 2019-20 season 2,121 - 15 - -100% 160 300 260 400 54% Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity Department 3,04,361 2,15,960 2,96,304 2,05,514 -31% Sources: Demand No. 15, Department of Food and Public Distribution, Expenditure Budget, Union Budget 2023-24; PRS. ## | | | | Year | Procurement | | Offtake | % Offtake | Stocks | |---------|-------|-------|---------|---------------|-------|------------|--------------|-----------| | Rice | Wheat | Total | Rice | Wheat | Total | Rice | Wheat | Total | | 2004-05 | 24.7 | 16.8 | 41.5 | 23.2 | 18.3 | 41.5 | 100% | 13.3 | | 2005-06 | 27.6 | 14.8 | 42.4 | 25.1 | 17.2 | 42.3 | 100% | 13.7 | | 2006-07 | 25.1 | 9.2 | 34.3 | 25.1 | 11.7 | 36.8 | 107% | 13.2 | | 2007-08 | 28.7 | 11.1 | 39.9 | 25.2 | 12.2 | 37.4 | 94% | 13.8 | | 2008-09 | 34.1 | 22.7 | 56.8 | 24.6 | 14.9 | 39.5 | 70% | 21.6 | | 2009-10 | 32.0 | 25.4 | 57.4 | 27.4 | 22.4 | 49.7 | 87% | 26.7 | | 2010-11 | 34.2 | 22.5 | 56.7 | 29.9 | 23.1 | 53.0 | 93% | 28.8 | | 2011-12 | 35.1 | 28.3 | 63.4 | 32.1 | 24.3 | 56.4 | 89% | 33.4 | | 2012-13 | 34.0 | 38.2 | 72.3 | 32.6 | 33.2 | 65.9 | 91% | 35.5 | | 2013-14 | 31.9 | 25.1 | 56.9 | 29.2 | 30.6 | 59.8 | 105% | 30.5 | | 2014-15 | 32.0 | 28.1 | 60.2 | 30.7 | 25.2 | 55.9 | 93% | 23.8 | | 2015-16 | 34.2 | 28.1 | 62.3 | 31.8 | 31.8 | 63.7 | 102% | 28.8 | | 2016-17 | 38.1 | 22.9 | 61.0 | 32.8 | 29.1 | 61.9 | 101% | 29.8 | | 2017-18 | 38.2 | 30.8 | 69.0 | 35.0 | 25.3 | 60.3 | 87% | 30.0 | | 2018-19 | 44.4 | 35.8 | 80.2 | 34.4 | 31.5 | 65.9 | 82% | 39.8 | | 2019-20 | 51.8 | 34.1 | 86.0 | 34.4 | 26.4 | 60.8 | 71% | 49.1 | | 2020-21 | 60.1 | 39.0 | 99.1 | 56.3 | 36.8 | 93.1 | 94% | 49.8 | | 2021-22 | 58.1 | 43.3 | 101.4 | 53.3 | 49.1 | 102.3 | 101% | 54.9 | Note: Total stocks include coarse cereals. Sources: Handbook of Statistics on Indian Economy, Reserve Bank of India; PRS. | Aadhaar | Online | |----------------------|-----------| | State/UT | | | Digitisation of | | | Ration Cards | | | Computerisation | | | of Supply Chain | | | Seeding with | | | Ration Cards | | | Allocation of | | | Food grains | | | Andhra Pradesh | 100% | | Arunachal Pradesh | 100% | | Assam | 100% | | Bihar | 100% | | Chhattisgarh | 100% | | Goa | 100% | | Gujarat | 100% | | Haryana | 100% | | Himachal Pradesh | 100% | | Jharkhand | 100% | | Karnataka | 100% | | Kerala | 100% | | Madhya Pradesh | 100% | | Maharashtra | 100% | | Manipur | 100% | | Meghalaya | 100% | | Mizoram | 100% | | Nagaland | 100% | | Odisha | 100% | | Punjab | 100% | | Rajasthan | 100% | | Sikkim | 100% | | Tamil Nadu | 100% | | Telangana | 100% | | Tripura | 100% | | Uttar Pradesh | 100% | | Uttarakhand | 100% | | West Bengal | 100% | | 100% | 100% | | Islands | | | Chandigarh | 100% | | 100% | 100% | | Dadra and Nagar | | | Haveli and Daman and | | | Diu | | | Delhi | 100% | | Jammu and Kashmir | 100% | | Ladakh | 100% | | Lakshadweep | 100% | | Puducherry | 100% | | Total | | Sources: 18th Report, Standing Committee on Food, Consumer Affairs, and Public Distribution (2022); PRS. ## Table 10: Outstanding Dues Of Sugarcane Farmers (Rs Crore) | State | | |----------------|-------| | 2017-18 and | | | earlier | | | 2018-19 | | | Andhra Pradesh | 1 | | Bihar | 18 | | Chhattisgarh | 0 | | Gujarat | 54 | | Haryana | 0 | | Karnataka | 3 | | Madhya Pradesh | 8 | | Maharashtra | 205 | | Odisha | 3 | | Punjab | 0 | | Tamil Nadu | 1,380 | | Telangana | 0 | | Uttar Pradesh | 137 | | Uttarakhand | 36 | | Total | | Sources: Unstarred Question No. 1215, Rajya Sabha, December 16, 2022; PRS. 1 Ministry-wise Summary of Budget Provisions, Union Budget 2023-24, https://www.indiabudget.gov.in/doc/eb/sumsbe.pdf. 2 About DCA, Department of Consumer Affairs, https://consumeraffairs.nic.in/about-us/about-dca. 3 Department of Consumer Affairs, Expenditure Budget, Union Budget 2023-24, https://www.indiabudget.gov.in/doc/eb/sbe14.pdf. 4 Introduction, Department of Food and Public Distribution, https://dfpd.gov.in/index.htm. 5 Department of Food and Public Distribution, Expenditure Budget, Union Budget 2023-24, https://www.indiabudget.gov.in/doc/eb/sbe15.pdf. http://164.100.24.220/loksabhaquestions/annex/175/AU1192.pdf. 23 National Family Health Survey (NFHS-5), 2019-20, India Report, Ministry of Health and Family Welfare, March 2022, https://dhsprogram.com/pubs/pdf/FR375/FR375.pdf. 24 Chapter 8: Department of Food and Public Distribution, Volume-III The Union, 15th Finance Commission, October 2020, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/Reports/XVFC-Vol%20III-Union.pdf. 25 "75987138.23 MT tentative total allocation under PMGKAY (Phase –I to Phase-V)", Press Information Bureau, Ministry of Consumer Affairs, Food and Public Distribution, February 2, 2022, https://pib.gov.in/PressReleasePage.aspx?PRID=1794809. 26 First Advance Estimates of Production of Foodgrains for 2022-23, Ministry of Agriculture and Farmers Welfare, September 21, 2022, https://eands.dacnet.nic.in/Advance_Estimate/Time%20Series%201%20AE%202022-23%20(English).pdf. 27 "India Inching Towards 'Atmanirbharta' in Pulses", Press Information Bureau, Ministry of Information and Broadcasting, June 15, 2022, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2022/jun/doc202261565201.pdf. 28 Third Report: 'Demands for Grants (2015-16)', Standing Committee on Food, Consumer Affairs and Public Distribution, Lok Sabha, April 2015, https://loksabhadocs.nic.in/lsscommittee/Food,%20Consumer%20Affairs%20&%20Public%20Distribution/16_Food_Consumer_Affairs_A nd_Public_Distribution_3.pdf. 29 The Case for Direct Cash Transfers to the Poor, Economic and Political Weekly, April 2008, http://www.epw.in/system/files/pdf/2008_43/15/The_Case_for_Direct_Cash_Transfers_to_the_Poor.pdf. 30 Performance Evaluation of Targeted Public Distribution System, Planning Commission of India, March 2005, http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.pdf. 31 Role of the Public Distribution System in Shaping Household Food and Nutritional Security in India, National Council of Applied Economic Research, December 2016. 32 S.O. 371(E), Notification, Ministry of Consumer Affairs, Food and Public Distribution, February 8, 2017, https://egazette.nic.in/WriteReadData/2017/174131.pdf. 33 Unstarred Question No. 1522, Rajya Sabha, Ministry of Consumer Affairs, Food and Public Distribution, December 10, 2021, https://pqars.nic.in/annex/255/AU1522.pdf. 34 S.O. 6010(E), Notification, Ministry of Consumer Affairs, Food, and Public Distribution, December 22, 2022, https://egazette.nic.in/WriteReadData/2022/241315.pdf. 35 18th Report: 'Demands for Grants (2022-23)', Standing Committee on Food, Consumer Affairs and Public Distribution, Lok Sabha, March 2022, https://loksabhadocs.nic.in/lsscommittee/Food,%20Consumer%20Affairs%20&%20Public%20Distribution/17_Food_Consumer_Affairs_A nd_Public_Distribution_18.pdf. 36 Justice K. S. Puttaswamy (Retd.) and Another vs Union of India and Others, W. P. (C.) No. 494 of 2012, https://main.sci.gov.in/supremecourt/2012/35071/35071_2012_Judgement_26-Sep-2018.pdf. 37 12th Report, Strengthening of Public Distribution System - Augmenting Use of Technological Means and Implementation of 'One http://164.100.47.193/lsscommittee/Food,%20Consumer%20Affairs%20&%20Public%20Distribution/17_Food_Consumer_Affairs_And_P ublic_Distribution_12.pdf. foodgrains and margins paid to fair price shop dealers under National Food Security Act, 2013", Press Information Bureau, Ministry of Consumer Affairs, Food, and Public Distribution, May 25, 2022, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1828270. 39 "Aadhaar and Food Security in Jharkhand: Pain Without Gain?", Economic and Political Weekly, December 16, 2017. 40 "Cash transfer of food subsidy directly into the bank account of PDS being implemented on a pilot basis in three UTs-Chandigarh and Puducherry since September, 2015 and urban areas of Dadra and Nagar Haveli since March, 2016", Press Information Bureau, Ministry of Consumer Affairs, Food and Public Distribution, March 30, 2022, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1811483#:~:text=The%20Direct%20Benefit%20Transfer%20(DBT,(vi)%20promote %20financial%20inclusion.. 41 Unstarred Question No. 1533, Rajya Sabha, Ministry of Consumer Affairs, Food and Public Distribution, December 10, 2021, https://pqars.nic.in/annex/255/AU1533.pdf. https://indianexpress.com/article/india/jharkhand-pilot-project-for-direct-benefit-transfer-withdrawn-10-months-after-launch-5299959/. 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## Demand For Grants 2020-21 Analysis Jal Shakti The Ministry of Jal Shakti is responsible for the development, maintenance and efficient use of water resources in the country and coordination of drinking water and sanitation programs in rural areas. The Ministry was created in 2019 by integrating the Ministries of: (i) water resources, river development, and Ganga rejuvenation, and (ii) drinking water and sanitation. This note presents budgetary allocations to the Ministry of Jal Shakti, and analyses various issues related to water resources in the country and the schemes implemented by the Ministry. ## Allocations In Union Budget 2020-21 In 2020-21, the Ministry of Jal Shakti received an allocation of Rs 30,478 crore. This is an increase of Rs 4,600 crore (18%) over the revised estimates of 2019-20. Table 1 provides details on allocations to the two departments under the Ministry. Budgeted Department Actuals (18-19) Revised (19-20) (20-21) % change (RE to BE) 18,412 18,360 21,518 17% Drinking Water and Sanitation Water Resources 7,422 7,518 8,960 19% Total 25,834 25,878 30,478 18% Note: BE is budget estimate and RE is revised estimate. Sources: Demands for Grants 2020-21, Ministry of Jal Shakti; PRS. ## Policy Proposals For Jal Shakti In Union Budget 2020-21  Cities with over a million population will be encouraged to provide piped water supply to all households in 2020.  The government will focus on solid waste collection, source segregation, and processing. ## Department Of Drinking Water And Sanitation The Department of Drinking Water and Sanitation administers programs for safe drinking water and sanitation in rural areas. It is responsible for the monitoring and implementation of Swachh Bharat Mission-Gramin and the Jal Jeevan Mission (the National Rural Drinking Water Programme).1 The Department has an allocation of Rs 21,518 crore, accounting for 71% of the Ministry's allocation. This was a 17% increase in allocation over the revised estimates of 2019-20. Prachi Kaur [email protected] PRS Legislative Research  Institute for Policy Research Studies 3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi - 110002 Tel: (011) 43434035, 23234801  www.prsindia.org Over the past 10 years, the expenditure by the Department of Drinking Water and Sanitation increased at an annual growth rate of 9%. In the last ten years, the Department saw the highest increase in expenditure (49%) in 2016-17, over the previous year. Figure 1 below shows the trends in expenditure by the Department in the last decade. Note: Values for 2019-20 are revised estimates and 2020-21 are budget estimates. Allocations before 2019-20 were towards the erstwhile Ministry of Drinking Water and Sanitation. Sources: Union Budgets 2010-11 to 2020-21; PRS. From 2011-12 (when the Department of drinking water and sanitation was created) to 2014-15, the Department's expenditure was focused on drinking water. From 2015 to 2019, the focus of expenditure shifted on rural sanitation. However, since 2019-20 the allocation towards both the schemes has been approximately equal. budget estimates. Sources: Union Budgets 2011-12 to 2020-21; PRS. Figure 3 shows the expenditure utilisation by the Department over the last nine years (% change between actual expenditure and budgeted expenditure). Between 2011-15, the actual expenditure was lower than the budgeted expenditure. During 2015-18, the Department spent more than the allocated amount. The actual expenditure in 2015-16 was 78% higher than the budgeted expenditure for the year. However, in 2018-19 and 2019-20 (revised estimate), the expenditure was again less than the budget estimate for these years. Note: The expenditure figure for 2019-20 is revised estimate. Sources: Union Budgets 2011-12 to 2020-21; PRS. ## Schemes Under The Department Of Drinking Water And Sanitation Expenditure by the Department is primarily towards the two major schemes, the Jal Jeevan Mission (JJM) and the Swachh Bharat Mission- Gramin (SBM-G). Table 2 provides details on allocation to the Department over the past three years. | Revised | Budgeted | Major | |------------|-------------|----------| | head | | | | Actual | | | | 18-19 | 19-20 | 20-21 | | % change | | | | (20-21 BE/ | | | | 19-20 RE) | | | | JJM | 5,484 | 10,001 | | SBM-G | 12,913 | 8,338 | | Others | 15 | 21 | | Total | 18,412 | 18,360 | Note: RE is Revised Estimates, BE is Budget Estimates. Sources: Demands for Grants 2020-21, Department of Drinking Water and Sanitation; PRS. JJM aims to provide adequate and safe drinking water to the rural population in the country. It has been allocated Rs 11,500 crore in 2020-21, which is a 15% increase over the revised estimates of 2019-20. SBM-G aims to achieve universal sanitation coverage and improve cleanliness in the country. It has been allocated Rs 9,994 crore in 2020-21, which is a 20% increase over the revised estimates of 2019-20. ## Department Of Water Resources The Department of Water Resources, River Development, and Ganga Rejuvenation is responsible for: (i) planning, policy formation, and coordination of water resources in the country, (ii) scrutiny and monitoring of irrigation and flood control projects, (iii) supporting state level activities for ground water development, and (iv) reduction of pollution and rejuvenation of rivers.2 In 2020-21, the Department has an allocation of Rs 8,960 crore, accounting for 29% of the Ministry's allocation. This is 19% higher than the revised estimates of 2019-20. In the past six years, expenditure by the Department of Water Resources has increased at an annual growth rate of 5%. Note: Values for 2019-20 and 2020-21 are revised estimates and budget estimates respectively. Sources: Union Budgets 2015-16 to 2020-21; PRS. ## Major Schemes Under The Department Of Water Resources In 2020-21, 57% of the Department's expenditure is estimated to be on the Pradhan Mantri Krishi Sinchai Yojna. This is followed by the National River Conservation Plan (9.4%), Namami Gange (8.9%), and Water Resources Management (8.6%). ## Of Water Resources (In Rs Crore) Budgeted Major Head Actuals (18-19) Revised (19-20) (20-21) % change (RE to BE) PM Krishi Sinchai Yojna 3,439 4,026 5,127 27% National River Conservation 1,620 1,200 840 -30% Namami Gange 688 353 800 127% Water Resources Management 569 636 775 22% Central Water Commission 362 403 403 0% Central Ground Water Board 227 243 245 0% Others 1,106 1,303 1,418 9% Total 7,422 7,518 8,960 19% Note: BE is budget estimate and RE is revised estimate. Others include central sector projects like river basin management, and major irrigation projects. Sources: Demands for Grants 2020-21, Department of Water Resources, River Development, and Ganga Rejuvenation, Ministry of Jal Shakti; PRS. ## Issues To Consider Irrigation The Economic Survey (2016-17) highlighted that 52% of the total net sown area in India is unirrigated and depends on rainfall for agriculture.3 It noted that when rainfall is significantly less than usual, the unirrigated areas have higher adverse effects compared to the irrigated areas. Therefore, it argues that India needs to spread its irrigation cover. The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) was launched during 2015-16.4 The scheme seeks to: (i) expand coverage of irrigation, (ii) improve water use efficiency on farms, and (iii) introduce sustainable water conservation practices.5 The Jal Shakti Ministry implements certain components of the scheme, such as PMKSY - Har Khet Ko Pani and Flood Management and Borders Area Programme.4 The other components of the scheme are implemented by the Ministry of Agriculture and Farmers Welfare and the Ministry of Rural Development. Utilisation: Figure 5 shows the expenditure on the scheme from 2016-17 to 2020-21. The scheme has been allocated Rs 5,127 crore in 2020-21. Its share in the Department's expenditure increased from 35% in 2016-17 to 57% in 2020-21. Har Khet ko Pani: This scheme's objectives include: (i) creation of new water sources, (ii) restoration and repair of traditional water bodies, (iii) command area development, and (iv) strengthening of distribution network from irrigation sources to the farm.6,7 Some components of the scheme are: Accelerated Irrigation Benefit Programme (AIBP): Under this scheme, financial assistance is being provided for faster completion of irrigation projects. From June to December 2019, of the target 43 lakh hectare, projects in 29 lakh hectare (69%) were completed.8 Of the 106 projects selected under the scheme, 21 (20%) projects are facing constraints such as land acquisition, legal, and contractual issues.8 Command Area Development and Water Management Programme: The objective of the programme is to enhance utilisation of irrigation potential created. This is achieved through activities such as construction of field channels, land levelling, and reclamation of waterlogged area.9 Currently, there are 88 projects under the programme, of which only 12 (14%) have achieved more than 50% physical progress.10 ## Flood Management The National Water Policy (2012) identifies that the climate change has deepened incidences of water related disasters like floods, increased erosion and increased frequency of droughts.11 The centre supports states by providing financial assistance for undertaking flood management works in critical areas through the Flood Management and Border Areas Programme (under PMKSY). From 2016-17 to November 2019, central assistance of Rs 1,429 crore has been released under the scheme.12 The Standing Committee on Water Resources (2017-18) notes that out of 522 flood management works approved under the programme during 2007- 17, only 298 (57%) were completed up to March 31 2017.13 Further, in most of the projects, the financial progress was in the range of 10% to 30%, due to less release of funds because of inadequate budget allocation.13 ## Conservation And Rejuvenation Of Rivers The Ministry of Jal Shakti implements the Namami Gange Mission with the objective of rejuvenation of river Ganga and its tributaries through activities such as treatment of municipal sewage and industrial effluents, river surface cleaning, rural sanitation, and afforestation.14 Currently, 114 (37%) of the 310 projects sanctioned under the Mission have been completed.15 The scheme was launched with a budget outlay of Rs 20,000 crore for the period 2015-2020.16 During the period 2014-15 to 2018-19, Rs 6,106 crore (31%) has been spent on the programme.16 In 2020-21, the scheme has been allocated Rs 800 crore, which is 126% more than the revised estimates for 2019-20. Table 4 shows the trends in budget allocation and actual expenditure on Namami Gange from 2015- 16. Note that the utilisation under the scheme has always been under 50% of its allocation. Namami Gange (in Rs crore) | Year | Budgeted | Actuals | |----------|-------------|------------| | % of | | | | Budgeted | | | | 2015-16 | - | 100 | | 2016-17 | - | 1,675 | | 2017-18 | 2,300 | 700 | | 2018-19 | 2,300 | 688 | | 2019-20 | 750 | 353 | Note: The 'actuals' figure for 2019-20 is the revised estimate. Sources: Union Budgets 2015-16 to 2019-20; PRS. The Standing Committee on Water Resources (2017-18) notes that the physical progress under the scheme has not been satisfactory.17 In response to the Committee's observations, the Ministry responded that the following bottlenecks affect the implementation of projects: (i) delay in tendering process, (ii) non-availability of land for sewage treatment plants leading to delay in execution of projects, (iii) underutilisation of sewage treatment plants' capacities due to inadequate house sewer connections in cities, and (iv) non-effective implementation of public outreach programmes and community consultation, among others.17 ## Swachh Bharat Mission - Gramin In 2014, the Swachh Bharat Mission (Gramin) was launched by restructuring the Nirmal Bharat Abhiyan.18 The Mission aimed to achieve universal sanitation coverage, improve cleanliness and eliminate open defecation in the country by October 2, 2019.19 In 2020-21, the Mission has been allocated Rs 9,994 crore, which is an increase of 20% from the revised estimate of 2019-20. The expenditure on towards rural sanitation schemes has increased from Rs 1,580 crore in 2010-11 to Rs 12,913 crore in 2018-19. Note: Values for 2019-20 and 2020-21 are revised estimates and budget estimates respectively. Sources: Union Budgets 2009-10 to 2020-21; PRS. Figure 6 shows the expenditure on the scheme from 2009-10 to 2020-21. Expenditure on rural sanitation has increased at an annual growth rate of 21% from 2009-10 to 2020-21. A significant part of this increase was seen from 2015-16 onwards, after the launch of SBM-G. Table 5 shows the trends in budget allocation and actual expenditure on rural sanitation over the past 11 years. Note that from 2015-16 to 2017-18, actual expenditure on SBM-G exceeded the budget estimates. Table 5: Budgeted versus actual expenditure on SBM-G (in Rs crore) Year Budgeted Actuals % of Budgeted 2009-10 1,080 1,200 111% 2010-11 1,580 1,580 100% 2011-12 1,650 1,500 91% 2012-13 3,500 2,474 71% 2013-14 3,834 2,244 59% 2014-15 4,260 2,841 67% 2015-16 3,625 6,703 185% 2016-17 9,000 10,484 116% 2017-18 13,948 16,888 121% 2018-19 15,343 12,913 84% 2019-20 9,994 8,338 83% Note: The 'utilised' figure for 2019-20 is the revised estimate. Sources: Union Budgets 2009-10 to 2019-20; PRS. Construction of Individual Household Latrines (IHHLs): The cost for constructing a household toilet was increased from Rs 10,000 to Rs 12,000 in September 2014 when the Nirmal Bharat Abhiyan was restructured into SBM-G.20 This cost for constructing toilets is shared between the centre and the state in the ratio of 60:40. Table 6 gives the number of household toilets constructed since the inception of the scheme. | Year | Toilets Constructed | |---------|------------------------| | 2014-15 | 48,51,153 | | 2015-16 | 1,24,48,886 | | 2016-17 | 2,16,32,580 | | 2017-18 | 2,96,01,619 | | 2018-19 | 2,24,49,812 | | 2019-20 | 1,18,83,221 | | Total | 10,28,67,271 | Sources: SBM Dashboard, Ministry of Jal Shakti; PRS. As per the Department, 43.2% of the rural households had access to toilets in in 2014-15, which has increased to 100% in February 2020.21 Figure 7 illustrates the total coverage of household toilets since the inception of the SBM programme. Open Defecation Free (ODF) villages: Under SBM-G, a village is declared as ODF when: (i) there are no visible faeces in the village, and (ii) every household as well as public institution uses safe technology options for faecal disposal.22 After a village declares itself as ODF, states are required to verify the ODF status of such a village. Since sanitation is a state subject, the department has set some broad guidelines for ODF verification. This includes indicators that are in accordance with the ODF verification definition, such as access to a toilet facility and its usage, and safe disposal of faecal matter through septic tanks. The guidelines for ODF state that since it is not a one-time process, at least two verifications must be carried out.23 The first verification must be carried out within three months of the declaration to verify the ODF status. Further, to ensure sustainability of ODF, a second verification must be carried out around six months after the first verification. As per the Management Information System of SBM-G, a total of 6,03,175 villages across 706 districts and 36 states and union territories have been declared as ODF as of February 2020. Of these, 5,99,266 villages (99.4%) have been verified as ODF under the first level verification.24 1,66,047 (28%) of these villages have been verified ODF under the second level verification.25 Statewise details on the number of villages declared and verified ODF are presented in the annexure. ## Jal Jeevan Mission The Jal Jeevan Mission was launched in 2019 with the aim to provide functional household tap connection to every rural household by 2024.26 It subsumed the National Rural Drinking Water Programme. The total estimated cost of JJM is Rs 3.6 lakh crore.26 In 2020-21 it has been allocated Rs 11,500 crore, which is an increase of 15% from the revised estimates of 2019-20. In 2019-20, the scheme was allocated Rs 10,001 crore which remained the same in the revised estimate stage. Figure 8 shows the expenditure on drinking water schemes over the last nine years. Values for 2019-20 and 2020-21 are revised estimates and budget estimates respectively. Sources: Union Budgets 2009-10 to 2018-19; PRS. After a reduction in expenditure on the scheme from 2015-16 to 2018-19, the expenditure on the scheme increased from 2019-20 onwards. Note that expenditure on the scheme from 2019-20 is similar to the expenditure on it before 2015-16. Target versus achievements: JJM aims to provide functional household tap connections to every household at the rate of 55 Litres Per Capita Per Day (LPCD). The coverage of the National Rural Drinking Water Programme (NRDWP) was monitored in terms of habitations having provision of minimum 40 LPCD of potable drinking water sources at a reasonable distance. Table 7 gives details on rural habitations and population covered under NRDWP. State details of coverage of rural habitations under the scheme are provided in the Annexure.27 % Drinking water sources Population % Rural habitation covered covered More than 40 LPCD 81% 77% Less than 40 LPCD 16% 19% Water with quality issues 3% 4% Note: The data is as reported by states as of December 2019. Source: Starred Question No. 351, Department of Drinking Water and Sanitation, Ministry of Jal Shakti, Lok Sabha; PRS. Note that the coverage of piped-water-supply remains low. As of December 2019, only 18.4% of rural households have piped-water supply connections.28 Contamination of drinking water: The Estimates Committee in its report on 'Evaluation of Rural Drinking Water Programmes' (2015) had noted that NRDWP is over-dependant on ground water.29 It also noted that ground water is affected by arsenic and other contaminants in several districts of the country. Table 8 shows the number of habitations affected due to the presence of Flouride, Arsenic, Iron, Nitrate and other contaminants. As of January 2019, 3.6% (61,551) of the total habitations (17,24,423) were affected by contamination of ground water.30 | Contaminants | Number of affected | % of affected | |-----------------|-----------------------|------------------| | habitations | habitations | | | Arsenic | 15,795 | 0.9% | | Fluoride | 9,655 | 0.6% | | Heavy Metal | 2,106 | 0.1% | | Iron | 18,939 | 1.1% | | Nitrate | 1,562 | 0.1% | | Salinity | 13,494 | 0.8% | | Total | 61,551 | 3.6% | The National Water Quality Sub-Mission (NWQSM) was launched in March 2017 to provide safe drinking water to 27,544 Arsenic/Fluoride affected rural habitations in the country, over a span of four years.31 The Standing Committee on Drinking Water and Sanitation (2019-20) observed that out of these, 11,884 habitations (43%) have been covered under the scheme. 4,100 habitations (15%) have been found with quality improved on retesting or have been covered under state plan schemes.31 ## Ground Water Depletion Currently, 245 Billion Cubic Meter (BCM) of the 398 BCM of net annual ground water availability (62%) is being utilised.32 However, note that ground water development is not uniform across states in India. It has exceeded 100% in some 3 Climate, Climate Change and Agriculture, Economic Survey 2016-17, https://mofapp.nic.in/economicsurvey/economicsurvey/pdf/082- 101_Chapter_06_ENGLISH_Vol_01_2017-18.pdf. 4 Lok Sabha Unstarred Question No.2045, Ministry of Jal Shakti, July 4, 2019, http://164.100.24.220/loksabhaquestions/annex/171/AU2054.pd f. 5 Website, Pradhan Mantri Krshi Sinchaee Yojna, last accessed on February 4, 2020, https://pmksy.gov.in/. 6 Demand no. 61, Department of Water Resources, River Development and Ganga Rejuvenation, Union Budget 2020-21, https://www.indiabudget.gov.in/doc/eb/sbe61.pdf. states such as Haryana (133%), Delhi (137%), and Punjab (172%). This implies that the annual ground water utilisation in these states is higher than the net annual ground water availability. The Ground Water Management and Regulation scheme was launched in 2008 with the aim to regulate and control the development of ground water resources of the country.33 Note: Values for 2019-20 are revised estimates and 2020-21 are budget estimates. Sources: Union Budgets 2011-12 to 2020-21; PRS. Over the past ten years, the expenditure on the scheme increased at an annual growth rate of 9%. In 2020-21, the estimated expenditure is 13% more than the revised expenditure estimates of 2019-20. These trends are illustrated in Figure 9. The Standing Committee on Water Resources (2019-20) recommended the Ministry to increase the budgetary support for the scheme and formulate short term and long term policies and programmes in consultation with states. The Committee also recommended the Ministry to constitute an Expert Committee for identifying specific regions with rapidly depleting groundwater levels. 8 Dashboard, Pradhan Mantri Krshi Sinchaee Yojna - Accelerated Irrigation Benefit Programme, Ministry of Jal Shakti, last accessed on February 4, 2020,http://pmksy- mowr.nic.in/aibp/. 9 Salient features, Pradhan Mantri Krshi Sinchaee Yojna, Ministry of Jal Shakti, http://mowr.gov.in/programmes/salient- features. 10 Dashboard, Common Area Development Programme, Ministry of Jal Shakti, last accessed on February 4, 2020, http://cadwm.gov.in/cadwm-dashboard/. 11 National Water Policy (2012), Ministry of Water Resources, http://mowr.gov.in/sites/default/files/NWP2012Eng6495132651 _1.pdf. 12 Lok Sabha Starred Question No.251, Ministry of Jal Shakti, December 5, 2019, http://164.100.24.220/loksabhaquestions/annex/172/AS251.pdf. 13 "20th Standing Committee on Water Resources (2017-18)", Ministry of Water Resources, River Development and Ganga 19 About SBM, Swachh Bharat Mission-Gramin, http://swachhbharatmission.gov.in/SBMCMS/about-us.htm. 20 Review of Sanitation Programme in Rural Areas, Committee on Estimates 2014-15, Lok Sabha, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_8.pdf. 21 Swachh Bharat Mission- Gramin, Ministry of Jal Shakti, last accessed on February 9, 2020, http://sbm.gov.in/sbmdashboard/IHHL.aspx. 22 Open Defecation Free (ODF) Sustainability Guidelines, Ministry of Drinking Water and Sanitation, http://swachhbharatmission.gov.in/sbmcms/writereaddata/images/pdf/guidelines/Guidelines-ODF-sustainability.pdf. 23 Swachh Bharat Mission- Gramin Guidelines, Ministry of Jal Shakti, last accessed on February 9, 2020, https://jalshaktiddws.gov.in/sites/default/files/SBM%28G%29_Guidelines.pdf 24 Swachh Bharat Mission- Gramin Dashboard, last accessed on February 4, 2020, https://sbm.gov.in/sbmdashboard/ODF.aspx. 25 Status of Declared and Verified villages, Swachh Bharat Mission- Gramin Dashboard, Ministry of Jal Shakti, last accessed on February 4, 2020, https://sbm.gov.in/sbmReport/Report/Physical/SBM_VillageODFMarkStatus.aspx. 26 Background on Jal Jeevan Mission, Ministry of Jal Shakti, https://jalshakti-ddws.gov.in/sites/default/files/JJM_note.pdf. 27 Lok Sabha Starred Question No. 351, Department of Drinking Water and Sanitation, Ministry of Jal Shakti, answered on December 12, 2019, http://164.100.24.220/loksabhaquestions/annex/172/AS351.pdf. 28 Lok Sabha Unstarred Question No. 2990, Department of Drinking Water and Sanitation, Ministry of Jal Shakti, answered on December 5, 2019, http://164.100.24.220/loksabhaquestions/annex/172/AU2990.pdf. 29 Evaluation of Rural Drinking Water Programmes, Committee on Estimates 2014-15, Lok Sabha, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_2.pdf. 30 Rajya Sabha Unstarred Question No. 2738, Ministry of Drinking Water and Sanitation, Rajya Sabha, answered on January 7, 2019. 31 "Standing Committee on Water Resources (2019-20)", Ministry of Jal Shakti - Department of Drinking Water and Sanitation, Demand for Grants (2019-20), http://164.100.47.193/lsscommittee/Water%20Resources/17_Water_Resources_2.pdf. 32 Review of Ground Water Scenario, need for a comprehensive policy', Standing Committee on Water Resources, Ministry of Water Resources, December 2015, http://164.100.47.193/lsscommittee/Water%20Resources/16_Water_Resources_5.pdf. 33 Lok Sabha Unstarred Question No.737, Ministry of Jal Shakti, November 21, 2019, http://164.100.24.220/loksabhaquestions/annex/172/AU737.pdf. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for noncommercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it. ## Annexure | Total | Total | Total Verified | |------------------------|----------|--------------------| | State | | | | Total | | | | Villages | declared | Verified | | % Verified | | | | 2nd level | | | | Andaman and Nicobar | | | | Islands | | | | 192 | 192 | 192 | | Andhra Pradesh | 18,841 | 18,841 | | Arunachal Pradesh | 5,389 | 5,389 | | Assam | 25,503 | 25,503 | | Bihar | 38,691 | 38,691 | | Chandigarh | 13 | 13 | | Chhattisgarh | 18,769 | 18,769 | | Dadar and Nagar Haveli | 69 | 69 | | Daman and Diu | 26 | 26 | | Goa | 365 | 365 | | Gujarat | 18,261 | 18,261 | | Haryana | 6,908 | 6,908 | | Himachal Pradesh | 15,921 | 15,921 | | Jammu and Kashmir | 7,263 | 7,263 | | Jharkhand | 29,564 | 29,564 | | Karnataka | 27,044 | 27,044 | | Kerala | 2,027 | 2,027 | | Ladakh | 302 | 302 | | Lakshadweep | 9 | 9 | | Madhya Pradesh | 50,228 | 50,228 | | Maharashtra | 40,505 | 40,505 | | Manipur | 2,556 | 2,556 | | Meghalaya | 6,028 | 6,028 | | Mizoram | 696 | 696 | | Nagaland | 1,451 | 1,451 | | Odisha | 46,785 | 46,785 | | Puducherry | 265 | 265 | | Punjab | 13,726 | 13,726 | | Rajasthan | 42,860 | 42,860 | | Sikkim | 442 | 442 | | Tamil Nadu | 12,524 | 12,524 | | Telangana | 14,200 | 14,200 | | Tripura | 1,178 | 1,178 | | Uttar Pradesh | 97,640 | 97,640 | | Uttarakhand | 15,473 | 15,473 | | West Bengal | 41,461 | 41,461 | | Total | 6,03,175 | 6,03,175 | Sources: Management Information System Reports of SBM; PRS. Note: The total number of villages is taken from Census 2011. | Partially covered | Habitations with | |----------------------|---------------------| | State | | | Total | | | habitations | | | Fully covered | | | habitations | habitations | | Andaman & Nicobar | | | Islands | | | 400 | 324 | | Andhra Pradesh | 48,663 | | Arunachal Pradesh | 7,525 | | Assam | 88,076 | | Bihar | 1,10,218 | | Chhattisgarh | 74,753 | | Goa | 347 | | Gujarat | 35,996 | | Haryana | 7,655 | | Himachal Pradesh | 54,469 | | Jammu & Kashmir | | | (including Ladakh) | | | 14,625 | 8,750 | | Jharkhand | 1,20,591 | | Karnataka | 59,774 | | Kerala | 21,520 | | Madhya Pradesh | 1,28,231 | | Maharashtra | 99,641 | | Manipur | 2,976 | | Meghalaya | 10,470 | | Mizoram | 720 | | Nagaland | 1,450 | | Odisha | 1,57,013 | | Puducherry | 266 | | Punjab | 15,190 | | Rajasthan | 1,21,526 | | Sikkim | 2,337 | | Tamil Nadu | 1,00,014 | | Telangana | 24,597 | | Tripura | 8,723 | | Uttar Pradesh | 2,60,018 | | Uttarakhand | 39,311 | | West Bengal | 1,07,328 | | Total | 17,24,423 | Sources: Starred Question No. 351, Ministry of Jal Shakti, Lok Sabha; PRS.
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budget_reports
## Budget Highlights  Expenditure: The government proposes to spend Rs 34,83,236 crore in 2021-22. As per the revised estimates, the government spent Rs 34,50,305 crore in 2020-21, 13% higher than the budget estimate.  Receipts: The receipts (other than borrowings) are expected to be Rs 19,76,424 crore in 2021-22, which is 23% higher than the revised estimates of 2020-21. In 2020-21, revised estimates for receipts were 29% lower than budget estimates. Given the impact due to COVID-19, it is useful to see the growth from 20219-20, an annual average of 6.2%.  GDP growth: Nominal GDP is expected to grow at of 14.4% (i.e., real growth plus inflation) in 2021-22.  Deficits: Revenue deficit is targeted at 5.1% of GDP in 2021-22, which is lower than the revised estimate of 7.5% in 2020-21 (3.3% in 2019-20). Fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of 9.5% in 2020-21 (4.6% in 2019-20). The government aims to steadily reduce fiscal deficit to 4.5% of GDP by 2025-26.  Ministry allocations: Among the top 13 ministries with the highest allocations, the highest annual increase over 2019- 20 is observed in the Ministry of Jal Shakti (64%), followed by the Ministry of Consumer Affairs, Food and Public Distribution (48%) and the Ministry of Communications (31%). ## Main Tax Proposals In The Finance Bill  No changes in income tax rates for individuals and corporations.  Limit on tax-free Income from provident funds: Tax exemption on the interest income on the employees' contributions to provident funds will be limited up to Rs 2.5 lakh.  Extensions on tax incentives by a year upto the end of fiscal 2021-22. This includes tax deduction upto Rs 1.5 lakh on interest on housing loan, and tax holiday for affordable housing projects, profits of startups, and investing capital gains in start-ups.  Agriculture and Infrastructure Development Cess: The cess will be levied on some imported items including gold, silver, alcoholic beverages, coal, and cotton, and basic customs duty will be reduced by an equal amount. The cess will be levied on petrol and diesel at the rate of Rs 2.5 and Rs 4 per litre respectively, with equivalent cuts in excise duty. As the cess is not part of the divisible pool of revenue shared with states, their revenue receipts will be adversely affected.  Changes in customs duty: The duty has been increased on some items such as cotton, silk, some auto and mobile parts.  "Mini-**budget" announcements made earlier:** The safe harbour threshold for real estate transactions above the circle rate increased from 10% to 20%. Encashment of leave travel concession will be exempt from tax if the amount is used for purchasing certain goods.  Reduction in time for income tax proceedings: Time limit for the re-opening of income tax assessment will be reduced from 6 years presently to 3 years.  Exemption from audit: Businesses which carry 95% of their transactions digitally and whose turnover is less than five crore rupees, are exempted from keeping audited accounts. The threshold will be increased to Rs 10 crore. ## Non-Tax Proposals In The Finance Bill  There are some items that may not meet the Money Bill definition. These are listed below.  LIC Act, 1956 amended to create a board of directors, issue shares, reduce government shareholding upto 51% of equity (minimum 75% in the first five years), cap voting rights at 5% to shareholders other than central government.  Securities Contracts (Regulations) Act, 1956 amended to allow pooled investment fund which collects money from investors. They may borrow money or issue debt securities. Consequential amendments made in the SARFAESI Act, 2002 and in the Recovery of Debts due to Banks and Financial Institutions Act, 1993.  SEBI Act, 1992 amended to require registration by Alternative Investment Trusts and Business Trusts. ## Policy Highlights  Legislative Changes: A Securities Markets Code will be introduced to consolidate four Acts including the SEBI Act, 1992 and the Government Securities Act, 2007. The Insurance Act, 1938 will be amended to increase the permissible FDI limits in insurance companies from 49% to 74%, and allow foreign ownership and control with safeguards. The Companies Act, 2013 will be amended to revise the definition of small companies by increasing threshold for paid up capital (from Rs 50 lakh to Rs 2 crore) and annual turnover (from Rs 2 crore to Rs 20 crore). Certain offences under the Limited Liability Partnership Act, 2008 will be decriminalised. The Deposit Insurance and Credit Guarantee Corporation Act, 1961 will be amended to ensure that depositors get time-bound and easy access to their deposits to the extent of their insurance cover. The minimum loan size for NBFCs to be eligible for debt recovery under the SARFAESI Act, 2002 will be reduced from Rs 50 lakh to Rs 20 lakh.  Disinvestment: Disinvestment of Air India, IDBI Bank, and Pawan Hans will be completed in 2021-22. Legislative amendments will be introduced to privatise two public sector banks and a General Insurance company. The IPO for LIC will also be completed in 2021-22. The government has approved a strategic disinvestment policy under which CPSEs will be maintained only in four sectors, with the rest being privatised. States will be incentivised to disinvest their public sector companies. A Special Purpose Vehicle will be used to monetise government owned land.  Finance: An Asset Reconstruction Company Limited and Asset Management Company will be set up to consolidate and take over existing stressed debt, and manage and dispose assets. An institutional framework will be created for the corporate bond market to instil confidence among participants and enhance liquidity of secondary markets. An investor charter will be introduced for financial investors across all products.  Corporate Affairs: Alternate methods of debt resolution and special frameworks for MSMEs will be introduced. A Conciliation Mechanism will be set up for quick resolution of contractual disputes.  Commerce and Industry: Seven textile parks will be established over three years to create infrastructure and increase exports. Incorporation of one-person companies will be encouraged by regulatory changes such as removal of restrictions on paid up capital and turnover, and NRIs will be allowed to establish such companies.  Labour and Employment: A portal to collect information on gig workers, and construction workers, among others will be launched to help frame schemes on health, housing, insurance, and others for migrant unorganised workers. The Apprenticeship Act will be amended to enhance apprenticeship opportunities.  Health and Nutrition: PM Atma Nirbhar Swasth Bharat Yojana will be launched to develop capacity of health systems, strengthen national institutions, and create institutions to detect and cure new and emerging diseases. Mission Poshan 2.0 will be launched after merging Supplementary Nutrition Programme and the Poshan Abhiyan to strengthen nutrition outcomes. The National Nursing and Midwifery Commission Bill will be introduced.  Education: Legislation to set-up a Higher Education Commission of India will be introduced, having vehicles for standard-setting, accreditation, regulation, and funding. A grant to create formal umbrella structures for institutes of higher education in nine cities will be created. More than 15,000 schools will be strengthened to include all components of the National Education Policy and subsequently mentor other schools to achieve ideals of Policy.  Infrastructure and Real Estate: A Bill to establish a Development Financial Institution for infrastructure financing will be introduced. The DFI will be used to establish a lending portfolio of at least five lakh crore rupees for financing infrastructure projects. A National Monetisation Pipeline of potential infrastructure assets such as dedicated freight corridor assets of the railways will be launched. Debt financing of real estate and infrastructure investment trusts by foreign portfolio investors will be enabled to ease access of finance in the infrastructure and real estate sectors.  Transport: Economic corridors to augment road infrastructure are being planned in Tamil Nadu, Kerala, West Bengal, and Assam. A scheme to enable private sector to finance, acquire, operate and maintain buses in public transport services will be launched. New technologies including MetroLite and MetroNeo will be used to develop metro rail systems in Tier-1 and Tier-2 cities. Seven projects for major ports will be offered on public-private partnership mode in 2021-22. A voluntary vehicle scrapping policy to phase out old and unfit vehicles was also announced.  Energy: A reforms-based scheme to provide assistance to power distribution companies for infrastructure creation will be launched to address concerns over viability. A framework to provide choice to consumers among distribution companies will be launched. Ujjwala scheme will be extended to cover one crore more beneficiaries. An independent gas transport system operator will be set up to coordinate booking of common carrier capacity in all natural-gas pipelines. A Hydrogen Energy Mission to generate hydrogen from green power sources will be launched.  Science and Technology: A scheme to provide financial incentives for digital modes of payments has been proposed. The Deep Ocean Mission will be launched, covering survey explorations and projects for conservation of bio-diversity.  Water and Sanitation: The Jal Jeevan Mission (Urban) will be implemented to enable universal water supply and liquid waste management in urban areas. The Urban Swachh Bharat Mission 2.0 will focus on sludge and waste water management, and on ensuring a reduction in single-use plastic and air pollution.  Agriculture and allied sectors: Operation Green Scheme, currently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products. The Agriculture Infrastructure Fund will be made available to APMCs to improve infrastructure facilities.  Social Justice: To facilitate credit flow for SCs, STs, and women, margin money requirement under Stand Up India scheme will be reduced from 25% to 15%. 750 Eklavya model residential schools will be established in tribal areas. ## Budget Estimates Of 2021-22 As Compared To Actuals For 2019-20 The Finance Minister, Ms. Nirmala Sitharaman, introduced Budget 2021-22 on February 1, 2021, amidst the COVID-19 pandemic. 2020-21 was a non-standard year with respect to the performance of the economy and government finances. In this note, the budget estimates for 2021-22 have been compared to the actual expenditure for 2019-20.  Total Expenditure: The government is estimated to spend Rs 34,83,236 crore during 2021-22 which is an annual increase of 14% over 2019-20. Out of the total expenditure, revenue expenditure is estimated to be Rs 29,29,000 crore (12% annual increase over 2019-20) and capital expenditure is estimated to be Rs 5,54,236 crore (29% annual increase over 2019-20).  Total Receipts: The government receipts (excluding borrowings) are estimated to be Rs 19,76,424 crore, annual increase of 6% over 2019-20. Borrowings are estimated at Rs 15,06,812 crore (27% annual increase over 2019-20).  Transfer to states: The central government will transfer Rs 13,88,502 crore to states and union territories in 2021-22 (annual increase of 10% over 2019-20). This includes devolution of (i) Rs 6,65,563 crore to states, out of the centre's share of taxes (increase of 1%), and (ii) Rs 7,22,939 crore in the form of grants and loans (increase of 21%). In 2020-21, while devolution to states fell by 30% at the revised stage (compared to budget estimates), grants were higher by 26%.  Deficits: Revenue deficit is targeted at 5.1% of GDP, and fiscal deficit is targeted at 6.8% of GDP in 2021-22. The target for primary deficit (which is fiscal deficit excluding interest payments) is 3.1% of GDP. In 2020-21, as per the revised estimate, revenue deficit is 7.5% of GDP, and fiscal deficit is 9.5% of GDP.  GDP growth estimate: The nominal GDP is estimated to grow at a rate of 14.4% in 2021-22. In Budget 2020-21, GDP was estimated to grow at 10%, which was revised to -13%. Change (Annualised) (Actuals 2019-20 to BE Actuals 2019-20 Budgeted 2020-21 Revised 2020-21 Budgeted 2021-22 2021-22) Revenue Expenditure 23,50,604 26,30,145 30,11,142 29,29,000 12% Capital Expenditure 3,35,726 4,12,085 4,39,163 5,54,236 29% of which: Capital outlay 3,11,312 3,80,322 3,32,247 5,13,862 29% Loans 24,414 31,763 1,06,916 40,374 29% Total Expenditure 26,86,330 30,42,230 34,50,305 34,83,236 14% Revenue Receipts 16,84,059 20,20,926 15,55,153 17,88,424 3% Capital Receipts 68,620 2,24,967 46,497 1,88,000 66% of which: Recoveries of Loans 18,316 14,967 14,497 13,000 -16% Other receipts (including disinvestments) 50,304 2,10,000 32,000 1,75,000 87% Total Receipts (without borrowings) 17,52,679 22,45,893 16,01,650 19,76,424 6% Revenue Deficit 6,66,545 6,09,219 14,55,989 11,40,576 31% % of GDP 3.3% 2.7% 7.5% 5.1% Fiscal Deficit 9,33,651 7,96,337 18,48,655 15,06,812 27% % of GDP 4.6% 3.5% 9.5% 6.8% Primary Deficit 3,21,581 88,134 11,55,755 6,97,111 47% % of GDP 1.6% 0.4% 5.9% 3.1% Notes: Budgeted estimates (BE) are budget allocations announced at the beginning of each financial year. Revised Estimates (RE) are estimates of projected amounts of receipts and expenditure until the end of the financial year. Actual amounts are audited accounts of expenditure and receipts in a year. Change from Actuals 2019-20 to BE 2021-22 represents the compounded annual growth rate (CAGR) for the period. Sources: Budget at a Glance, Union Budget Documents 2021-22; PRS.  Expenses which bring a change to the government's assets or liabilities (such as construction of roads or recovery of loans) are capital expenses, and all other expenses are revenue expenses (such as payment of salaries or interest payments).  In 2021-22, **capital expenditure** is estimated at Rs 5,54,236 crore (annual increase of 29% over 2019-20). Revenue expenditure is estimated to be Rs 29,29,000 crore (annual increase of 12% over 2019-20). In 2020-21, total expenditure was 13% higher than the budget estimate, with revenue expenditure increasing by 15% and capital expenditure by 7%.  In 2019-20, capital outlay formed 12% of the total expenditure of the central government. This is estimated to increase to 15% of the total expenditure in 2021-22  In 2021-22, disinvestment is estimated at Rs 1,75,000 crore which is 3.5 times higher than the actual disinvestment in 2019-20. The highest disinvestment achieved over the last few years was in 2017-18, of Rs 1,00,045 crore. ## Receipts Highlights For 2021-22  Total receipts (including borrowings) in 2021-22 are estimated to be Rs 34,83,236 crore and net receipts (excluding borrowings) are estimated at Rs 19,76,424 crore. Receipts (without borrowings) are estimated to record an annual increase of 6% over 2019-20.  Gross tax revenue is estimated at Rs 22,17,029 crore (annual increase of 5% over 2019-20). Net tax revenue of the central government (excluding states' share in taxes) is estimated to be Rs 15,45,397 crore in 2021-22.  Devolution to states from centre's tax revenue is estimated to be Rs 6,65,563 crore in 2021-22, marginally higher than the devolution of Rs 6,50,678 crore in 2019-20.  Non-tax revenue is expected to be Rs 2,43,028 crore in 2021-22 an annual decrease of 14% over the actuals for 2019-20.  Capital receipts (without borrowings) are estimated to record an annual increase of 66% over 2019-20. This is on account of disinvestments, which are expected to be Rs 1,75,000 crore in 2021-22, as compared to Rs 50,304 crore in 2019-20. Borrowings are expected to be Rs 15,06,812 crore in 2021-22 (annual increase of 27% over 2019-20). Borrowings in 2021-22 are estimated to be lower than the revised estimate for 2020-21 (of Rs 18,48,655 crore) by 19%. Change (Annualised) (Actuals 2019-20 to BE Actuals 2019-20 Budgeted 2020-21 Revised 2020-21 Budgeted 2021-22 2021-22) Gross Tax Revenue 20,10,059 24,23,020 19,00,280 22,17,059 5% of which: Corporation Tax 5,56,876 6,81,000 4,46,000 5,47,000 -1% Taxes on Income 4,92,654 6,38,000 4,59,000 5,61,000 7% Goods and Services Tax 5,98,750 6,90,500 5,15,100 6,30,000 3% Customs 1,09,283 1,38,000 1,12,000 1,36,000 12% Union Excise Duties 2,40,615 2.67,000 3,61,000 3,35,000 18% Service Tax 6,029 1,020 1,400 1,000 -59% A. Centre's Net Tax Revenue 13,56,902 16,35,909 13,44,501 15,45,397 7% Devolution to States 6,50,678 7,84,181 5,49,959 6,65,563 1% B. Non Tax Revenue 3,27,157 3,85,017 2,10,653 2,43,028 -14% of which: Interest Receipts 12,349 11,042 14,005 11,541 -3% Dividend and Profits 1,86,132 1,55,396 96,544 1,03,538 -25% Other Non-Tax Revenue 1,28,675 2,18,580 1,00,105 1,27,949 -0.3% C. Capital Receipts (without borrowings) 68,620 2,24,967 46,497 1,88,000 66% of which: Disinvestment 50,304 2,10,000 32,000 1,75,000 87% Receipts (without borrowings) (A+B+C) 17,52,679 22,45,893 16,01,651 19,76,424 6% Borrowings 9,33,651 7,96,337 18,48,655 15,06,812 27% Total Receipts (including borrowings) 26,86,330 30,42,230 34,50,306 34,83,236 14% Sources: Receipts Budget, Union Budget Documents 2021-22; PRS.  Indirect taxes: The total indirect tax collections are estimated to be Rs 11,02,000 crore in 2021-22. Of this, the government has estimated to raise Rs 6,30,000 crore from GST. Out of the total tax collections under GST, 84% is expected to come from central GST (Rs 5,30,000 crore), and 16% (Rs 1,00,000 crore) from the GST compensation cess.  Union Excise Duties: Revenue from Union Excise Duties is estimated at Rs 3,35,000 crore (annual increase of 18% over 2019-20). In 2020-21, the revised estimate for revenue from excise duties was higher than the budget estimate by 35% due to revenue from duty on petrol and diesel.  Corporation tax: The collections from taxes on companies are expected to be Rs 5,47,000 crore in 2021-22, marginally lower (1%) than 2019-20. In 2020-21, as per revised estimates, revenue from corporation tax was Rs 4,46,000 crore, 35% lower than the budget estimate. Among all direct taxes revenue from corporation tax declined the most.  Income tax: The collections from income tax are expected to record an annual increase of 7% in 2021-22 to Rs 5,61,000 crore. In 2020-21, the revised estimate for revenue from income tax was 28% lower than the budget estimate.  Non-tax receipts: Non-tax revenue consists of interest receipts on loans given by the centre, dividends and profits, external grants, and receipts from general, economic, and social services, among others. Non-tax revenue is expected to decrease by 14% over 2019-20 to Rs 2,43,028 crore. The decline is due to a 40% fall in the dividend received from the Reserve Bank of India, nationalised banks and other financial institutions owned by the government.  Disinvestment target: The disinvestment target for 2021-22 is Rs 1,75,000 crore. This target is 3.5 times higher than the disinvestment of Rs 50,304 crore in 2019-20. ## Expenditure Highlights For 2020-21  Total expenditure in 2021-22 is expected to be Rs 34,83,236 crore, which is 1% higher than the revised estimate of 2020-21. Expenditure in 2021-22 has increased at an annual rate of 14% over 2019-20. Out of this, (i) Rs 10,51,703 crore is proposed to be spent on central sector schemes (18% annual increase over 2019-20), and (ii) Rs 3,81,305 crore is proposed to be spent on centrally sponsored schemes (11% annual increase over 2019-20).  The government is expected to spend Rs 8,09,701 crore on interest payments in 2021-22, which is 17% higher than the revised estimate of 2020-21. It makes up 23% of the government's estimated expenditure in 2021-22. Expenditure on pensions in 2021-22 is expected to be Rs 1,89,328 crore (1% annual increase over 2019-20). Change (Annualised) (Actuals 2019-20 to BE Actuals 2019-20 Budgeted 2020-21 Revised 2020-21 Budgeted 2021-22 2021-22) Central Expenditure Establishment Expenditure of Centre 5,70,244 6,09,585 5,98,672 6,09,014 3% Central Sector Schemes/ Projects 7,57,091 8,31,825 12,63,690 10,51,703 18% Other Expenditure 7,27,025 8,87,574 8,26,536 10,11,887 18% Centrally Sponsored Schemes and other transfers Centrally Sponsored Schemes 3,09,553 3,39,895 3,87,900 3,81,305 11% Finance Commission Grants 1,23,710 1,49,925 1,82,352 2,20,843 34% of which: Rural Local Bodies 59,361 69,925 60,750 44,901 -13% Urban Local Bodies 25,098 30,000 25,000 22,114 -6% Grants-in-aid 10,938 20,000 22,262 35,376 80% Post Devolution Revenue Deficit Grants 28,314 30,000 74,340 1,18,452 105% Other Grants 1,98,707 2,23,427 1,91,155 2,08,484 2% Total Expenditure 26,86,330 30,42,230 34,50,305 34,83,236 14% Sources: Budget at a Glance, Union Budget Documents 2021-22; PRS. Expenditure on Subsidies: In 2021-22, the total expenditure on subsidies is estimated to be Rs 3,69,899 crore, an annual increase of 19% over 2019-20. This is largely due to a higher allocation to food subsidy. Details are given below (Table 4):  Food subsidy: Allocation to food subsidy is estimated at Rs 2,42,836 crore in 2021-22, a 49% annual increase as compared to 2019-20. In 2020-21 budget, Rs 1,15,570 crore was allocated to food subsidy. However, the revised estimate is 266% higher than the budgeted estimate at Rs 4,22,618 crore. According to the budget speech, additional allocation has been made in the 2021-22 budget to clear the pending food subsidy dues of the Food Corporation of India.  Fertiliser subsidy: Expenditure on fertiliser subsidy is estimated at Rs 79,530 crore in 2021-22, a 1% annual decrease as compared to 2019-20. In 2020-21, the revised allocation to fertiliser subsidy is 88% higher than the budgeted allocation.  Petroleum subsidy: Allocation to petroleum subsidy decreased at an annual rate of 40% from 2019-20 to 2021-22. The allocation in 2021-22 is 64% lower than the 2020-21 revised estimate at Rs 14,073 crore. Petroleum subsidy consists of subsidy on LPG and kerosene. In 2021-22, the LPG subsidy is estimated to decrease to Rs 14,073 crore (from Rs 36,072 crore in 2020-21) and no allocation has been made for the kerosene subsidy (as compared to Rs 2,982 crore in 2020-21).  Other subsidies: The government also provides certain other subsidies such as interest subsidies on loans given under various government schemes and subsidies for procurement of agricultural produce other than paddy and wheat. In 2021- 22, the expenditure on these other subsidies is estimated to be Rs 33,460 crore, a 1% annual decrease over 2019-20. | Change (Annualised) | Actuals | |-----------------------|---------------------------------| | 2019-20 | | | Budgeted | | | 2020-21 | | | Revised | | | 2020-21 | (Actuals 2019-20 to BE 2021-22) | | Budgeted | | | 2021-22 | | | Food subsidy | 1,08,688 | | Fertiliser subsidy | 81,124 | | Petroleum subsidy | 38,529 | | Other subsidies | 33,963 | | Total | 2,62,304 | Sources: Expenditure Profile, Union Budget 2020-21; PRS. Expenditure by Ministries: The ministries with the 13 highest allocations account for 53% of the total budgeted expenditure in 2021-22. Of these, the Ministry of Defence has the highest allocation in 2021-22 at Rs 4,78,196 crore (14% of the total budgeted expenditure of the government). Other Ministries with high allocation include: (i) Consumer Affairs, Food and Public Distribution, (ii) Home Affairs, (iii) Rural Development, and (iv) Agriculture and Farmers' Welfare. Table 5 shows the expenditure on Ministries with the 13 highest allocations for 2021-22 and the annual growth estimated over 2019-20. Table 5: Ministry-wise expenditure in 2021-22 (Rs crore) | Change (Annualised) | Actuals | |------------------------------------------------|---------------------------------| | 2019-20 | | | Budgeted | | | 2020-21 | | | Revised | | | 2020-21 | (Actuals 2019-20 to BE 2021-22) | | Budgeted | | | 2021-22 | | | Defence | 4,52,996 | | Consumer Affairs, Food and Public Distribution | 1,17,096 | | Home Affairs | 1,34,978 | | Rural Development | 1,23,622 | | Agriculture and Farmers' Welfare | 1,01,775 | | Road Transport and Highways | 78,249 | | Railways | 69,972 | | Education | 89,437 | | Chemicals and Fertilisers | 82,063 | | Communications | 43,939 | | Health and Family Welfare | 64,258 | | Jal Shakti | 25,683 | | Housing and Urban Affairs | 42,054 | | Other Ministries | 12,60,209 | | Total Expenditure | 26,86,330 | Note: Expenditure is net of recoveries such as fines, and ticket sales. Sources: Expenditure Budget, Union Budget 2021-22; PRS.  Ministry of Consumer Affairs, Food and Public Distribution: Allocation to the Ministry in 2021-22 saw an annual increase of 48% over 2019-20 due to a higher allocation for food subsidy. Due to the same reason, the Ministry's revised allocation for 2020-21 has also been increased, by Rs 3,26,151 crore (262%) from the budgeted allocation for the year.  Ministry of Railways: Allocation to the Ministry of Railways in 2021-22 is Rs 1,10,055 crore, an annual increase of 25% over 2019-20. 2020-21 RE This includes Rs 79,398 crore allocated through a special loan to: (i) bridge the resource gap of Indian Railways caused due to COVID-19 in 2020-21, and (ii) clear its pension dues for the year 2019-20.  Ministry of Health and Family Welfare: Allocation to the Ministry of Health and Family Welfare in 2021-22 is Rs 73,932 crore, an annual increase of 7% over 2019-20. In 2020-21, the Ministry was allocated Rs 67,112 crore at the budgeted stage, which has been increased by 24% to Rs 82,928 crore at the revised stage. This increase is primarily due to an allocation of Rs 11,757 crore for the COVID-19 Emergency Response and Health System Preparedness Package.  Ministry of Jal Shakti: Allocation to the Ministry increased to Rs 69,053 crore in 2021-22, which is 184% higher than the revised estimate of 2020-21. This increase is primarily due to a higher allocation for the Jal Jeevan Mission (earlier known as the National Rural Drinking Water Mission), which accounts for 72% of the allocation to the Ministry. ## Expenditure On Major Schemes | Change (Annualised) | Actuals | |---------------------------------------|---------------------------------| | 2019-20 | | | Budgeted | | | 2020-21 | | | Revised | | | 2020-21 | (Actuals 2019-20 to BE 2021-22) | | Budgeted | | | 2021-22 | | | MGNREGS | 71,687 | | PM-KISAN | 48,714 | | Jal Jeevan Mission* | 10,030 | | National Health Mission | 35,155 | | National Education Mission | 33,654 | | Pradhan Mantri Awas Yojana | 24,964 | | Integrated Child Development Services | 22,032 | | # | | | 5% | | | Pradhan Mantri Fasal Bima Yojana | 12,639 | | Pradhan Mantri Gram Sadak Yojana | 14,017 | | National Livelihood Mission | 9,755 | | AMRUT and Smart Cities Mission | 9,599 | | Green Revolution | 9,895 | | Swachh Bharat Mission | 9,469 | | Pradhan Mantri Krishi Sinchai Yojana | 8,200 | | Mid-Day Meal Programme | 9,699 | Note: *Earlier known as the National Rural Drinking Water Mission. #Umbrella ICDS scheme till 2020-21 and sum of its individual schemes in 2021-22. Sources: Expenditure Profile, Union Budget 2021-22; PRS.  Among schemes, the MGNREGS has the highest allocation in 2021-22 at Rs 73,000 crore. Allocation to the scheme has seen an annual increase of 1% over 2019-20. However, in 2020-21, allocation to the scheme has been increased by Rs 50,000 crore (81%) from the budgeted stage to the revised stage, following the announcement made under the Aatmanirbhar Bharat Economic Package in May 2020.  The PM-KISAN scheme (income support to farmers) has the second highest allocation in 2021-22 at Rs 65,000 crore, an annual increase of 16% over 2019-20. In 2020-21, allocation to the scheme has decreased by 13% from Rs 75,000 crore at the budgeted stage to Rs 65,000 crore at the revised stage.  Allocation to the Jal Jeevan Mission (earlier known as the National Rural Drinking Water Mission) has increased by 355% over the revised estimate of 2020-21 to Rs 50,011 crore. ## Covid-19 Vaccination: The Central Government Has Allocated Rs 35,000 Crore To The Ministry Of Finance For Covid-19 Vaccination In 2021-22. This Allocation Has Been Made For Providing Financial Assistance To States To Meet Their Expenditure On Covid-19 Vaccination. Expenditure On Scheduled Caste And Scheduled Tribe Sub-Plans And Schemes For Welfare Of Women, Children And Ner Table 7: Allocations For Women, Children, Scs, Sts And Ner (Rs Crore) % change Budgeted 2020-21 Revised 2020-21 Budgeted 2021-22 (RE 2020-21 to BE 2021-22) Welfare of Women 1,43,462 2,07,261 1,53,326 -26.0%  Programmes for the welfare of women and children have been allocated Rs 2,39,039 crore in 2021-22, a decrease of 17% over the revised estimate of 2020- 21. These allocations include programmes under all the ministries. | Welfare of Children | 96,042 | 80,462 | 85,713 | 6.5% | |----------------------------|----------|----------|----------|--------| | Scheduled Castes | 83,257 | 82,708 | 1,26,259 | 52.7% | | Scheduled Tribes | 53,653 | 53,304 | 79,942 | 50.0% | | North Eastern Region (NER) | 60,112 | 51,271 | 68,020 | 32.7% |  The sub-plans for Scheduled Castes and Scheduled Tribes have been allocated a total of Rs 2,06,201 crore in 2021-22, which is a 51% increase over the revised estimate of 2020-21. Sources: Expenditure Profile, Union Budget 2021-22; PRS. ## Deficits, Debt And Frbm The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central government to progressively reduce its outstanding debt, revenue deficit and fiscal deficit. The central government gives three-year rolling targets for these indicators when it presents the Union Budget each year. The government was supposed to achieve fiscal deficit of 3% of GDP by March 31, 2021. In Budget 2020-21, the fiscal deficit target was relaxed to 3.5% (as permitted by the FRBM Act) and it was estimated that fiscal deficit of 3.1% will be achieved by 2022-23. In 2021-22, the government has not provided target for the next three years, and will amend the FRBM Act to accommodate the higher fiscal deficit. Table 8: Deficits (as % of GDP) Actuals 2019-20 Revised 2020-21 Budgeted 2021-22 Fiscal Deficit 4.6% 9.5% 6.8% Revenue Deficit 3.3% 7.5% 5.1% Fiscal deficit is an indicator of borrowings by the government for financing its expenditure. The estimated fiscal deficit for 2021-22 is 6.8% of GDP. For 2020-21, fiscal deficit is estimated at 9.5% of GDP, higher than the budget estimate of 3.5%. This was primarily due to higher spending, and lower revenue collection on account of COVID-19. The government intends to reach fiscal deficit of 4.5% by 2025-26. Note that in 2019-20 and 2020-21, the government showed certain expenditure carried out by public sector entities (such as the Food Corporation of India) as extra-budgetary resources, which was not included in the fiscal deficit calculation. In 2020- 21, extra-budgetary resources were estimated at 0.9% of GDP. Extra-budgetary resources for 2020-21 were revised downwards to 0.6% of GDP. In 2021-22, extra-budgetary resources are estimated to be 0.1% of GDP as the government has accounted for most of the extra-budgetary resources in the budget. Sources: Medium Term Fiscal Policy Statement, Union Budget (multiple years); PRS.  Revenue deficit is the excess of revenue expenditure over revenue receipts. Such a deficit implies the government's need to borrow funds to meet expenses which may not provide future returns. The estimated revenue deficit for 2021-22 is 5.1% of GDP. In 2020-21, revenue deficit was 7.5%, higher than the budget estimate of 2.7%.  Outstanding debt is the accumulation of borrowings over the years. A higher debt implies that the government has a higher loan repayment obligation over the years. Outstanding debt of the government decreased from 66.7% of GDP in 2004-05 to 48% of GDP in 2018-19. The revised estimate of outstanding debt for 2019-20 was 48%. However, the Medium Term Fiscal Policy Statement has not given the estimate of outstanding debt for 2021-22, or revised estimate for 2020-21.  High borrowings in the current year (indicated by fiscal deficit) and increase in outstanding debt leads to high interest cost. In 2021-22, interest payments are estimated to be 15% higher than the interest obligations in 2019-20. Interest payment is estimated at 45% of revenue receipts in 2021-22, up from 36% in 2019-20. ## Recommendations By The 15Th Finance Commission | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 | |----------------|-----------|-----------|-----------|-----------|-----------| | Fiscal Deficit | | | | | | | 7.4% | 6.0% | 5.5% | 5.0% | 4.5% | 4.0% | The 15th Finance Commission for 2021-26 suggested a path for fiscal consolidation for the centre by reducing fiscal deficit to 4% of GDP, and outstanding liabilities to 56.6% by 2025-26. Revenue Deficit 5.9% 4.9% 4.5% 3.9% 3.3% 2.8% Outstanding liabilities 62.9% 61.0% 61.0% 60.1% 58.6% 56.6% For details on the recommendations of the 15th Finance Commission see the Annexure. Sources: Report of the 15th Finance Commission for 2021-26; PRS. ## Annexure: Recommendations Of The 15Th Finance Commission For 2021-26 The 15th Finance Commission (Chair: Mr. N. K. Singh) has submitted two reports. The first report, consisting of recommendations for the financial year 2020-21, was tabled in Parliament in February 2020. The final report with recommendations for the 2021-26 period was tabled in Parliament on February 1, 2021. Key recommendations of the Commission include: | Income Distance | 50.0 | 45.0 | 45.0 | |-------------------------|--------|--------|--------| | Area | 15.0 | 15.0 | 15.0 | | Population (1971) | 17.5 | - | - | | Population (2011) | | | | | # | | | | | 10.0 | 15.0 | 15.0 | | | Demographic Performance | - | 12.5 | 12.5 | | Forest Cover | 7.5 | - | - |  Devolution Criteria: The criteria for distribution of central taxes among states for 2021-26 period is same as that for 2020-21. The Commission has used 2011 population data for determining the share of states during its entire award period. To reward efforts made by states in controlling their population, the Commission has used the Demographic Performance criterion. States with a lower fertility ratio will be scored higher on this criterion. | Forest and Ecology | - | 10.0 | 10.0 | |-------------------------|-----|--------|--------| | Tax and fiscal efforts* | - | 2.5 | 2.5 | | Total | 100 | 100 | 100 | Note: #14th FC used the term "demographic change" which was defined as Population in 2011. *The report for 2020-21 used the term "tax effort", however, there is no difference in the definition of the criteria. Sources: Reports of the 14th and 15th Finance Commissions; PRS.  Grants-in-aid: The Commission has recommended grants from the centre to states and local bodies worth Rs 10.3 lakh crore for the 2021-26 period. These include: (i) revenue deficit grants to 17 states, (ii) grants to urban and rural local bodies, (iii) disaster management grants, (iv) grants for eight sectors including health, education, and agriculture, and (v) certain state-specific grants (see Table 2). Revenue deficit grants 2,94,514 Local governments grants 4,36,361 Disaster management grants 1,22,601 Sector-specific grants 1,29,987 Health 31,755 School Education 4,800 Higher Education 6,143 Implementation of agricultural reforms 45,000 Maintenance of PMGSY roads 27,539  Funding of defence and internal security: A dedicated non-lapsable fund called the Modernisation Fund for Defence and Internal Security (MFDIS) will be constituted to primarily bridge the gap between budgetary requirements and allocation for capital outlay in defence and internal security. The fund will have an estimated corpus of Rs 2,38,354 crore over the five years (2021-26). Of this, Rs 1,53,354 crore will be transferred from the Consolidated Fund of India. Rest of the amount will be generated from measures such as disinvestment of defence PSUs and monetisation of defence lands. | Judiciary | 10,425 | |-----------------------------------|-----------| | Statistics | 1,175 | | Aspirational districts and blocks | 3,150 | | State-specific grants | | | 49,599 | | | Total | 10,33,062 | Source: Report of the 15th Finance Commission; PRS.  Fiscal consolidation: The Commission suggested that the Centre bring down fiscal deficit to 4% of GDP by 2025-26. It recommended the fiscal deficit limit (as % of GSDP) for states to be: (i) 4% in 2021-22, (ii) 3.5% in 2022-23, and (iii) 3% during 2023-26. Extra annual borrowing worth 0.5% of GSDP will be allowed to states during 2021-25 for undertaking power sector reforms.  The Commission observed that the recommended path for fiscal deficit for the Centre and states will result in a reduction of total liabilities of: (i) the Centre from 62.9% of GDP in 2020-21 to 56.6% in 2025-26, and (ii) the states on aggregate from 33.1% of GDP in 2020-21 to 32.5% by 2025-26. It recommended forming a high-powered inter-governmental group to: (i) review the fiscal responsibility legislation (FRBM Act), (ii) recommend a new fiscal responsibility framework and oversee its implementation. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely who may receive it. Criteria 14thFC 2015-20 15thFC 2020-21 15th FC 2021-26 Grants Amount
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## Demand For Grants 2017-18 Analysis Drinking Water And Sanitation The Ministry of Drinking Water and Sanitation is the nodal agency responsible for policy planning, funding and coordination for programs of safe drinking water and sanitation in rural areas. The Ministry was previously a department under the Ministry of Rural Development, and was made an independent Ministry in 2011. ## Overview Of Finances In the Union Budget 2017-18, the Ministry has been allocated Rs 20,010 crore. This is an increase of Rs 3,499 (21%) over the revised estimates of 2016-17. Over the past ten years, the allocation to the Ministry of Drinking Water and Sanitation has seen an annual average increase of 10%. In 2013-14 and 2015-16, the allocation was reduced by 8% in comparison to the previous year. However, the Ministry saw the highest increase of 49% in the revised estimates of 2016-17, over the actuals of 2015-16. Figure 1 shows these trends. Table 1 provides the budgetary allocations to the two major schemes, the National Rural Drinking Water Program (NRDWP), and the Swachh Bharat Mission-Gramin (SBM-G) of the Ministry of Drinking Water and Sanitation. | Revised | Budgeted | % | Major | |------------|-------------|--------|----------| | head | | | | | Actual | | | | | 15-16 | 16-17 | 17-18 | change | | SBM-G | 6,703 | 10,500 | 13,948 | | NRDWP | 4,369 | 6,000 | 6,050 | | Total | 11,081 | 16,511 | 20,010 | Sources: Demands for Grants 2017-18, Ministry of Drinking Water and Sanitation; PRS. Tel: (011) 43434035-36, 23234801-02  www.prsindia.org Figure 2 represents the key expenditure heads of the Ministry. In 2017-18, 70% of the Ministry's expenditure is estimated to be on SBM-G and 30% on NRDWP. Note: Values from 2007-08 to 2008-09 are revised estimates. Values for 2016-17 and 2017-18 are revised estimates and budget estimates respectively. Sources: Union Budgets 2007-08 to 2017-18; PRS. ## Financial Allocations To Outcomes In this section, we discuss issues regarding the implementation of the SBM-G and NRDWP. ## Swachh Bharat Mission- Gramin The Swachh Bharat Mission was launched on October 2, 2014 with an aim to achieve universal sanitation coverage, improve cleanliness and eliminate open defecation in the country by October 2, 2019. The Swachh Bharat Mission- Gramin (SBM-G) is the rural component of the program. SBM-G was previously referred to as the Nirmal Bharat Abhiyan or the Total Sanitation Campaign. In 2017-18 it has been allocated Rs 13,948 crore, which is an increase of 33% from the revised estimates of 2016-17. In 2016-17, the scheme was allocated Rs 9,000 crore, which was increased to Rs 10,500 crore at the revised estimates stage. Figure 3 shows the expenditure on rural sanitation schemes by the Ministry over the years. Note: Values from 2007-08 to 2008-09 are revised estimates. Values for 2016-17 and 2017-18 are revised estimates and budget estimates respectively. Sources: Union Budgets 2007-08 to 2017-18; PRS. Allocation to SBM-G has seen an increase over the years. However, the total money allocated to the scheme is low, when compared to other centrally sponsored schemes. The scheme got the seventh highest allocation among all the centrally sponsored schemes in Union Budget 2017-18. Allocation to some other schemes such as Mahatma Gandhi National Rural Employment Guarantee Scheme is Rs 48,000 crore, National Health Mission is Rs 27,131 and Sarva Shiksha Abhiyan is Rs 23,500 crore. Budget estimates versus actual expenditure: Table 2 shows the trends in allocation and actual expenditure on rural sanitation schemes over the past ten years. rural sanitation schemes (in Rs crore) | Year | Budgeted | Actuals | % of Budgeted | |---------|-------------|------------|------------------| | 2007-08 | 954 | 954 | 100% | | 2008-09 | 1,080 | 1,080 | 100% | | 2009-10 | 1,080 | 1,200 | 111% | | 2010-11 | 1,580 | 1,580 | 100% | | 2011-12 | 1,650 | 1,500 | 91% | | 2012-13 | 3,500 | 2,474 | 71% | | 2013-14 | 3,834 | 2,244 | 59% | | 2014-15 | 4,260 | 2,841 | 67% | | 2015-16 | 3,625 | 6,703 | 185% | | 2016-17 | 9,000 | 13,948 | 155% | Note: The 'utilised' figure for 2016-17 is a revised estimate. Sources: Union Budgets 2007-08 to 2016-17; PRS. Note that in the past two years, actual expenditure on SBM-G has overshot the budget estimates significantly. In 2015-16, it was 185% and is expected to be 155% in 2016-17. This implies lack of adequate budgeting and planning in implementation of the scheme. Construction of Individual Household Latrines (IHHLs): For construction of IHHLs, the funds are shared between the centre and the state in the ratio of 60:40. Construction of IHHLs account for the largest share of total expenditure under the scheme. In 2014-15, it was 91%, and has been increased to 97% and 98% in 2015-16 and 2016- 17, respectively. Table 3 shows the target versus construction of IHHLs since the inception of the scheme. Note that while actuals overshot the budget estimates, the target for construction of toilets has remained in the range of 50%-60%. | Year | Target | Constructed | |---------|-----------|----------------| | 2014-15 | 1.25 | 0.58 (46%) | | 2015-16 | 2.31 | 1.27 (55%) | | 2016-17 | 2.7 | 1.7 (61%) | Note: Data for 2016-17 is updated till February 28, 2017. Sources: Management Information System Reports of SBM; PRS. Information, Education and Communication (IEC) Activities: 8% of funds earmarked for SBM-G in a year are to be utilised for IEC activities.1 These activities primarily aim to mobilise behavioural change towards the use of toilets among people. However, this has not been met. In 2014-15, Rs 157 crore was spent on such activities, accounting for 4% of the total scheme expenditure. This decreased to Rs 147 crore or 1% in 2015-16. In 2016-17, till the third quarter, Rs 56 crore has been spent, amounting to approximately 1% of total expenditure up to that month. Table 4 highlights these trends. ## (In Rs Crore) | Year | SBM-G funds spent on IEC activities | |---------|----------------------------------------| | 2014-15 | 157 (4%) | | 2015-16 | 147 (1%) | | 2016-17 | 56 (1%) | Note: Data for 2016-17 is updated till February 28, 2017. Sources: Management Information System Reports of SBM; PRS. Open Defecation Free (ODF) villages: After a village declares itself ODF, states are required to carry out verification of the ODF status of such a village. Table 5 presents data on the differences between villages that have declared themselves ODF free and are verified. | Year | Declared ODF | Verified ODF | |---------|-----------------|-----------------| | 2015-16 | 49,543 | 34,999 (71%) | | 2016-17 | 1,67,226 | 66,777 (40%) | Note: Data for 2016-17 is updated till February 28, 2017. Sources: Management Information System Reports of SBM; PRS. The Comptroller and Auditor General of India (CAG) undertook an audit of the Total Sanitation Campaign or the Nirmal Bharat Abhiyan from 2009-10 to 2013-14 to review the functioning of the rural sanitation program in country.2 Key observations of the CAG with regard to the implementation of rural sanitation schemes include:  Project planning: Plans prepared at Gram Panchayat level were not consolidated into Block plan and further into District plan in 73 (49%) test checked districts of 12 states. The Annual Implementation Plan did not indicate the District/Block/Gram Panchayat wise allocation of physical and financial targets.  Project implementation: The scheme had an objective of construction of around 426 lakh and 470 lakh latrines for Below Poverty Line and Above Poverty Line families, respectively. However, project districts could construct 52% and 44% latrines from 2009-10 to 2013-14. Additionally, 13 lakh latrines involving an expenditure of Rs 186 crore were constructed by engaging contractors/NGOs, etc., in violation of the scheme guidelines.  Management of funds: The Ministry released only 48% of the funds and 16 states did not release or released less funds during 2009-10 to 2013-14. As against the availability of funds of Rs 13,494 crore, Rs 10,157 crore or 75% of funds were spent on the implementation of the scheme.  Information, Education and Communication (IEC): Being a demanddriven scheme, IEC is critical for creating awareness about the Nirmal Bharat Abhiyan. However, during 2009-10 to 2011-12, 25% of budgeted allocated for IEC activities was incurred on activities unrelated to IEC.  Monitoring and Evaluation: The Ministry only spent Rs 0.32 crore out of Rs 22.40 crore booked under monitoring during 2009-14 and spent the remaining amount on other activities. ## National Rural Drinking Water Programme The National Rural Drinking Water Programme (NRDWP) aims at assisting states in providing adequate and safe drinking water to the rural population in the country.3 Rural drinking water programs have existed in various forms since 1972- 73, starting with the Accelerated Rural Water Supply Programme, followed by a Technology Mission in 1986. Subsequently, the Sector Reform Project was initiated in 1999-2000, with an aim to involve the rural community in planning, implementation and management of drinking water schemes. From 2009, it has been renamed as the National Rural Drinking Water Programme. Fund sharing pattern: Rural water supply is a state subject. The centre-state fund sharing pattern within the scheme for the components of coverage of habitations, quality of water and operation and maintenance of projects is: (i) 50:50 for all states, and (ii) 90:10 for north-east and Himalayan states. For the components of monitoring and surveillance of water quality, sustainability of water sources, and support activities like awareness generation, the centre-state fund sharing pattern within the scheme is: (i) 60:40 for all states, and (ii) 90:10 for north-east and Himalayan states. The centre funds the scheme entirely for union territories. NRDWP accounts for 30% of the Ministry's finances this year. In 2017-18 it has been allocated Rs 6,050 crore, which is an increase of 1% from the revised estimates of 2016-17. In 2016-17, the scheme was allocated Rs 5,000 crore, which was increased to Rs 6,000 crore at the revised estimates stage. Figure 4 shows the expenditure on NRDWP by the Ministry over the years. Note: Values from 2007-08 to 2008-09 are revised estimates. Values for 2016-17 and 2017-18 are revised estimates and budget estimates respectively. Sources: Union Budgets 2007-08 to 2017-18; PRS. As can be noted from the figure above, from 2007- 08 to 2013-14, the expenditure on NRDWP accounted for about 80%-90% of the Ministry's budget. However, from 2015-16 onwards, the allocation to the scheme has been reduced significantly. Budgeted versus actual expenditure: Table 6 shows the trends in allocation and actual expenditure on NRDWP over the past ten years. The actual expenditure saw a decline in 2014-15, which could be a reason for the reduction of funds at the budget estimates stage in 2015-16. However, the actual expenditure in 2015-16 was 167% of the budget estimates. Given the inconsistency in the budget estimates of the scheme, it is unclear how the Ministry is planning the execution of the scheme. Table 6: Budgeted versus actual expenditure on NRDWP (in Rs crore) Year Budgeted Actuals % of Budgeted 2007-08 6,606 6,506 98% 2008-09 7,420 7,420 100% 2009-10 8,120 7,996 98% 2010-11 9,000 8,985 100% 2011-12 9,350 8,493 91% 2012-13 10,500 10,489 100% 2013-14 11,426 9,691 85% 2014-15 11,000 9,243 84% 2015-16 2,611 4,369 167% 2016-17 5,000 6,000 120% Note: The 'utilised' figure for 2016-17 is a revised estimate. Sources: Union Budgets 2007-08 to 2016-17; PRS. The Standing Committee examining the scheme had observed that reduction in budget for NRDWP will affect the coverage and tackling of water quality problems in rural areas.4 Target versus achievements: In 2011, the Ministry came out with a strategic plan for the period from 2011-22.5 It set out a goal that by 2022, every person in rural areas in the country will have access to 70 Litres Per Capita Per Day (LPCD) of water within their household premises or at a distance of not more than 50 metres. It identified three standards of service: i. Basic piped water supply with a mix of household connections, public taps and handpumps (designed for 55 LPCD); ii. Piped water supply with all metered, household connections (designed for 70 LPCD); and iii. Handpumps, protected open wells, protected ponds, etc. (designed for 40 LPCD). By 2022, the goal is to cover 90% of rural households with piped water supply and 80% of rural households with household tap connections. The revised guidelines of the NRDWP in 2015 raised the drinking water supply norms from 40 LPCD to 55 LPCD.6 Table 7 and table 8 highlights the targets and achievemnets under the scheme for the past five years. It can be observed from the table that as of February 2017, 97% of rural habitations have access to safe drinking water (measured on the basis of 55 LPCD). The interim goal of the Ministry is to cover 55% of all rural households with piped water supply and 35% of rural households with household tap connections by 2017. However, the Estimates Committee in its report in 2015 observed that piped water supply was available to 47% of rural habitations. This implied that only 15% people have access to piped water at their homes.7 habitations partially covered under NRDWP | | | Number of partially covered habitations | |---------|----------|--------------------------------------------| | | Target | Achievement | | 2009-10 | 1,10,721 | 99,312 (90%) | | 2010-11 | 1,10,231 | 90,116 (82%) | | 2011-12 | 94,257 | 83,713 (89%) | | 2012-13 | 91,750 | 77,388 (84%) | | 2013-14 | 83,805 | 91,496 (109%) | | 2014-15 | 89,581 | 94,020 (105%) | | 2015-16 | 52,061 | 64,487 (124%) | | 2016-17 | 40,385 | 29,408 (73%) | Note: Data pertain to habitations getting 55 LPCD of basic piped water supply with a mix of household connections, public taps and handpumps. Data for 2016-17 is updated till February 28, 2017. Souces: Integrated Management Information System Reports 2009-10 to 2016-17, National Rural Drinking Water Programme; PRS. habitations fully covered under NRDWP | | | Number of fully covered habitations | |---------|--------|----------------------------------------| | | Target | Achievement | | 2009-10 | 51,106 | 49,567 (97%) | | 2010-11 | 33,247 | 29,267 (88%) | | 2011-12 | 36,837 | 32,533 (88%) | | 2012-13 | 38,403 | 58,916 (153%) | | 2013-14 | 38,454 | 45,277(118%) | | 2014-15 | 25,112 | 26,507 (106%) | | 2015-16 | 12,081 | 13,276 (110%) | | 2016-17 | 10,002 | 7,900 (79%) | Note: Data pertain to habitations getting 55 LPCD of basic piped water supply with a mix of household connections, public taps and handpumps. Data for 2016-17 is updated till February 28, 2017. Souces: Integrated Management Information System Reports 2009-10 to 2016-17, National Rural Drinking Water Programme; PRS. Contamination of drinking water: It has been noted that NRDWP is over-dependant on ground water.7 However, ground water is affected by high arsenic contamination in 68 districts in 10 states.7 These states are Haryana, Punjab, Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh, West Bengal, Assam, Manipur and Karnataka. Table 9 shows the number of states and districts where ground water is affected by various contaminants. | Contaminants | Number of | Number of | |-----------------|--------------|--------------| | affected | | | | states | | | | affected | | | | districts | | | | Arsenic | 10 | 68 | | Fluoride | 20 | 276 | | Nitrate | 21 | 387 | | Iron | 24 | 297 | Sources: Central Ground Water Board; PRS. http://www.mdws.gov.in/sites/default/files/SwachBharatGuidlin es.pdf. Drinking Water and Sanitation, http://indiawater.gov.in/IMISReports/MenuItems/AboutSite.asp x. 4 Demand for Grants 2016-17, Ministry of Drinking Water and Sanitation, Standing Committee on Rural Development 2015- 16, http://164.100.47.193/lsscommittee/Rural%20Development/16_ Rural_Development_23.pdf. 5 "Ensuring Drinking Water Security in Rural India", Strategic Plan 2011-12, Department of Drinking Water and Sanitation, Ministry of Rural Development, Chemical contamnation of ground water has also been reported due to deeper drilling for drinking water sources. It has been recommended that out of the total funds for NRDWP, allocation for water quality monitoring and surveillance hould not be less than 5%.7 Presently, it is 3% of the total funds.6 It hs also been suggested that water quality laboratories for water testing should be set up throughout the country.7 http://mdws.gov.in/sites/default/files/StrategicPlan_2011_22_W ater.pdf. 6 National Rural Drinking Water Programme Guidelines 2013, http://www.mdws.gov.in/sites/default/files/NRDWP_Guidelines _2013_0.pdf. on Estimates 2014-15, Lok Sabha, DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it.
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budget_reports
## Demand For Grants 2022-23 Analysis Railways The Railways finances were presented on February 1, 2022, by the Finance Minister Ms. Nirmala Sitharaman along with the Union Budget 2022-23. The Ministry of Railways manages the administration of Indian Railways and policy formation through the Railway Board. Indian Railways is a commercial undertaking of the central government.1 Expenditure of Railways is financed through: (i) its internal resources (freight and passenger revenue, and leasing of railway land), (ii) budgetary support from the central government, and (iii) extrabudgetary resources (primarily borrowings but also includes institutional financing, public-private partnerships, and foreign direct investment). Railways' working expenses (salaries, staff amenities, pension, asset maintenance) are met through its internal resources. Capital expenditure (such as procurement of wagons and station redevelopment) is financed through internal resources, budgetary support from the central government, and extra-budgetary resources. This note looks at the proposed expenditure of Railways for the year 2022-23, its finances over the last few years, and issues with the same. ## Highlights - Revenue: Railways' internal revenue for 2022-23 is estimated at Rs 2,40,000 crore, an increase of 19% over the revised estimates of 2021-22. In 2021-22, revenue is estimated to be 7% lower than the budget estimate. - Traffic revenue: Total revenue from traffic for 2022-23 is estimated to be Rs 2,39,600 crore, an increase of 19% over revised estimates of 2021-22. Freight revenue is estimated to be Rs 1,65,000 crore in 2022-23, an increase of 14% over the revised estimates of 2021-22. The passenger revenue is estimated to be Rs 58,500 crore, an increase of 32% over a low base in 2021-22 (due to COVID-19). In 2021-22, passenger revenue is estimated to be 27% lower than the budget estimate, whereas freight revenue is estimated to be 5% higher than the budget estimate. - Expenditure: The total revenue expenditure by Railways for 2022-23 is projected to be Rs 2,34,640 crore, an increase of 17% over revised estimates of 2021-22. In 2021-22, revenue expenditure is estimated to be 5% lower than the budget estimate. In 2022-23, capital expenditure is projected at Rs 2,45,800 3rd Floor, Gandharva Mahavidyalaya ◼ 212, Deen Dayal Upadhyaya Marg ◼ New Delhi - 110002 Tel: (011) 2323 4801, 4343 4035 ◼ www.prsindia.org crore, an increase of 14% over the revised estimates of 2021-22. The revised estimates for capital expenditure in 2021-22 is marginally higher than the budget estimate. - Operating Ratio: Operating Ratio is a ratio of working expenses to the receipts from traffic. A lower ratio implies better profitability and availability of resources for capital spending. In 2022-23, the Railways' Operating Ratio is estimated to be 96.98%. This would be an improvement over the operating ratio of 98.93% in 2021-22 (revised estimates). Operating ratio of 96.15% was estimated at the budget stage in 2021-22. ## 2022-23 Budget Announcements2 Key announcements and proposals related to Railways made in Budget 2022-23 include: - Railways will develop new products and efficient logistics services for small farmers, and small and medium enterprises. It will also take steps towards integration of postal and railway networks to provide seamless solutions for movement of parcels. - 100 PM-GatiShakti Cargo Terminals for multimodal logistics facilities will be developed over next three years. - Multimodal connectivity between mass urban transport and railway stations will be facilitated on priority. - 400 new-generation Vande Bharat trains will be manufactured over next three years. - 2,000 km of network will be brought under Kavach, the indigenous technology for safety and capacity augmentation. - 'One Station-One Product' concept will be popularised to help local businesses and supply chains. For information on status of 2021-22 budget announcements, please see Table 12 in Annexure. ## Overview Of Finances Railways' Internal Revenue Railways earns its internal revenue primarily from passenger and freight traffic. In 2022-23, Railways is estimated to earn 69% of its internal revenue from freight and 24% from passenger traffic. The remaining 7% will be earned from other miscellaneous sources such as parcel service, coaching receipts, and sale of platform tickets. ## Growth In Revenue Railways' total internal revenue for 2022-23 is estimated at Rs 2,40,000 crore, an increase of 19% over the revised estimates of 2021-22. In 2021-22, total internal revenue is estimated to be 7% lower than the budget estimate. While freight earnings are estimated to be 5% higher than the budgeted, passenger earnings are estimated to be 27% lower. In both 2019-20 and 2020-21, Railways' internal revenue registered a negative growth year-on-year (Figure 1 on next page). In 2019-20, freight revenue was 11% lower than the previous year, whereas passenger revenue was severely hit in 2020-21. Passenger services were suspended for about 10 days in March 2020 and through April- May 2020 to mitigate the impact of COVID-19.3 After that, services were resumed in a phased manner.4 Railways ran special trains in place of regular trains up until November 2021.5 Pre- COVID regular trains have been resumed since then.5 The second class of such trains continue to run as reserved, except if any relaxation permitted | 2020-21 | 2021-22 BE 2021-22 RE | |-----------------------------------------------|--------------------------------------| | | | | | | | | | | Receipts | | | | | | 1 Passenger Revenue | 15,248 | | 2 Freight Revenue | 1,17,232 | | 3 Other traffic sources | 8,090 | | 4 | Gross Traffic Receipts (1+2+3) | | 5 Miscellaneous | 213 | | 6 | Total Internal Revenue (4+5) | | 7 | Budgetary Support from Government | | 8 | Extra Budgetary Resources | | 9 Special Loan from Govt.* | 79,398 | | | | | | | | 10 | Total Receipts (6+7+8+9) | | | | | Expenditure | | | 11 Ordinary Working Expenses | 1,35,845 | | 12 Appropriation to Pension Fund | 523 | | 13 Appropriation to Depreciation Reserve Fund | 200 | | 14 | Total Working Expenditure (11+12+13) | | 15 Miscellaneous | 1,669 | | 16 | Total Revenue Expenditure (14+15) | | 17 | Total Capital Expenditure | | 18 Appropriation of Special Loan from Govt.* | 79,398 | | | | | | | | 19 | Total Expenditure (16+17+18) | | 20 | Net Revenue (6-16) | | 21 | Operating Ratio | | # | | | | 96.15% | | | | Note: *The central government provided a special loan from its general revenue for COVID related resource gap in 2020-21 and to liquidate adverse balance in Pension Fund in 2019-20. #If the appropriation to the Pension Fund were to be per the requirement, the operating ratio for 2020-21 would have been 131.5%. RE - Revised Estimate, BE - Budget Estimate. Source: Expenditure Profile; Union Budget 2022-23; PRS. in special case.5 Between 2018-19 and 2022-23, Railways' revenue is estimated to grow at a compounded annual growth rate (CAGR) of 5.9%. This is lower than the CAGR of 7.1% observed between 2012-13 and 2018-19. While revenue from freight traffic is estimated to grow at 6.7% between 2018-19 and 2022-23, revenue from passenger traffic is estimated to grow at 3.5%. Between 2012-13 and 2018-19, freight and passenger revenue had grown at a CAGR of 6.9% and 8.5%, respectively. ## Shortfall In Revenue As discussed above, Railways' internal revenue registered a negative year-on-year growth in both 2019-20 and 2020-21. This resulted in a significant difference in actual revenue as compared to the budget estimates (Figure 2 on next page). On average, between 2011-12 and 2018-19, internal revenue realised by Railways was 6% lower than the budget estimates. While freight revenue saw a shortfall of 3% as compared to the budget estimates during this period, the corresponding figure for passenger services was higher at 8%. | % Change | % Change | |----------------|----------------| | 2022-23 BE | (2021-22 BE to | | 2021-22 RE) | | | (2021-22 RE to | | | 2022-23 BE) | | ## Challenges In Raising Revenue Sluggish Growth In Traffic Volume In freight traffic volume, there has been an uptick during 2021-22, which Railways expects to sustain in 2022-23. In 2022-23, Railways is estimated to register freight traffic volume of 868 billion Net Tonne km (NTKM), which is 8% higher than the revised estimates for 2021-22 (807 billion NTKM). This is mainly on account of estimated increase in coal freight (Table 2). In 2021-22, freight traffic volume as well as revenue is expected to be 5% higher than the budget estimate. 1 NTKM implies 1 tonne of freight was transported over 1 km. The freight traffic volume is estimated to grow at CAGR of 4.1% between 2018-19 and 2022-23. Over the last decade, both rail-based passenger and freight traffic have grown at a modest rate (see Figure 3 and Figure 4). Between 2012-13 and 2022-23, freight and passenger traffic volume are estimated to grow at a CAGR of 2.3% and 0.01%, respectively. This has affected Railways' earnings from its core business of running freight and passenger trains. Railways is estimated to register passenger traffic volume of 1,099 billion Passenger km (PKM) in 2022-23. 1 PKM implies 1 passenger was transported over 1 km. Passenger traffic in 2022-23 is estimated to be lower than every year between 2013-14 and 2018-19. Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. Note: RE: Revised Estimates; BE: Budget Estimates. various years; PRS. % change 21-22 to 18-19 21-22 RE 22-23 BE 22-23 CAGR 18-19 to 22-23 Coal 311 314 354 13% 3.3% Cement 68 77 84 9% 5.4% Other goods 59 77 81 5% 8.2% Iron ore 43 66 72 9% 13.5% Foodgrains 58 77 65 -15% 3.3% Container services 58 58 63 9% 2.1% Pig iron & finished steel 50 51 57 10% 3.3% Fertilisers 47 42 44 4% -1.5% Petroleum & lubricants 29 30 31 6% 1.7% 15 16 17 7% 2.4% Raw material for steel plants Total 739 807 868 8% 4.1% Note: RE: Revised Estimates, BE: Budget Estimates. Sources: Union Budget of various years; PRS. Note that over the years, Railways has steadily lost freight traffic share to other modes of transport. Share of Railways in total freight traffic had declined from 89% in 1950-51 to 30% in 2011-12.6 During the same period, the share of roads on total freight traffic increased from 11% to 61%. As per the draft National Rail Plan 2030 (NRP), the share of Railways in total freight traffic stood at 27% in 2020.7 NRP aims to increase Railways' modal share in freight traffic to 45% by 2050. NITI Aayog (2018) had highlighted a shortfall in carrying capacity and a lack of price competitiveness as some of the reasons for the decline in freight share.8 It had observed that since passenger and freight traffic run on the same tracks, India has not been able to increase speed or capacity in a significant manner when compared to global benchmarks. Note that various dedicated freight corridors have been planned by Railways for improvement in facilities for freight. It has taken certain initiatives to attract freight including: (i) operation of Kisan Rail to attract freight for agricultural produce (1,806 trains on 153 routes as of December 2021), and.(ii) time tabled parcel services for courier and e-commerce companies. 9,10 ## Dependence On Coal For Freight Revenue The freight basket has mostly been limited to raw materials for certain industries such as power plants, and the iron and steel plants (Figure 5). In 2022-23, three commodities are estimated to contribute 63% of the total freight revenue: (i) coal (47%), (ii) iron ore (9%), and (iii) cement (7%). Source: Expenditure Profile, Union Budget 2022-23; PRS. While the share of coal in freight volume has been slowly coming down (from 43% in 2015-16 to 39% in 2021-22), its contribution to revenue has been increasing (from 45% in 2015-16 to 47% in 2021- 22). This may be indicative of an increasing dependency on coal for revenue as compared to other items in the freight basket. However, as per the budget estimates, share of coal in traffic volume is estimated to increase in 2022-23, whereas its contribution to revenue is estimated to decrease. Implications of clean energy transition on Railways' freight revenue In 2022-23, about 46% of the total coal freight volume is estimated to be for thermal power plants. As part of its initiatives in response to climate change, India has pledged to: (i) install 500 GW of non-fossil energy capacity by 2030, (ii) meet 50% of energy requirements from renewable energy by 2030, (iii) reduce carbon emissions by one billion tonnes by 2030, (iv) reduce carbon intensity of its economy to less than 45% by 2030, and (v) achieve target of net zero emission by 2070.11 Action towards these targets would involve phasing down coal-fired power plants and other usage of coal. Any significant shift in coal usage in the country might pose a challenge for Railways' freight revenue and overall sustainability of its finances.12 ## Widening Losses From Passenger Services Passenger traffic is broadly divided into two categories: suburban and non-suburban traffic. Suburban trains are passenger trains that cover short distances of up to 150 km and help move passengers within cities and suburbs. Majority of the passenger revenue (94.4% in 2019-20) comes from the non-suburban traffic (or the long-distance trains). Over the years, Railways has been unable to meet its operational cost of passenger services. Except AC-3 Tier segment, all other segments of passenger services have registered losses during the 2015-20 period (Table 3). These losses are compensated by earnings from freight services. NITI Aayog (2016) noted that such crosssubsidisation has resulted in high freight tariffs.14 It also observed (2018) that high freight tariffs are one of the reasons for a sub-optimal share of Railways in freight.8 | | | | | Class | 2015-16 2016-17 2017-18 2018-19 2019-20 | |-----------------------------------------|-----------------------------------------|--------------------------------|--------|----------|--------------------------------------------| | AC-1st Class | -176 | -139 | -165 | -249 | -403 | | 1st Class | -58 | -53 | -35 | -39 | -38 | | AC 2 Tier | -463 | -559 | -604 | -908 | -1378 | | AC 3 Tier | 898 | 1,041 | 739 | 318 | 65 | | AC Chair car | -6 | 118 | 98 | 243 | -182 | | Sleeper Class | -8,301 | -9,313 -11,003 -13,012 -16,056 | | | | | Second class | -8,570 -10,025 -11,524 -13,214 -14,457 | | | | | | Ordinary | | | | | | | Class | | | | | | | -13,238 -14,648 -16,568 -19,124 -20,450 | | | | | | | -5,125 | -5,324 | -6,184 | -6,754 | -6,938 | | | EMU | | | | | | | suburban | | | | | | | services | | | | | | | Total | -36,286 -37,937 -46,025 -55,020 -63,364 | | | | | | Source: CAG; PRS. | | | | | | In 2019-20, Railways made losses of Rs 63,364 crore on passenger and other coaching services, a 15% increase in losses over the previous year (Rs 55,020 crore).12,13 Profit from freight services in 2019-20 was Rs 28,746 crore, inadequate to completely subsidise the losses from passenger services.13 The revenue from passenger services was Rs 50,669 crore. Thus, Railways spent Rs 2.3 to earn one rupee from passenger services.13 Losses in passenger services are primarily caused due to: (i) passenger fares being lower than the costs, and (ii) concessions to various categories of passengers (senior citizens, National award winners etc.).14 Railways classifies these provisions as social service obligations. The Committee on Restructuring Railways (2015) had observed that several decisions on the Indian Railways such as increase in fares, introduction of new trains, and provision of halts are not taken based on commercial considerations.16 The Standing Committee on Railways (2020) had recommended that both freight and passenger fares should be rationalised prudently.15 It observed that any fare increase needs to take into account the competition from other transport modes.15 The Committee recommended that the social service obligations of Railways should be revisited.15 ## Expenditure Over the last decade, Railways' expenditure has increased at a comparatively higher rate than its internal revenue. This is mainly on account of a higher capital spending supported by grants from the central government and extra-budgetary resources (Figure 8). Between 2012-13 and 2022- 23, the internal revenue is estimated to increase at a CAGR of 6.6%, whereas revenue and capital expenditure are estimated to increase at a CAGR of 7.1% and 17.4%, respectively. Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. ## Reliance On Budgetary Support And Extrabudgetary Resources To Fund Capital Expenditure Owing to modest revenue surplus observed by Railways, capital expenditure has largely been funded through: (i) budgetary support from the central government, and (ii) extra-budgetary resources. For instance, only 2.8% of the total estimated capital expenditure in 2022-23 will be funded through internal revenue of Railways. Extra Budgetary Resources include market borrowings such as financing from banks, institutional financing, and external investments. External investments in Railways could be in the form of public-private partnerships (PPPs), joint ventures, or market financing by attracting private investors to potentially buy bonds or equity shares in Railways. Railways mostly borrows funds through the Indian Railways Finance Corporation (IRFC). IRFC borrows funds from the market (through taxable and tax-free bond issuances, term loans from banks and financial institutions), and then follows a leasing model to finance the rolling stock assets and project assets of Indian Railways. Up until 2014-15, budgetary support from the central government used to be the primary source for funding capital expenditure (Figure 9). However, between 2015-16 and 2020-21, the increase in capital expenditure was sustained through an increased reliance on extra budgetary resources. The Committee on Restructuring Railways (2015) had observed that increased reliance on borrowings could further exacerbate the financial situation of Railways.16 Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. In 2021-22 and 2022-23, budgetary support from the central government has seen a significant increase. However, note that this might have been made possible due to the central government running a large fiscal deficit in these two years (6.9% and 6.4% of GDP respectively).2 The central government aims to bring down its fiscal deficit to 4.5% of GDP by 2025-26.2 This might pose a challenge in sustaining the budgetary support levels seen in 2021-22 and 2022-23. 2020-21 Actuals 2021-22 Revised 2022-23 Budget % Change (21-22 RE to 22-23 BE) 29,926 1,17,300 1,37,300 17% Gross Budgetary Support 1,23,196 95,200 1,01,500 7% Extra Budgetary Resources Internal Resources 2,059 2,500 7,000 180% Total 1,55,181 2,15,000 2,45,800 14% Source: Expenditure Profile, Union Budget 2022-23; PRS. ## Inadequate Resources For Debt Servicing Railways pays lease charges to IRFC. The lease charges have a principal and interest component. The principal component of the lease charges forms part of the capital expenditure of Railways. In 2022-23, allocation towards payment of principal component of lease charges is estimated at Rs 22,188 crore, an increase of 51% over 2021-22 (Rs 14,702 crore as per revised estimates). CAG (2020) had observed that ideally, the principal component of lease charges should be paid from the Capital Fund.12 Capital Fund is a dedicated fund of Railways to repay the principal component of market borrowing and financing works of capital nature. However, no allocation has been made to this fund between 2015-16 and 2021-22. In 2022-23, apportionment to capital fund is estimated to be Rs 2,360 crore. The Ministry of Railways noted that appropriation to the Capital Fund is made from net revenue after meeting obligatory revenue expenditure.12 The Ministry further observed that no appropriation is being made to the Capital Fund due to inadequate internal resources. Hence, gross budgetary support provided by the central government has been used to pay the principal component of lease charges. CAG (2020) observed that utilisation of gross budgetary support for repayment of lease charges is not a healthy trend as it deprives Railways of additional investments in capital works.12 CAG (2019) had observed that if obligations towards IRFC have to be met from budgetary support, the government might as well borrow directly from the market, as the cost of borrowings would be lower.17 ## Future Capital Expenditure Requirements The Ministry of Railways has prepared the National Rail Plan 2030 for augmenting its infrastructure during the 2021-51 period.7 The draft of the National Rail Plan 2030 (NRP), released in December 2020, noted that Railways could be left with a financing gap of over two lakh crore rupees for its capital expenditure projects in next five years.7 This relates to the funding gap for projects under the annual work plan of Railways and the National Infrastructure Pipeline prior to the National Rail Plan.7 The National Infrastructure Pipeline is a plan of infrastructure projects worth Rs 102 lakh crore between 2019-20 and 2024-25. It includes projects worth Rs 13.7 lakh crore for Railways pertaining to track infrastructure, terminal infrastructure, rolling stock, and urban public transport (Table 5 on next page). The draft National Rail Plan envisages an additional capital expenditure worth Rs 5.8 lakh crore during the 2021-26 period (Table 6 on next page).7 However, note that there may be some overlap in projects envisaged under the National Rail Plan and the National Infrastructure Pipeline.7 Table 5: Capital Expenditure Requirement for Railways under the National Infrastructure Pipeline (in Rs crore) Year Amount 2019-20 1,33,387 2020-21 2,62,465 2021-22 3,08,800 2022-23 2,73,831 2023-24 2,21,209 2024-25 1,67,870 Total 13,67,563 Source: Draft National Rail Plan, Ministry of Railways; PRS. The draft National Rail Plan estimates that on average, funds available with Indian Railways for capital expenditure over the next five years will be: (i) about Rs 60,000 crore per annum as gross budgetary support, (ii) about Rs 7,000 crore per annum from internal resources, and (iii) a maximum of Rs 1,30,000 crore per annum from extra budgetary resources.7 It noted that it would be challenging to fund the projects envisaged under the National Rail Plan from internal resources due to persistently high operating ratio.7 Head 2021 -26 2026 -31 2031 -41 2041 -51 Total Dedicated Freight Corridors - 1.5 0.5 0.3 2.3 High Speed Rail Corridors - 5.1 2.9 7.0 15.0 Network improvements 1.3 0.7 2.2 1.8 6.0 Flyovers and Bypasses 0.8 - - - 0.8 Terminals 0.6 0.2 0.1 0.04 0.9 Rolling Stock 3.1 1.7 3.6 4.8 13.2 Total 5.8 9.2 9.3 13.9 38.2 Source: Draft National Rail Plan, Ministry of Railways; PRS. ## Revenue Expenditure In 2022-23, the total revenue expenditure by Railways is estimated at Rs 2,34,640 crore, which is an increase of 17% over the revised estimates of 2021-22 (Rs 2,01,125 crore). In 2022-23, key items of revenue expenditure include: (i) staff costs (43%), (ii) pension (22%), (iii) fuel (15%), and (iv) interest component of lease charges (9%). ## Staff Wages And Pension Staff wages and pension constitute about 68% of the Railways' estimated revenue expenditure in 2022-23. For 2022-23, the expenditure on staff is estimated at Rs 99,840 crore, which is an increase of 10% over 2021-22. The Committee on Restructuring Railways (2015) had observed that the Railways' expenditure on staff is extremely high and unmanageable.16 It also sees a significant jump every few years due to revisions by the Pay Commission. In 2021-22, staff wages are ## National Monetisation Pipeline In August 2021, the central government launched the National Monetisation Pipeline (NMP). NITI Aayog (2021) had noted that traditional sources of capital are expected to finance 83-85% of capital expenditure envisaged under National Infrastructure Pipeline.18 About 15%-17% of the aggregate outlay is expected to be met through innovative mechanisms such as asset recycling and monetisation. For NMP aims to monetise assets which are central to business objectives of a government body and are being utilised for delivering infrastructure services. The pipeline will be implemented over four years (between 2022-23 and 2024- 25). Monetisation under NMP will not involve disinvestment and monetisation of non-core assets such as land, building, and pure play real estate assets. Under NMP, value of Railways' assets to be monetised is estimated to be Rs 1,52,496 crore. This is about 26% of the value of all the assets of the central government covered under NMP (six lakh crore rupees in value terms). | Asset Class | | |------------------------------|-------------------------| | Railway Stations | | | 400 (5.5% of total | | | stations) | | | Passenger Trains | 90 (5% of total trains) | | Railway Track | | | 1 route of 1,400 km | | | (2% of network) | | | Konkan Railways | 741 km | | Hill Railways | | | four in number (a total | | | of 244 km route) | | | Railway owned Goods sheds | | | 265 (21% of total good | | | sheds) | | | Dedicated Freight Corridor | | | (DFC) track and allied infra | | | 673 km (20% of total | | | DFC network) | | | Railway colonies and stadia | 15 | Source: NITI Aayog; PRS. estimated at Rs 90,619 crore at the revised stage, which is 3% less than the budget estimate. Note that Railways has a total of 15,07,694 sanctioned posts, out of which around 2,37,295 posts are lying vacant, i.e., there is a vacancy of about 16% (as of March 2020).19 If all of these posts were to be filled, staff costs for Railways would be higher than the current level. Allocation to the Pension Fund in 2022-23 is estimated at Rs 60,000 crore, which is an increase of 22% over the revised estimates for 2021-22. Appropriation to the pension fund was much less than required in 2019-20 and 2020-21 (59% and 99% less than the budget estimate, respectively). A special loan of Rs 79,398 crore was extended by the central government to Railways to meet the obligations towards the pension fund for 2019-20 and 2020-21. In 2021-22, appropriation to pension fund is estimated to be 8% less than the budget estimate. The Standing Committee on Railways (2017) had observed that the pension bill may increase further in the next few years, as about 40% of the Railways staff was above the age of 50 years in 2016-17.20 The Standing Committee on Railways (2020) noted that the new pension scheme implemented in 2004 to reduce the pension bill will show results only around 2034-35.15 The Committee recommended that feasibility of bearing a part of pension liabilities from the general revenue of the central government till 2034-35 should be explored.15 The Committee on Restructuring Railways (2015) had also observed that employee costs (including pensions) reduce Railways' ability to generate a surplus and allocate resources towards operations.16 It had recommended that Railways should rationalise its manpower, and make the organisation more business-oriented. It should be amenable to private participation while retaining an optimal level of functional specialisation within.16 ## Fuel And Electricity In 2022-23, the expense on fuel and electricity is estimated to be Rs 31,854 crore, an increase of 15% over 2021-22 (Rs 27,629 crore). ## Lease Charges The interest component of lease charges forms part of the revenue expenditure of Railways. In 2022- 23, Rs 20,013 crore is estimated to be spent on the interest component of lease charges, which is an increase of 33% over 2021-22 (Rs 15,068 crore). ## Appropriation To Funds Depreciation Reserve Fund (Drf) Appropriation to the DRF is intended to finance the costs of new assets replacing old ones. In 2022-23, appropriation to DRF is estimated at Rs 2,000 crore. In the last few years, appropriation to DRF has declined (Figure 10). In recent years, appropriation has also been lower than the budget estimates. As per CAG (2021), at the end of 2019- 20, the value of over-aged assets pending for replacement using this fund was estimated to be Rs 95,217 crore.13 This includes: (i) Rs 58,887 crore on track renewal and (ii) Rs 26,547 crore on rolling stock. It observed that in the backdrop of declining revenue surplus, replacement and renewal of over aged assets could become a burden for the central government.13 Note: BE: Budget Estimates; RE: Revised Estimates. Revised estimates for 2021-22 shown as Actuals. Sources: Railways Budget of various years; Union Budget of various years; PRS. ## Private Sector Participation In Operating Trains In July 2020, proposals were invited for private participation in the operation of passenger train services over 109 origindestination pairs of routes through the introduction of 151 trains across 12 clusters.21 The private entity would be responsible for financing, procuring, operating, and maintaining these trains. Bids were opened in July 2021.22 In all, five bids were received for three clusters.22 No bids were received for the remaining nine clusters.22 The Ministry of Railways observed that the decline in appropriation to DRF is due to major part of renewal and replacement works having safety implications being financed through Rashtriya Rail Sanraksha Kosh (RRSK).15 RRSK was created in 2017-18 to finance critical safety-related works of renewal, replacement, and augmentation of assets. The fund has a corpus of one lakh crore rupees over five years (partially funded by the central government). Railways is required to allocate Rs 5,000 crore annually to RRSK during these five years.15 The Ministry observed that RRSK will not continue beyond 2021-22. Beyond 2021-22, all renewal and replacement works will be financed from DRF. This could lead to an increase in appropriation to DRF in the coming years. Note that allocation has been made towards RRSK in 2022-23 at the budget stage. ## Rashtriya Rail Sanraksha Kosh (Rrsk) In 2022-23, Railways has allocated Rs 2,000 crore towards RRSK. However, the actual appropriation to RRSK has been less than the requirement of Rs 5,000 crore in all four years between 2018-19 and 2021-22. In 2021-22, at the revised stage, no allocation has been made towards the fund. The Ministry of Railways noted that the desired level of appropriation to RRSK has not been made due to adverse resource position.15 The Standing Committee on Railways (2020) observed that the purpose of RRSK is gradually being eroded due to non-appropriation of required funds from internal resources of Railways.15 | Year | Budget | Actual | % change | |--------------------|-----------|-----------|-------------| | (Budget to Actual) | | | | | 2017-18 | 1,000 | 0 | -100% | | 2018-19 | 5,000 | 3,024 | -40% | | 2019-20 | 5,000 | 201 | -96% | | 2020-21 | 5,000 | 1,000 | -60% | | 2021-22 RE | 5,000 | 0 | -100% | | 2022-23 BE | 2,000 | - | - | Note: RE: Revised Estimates, BE: Budget Estimates. Sources: Union Budget of various years; PRS. ## Revenue Surplus And Operating Ratio Railways' surplus is calculated as the difference between its total internal revenue and its total expenditure (this includes working expenses and appropriation to pension and depreciation funds). In 2022-23, Railways expects to generate a surplus of Rs 5,360 crore. This is an increase of 513% over revised estimates for 2021-22 (Rs 875 crore). In 2021-22, Railways had estimated a surplus of Rs 6,561 crore at the budget stage. Operating Ratio is the ratio of the working expenditure (expenses arising from day-to-day operations of Railways) to the revenue earned from traffic. Therefore, a higher ratio indicates a poorer ability to generate a surplus that can be used for capital investments such as laying new lines or deploying more coaches. Operating Ratio of Railways has consistently been higher than 90% for more than a decade (Figure 11). In 2022-23, Railways has estimated an operating ratio of 97.0%, an improvement over operating ratio of 98.9% estimated in 2021-22. In 2019-20, the operating ratio worsened to 98.4% as compared to the estimated ratio of 95%. The CAG (2020) had noted that if certain advances for 2019-20 were not included in receipts for 2018-19, the operating ratio for 2018-19 would have been 101.8%.12 If appropriation to the pension fund were to be as per the requirement, the operating ratio for 2019-20 and 2020-21 would have been 114.2% and 131.5%, respectively.23,24 ## Network Expansion And Modernisation Railways has not been able to meet some key physical targets for expansion and modernisation in recent years. It has missed its budget targets in all three years between 2017-18 and 2020-21 for: (i) construction of new lines, and (ii) gauge conversion (Table 9). While examining the progress of construction of new lines, the Standing Committee on Railways (2020) had observed that revision in allocation towards capital expenditure requires reworking of priorities and rescheduling of activities, which leads to tardy progress in the construction of new lines.15 In 2018-19 and 2019- 20, Railways also missed targets for electrification of railway lines. Note that Railways aims to achieve 100% electrification of all broad-gauge routes by 2023. As per revised estimates for 2021- 22, achievement will be less than the initial target in case of wagons and track renewals. Table 13 in annexure provides details on key physical targets. | 2018- | 2019- | 2020- | |-----------------|---------|---------| | Indicator | | | | 2017- | | | | 18 | 19 | 20 | | 2021- | | | | 22 RE | | | | -49% | -52% | -28% | | Construction | | | | of new lines | | | | (Route Kms) | | | | -50% | -40% | -32% | | Gauge | | | | conversion | | | | (Route Kms) | | | | -45% | 20% | -45% | | Doubling of | | | | lines (Route | | | | Kms) | | | | Wagons | | | | (vehicle units) | | | | -48% | -20% | -24% | | 12% | 7% | 15% | | Track | | | | renewals | | | | (Route Kms) | | | | Electrification | | | | (Route Kms) | | | | 2% | -12% | -37% | Note: RE: Revised Estimates. Positive number means higher achievement than targeted. Sources: Union Budget of various years; PRS. % change (2021-22 RE 2020-21 2021-22 Revised 2022-23 Budget % share in 2022-23 BE to 2022-23 BE) Commodity Earning Volume Earning Volume Earning Volume Earning Volume Earning Volume Coal 49,578 2,39,390 68,520 3,13,869 77,250 3,54,008 12.7% 12.8% 47% 41% Iron Ore 12,661 62,523 13,690 65,640 14,949 71,843 9.2% 9.5% 9% 8% Cement 9,714 73,605 11,069 77,117 12,022 83,752 8.6% 8.6% 7% 10% Other Goods 8,510 66,465 10,493 77,305 11,019 81,180 5.0% 5.0% 7% 9% Miscellaneous earnings 1,493 - 2,600 - 10,000 - 284.6% - 6% - Pig Iron & finished steel 7,417 49,123 9,036 51,437 9,970 56,755 10.3% 10.3% 6% 7% Foodgrains 9,213 80,681 9,605 76,691 8,196 65,434 -14.7% -14.7% 5% 8% Container Service 5,114 55,331 6,452 57,653 7,042 62,815 9.1% 9.0% 4% 7% Petroleum & Lubricants 5,727 29,970 5,879 29,644 6,227 31,396 5.9% 5.9% 4% 4% Fertilisers 5,826 49,011 5,436 42,258 5,666 44,044 4.2% 4.2% 3% 5% Raw Material for Steel Plants 1,979 13,663 2,494 15,616 2,659 16,650 6.6% 6.6% 2% 2% Total 1,17,232 7,19,762 1,45,275 8,07,230 1,65,000 8,67,877 13.6% 7.5% 100% 100% Note: NTKM - Net Tonne Kilometre (One NTKM is the net weight of goods carried for a kilometre). RE: Revised Estimates; BE: Budget Estimates. Source: Expenditure Profile; Union Budget 2022-23; PRS. % change (2021-22 RE 2020-21 2021-22 Revised 2022-23 Budget to 2022-23 BE) Earning Volume Earning Volume Earning Volume Earning Volume Total Suburban 589 30,075 1,259 73,721 2,623 1,57,435 108% 114% Total Non-Suburban 14,659 2,01,051 43,116 5,68,914 55,877 9,41,692 30% 66% Sleeper Class (M&E) 5,436 98,476 15,840 2,59,098 18,181 3,04,243 15% 17% Second Class (M&E) 2,132 55,447 6,667 1,63,835 14,521 3,65,063 118% 123% AC 3 Tier 4,750 32,174 14,128 97,538 12,905 91,149 -9% -7% AC 2 Tier 1,472 7,609 4,023 20,288 4,679 24,137 16% 19% Second Class (Ordinary) 217 4,456 374 18,930 2,758 1,42,806 637% 654% AC Chair Car 390 2,153 1,299 7,028 1,904 10,537 47% 50% AC First class 233 671 612 1,751 636 1,860 4% 6% Executive Class 28 72 156 386 205 520 32% 35% Sleeper Class (Ordinary) -2 -14 1 21 45 972 4,424% 4,529% First Class (M&E) 2 1 15 16 25 27 65% 69% First Class (Ordinary) 1 6 1 23 17 378 1,507% 1,543% Total 15,248 2,31,126 44,375 6,42,635 58,500 10,99,127 32% 71% Note: PKM - Passenger Kilometre (One PKM is when a passenger is carried for a kilometre). RE: Revised Estimates; BE: Budget Estimates. Source: Expenditure Profile; Union Budget 2022-23; PRS. ## Table 12: Status Of 2021-22 Budget Announcements For Railways Announcement Status - **Monetisation of assets**: Monetising operating public infrastructure assets is a very important financing option for new infrastructure construction. A National Monetisation Pipeline of potential brownfield infrastructure assets will be launched. Railways will monetise Dedicated Freight Corridor (DFC) assets for operations and maintenance, after commissioning. - **National Rail Plan (NRP)**: Indian Railways has prepared a National Rail Plan for India - 2030. The Plan is to create a 'future ready' Railway system by 2030. - **Capital Expenditure**: I am providing a record sum of Rs 1,10,055 crore for Railways, of which Rs 1,07,100 crore is for capital expenditure. - **Commissioning of DFCs**: It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022. The Sonnagar - Gomoh Section (263.7 km) of Eastern DFC will be taken up in PPP mode in 2021-22. Gomoh-Dankuni section of 274.3 km will also be taken up in short succession. - **New DFCs**: We will undertake future dedicated freight corridor projects namely (i) East Coast corridor from Kharagpur to Vijayawada, (ii) East-West Corridor from Bhusaval to Kharagpur to Dankuni, and (iii) North-South corridor from Itarsi to Vijayawada. - **Electrification**: Broad Gauge Route Kilometers (RKM) electrified is expected to reach 46,000 RKM by the end of 2021 from 41,548 RKM on October 1, 2021. 100% electrification of Broad-Gauge routes will be completed by December 2023. - **Introduction of Vista Dome LHB coaches**: We will introduce the aesthetically designed Vista Dome LHB coach on tourist routes to give a better travel experience to passengers. - **Safety**: The safety measures undertaken in the past few years have borne results. To further strengthen this effort, high density network and highly utilized network routes of Indian railways will be provided with an indigenously developed automatic train protection system that eliminates train collision due to human error. - **Land Monetisation**: Rail Land Development Authority has been involved for monetisation of identified Railway assets of: (i) 111 Railway land parcels, (ii) 84 Railway colonies, (iii) four Hill Railways in Darjeeling, Kalka-Shimla, Matheran and Nilgiri, (iv) Karnail Singh Stadium & 15 other stadiums, and (v) 84 Multi-Functional Complexes (MFCs). 13 MFCs have been completed and balance are in different stages. - **Monetisation of DFC** is planned to be taken up after the Western DFC and Eastern DFC become fully operational. - **Private Train Operators**: Bids were invited in July 2021 for private sector participation in operating trains in 12 clusters. In all, five bids were received for three clusters. No bids were received for the remaining nine clusters. - **CONCOR Divestment**: Central government is considering strategic divestment of 30.8% equity in CONCOR. Department of Investment and Public Asset Management has appointed Advisors for this purpose. Issuance of Expression of Interest is the next step in this process which will be issued after finalisation of Railway's proposed Land License Policy. - The NRP is already being used in prioritising projects as super critical/critical and fixing the timelines. Vision 2024 has been developed as part of NRP for execution of super critical/critical projects. - The NRP has also emphasised the justification for new DFC corridors for which surveys are underway. - In addition, the NRP lays a pipeline of projects to be completed by 2030, which are in process for inclusion in future budgets as per timeframe provided in the NRP. - In 2021-22, gross budgetary support for capital expenditure is estimated to be Rs 1,17,300 crore (revised estimates). - As of March 2021, total 1,110 Km has been commissioned out of total 2,843 Route km. Balance to be commissioned section-wise in phases by June 2022. Approval of Public Private Partnership Appraisal Committee received for Sonnagar-Gomoh section on December 27, 2021. - Preliminary reports are targeted by January 2022 including FIRR and EIRR, and Final Reports by October 2022. - Total 47,807 RKMs (74%) have been electrified up to December 31, 2021. - 20 LHB VISTADOME coaches have been manufactured till December 31, 2021. (7 in 2020-21 and 13 in 2021-22) - 23,215 RKM work has been approved by competent authority. ## Table 13: Key Physical Targets | 2020-2021 | 2021-2022 | 2022-23 | |---------------------------------------|--------------|------------| | | | | | Budget | | | | Target | | | | Achievement | | | | Budget | | | | Target | | | | Revised | | | | Target | | | | Budget | | | | Target | | | | Construction of New Lines (Route Kms) | 500 | 286 | | Gauge conversion (Route Kms) | 600 | 470 | | Doubling of Lines (Route Kms) | 1,900 | 1,614 | | Rolling Stock | | | | | | | | | | | | a (i) Diesel Locomotives | ... | 10 | | a (ii) Electric Locomotives | 725 | 754 | | b Coaches | 6,534 | 4,903 | | c Wagons (vehicle units) | 12,000 | 10,062 | | Track renewals (Route Kms) | 4,000 | 4,363 | | Electrification Projects (Route Kms) | 6,000 | 6,015 | Sources: Union budget documents of various years; PRS. 1 "Evolution - About Indian Railways", Ministry of Railways, last accessed on February 5, 2022, http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,261. 2 Budget Speech 2022-23, February 1, 2022, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf. 3 "Cancellation of all train Services by Indian Railways in the wake of COVID-19", Press Information Bureau, Ministry of Railways, March 22, 2020. 4 "Railways taking steps to normalize passenger services in phased manner", Press Information Bureau, Ministry of Railways, November 14, 2021. 2020. 22 Statement on Implementation of Budget Announcements of 2021-22, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/impbud2020-21.pdf. 23 Notes on Overview of Receipts and Expenditure- Railways, Expenditure Profile, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/railstat1.pdf. 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budget_reports
## Union Budget 2022-23 Analysis Of Expenditure By Ministries February 2022 Institute for Policy Research Studies 3rd Floor, Gandharva Mahavidyalaya 212, Deen Dayal Upadhyaya Marg New Delhi - 110 002 Tel: (011) 4343-4035, 2323-4801 www.prsindia.org ## Contributors: Prachee Mishra Omir Kumar Payoja Ahluwalia Rajat Asthana Saket Surya Shashank Srivastava Shubham Dutt Tushar Chakrabarty ## Table Of Contents Overview .................................................................................................................................................. 1 Budget at a glance ................................................................................................................................... 3 Receipts Highlights ............................................................................................................................................................... 7 Expenditure Highlights ................................................................................................................................................... ...... 9 Defence ................................................................................................................................................. 14 Food and Public Distribution .................................................................................................................. 24 Road Transport and Highways ............................................................................................................. 35 Home Affairs .......................................................................................................................................... 46 Railways ................................................................................................................................................ 56 Rural Development ................................................................................................................................ 69 Agriculture ............................................................................................................................................. 79 Telecommunications ............................................................................................................................. 96 Education ............................................................................................................................................. 106 Health and Family Welfare .................................................................................................................. 119 Jal Shakti ............................................................................................................................................. 133 Housing and Urban Affairs ................................................................................................................... 146 Science and Technology ..................................................................................................................... 157 Petroleum and Natural Gas ................................................................................................................. 169 Environment ........................................................................................................................................ 177 ## Overview The central government's expenditure is authorised through the Union Budget by the Parliament every year. The Constitution requires all expenditure (other than charged expenditure) to be submitted to Lok Sabha in the form of Ministry-wise Demand for Grants. These Demand for Grants are referred to the respective Departmentally Related Standing Committees for detailed examination. They are then discussed in the House and approved. After Lok Sabha authorises these demands, an Appropriation Bill is introduced and passed to permit this expenditure out of the Consolidated Fund of India. This document contains a short analysis of the Union Budget, and a close look at the allocations made by 15 ministries, which account for 71% of the total expenditure by the centre (excluding interest payments and transfers to states for Finance Commission grants). Further, we analyse the allocation trends over the years, and the extent of their utilisation. We also examine the implementation of various schemes and policies and their resulting outcomes. The Union Budget 2022-23 which was presented on February 1, 2022 proposes an expenditure of Rs 39,44,909 (net of devolution of taxes to states) for the year. This amount will be funded through receipts (other than borrowings) of Rs 22,83,713 crore and borrowings of Rs 16,61,196 crore. Fiscal deficit is budgeted at 6.4% of GDP as compared to 6.8% in 2021-22. The target for revenue deficit is 3.8% of the GDP, lower than the revised estimate of 4.7% in 2021-22. Interest expenditure is estimated to be 43% of revenue receipts. Besides the overall financial outlay, the budget also provides details of tax proposals in the Finance Bill. While there is no change in income tax rates for individuals and corporations, income from the transfer of cryptocurrencies and non-fungible tokens will be taxed at the rate of 30%. Other proposals include: (i) reduction in Alternate minimum tax for co-operatives from 18.5% to 15%, and (ii) extension of deadline by one year to allow domestic manufacturing companies and start-ups. Allocations to the top 15 schemes account for 12% of the total expenditure. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has the highest allocation at Rs 73,000 crore. This is followed by the allocation to the PM-KISAN scheme (income support to farmers) at Rs 68,000 crore. The issues discussed in the analysis of each ministry include the following: - Defence: The Ministry of Defence has been allocated Rs 5,25,166 crore which is the highest (13%) among all ministries of the central government. However, defence expenditure as a proportion of total central government expenditure has decreased from 16.4% in 2012-13 to 13.3% in 2022-23. In 2021-22, the funds allocated to the three armed forces was 28% lower than the projected needs. In 2022-23, expenditure on salaries and pensions form the largest portion of the defence budget (54%) while capital outlay forms 27% of the defence budget. - Consumer Affairs, Food and Public Distribution: The Ministry has been allocated Rs 2,17,684 crore which is 28% lower than the revised estimates for 2021-22. Allocation for food subsidy has declined 28% in 2022-23 as compared to the revised estimate of 2021-22. In 2020-21 and 2021-22, the government provided more allocation towards food subsidy to clear the pending subsidy dues of Food Corporation of India and to provide for additional allocation of food grain to tackle economic distress caused by Covid. - Road Transport and Highways: Allocation to the Ministry is estimated at Rs 1,99,108 crore, an increase of Rs 60,000 crore (52%) over the revised expenditure for 2021-22. Nearly all of this additional allocation has been earmarked for investment in NHAI. After many years, NHAI will not have any borrowings. As per the Budget speech, the National Highways network will be expanded by 25,000 km in 2022-23. - Home Affairs: The Ministry of Home Affairs has been allocated Rs 1,85,777 crore, which is 7% higher than the revised estimates for 2021-22. 63% of the Ministry's expenditure is on police (including the central armed police forces and Delhi Police). The CAPFs and Delhi Police have both faced the issue of vacancies over the years. 32% of the Ministry's expenditure is on grants made to UTs, including the new UTs of Jammu and Kashmir, and Ladakh. Allocation to the UTs of Jammu and Kashmir, and Ladakh is 71% of the total amount allocated to UTs. Note that the Finance Commission's recommendations on sharing central taxes with states do not include devolution to UTs; funding for UTs is done through the Home Ministry. - Railways: The Operating Ratio (revenue expenditure as a proportion of traffic receipts) is projected at 96.7% in 2022-23 (98.9% in 2021-22), implying a continued reliance on borrowings to fund capital expenditure. Freight traffic continues to subsidise passenger traffic. Freight is reliant on a few bulk items, with coal contributing 47% of revenue. - Rural Development: The Ministry administers some large schemes such as MGNREGS (employment), PMAY-G (rural housing) and PMGSY (rural roads). In 2022-23, the MGNREGS has been allocated Rs 73,000 crore, which is 26% lower than the revised estimates of 2021-22. This decline is primarily because the scheme received additional allocation in 2020-21 and 2021-22 to address the employment demand during the COVID-19 pandemic. - Agriculture: The Ministry has been allocated Rs 1,32,514 crore in 2022-23, a 5% increase over the revised estimates of 2021-22. 55% of the allocation to the Ministry in 2022-23 is for the PM-KISAN scheme (Rs 68,000 crore), and 26% is towards interest subvention (Rs 19,500 crore) and crop insurance (Rs 15,000 crore). Growth of the sector comprising of agriculture and allied activities has been volatile over the years. In 2021-22, the sector is estimated to grow at 3.9%, as compared to a 3.3% growth in 2020-21. - Telecommunications: The Department of Telecommunications has been allocated Rs 84,587 crore, which is a 138% annual increase over the revised expenditure in 2021-22. This increase is mainly to support BSNL for 4G spectrum, technology upgradation and restructuring. No allocation has been made towards MTNL. Between 2017-18 and 2021-22, in each year, actual expenditure from the Universal Service Obligation Fund (USOF) has been significantly less than the budget estimate. USOF has been established to provide widespread, non-discriminatory and affordable access to quality information and communication technology services to people in rural and remote areas. - Education: In 2022-23, the Ministry has been allocated Rs 1,04,277 crore, which is an increase of 18.5% from the revised expenditure in 2021-22. Allocation to the Department of School Education and Literacy is estimated at Rs 63,449 crore (61% of the Ministry's total allocation). The Department of Higher Education has been allocated Rs 40,828 crore. The share of public investment in education has largely remained constant, at 10% of total government expenditure (centre and states combined) or 3% of GDP. The National Education Policy recommends increasing public investment on education to 6% of GDP. - Health: In 2022-23, the Ministry's estimated expenditure is Rs 86,201 crore, almost the same amount as the revised expenditure in 2021-22. In 2022-23, the only COVID-19 specific allocation under this Ministry is Rs 226 crore allocated towards the Insurance Scheme for Health Care Workers fighting COVID-19. In addition, the Ministry of Finance has allocated Rs 5,000 crore towards COVID-19 vaccination. In 2020-21, India's public health expenditure (centre and states) was 1.8% of the GDP. This was higher than the trend of public investment in the last decade (1.1% to 1.5% of GDP). - Jal Shakti: In 2022-23, the Ministry of Jal Shakti has been allocated Rs 86,189 crore, which is a 25% increase over the revised estimates of 2021-22 (at Rs 69,046 crore). This increase is mainly on account of increased allocation towards the Jal Jeevan Mission (Rs 60,000 crore). This scheme aims to provide a functional tap connection to every rural household by 2024. In 2022-23, Rs 1,400 crore has been allocated to the interlinking of Ken-Betwa project (Rs 4,300 crore in 2021-22 revised estimates). The Budget speech declared plans for five more interlinking projects. - Housing and Urban Affairs: The total expenditure on the Ministry of Housing and Urban Affairs for 2022-23 is estimated at Rs 76,549 crore. This is an increase of 4% over the revised estimates for 2021- 22. The highest allocation is towards PMAY-U (urban housing) at 37 % of the total Ministry's budget followed by allocation to Metro projects (31%). Achieving targets is a major challenge. As of 2021, only 38% of the PMAY-U target of having houses for all by 2022 has been achieved. - Petroleum and Natural Gas: The Ministry has been allocated Rs 8,940 crore, which is a 1% increase over the revised estimates for 2021-22. About 65% of the Ministry's budget is towards LPG subsidy. No funds have been allocated for kerosene subsidy. There has been a decrease in allocation towards subsidies in the past two years, while allocation towards promotion of cleaner fuels (PM-JIVAN yojana) has increased. - Science and Technology: In 2022-23, the Ministry of Science and Technology has been allocated Rs 14,217 crore. Almost all the expenditure under the Ministry is revenue expenditure. India's expenditure on Research and Development (R&D) activities remains low in comparison to developed countries. Further, R&D sector in India faces other issues such as: (i) lack of researchers, (ii) inadequate private investment, (iii) delays in approval of patents, and (iv) absence of an integrated approach towards R&D. - Environment: The Ministry has been allocated Rs 3,030 crore, which is a 20% increase over the revised estimates for 2021-22. 31% of the allocation is estimated to be on centrally sponsored schemes on environment, forests and wildlife such as National Mission for Green India and Integrated Development of Wildlife Habitats. Significant investment is needed to finance adaptation and mitigation measures for climate change. ## Budget At A Glance 2022-23 Budget Highlights - Expenditure: The government proposes to spend Rs 39,44,909 crore in 2022-23, which is an increase of 4.6% over the revised estimate of 2021-22. In 2021-22, total expenditure is estimated to be 8.2% higher than budget estimate. - Receipts: The receipts (other than borrowings) in 2022-23 are expected to be to Rs 22,83,713 crore, an increase of 4.8% over revised estimate of 2021-22. In 2021-22, total receipts (other than borrowings) are estimated to be 10.2% higher than the budget estimates. - GDP: The government has estimated a nominal GDP growth rate of 11.1% in 2022-23 (i.e., real growth plus inflation). - Deficits: Revenue deficit in 2022-23 is targeted at 3.8% of GDP, which is lower than the revised estimate of 4.7% in 2021-22. Fiscal deficit in 2022-23 is targeted at 6.4% of GDP, lower than the revised estimate of 6.9% of GDP in 2021- 22 (marginally higher than the budget estimate of 6.8% of GDP). Interest expenditure at Rs 9,40,651 crore is estimated to be 43% of revenue receipts. - Extra Budgetary Resources (EBR): After a number of years, the budget has not relied on EBR or loans from National Small Savings Fund. - Ministry allocations: Among the top 13 ministries with the highest allocations, in 2022-23, the highest percentage increase in allocation is observed in the Ministry of Communications (93%), followed by the Ministry of Road Transport and Highways (52%), and the Ministry of Jal Shakti (25%). ## Main Tax Proposals In The Finance Bill - Income tax: There is no change in income tax rates for individuals and corporations. - Surcharge on Long Term Capital Gains (LTCG): Currently, the surcharge on LTCG on listed equities and equity mutual funds is capped at 15%. The surcharge on other LTCG is 25% if total income is between Rs 2 crore and Rs 5 crore, and 37% if it is above Rs 5 crore. The budget proposes to cap these at 15%. - Tax on virtual digital assets: Income from the transfer of cryptocurrencies and non-fungible tokens will be taxed at the rate of 30%. Any loss incurred from such transfers cannot be set off against any other income or carried forward to subsequent years. - Updating return of income: Taxpayers will be permitted to file an updated return of income within two years of the assessment year. They will have to pay 25% penalty on tax and interest due if it is filed in the year after the assessment year, and 50% penalty in the second year. - Co-operatives: Alternate minimum tax for co-operatives will be reduced from 18.5% to 15%. Surcharge will be reduced from 12% to 7% for co-operatives whose total income is between one crore and ten crore rupees. - New companies and start-ups: New domestic companies engaged in manufacturing have an option to pay tax at 15% (without claiming any deductions) if they start manufacturing by March 31, 2023. Certain types of start-ups have an option for tax holiday for three out of the first ten years if they incorporate by April 1, 2022. Both these deadlines have been extended by one year. - Changes in customs duty: Customs duties on over 500 items have been changed. Many customs exemptions are also being phased out. ## Non-Tax Proposals In The Finance Bill - The Reserve Bank of India Act, 1934 is being amended to enable RBI to issue its digital currency. ## Policy Highlights - Legislative proposals: The Special Economic Zones Act, 2005 will be replaced with a new legislation that will enable states to become partners in 'Development of Enterprise and Service Hubs', covering all existing and new industrial enclaves. Legislative changes will also be brought in to promote agro-forestry and private forestry. Amendments will be made in the Insolvency and Bankruptcy Code to facilitate cross border insolvency resolution. - Fiscal Management: Rs 51,971 crore has been budgeted in 2021-22 towards settling the liabilities of Air India. - MSMEs: Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of five lakh crore rupees. Credit Guarantee Trust for Micro and Small Enterprises will be revamped to facilitate additional credit of two lakh crore rupees. - Health and Nutrition: Under Ayushman Bharat Digital Mission, an open platform for National Digital Health Ecosystem will be established. It will consist of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities. A National Tele Mental Health Programme will be launched to provide access to quality mental health counselling and care services. - River linking: The Ken-Betwa Link Project will be implemented at an estimated cost of Rs 44,605 crore. Five more river linking projects are being implemented. - Labour and Employment: The Digital Ecosystem for Skilling and Livelihood (DESH) Stack e-portal will be launched. The portal will help citizens learn skills, acquire credentials, and assist in finding relevant jobs. - Infrastructure: Projects relating to transport and logistics infrastructure in the National Infrastructure Pipeline will be aligned with PM GatiShakti framework, which was launched last year. The Prime Minister's Development Initiative for North-East (PM-DevINE) will be implemented through the North-Eastern Council to fund development projects in the North-East region. Also, one lakh crore rupees is being allocated to states for catalysing investments, in the form of 50 year interest free loans. - Roadways: The PM GatiShakti Master Plan for Expressways will be formulated in 2022-23. The National Highways network will be expanded by 25,000 km in 2022-23. - Railways: One-station-one-product concept will be implemented to help local businesses and supply chains. 400 new Vande Bharat trains will be developed and manufactured during the next three years. Further, 100 cargo terminals for multimodal logistics facilities will also be developed during the next three years. - Telecom: Spectrum auctions will be conducted to facilitate rollout of 5G mobile services within 2022-23. A scheme for design-led manufacturing will be launched to build an ecosystem for 5G as part of the Production Linked Incentive (PLI) Scheme. - Energy and Environment: A battery swapping policy for electric vehicles will be implemented. Four pilot projects for coal gasification and conversion of coal into chemicals required for the industry will be set-up. Sovereign Green Bonds will be issued in 2022-23 for mobilising resources for green infrastructure. ## Budget Estimates Of 2022-23 As Compared To Revised Estimates Of 2021-22 - Total Expenditure: The government is estimated to spend Rs 39,44,909 crore during 2022-23. This is an increase of 4.6% over the revised estimate of 2021-22. Out of the total expenditure, revenue expenditure is estimated to be Rs 31,94,663 crore (0.9% increase) and capital expenditure is estimated to be Rs 7,50,246 crore (24.5% increase). The increase in capital expenditure is mainly due to a substantial increase in loans and advances to state governments. Loans and advances by the central government are estimated to be Rs 1,40,057 crore in 2022-23, an increase of 153% over the revised estimates for 2021-22. - Total Receipts: Government receipts (excluding borrowings) are estimated to be Rs 22,83,713 crore, an increase of 4.8% over the revised estimates of 2021-22. The gap between these receipts and the expenditure will be plugged by borrowings, budgeted to be Rs 16,61,196 crore, an increase of 4.4% over the revised estimate of 2021-22. - Transfer to states: The central government will transfer Rs 16,11,781 crore to states and union territories in 2022-23. This is a marginal increase of 0.5% over the revised estimates of 2021-22. Transfer to states comprises: (i) devolution of Rs 8,16,649 crore out of the divisible pool of central taxes, and (ii) Rs 7,95,132 crore in the form of grants and loans. In 2021-22, as per the revised estimates, Rs 1,59,000 crore will be transferred to states in the form of backto-back loans in lieu of GST compensation. - Deficits: Revenue deficit is targeted at 3.8% of GDP, and fiscal deficit is targeted at 6.4% of GDP in 2022- 23. The target for primary deficit (which is fiscal deficit excluding interest payments) in 2021-22 is 2.8% of GDP. - GDP growth estimate: The nominal GDP is estimated to grow at a rate of 11.1% in 2022-23. % change (RE 2021- Actuals 2020-21 Budgeted 2021-22 Revised 2021-22 Budgeted 2022-23 22 to BE 2022-23) Revenue Expenditure 30,83,519 29,29,000 31,67,289 31,94,663 0.9% Capital Expenditure 4,26,317 5,54,236 6,02,711 7,50,246 24.5% of which: Capital Outlay 3,15,826 5,13,862 5,47,457 6,10,189 11.5% Loans and Advances 1,10,491 40,374 55,255 1,40,057 153.5% Total Expenditure 35,09,836 34,83,236 37,70,000 39,44,909 4.6% Revenue Receipts 16,33,920 17,88,424 20,78,936 22,04,422 6.0% Capital Receipts 57,625 1,88,000 99,975 79,291 -20.7% of which: Recoveries of Loans 19,729 13,000 21,975 14,291 -35.0% Other receipts (including disinvestments) 37,897 1,75,000 78,000 65,000 Total Receipts (excluding borrowings) 16,91,545 19,76,424 21,78,911 22,83,713 4.8% Revenue Deficit 14,49,599 11,40,576 10,88,352 9,90,241 -9.0% % of GDP 7.3% 5.1% 4.7% 3.8% Fiscal Deficit 18,18,291 15,06,812 15,91,089 16,61,196 4.4% % of GDP 9.2% 6.8% 6.9% 6.4% Primary Deficit 11,38,422 6,97,111 7,77,298 7,20,545 -7.3% % of GDP 5.8% 3.1% 3.3% 2.8% Source: Budget at a Glance, Union Budget Documents 2022-23; PRS. Expenses which bring a change to the government's assets or liabilities (such as construction of roads or recovery of loans) are capital expenses, and all other expenses are revenue expenses (such as payment of salaries or interest payments). In 2022-23, capital expenditure is expected to increase by 24.5% over the revised estimates of 2021-22, to Rs 7,50,246 crore. **Revenue expenditure** is expected to increase by 0.9% over the revised estimates of 2021-22 to Rs 31,94,663 crore. Disinvestment is the government selling its stakes in Public Sector Undertakings (PSUs). In 2021-22, the government is estimated to meet 45% of its disinvestment target (Rs 78,000 crore against a target of Rs 1,75,000 crore). The disinvestment target for 2022-23 is Rs 65,000 crore. ## Note: Actual data for 2021-22 is revised estimate. Source: Union Budget documents (various years); PRS. ## Receipts Highlights For 2022-23 - Receipts (excluding borrowings) in 2022-23 are estimated to be Rs 22,83,713 crore, an increase of 4.8% over the revised estimates of 2021-22. - Gross tax revenue is budgeted to increase by 9.6% over the revised estimates of 2021-22, which is lower than the estimated nominal GDP growth of 11.1% in 2022-23. This is mainly on account of a 15% decrease in excise duties. Other taxes are estimated to rise faster than nominal GDP. The net tax revenue of the central government (excluding states' share in taxes) is estimated to be Rs 19,34,771 crore in 2022- 23. - Devolution to states from centre's tax revenue is estimated to be Rs 8,16,649 crore in 2022-23. In 2021- 22, the devolution to states increased by Rs 79,222 crore from an estimate of Rs 6,65,563 crore at the budgeted stage to Rs 7,44,785 crore at the revised stage. - Non-tax revenue is expected to be Rs 2,69,651 crore in 2022-23. This is 14.1% lower than the revised estimate of 2021-22. - Capital receipts (without borrowings) are budgeted to decrease by 20.7% over the revised estimates of 2021-22. This is on account of disinvestments, which are expected to be Rs 65,000 crore in 2022-23, as compared to Rs 78,000 crore as per the revised estimates of 2021-22. % change Actuals 2020-21 Budgeted 2021-22 Revised 2021-22 Budgeted 2022-23 (RE 2021-22 to BE 2022-23) Gross Tax Revenue 20,27,104 22,17,059 25,16,059 27,57,820 9.6% of which: Corporation Tax 4,57,719 5,47,000 6,35,000 7,20,000 13.4% Taxes on Income 4,87,144 5,61,000 6,15,000 7,00,000 13.8% Goods and Services Tax 5,48,778 6,30,000 6,75,000 7,80,000 15.6% Customs 1,34,750 1,36,000 1,89,000 2,13,000 12.7% Union Excise Duties 3,91,749 3,35,000 3,94,000 3,35,000 -15.0% Service Tax 1,615 1,000 1,000 2,000 100.0% A. Centre's Net Tax Revenue 14,26,287 15,45,397 17,65,145 19,34,771 9.6% Devolution to States 5,94,997 6,65,563 7,44,785 8,16,649 9.6% B. Non Tax Revenue 2,07,633 2,43,028 3,13,791 2,69,651 -14.1% of which: Interest Receipts 17,113 11,541 20,894 18,000 -13.9% Dividend and Profits 96,877 1,03,538 1,47,353 1,13,948 -22.7% Other Non-Tax Revenue 93,641 1,27,948 1,45,544 1,37,703 -5.4% C. Capital Receipts (excl. borrowings) 57,626 1,88,000 99,975 79,291 -20.7% of which: Disinvestment 37,897 1,75,000 78,000 65,000 -16.7% Receipts (without borrowings) (A+B+C) 16,91,546 19,76,425 21,78,911 22,83,713 4.8% Borrowings 18,18,291 15,06,812 15,91,089 16,61,196 4.4% Total Receipts (including borrowings) 35,09,836 34,83,236 37,70,000 39,44,909 4.6% Sources: Receipts Budget, Union Budget Documents 2022-23; PRS. - Indirect taxes: The total indirect tax collections are estimated to be Rs 13,30,000 crore in 2022-23. Of this, the government has estimated to raise Rs 7,80,000 crore from GST. Out of the total tax collections under GST, 85% is expected to come from central GST (Rs 6,60,000 crore), and 15% (Rs 1,20,000 crore) from the GST compensation cess. - Corporation tax: The collections from taxes on companies are expected to increase by 13% in 2022-23 to Rs 7,20,000 crore. The revised estimates of 2021-22 indicate an increase in corporate tax collections to Rs 6,35,000 crore from Rs 5,47,000 crore at the budget estimate stage. - Income tax: The collections from income tax are expected to increase by 14% in 2022-23 to Rs 7,00,000 crore. According to the revised estimate for 2021-22, income tax collection will be of Rs 6,15,000 which is 9.6% higher than Rs 5,61,000 at the budget estimate stage. - Non-tax receipts: Non-tax revenue consists of interest receipts on loans given by the centre, dividends and profits, external grants, and receipts from general, economic, and social services, among others. In 2022-23, non-tax revenue is expected to decrease by 14% over the revised estimates of 2021-22 to Rs 2,69,651 crore. This is due to a decline of 14% in interest receipts and a decline of 23% in dividend and profits. - Disinvestment target: The disinvestment target for 2022-23 is Rs 65,000 crore. This is 17% lower than the revised estimate of 2021-22 (Rs 78,000 crore). ## Expenditure Highlights For 2022-23 - Total expenditure in 2022-23 is expected to be Rs 39,44,909 crore, which is an increase of 4.6% over than the revised estimate of 2021-22. Out of this, (i) Rs 11,81,084 crore is proposed to be spent on central sector schemes (1.2% decrease over the revised estimate of 2021-22), and (ii) Rs 4,42,781 crore is proposed to be spent on centrally sponsored schemes (a 6.6% increase over the revised estimate of 2021-22). - The government has estimated to spend Rs 2,07,132 crore on pension in 2022-23, which is 4.1% higher than the revised estimate of 2021-22. In addition, expenditure on interest payment in 2022-23 is estimated to be Rs 9,40,651 crore, which is 23.8% of the government's expenditure. % change (RE 2021-22 to BE Actuals 2020-21 Budgeted 2021-22 Revised 2021-22 Budgeted 2022-23 2022-23) Central Expenditure 27,49,541 26,72,604 29,17,249 30,06,111 3.0% Establishment Expenditure of Centre 5,94,449 6,09,014 7,00,541 6,92,214 -1.2% Central Sector Schemes 13,56,817 10,51,703 11,95,078 11,81,085 -1.2% Other expenditure 7,98,274 10,11,887 10,21,631 11,32,813 10.9% Grants for CSS and other transfers 7,60,295 8,10,632 8,52,751 9,38,797 10.1% Centrally Sponsored Schemes (CSS) 3,83,976 3,81,305 4,15,351 4,42,781 6.6% Finance Commission Grants 1,84,063 2,20,843 2,11,065 1,92,108 -9.0% of which: Rural Local Bodies 60,750 44,901 42,623 46,513 9.1% Urban Local Bodies 26,710 22,114 14,614 22,908 56.8% Grants-in-aid 22,262 35,376 35,376 36,486 3.1% Post Devolution Revenue Deficit Grants 74,340 1,18,452 1,18,452 86,201 -27.2% Other grants 1,92,257 2,08,484 2,26,334 3,03,908 34.3% Total Expenditure 35,09,836 34,83,236 37,70,000 39,44,909 4.6% Sources: Budget at a Glance, Union Budget Documents 2022-23; PRS. Expenditure by Ministries The ministries with the 13 highest allocations account for 53% of the estimated total expenditure in 2022-23. Of these, the Ministry of Defence has the highest allocation in 2022-23, at Rs 5,25,166 crore. It accounts for 13.3% of the total budgeted expenditure of the central government. Other Ministries with high allocation include: (i) Consumer Affairs, Food and Public Distribution, (ii) Road Transport and Highways, and (iii) Home Affairs. Table 4 shows the expenditure on Ministries with the 13 highest allocations for 2022-23 and the changes in allocation as compared to the revised estimate of 2021-22. % change Actuals 2020-21 Budgeted 2021-22 Revised 2021-22 Budgeted 2022-23 (RE 2021-22 to BE 2022-23) Defence 4,85,681 4,78,196 5,02,884 5,25,166 4.4% Consumer Affairs, Food and Public Distribution 5,66,797 2,56,948 3,04,454 2,17,684 -28.5% Road Transport and Highways 99,159 1,18,101 1,31,149 1,99,108 51.8% Home Affairs 1,44,258 1,66,547 1,73,083 1,85,776 7.3% Railways 1,12,159 1,10,055 1,20,056 1,40,367 16.9% Rural Development 1,97,593 1,33,690 1,55,043 1,38,204 -10.9% Agriculture and Farmers' Welfare 1,15,827 1,31,531 1,26,808 1,32,514 4.5% Chemicals and Fertilisers 1,29,510 80,715 1,41,735 1,07,715 -24.0% Communications 60,903 75,265 54,517 1,05,407 93.3% Education 84,219 93,224 88,002 1,04,278 18.5% Health and Family Welfare 80,694 73,932 86,001 86,201 0.2% Jal Shakti 23,199 69,053 69,046 86,189 24.8% Housing and Urban Affairs 46,701 54,581 73,850 76,549 3.7% Other Ministries 13,63,136 16,41,398 17,43,372 18,39,751 5.5% Total Expenditure 35,09,836 34,83,236 37,70,000 39,44,909 4.6% Sources: Expenditure Budget, Union Budget 2022-23; PRS. - Communications: Allocation to the Ministry of Communications is estimated to increase by Rs 50,890 crore (93%) in 2022-23, over the revised estimate of 2021-22. This is mainly on account of capital infusion of Rs 44,720 crore in BSNL. - Road Transport and Highways: Allocation to the Ministry of Road Transport and Highways is estimated to increase by Rs 67,959 crore (52%) in 2022-23, over the revised estimate of 2021-22. This is mainly on account of an increase in investment in National Highway Authority of India (Rs 1,34,015 crore in 2022-23 as compared to Rs 65,060 crore in 2021-22). - In 2021-22, transfer to states as support for COVID-19 vaccines was Rs 39,000 crore, higher than the budget estimate of Rs 35,000 crore. Allocation for 2022-23 is Rs 5,000 crore. - Allocation towards the Ministries of Consumer Affairs, Food and Public Distribution, and Chemicals and Fertilisers have decreased mainly on account of a reduction in food subsidy and fertiliser subsidy, respectively. We discuss the expenditure on subsidies below. ## Expenditure On Subsidies In 2022-23, the total expenditure on subsidies is estimated to be Rs 3,55,639 crore, a decrease of 27.1% from the revised estimate of 2021-22 (Table 5). - Food subsidy: Allocation to food subsidy is estimated at Rs 2,06,831 crore in 2022-23, a 27.8% decrease over the revised estimate of 2021-22. A higher level of food subsidy was budgeted in 2020-21 and 2021-22 mainly on account of: (i) Pradhan Mantri Garib Kalyan Ann Yojana, which provides for free foodgrains to poor to mitigate the impact of COVID-19, and (ii) clearing loans of Food Corporation of India. - Fertiliser subsidy: Expenditure on fertiliser subsidy is estimated at Rs 1,05,222 crore in 2022-23. This is a decrease of Rs 34,900 crore from the revised estimate of 2021-22. Fertiliser subsidy for 2021-22 was increased substantially under the supplementary demands in December 2021. This was in response to a sharp increase in international prices of raw materials used in the manufacturing of fertilisers. - Petroleum subsidy: Petroleum subsidy consists of subsidy for LPG and Kerosene. No kerosone subsidy has been budgeted for either 2021-22 or 2022-23. Expenditure on LPG subsidy is estimated to decrease by 10.8% to Rs 5,813 crore in 2022-23. - Other subsidies: Expenditure on other subsidies includes interest subsidies for various government schemes, subsidies for the price support scheme for agricultural produce, and assistance to state agencies for procurement, among others. In 2022-23, the expenditure on these other subsidies is estimated to decrease by 31% over the revised estimate of 2021-22. | Budgeted | Budgeted | % change | |--------------------|-------------|----------------------------| | | | | | Actuals | | | | 2020-21 | 2021-22 | | | Revised | | | | 2021-22 | 2022-23 | (RE 2021-22 to BE 2022-23) | | Food subsidy | 5,41,330 | 2,42,836 | | Fertiliser subsidy | 1,27,922 | 79,530 | | Petroleum subsidy | 38,455 | 14,073 | | Other subsidies | 50,459 | 33,460 | | Total | 7,58,165 | 3,69,899 | Sources: Expenditure Profile, Union Budget 2022-23; PRS. ## Expenditure On Major Schemes - Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has the highest allocation in 2022-23 at Rs 73,000 crore. This is a decrease of 25.5% over the revised estimate of 2021-22. In 2021- 22, allocation to the scheme has increased by 34.2% from Rs 73,000 crore at the budget stage to Rs 98,000 crore at the revised stage, to mitigate the impact of second wave of COVID-19. - The PM-KISAN scheme (income support to farmers) has the second highest allocation in 2022-23 at Rs 68,000 crore. Allocation to the scheme has seen a marginal increase of 0.7% over the revised estimate of 2021-22. - Key schemes with the comparatively higher increase in allocation in 2022-23 include: (i) Pradhan Mantri Gram Sadak Yojana (35.7%), (ii) Jal Jeevan Mission (33.3%), and (iii) National Education Mission (28.4%). % change (RE 2021-22 to BE Actuals 2020-21 Budgeted 2021-22 Revised 2021-22 Budgeted 2022-23 2022-23) MGNREGS 1,11,170 73,000 98,000 73,000 -25.5% PM-KISAN 60,990 65,000 67,500 68,000 0.7% Jal Jeevan Mission/National Rural Drinking Water Mission 10,998 50,011 45,011 60,000 33.3% Pradhan Mantri Awas Yojana 40,260 27,500 47,390 48,000 1.3% National Education Mission 28,088 34,300 30,796 39,553 28.4% National Health Mission 37,478 37,130 34,947 37,800 8.2% Saksham Anganwadi and POSHAN 2.0* - 20,105 20,000 20,263 1.3% Modified Interest Subvention Scheme* - - - 19,500 - Pradhan Mantri Gram Sadak Yojana 13,688 15,000 14,000 19,000 35.7% Pradhan Mantri Fasal Bima Yojana 14,161 16,000 15,989 15,500 -3.1% National Livelihood Mission-Ajeevika 10,025 14,473 12,505 14,236 13.8% AMRUT and Smart Cities Mission 9,754 13,750 13,900 14,100 1.4% Pradhan Mantri Krishi Sinchai Yojana 7,877 11,588 12,706 12,954 2.0% Rashtriya Krishi Vikas Yojana - - - 10,433 - PM-POSHAN* - - - 10,234 - Note: * Saksham Anganwadi and POSHAN 2.0 replaced certain components of the umbrella ICDS scheme. The Modified Interest Subvention Scheme replaced the scheme for interest subsidy for short term credit to farmers (allocation towards this scheme is Rs 18,142 crore in 2021-22 at the revised stage). PM-POSHAN scheme replaced the Mid-Day Meal Scheme. In 2021-22, the Mid-day Meal Scheme has been allocated Rs 10,234 crore at the revised stage. Sources: Expenditure Profile, Union Budget 2022-23; PRS. ## Expenditure On Scheduled Caste And Scheduled Tribe Sub-Plans And Schemes For Welfare Of Women, Children And Ner % change Actuals 2020-21 Revised 2021-22 Budgeted 2022-23 (RE 2021-22 to BE 2022-23) Welfare of Women 1,52,099 1,66,183 1,71,006 2.9% Welfare of Children 77,482 80,003 92,737 15.9% Scheduled Castes 71,811 1,39,956 1,42,342 1.7% - Programmes for the welfare of women and children have been allocated Rs 2,63,743 crore in 2022-23, an increase of 7.1% over the revised estimate of 2022-23. These allocations include programmes under all the ministries. | Scheduled Tribes | 49,433 | 87,473 | 89,265 | 2.0% | |----------------------------|-----------|-----------|-----------|---------| | North Eastern Region (NER) | - | 68,440 | 76,040 | 11.1% | Sources: Expenditure Profile, Union Budget 2022-23; PRS. - The allocation towards scheduled castes and scheduled tribes in 2022-23 is estimated to increase by 1.7% and 2%, respectively. The allocation towards North Eastern Region is estimated to increase by 11.1% in 2022-23 over the revised estimates of 2021-22. ## Fiscal Responsibility And Budget Management Targets The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central government to progressively reduce its outstanding debt, revenue deficit and fiscal deficit. The central government gives three year rolling targets for these indicators when it presents the Union Budget each year. Note that the Medium Term Fiscal Policy Statement in both 2021-22 and 2022-23 did not provide rolling targets for budget deficits. In the Budget speech, the finance minister noted that the government aims to reduce fiscal deficit to below 4.5% of GDP by 2025-26. Actuals 2020-21 Revised 2021-22 Budgeted 2022-23 Fiscal deficit is an indicator of borrowings by the government for financing its expenditure. The estimated fiscal deficit for 2022-23 is 6.4% of GDP. | Fiscal Deficit | 9.2% | 6.9% | 6.4% | |-------------------|---------|---------|---------| | Revenue Deficit | 7.3% | 4.7% | 3.8% | | Primary Deficit | 5.8% | 3.3% | 2.8% | Revenue deficit is the excess of revenue expenditure over revenue receipts. Such a deficit implies the government's need to borrow funds to meet expenses which may not provide future returns. The estimated revenue deficit for 2022-23 is 3.8% of GDP. Sources: Medium Term Fiscal Policy Statement, Union Budget 2022- In 2021-22, the government had set a budget estimate of 6.8% of GDP for fiscal deficit, and 5.1% of GDP for revenue deficit. As per the revised estimates, the fiscal deficit is expected to marginally exceed the budget estimate to 6.9% while revenue deficit is estimated to be lower at 4.7%. Primary deficit is the difference between fiscal deficit and interest payments. It is estimated to be 2.8% of GDP in 2022-23. Note: Data for 2021-22 is revised estimate. Sources: Budget at a Glance, Union Budget (multiple years); PRS. Note: Data for 2021-22 are revised estimate and for 2022-23 are budget estimate. Sources: Economic Survey 2021-22, Union budget documents 2022-23; PRS. - Outstanding Liabilities: From 2012-13 onwards, the central government's outstanding liabilities declined from 51% of GDP to 48% of GDP in 2018-19. It increased to 61% of GDP in 2020-21. This is estimated to decrease marginally to 60% of GDP in 2022-23. - Outstanding liabilities is the accumulation of borrowings over the years. A higher debt implies that the government has a higher loan repayment obligation over the years. - The interest payments as a percentage of revenue receipts have increased from 36% in 2011-12 to 42% in 2020- 21. As per the budget estimates, this figure is expected to increase further to 43% in 2022-23. Demand for Grants 2022-23 Analysis Defence The Ministry of Defence frames policies on defence and security-related matters, and ensures its implementation by the defence services (i.e. Army, Navy and Air Force). In addition, it is responsible for production establishments such as defence public sector undertakings, research and development organisations, and ancillary services that assist the defence services, such as the Armed Forces Medical Services. This note analyses budgetary allocation and expenditure trends of the Ministry. The note also discusses certain issues such as the persistent shortfall in budget allocation to the defence forces versus projected needs, high burden of payment of pensions, and inadequate production capacity of the domestic defence industry. ## Overview Of Finances In 2022-23, the Ministry of Defence has been allocated Rs 5,25,166 crore. This includes expenditure on salaries of armed forces and civilians, pensions, modernisation of armed forces, production establishments, maintenance, and research and development organisations. The allocation to the Ministry of Defence is the highest (13%) among all ministries of the central government. ## Issues To Consider India continues to be among top global military spenders According to the Stockholm International Peace Research Institute (SIPRI), India was the thirdlargest defence spender in absolute terms in 2020 after USA and China.1 While China spends a lower proportion of its GDP on defence than India, its larger economy implies that it spends about 3.5 times as much as India. Pakistan's defence budget is about a seventh of India's, though it is a larger proportion of its GDP. | Country | Expenditure (in | |-------------------|--------------------| | USD billion) | | | Expenditure (as % | | | of GDP) | | | USA | | | China | | | India | | | Russia | | | UK | | | Pakistan | 10 | Note: Figures for India include expenditure on Border Security Force, Central Reserve Police Force, Assam Rifles, Indo-Tibetan Border Police, and Sashastra Seema Bal. Sources: SIPRI Military Expenditure Database, Stockholm International Peace Research Institute, 2021; PRS. However, India's defence spending as a proportion of its total government expenditure has been decreasing. In the last decade (2012-13 to 2022-23), the budget of the Ministry of Defence has grown at an annual average rate of 8.6%, while total government expenditure has grown at 10.8%. During this period, defence expenditure as a proportion of central government expenditure decreased from 16.4% in 2012-13, to 13.3% in 2022-23. The year-wise budget of the Ministry is shown in Figure 1. Note: Figures for 2022-23 are Budget Estimates and for 2021-22 are Revised Estimates. Sources: Union Budget documents (various years); PRS. Defence expenditure as a percentage of GDP declined from 2.3% in 2012-13 to 2% in 2022-23. The Standing Committee on Defence (2018) had recommended that the Ministry of Defence should be allocated a fixed budget of about 3% of GDP to ensure adequate preparedness of the armed forces.2 Budget allocation falls short of resource projection by armed forces Every year the budget provides a certain amount of funds for the armed forces. This amount is allocated after determining the various needs of the forces such as acquisition of weaponry and payment of salaries and pensions. Figure 2 shows the shortfall between the amount allocated to the armed forces as compared to the projected need for funds over the last seven financial years. As can be seen in Figure 2, in all the years since 2015-16 the funds allocated to the armed forces in the budget was less than what was initially projected by the armed forces. The shortfall (in percentage) is higher for capital expenditure than for revenue expenditure. In 2021- 22, while the projected funds needed for all the three forces was estimated at Rs 4,49,508 crore, the budget allocated a sum of Rs 3,24,658 crore (28% shortfall). The shortfall for revenue expenditure and capital expenditure was 19% and 38% respectively. Note: Figures for 2021-22 are based on revised estimates. Sources: Union Budget documents (various years); PRS. Note that since 2016-17, the actual expenditure incurred by the Ministry has exceeded the budget allocations in all years, except in 2018-19. This could be due to lesser allocations made for the Ministry at the budget estimate stage as compared to its projections. In 2021-22, the actual expenditure by the Ministry is estimated to exceed the budget estimate by Rs 24,689 crore (increase of 5.2% over budget allocations). In a memorandum submitted to the 15th Finance Commission, the Ministry of Defence sought adequate funding through alternate sources for meeting its increasing requirements.3 The Ministry had pointed out that budgetary allocations have declined over the years and are inadequate to fund large defence acquisitions.3 For the period 2021-26, the Ministry estimated to receive Rs 9.01 lakh crore for capital outlay against the defence plan projection of Rs 17.46 lakh crore (48% shortfall).3 It was highlighted by the Ministry that consistent shortfalls in the defence budget over a long period has led to serious capability gaps.3 This has compromised the operational preparedness of the three services. Lack of adequate funds has forced the use of ad-hoc mechanisms such as postponing procurements and delaying payments.3 The 15th Finance Commission recommended that the central government may constitute Modernisation Fund for Defence and Internal Security (MFDIS) to bridge the gap between projected budgetary requirements and budget allocation.3 This fund will be non-lapsable. Its proceeds will be utilised for: (i) capital investment for modernisation of defence services, (ii) capital investment and modernisation of central armed police forces and state police forces. It was proposed that the fund will have four specific sources of incremental funding: (i) transfers from Consolidated Fund of India, (ii) disinvestment proceeds of defence public sector enterprises, (iii) proceeds from monetisation of surplus defence land, and (iv) proceeds of receipts from defence land likely to be transferred to state governments and for public projects in future.3 The Finance Commission estimated the indicative size of the fund at Rs 2,38,354 crore over 2021-26.3 The Standing Committee on Defence (2017) noted that creation of a non-lapsable defence capital fund account is an imperative need for improving operational preparedness of the armed forces.4 Creating such a fund would ensure that procurement of equipment and ammunitions is not delayed due to lack of money.4 The Ministry of Finance had not agreed to creation of such a non-lapsable fund.5 According to the Ministry of Finance, the amount available in the non-lapsable fund will not be available to the Ministry of Defence automatically as it requires sanction from the Parliament.5 The Standing Committee on Defence (2021) was informed that a draft Cabinet note for Non-Lapsable Defence Modernisation Fund is under consideration.6 The Committee recommended that the Ministry of Defence should expedite the constitution of the non-lapsable fund.6 The fund may be used exclusively for the procurement of critical defence assets at critical times.6 According to media reports, the Ministry of Finance has rejected the funding pattern of the fund as recommended by the 15th Finance Commission.7 It is exploring new means of funding as it is of the opinion that putting money directly in a non-lapsable fund is against good parliamentary practice.7 Composition of defence budget In 2022-23, the allocation made to the Ministry is 4.4% higher as compared to the revised estimate of 2021-22. This is broadly in line with the 4.6% growth in overall central government expenditure in 2022-23. Capital outlay is estimated to see the highest increase of 10% followed by 8% for salaries and 2% for pensions. Expenditure on salaries and pensions forms the largest portion of the defence budget (Rs 2,83,130 crore which is 54% of the defence budget). Capital outlay of Rs 1,44,304 crore, forms 27% of the defence budget. The remaining allocation is towards stores (maintenance of equipment), border roads, research, and administrative expenses. | RE | BE | Major | |----------|---------|----------| | Head | | | | Actuals | | | | 2020-21 | 2021-22 | 2022-23 | | % change | | | | 2021-22 | | | | RE to | | | | 2022-23 | | | | BE | | | | Salaries | | 1,34,091 | | Capital | | | | Outlay | | | | 1,31,803 | | 1,31,350 | | Pensions | | 1,28,066 | | Stores | | 48,837 | | Other | | | | Expenses | | | | 42,884 | | 56,832 | | Total | | 4,85,681 | Note: Salaries, pensions and capital outlay are of the three services. Salaries include salary for civilians, auxiliary forces, Rashtriya Rifles, Jammu and Kashmir Light Infantry and Coast Guard. Pensions include rewards. Capital outlay includes capital expenses on border roads and coast guard. Stores includes ammunition, repairs and spares. Others include administration expenses, expense on research and development and housing. RE is revised estimate and BE is budget estimate. Sources: Expenditure Budget, Union Budget 2022-23; PRS. ## Decrease In Share Of Pensions Defence pensions provide for pensionary charges for retired Defence personnel of the three services (including civilian employees) and also employees of Ordnance Factories. It covers payment of service pension, gratuity, family pension, disability pension, commuted value of pension and leave encashment. Expenditure on defence pension has grown at an annual average rate of 10.7% between 2012-13 and 2022-23. This is higher than the average annual growth of the defence budget at 8.6%. The share of pension in the defence budget increased from 19% in 2012-13 to 26% in 2019-20. It has since fallen to 23% in 2021-22 and 2022-23. In the budget for 2022-23, the expenditure on defence pension is estimated to be Rs 1,19,696 crore which is 2% higher than the revised estimate of Rs 1,16,878 crore in 2021-22. Note: Figures for 2021-22 are Revised Estimates and 2022-23 are Budget Estimates. Sources: Union Budget documents (various years); PRS. In November 2015, the government decided to implement One Rank One Pension (OROP) with benefits effective from July 1, 2014.8 Under this framework, soldiers of the same rank who have retired after serving for the same length of service will receive the same pension.8 This applies irrespective of the date and year of their retirement. A total of Rs 10,795 crore has been disbursed as arrears to 20,60,220 pensioners/family pensioners of defence forces on account of implementation of OROP.8 The annual recurring expenditure for OROP is about Rs 7,123 crore. Total expenditure under the scheme for six years starting from July 1, 2014 is over Rs 42,740 crore.8 The Standing Committee on Defence (2021) noted that the allocation to defence pensions at the budget estimate stage reduced from Rs 1,33,825 crore in 2020-21 to Rs 1,15,850 crore in 2021-22.9 The Committee was informed that this was due to: (i) liquidation of previous year's carry over pension liabilities and (ii) freezing of dearness allowance (DA) by the central government for a certain time period due to COVID-19 pandemic.9 The 15th Finance Commission recommended that the Ministry should take steps to reduce salaries and pension liabilities.3 The Ministry has been examining various reforms in defence pension including: (i) bringing service personnel currently under the old pension scheme into the New Pension Scheme, (ii) increasing retirement age of personnel below officer ranks, and (iii) transfer of retired personnel to other services. ## Marginal Increase In Share Of Capital Outlay Capital outlay for defence includes expenditure on construction work, machinery, and equipment such as tanks, naval vessels, and aircrafts. Since 2012-13, the share of defence budget spent on capital outlay has declined. It was 29% in 2012-13 and declined to 24% in 2019-20. In 2020-21, share of capital outlay in the defence budget increased to 27%. In 2022-23, it is again estimated to be 27%. Note that between 2012-13 and 2018-19 the average annual growth rate of capital outlay was 5% while between 2019-20 and 2022-23 it was 11%. Note: Figures for 2021-22 are Revised Estimates and 2022-23 are Budget Estimates. Sources: Union Budget documents (various years); PRS. The Standing Committee on Defence (2021) noted that the ratio of revenue to capital outlay in case of the army is at 80:20 which is way short of the ideal ratio of 60:40.6 With respect to the navy and air force, this ratio is near to the ideal level of 60:40. The Committee recommended that measures should be taken to bridge the gap between the current and the ideal ratio for the army and other services.6 | BE | RE | BE | |-----------|----------|----------| | Forces | | | | Actuals | | | | 2020-21 | 2021-22 | 2021-22 | | Army | 26,321 | 36,532 | | Navy | 41,667 | 33,254 | | Air Force | 58,208 | 53,215 | | Coast | | | | Guard | | | | 2,503 | 2,650 | 3,236 | | Total | 1,28,699 | 1,25,651 | Note: Capital outlay on Army and Air Force includes assistance for prototype development. BE is budget estimate and RE is revised estimate. Sources: Expenditure Budget, Union Budget 2022-23; PRS. Table 3 shows the amount of capital outlay of the three armed forces and coast guard. The Army saw a 31% decline in its capital outlay budget for 2021- 22 at the revised estimate stage as compared to the budget estimate stage. For Navy and Coast Guard, funds for capital outlay increased 38% and 22% respectively between the budget estimate and revised estimate of 2021-22. In 2022-23, the capital outlay of Coast Guard is expected to increase 31% over the revised estimate of 2021-22. This is followed by the Army which is estimated to see an increase of 27% in its capital outlay budget. ## Committed Liabilities Note that capital acquisition of the armed forces consists of two components: (i) committed liabilities, and (ii) new schemes. Committed liabilities are payments anticipated during a financial year in respect of contracts concluded in previous years (as acquisition is a complex process involving long gestation periods). New schemes include new projects which are at various stages of approval and are likely to be implemented in future. | Shortfall | Year | Committed | |---------------|----------|--------------| | liabilities | | | | Budget | | | | allocation | (in %) | | | 2016-17 | 73,553 | 62,619 | | 2017-18 | 91,382 | 68,965 | | 2018-19 | 1,10,044 | 73,883 | | 2019-20 | 1,13,667 | 80,959 | Note: Figures for committed liabilities have not been publicly disclosed for 2020-21 and 2021-22. Sources: 3rd Report, Capital Outlay on Defence Services, Procurement Policy and Defence Planning, Standing Committee on Defence, December 2019; PRS. The Standing Committee on Defence (2019) expressed concern over the shortage in allocation to meet committed liabilities expenditure.10 The Committee observed that inadequate allocation for committed liabilities could lead to default on contractual obligations.10 It found the shortage in allocation to cover such expenditure as baffing and observed that if India were to default on payments, it will not go down well in international markets.10 The Standing Committee on Defence (2021) noted that despite earlier recommendations to create a dedicated fund for committed liabilities and new schemes, there has been no progress on the same.6 It again urged the Ministry of Defence to create a dedicated head for committed liabilities and new schemes from next budget onwards. This would ensure that there are no difficulties in meeting the payment deadlines for purchases that have already been committed.6 The Standing Committee on Defence (2021) was earlier informed by the government that both committed liabilities and new schemes are included in capital acquisition segment of capital budget.11 Allocations under committed liabilities and new schemes are dependent on ceilings received from the Ministry of Finance.11 Analysis of the three armed forces This section analyses the budget of the three armed forces, as well as issues related to their operational preparedness and modernisation. In 2022-23, the total allocation of the three forces (including pensions) is Rs 5,25,166 crore which is 94% of the total defence budget. Out of this, allocation for Army accounts for 58% of the defence budget followed by the Air Force at 19% and Navy at 16%. The expenditure on Army, Navy, and Air Force is in the ratio 3.5:1:1.2. The Army has the highest pension obligations. Excluding pensions (which is a cost for former staff and does not contribute to present or future defence preparedness), the expenditure of Army, Navy, and Air Force are in the ratio 2.5:1:1.1. The table below shows the defence budget allocation amongst the three forces. | RE | BE | Major | |-----------------------------------------------------------------|---------|----------| | Head | | | | Actuals | | | | 2020-21 | 2021-22 | 2022-23 | | Share of | | | | Budget | | | | Army | | 2,84,143 | | Navy | | 75,779 | | Air | | | | Force | | | | 1,01,673 | | 97,930 | | Other | | 24,086 | | Total | | 4,85,681 | | Note: Expenditure for Army includes expense on Border Roads | | | | Organisation, and Jammu and Kashmir Light Infantry. | | | | Expenditure for Navy includes expense on Coast Guard | | | | Organisation. RE is revised estimate and BE is budget estimate. | | | | Sources: Expenditure Budget, Union Budget 2022-23; PRS. | | | ## Composition Of Service Budgets Army % of service Head Amount Allocated budget Salaries 1,27,693 42% Pensions 1,02,808 34% Modernisation 25,909 8% Maintenance 20,383 7% Others 29,262 10% Total 3,06,055 100% Note: Salaries include salary for civilians, auxiliary forces, Rashtriya Rifles, Jammu and Kashmir Light Infantry. Modernisation funds for the Army is calculated from the following heads of the capital outlay: (i) Aircraft and Aeroengine, (ii) Heavy and Medium Vehicles, (iii) Other Equipment, (iv) Rolling Stock, (v) Rashtriya Rifles, and (vi) assistance for prototype development. Sources: Union Budget 2022-23; PRS. The Army is the largest of the three forces, both in terms of its budget as well as the number of personnel. In 2022-23, Rs 3,06,055 crore has been allocated for the Army. This includes Rs 2,30,501 crore for salaries and pensions which is 76% of the Army's budget. Note that as of January 1, 2019, the Army has an authorised strength of 12.7 lakh personnel.12 Significant expenditure on salaries and pensions, leaves only 8% of the Army's budget (Rs 25,909 crore) for modernisation. Table 6 provides the composition of the Army's budget for 2022-23. Modernisation involves acquisition of state-of-the art technologies and weapons systems to upgrade and augment defence capabilities of the forces. Figure 6 shows the expenditure on modernisation of the Army over the last 10 years. Between 2012-13 and 2022-23, funds for modernisation of the army have increased at an annual average rate of 9%. Note that between 2012-13 and 2016-17, the expenditure on modernisation increased at an annual average rate of 20% while it increased at only 2% between 2016-17 and 2022-23. In 2022-23, Army's modernisation expenditure is estimated to increase by 33% over the revised estimate of 2021-22. Note: Figures for 2021-22 are Revised Estimates and for 2022-23 are Budget Estimates. Sources: Union Budget documents (various years); PRS. The Standing Committee on Defence (2018) has noted that modern armed forces should have onethird of its equipment in the vintage category, onethird in the current category, and one-third in the state-of-the-art category.13 However, Indian Army had 68% of its equipment in the vintage category, 24% in the current category, and 8% in the state-ofthe-art category.13 The Committee also noted that over the years, the Army has accumulated a substantial deficiency of weapons, stores and ammunition. It found that adequate attention has been lacking with respect to both policy and budget for modernising the aging armoury.13 ## Navy The Navy has been allocated Rs 86,252 crore (including pensions) in 2022-23. Modernisation comprises 54% (Rs 46,518 crore) of Navy's budget allocation. Table 7 provides the composition of the Navy's budget for 2022-23. The expenditure on naval fleet is expected to increase to Rs 24,717 crore in the revised estimate of 2021-22 from Rs 16,000 crore at the budget estimate stage (54% increase). In July 2021, the Ministry of Defence issued a request for proposal for acquiring six conventional submarines under Project 75 (India).14 The project is estimated to cost over Rs 40,000 crore.14 % of service Head Amount Allocated budget Modernisation 46,518 54% Salaries 15,722 18% Maintenance 7,610 9% Pensions 5,944 7% Others 10,458 12% Total 86,252 100% Note: Salaries include salary for civilians and coast guard. Modernisation funds for the Navy is calculated from the following heads of the capital outlay: (i) Aircraft and Aeroengine, (ii) Heavy and Medium Vehicles, (iii) Other Equipment, (iv) Joint Staff, (v) Naval Fleet, and (vi) Naval Dockyards and Projects. Sources: Union Budget 2022-23; PRS. Between 2012-13 and 2022-23, funds for modernisation of the Navy have increased at an annual average rate of 10%. Note that between 2012-13 and 2018-19, Navy's modernisation expenditure increased an average annual rate of only 3% while between 2018-19 and 2022-23, it increased at a significantly higher rate of 23%. In 2022-23, Navy's modernisation expenditure is expected to increase by 4% over the revised estimate of 2021-22. The modernisation expenditure of the Navy as a percentage of total defence expenditure decreased from 7% in 2012-13 to 5% in 2018-19. It has since recovered to reach 9% in 2021-22 and 2022-23. ## Air Force The Indian Air Force (IAF) has been allocated Rs 1,00,650 crore for the year 2022-23 (including pensions for retired personnel). Modernisation comprises 52% (Rs 52,750 crore) of the total budget of the IAF. % of service Head Amount Allocated budget Modernisation 52,750 52% Salaries 20,038 20% Pensions 10,925 11% Maintenance 9,679 10% Others 7,258 7% Total 1,00,650 100% Note: Salaries include salary for civilians. Modernisation funds for the Air Force is calculated from the following heads of the capital outlay: (i) Aircraft and Aeroengine, (ii) Heavy and Medium Vehicles, (iii) Other Equipment, and (iv) assistance for prototype development. Source: Union Budget 2022-23; PRS. Figure 8 shows the expenditure on modernisation of IAF over the last 10 years. Funds for modernisation have grown at an annual average rate of 5% between 2012-13 and 2022-23. Note that this is the minimum among all the three forces. Between 2012-13 and 2018-19, the average annual rate of growth of IAF's modernisation funds was only 1% while between 2018-19 and 2022-23 it was 12%. In 2022-23, IAF's modernisation budget is expected to increase by 5% over the revised estimates of 2021-22. The CAG has raised issues in relation to the capital acquisition process of the IAF. 15 In its report (2019), the CAG examined 11 contracts of capital acquisition signed between 2012-13 and 2017-18, with a total value of approximately Rs 95,000 crore. It found that the current acquisition system was unlikely to support the operational preparedness of the IAF and recommended that the Ministry of Defence undertake structural reforms of the entire acquisition process.15 The Estimates Committee (2018) has noted that there should be 70% serviceability of aircrafts since aircrafts have to undergo standard maintenance checks. 16 However, as of November 2015, the serviceability of aircrafts was 60%.16 Serviceability measures the number of aircrafts that are mission capable at a point in time. ## Defence Procurement Delays In Defence Procurement Defence procurement refers to the acquisition of defence equipment, systems and platforms which is undertaken by the Ministry of Defence, and the three armed forces. In 2016, the government released the Defence Procurement Procedure (DPP) which has been revised and replaced by the Defence Acquisition Procedure (DAP), 2020.17,18 The Committee on Estimates (2018) noted that procurement and acquisition of defence hardware is a long-drawn process which involves a large number of stakeholders.16 Issues of coordination between such large number of stakeholders sometimes lead to avoidable delays.16 For instance, the Comptroller and Auditor General (CAG) of India observed that in case of procurement of equipment for the air force, it took three to five years to sign the contract, and another three to five years to complete the delivery.15 The Committee on Estimates observed that such delays adversely impact the defence preparedness of India.16 It recommended creating an integrated institutional mechanism to reduce the delays in the procurement process.16 ## Indigenisation In order to promote indigenisation and domestic production of defence equipment, the government has notified 209 items which will be procured from indigenous sources.19,20 These items, notified through two separate lists in August 2020 and May 2021, are placed under import embargo in a staggered manner. In August 2020, the government estimated that between April 2015 and August 2020, the armed forces had spent close to Rs 3.5 lakh crore on the items that were put under import embargo.19 It estimated that contracts worth around four lakh crore rupees will be placed with the domestic industry within the next five to seven years.19 Table 9 shows the procurement of defence equipment by the three armed services imported from foreign vendors and acquired from indigenous sources. Between 2015-16 and 2018-19, the percentage of defence equipment acquired from foreign vendors increased to up to 50%. It has reduced since then. In the first six months of 2021- 22, the armed forces had spent Rs 62,975 crore on procurement of defence equipment out of which 34% of the amount has been spent on procurement from foreign sources.21 | Year | Total | |-------------|----------| | Procurement | | | Indian | | | Vendors | | | Foreign | | | Vendors | | | % | | | Foreign | | | vendors | | | 2015- | | | 16 | | | 61,914 | | | 2016- | | | 17 | | | 69,080 | | | 2017- | | | 18 | | | 72,437 | | | 2018- | | | 19 | | | 75,491 | | | 2019- | | | 20 | | | 96,438 | | | 2020- | | | 21 | | | 75,283 | | Note: Figures for 2020-21 are up to January 2021. Sources: 21st Report, Demands for Grants (2021-22), Standing Committee on Defence; PRS. The Standing Committee on Defence (2021) had expressed concern on the increasing import of arms and equipment.6 In 2020, India was the largest importer of arms according to the data compiled by SIPRI.22 Between 2016-17 and 2019-20, out of a total 213 contracts, 90 contracts have been signed with foreign vendors for procurement of defence equipment.6 These 90 contracts were worth around Rs 1,76,569 crore.6 The Estimates Committee (2018) noted that dependence on foreign suppliers, especially for military hardware, leads to huge expenditure on import of defence equipment.16 It also makes India's security vulnerable as during emergency situation the supplier may not provide the required weapons or spare parts.16 The Committee also expressed concern that the indigenisation level in the defence sector is increasing at a very slow rate.16 The Committee emphasised that increasing local content in defence platforms and hardware will have a multiplier effect.16 This will create a strong manufacturing sector, generate substantial number of jobs, and save financial resources.16 ## Low Capacity Of Domestic Industry A key variable that would help to determine the potential of indigenisation of defence procurement is the production capacity of the domestic industry. Table 10 shows the annual turnover of defence public sector undertakings (DPSUs), other public sector undertakings (PSUs), and private companies in the defence sector over the last few years. It also compares the total domestic production of defence equipment to the overall budget for capital outlay of the armed forces. ## on defence services (in Rs crore) Year Private companies Total Production Defence and other PSUs % Capital outlay budget 2017- 18 15,347 63,473 78,820 90% 2018- 19 17,350 63,770 81,120 90% 2019- 20 15,894 62,676 78,570 74% 2020- 21 17,292 67,375 84,667 64% Note: Capital outlay includes Coast Guard Organisation and Border Roads Development Board. Sources: Lok Sabha Unstarred Question No. 953, Ministry of Defence; Union Budget documents; PRS. Note that after 2018-19, the share of total production by the domestic defence industry has fallen as a proportion of capital outlay for the armed forces. In 2020-21, total production by the domestic defence industry amounted to 64% of the overall budget for capital outlay. Decline in production of defence equipment by the domestic industry as a percentage of funds available for capital outlay with the armed services may increase the reliance of the armed forces on imports. The Standing Committee on Defence (2021) had recommended that steps should be taken so that ordnance factories, DPSUs, and private industries work in coordination.6 This will help to promote import substitution of defence products and expand the export potential of these entities.6 An Expert Committee (2015) noted that majority of defence material manufacture in India is in the public sector.23 In 2020-21, private companies contributed to only 20% of the overall production of the domestic defence industry. This ratio has broadly remained the same since 2017-18. The Expert Committee recommended that the government should support the private defence sector on a long-term basis.23 This would require both long-term projections and stable current orders along with hand holding in various stages of the procurement cycle.23 With effect from October 1, 2021, the central government dissolved the Ordnance Factory Board (OFB) and transferred its operations to seven new DPSUs.24 OFB was engaged in the production of arms, ammunitions, weapons, and defence equipment. It operated under the administrative control of Department of Defence Production in the Ministry of Defence. According to the government, this is expected to enhance the functional autonomy and efficiency of these entities.25 The Ministry of Defence has set a target of achieving a turnover of Rs 1.75 lakh crore by 2024 for indigenous manufacturing of aerospace and defence goods and services.25 This target includes exports worth Rs 35,000 crore.25 ## Defence Acquisition Procedure, 2020 The first DAP was promulgated in 2002 and has been revised periodically.26 DAP 2020 has been applicable from October 1, 2020. It will remain in force till September 30, 2025 or till it is reviewed. It seeks to enhance indigenous content in the manufacturing of defence equipment.26 DAP is applicable for the acquisition of capital goods and services.18 It also provides for leasing of assets as another category of acquisition which can substitute huge initial capital outlays with periodical rental payments.18 ## Categories Of Acquisition Provided In Dap Are: - Buy (Indian-IDDM) refers to the acquisition of products from an Indian vendor that have been indigenously designed, developed and manufactured; - Buy (Indian) refers to the acquisition of products from an Indian vendor which may not have been designed and developed indigenously; - Buy and Make (Indian) refers to an initial acquisition of equipment from an Indian vendor who is in a tie-up with a foreign vendor, followed by indigenous production involving transfer of technology; - Buy (Global-Manufacture in India) refers to a purchase from a foreign vendor which is followed by indigenous production of entire/part of equipment though the vendor's Indian subsidiary; and - Buy (Global) refers to outright purchase of equipment from foreign or Indian vendors.18 Among the categories listed above, Buy (Indian- IDDM) is given the highest priority in procurement. This is followed by Buy (Indian) and Buy and Make (Indian).18 | Category | DPP-2016 | DAP-2020 | |------------------------------------|--------------|------------------| | Buy (Indian-IDDM) | 40% or more | 50% or more | | Buy (Indian) | 40% or more | 50% or more (for | | indigenous design) | | | | Buy and Make (Indian) 50% or more | | | | of 'Make' part | | | | 50% or more of | | | | 'Make' part | | | | - | 50% or more | Buy (Global- | | Manufacture in India) | | | | Buy (Global) | - | 30% or more (for | | Indian vendor) | | | Note: Buy and Make category refers to an initial procurement of equipment from a foreign vendor, followed by transfer of technology. Sources: Press Information Bureau; PRS. Table 11 shows the increase in indigenous content in the different categories of acquisition. DAP has increased the requirement for indigenous content in most of the categories of acquisition. Indigenous content is the percent of cost of such content in base contract price (total contract price without taxes and duties).18 DAP also provides for a separate mechanism for acquisition of systems designed and developed by Defence Research and Development Organisation (DRDO)/DPSU/OFB. Based on operational requirements, the procuring agency will identify equipment which can be designed and developed by DRDO, DPSUs, or OFBs. Such cases would then be categorised under Buy (Indian-IDDM) for subsequent procurement. ## Increase In Fdi Limit In September 2020, the central government increased the limit for foreign direct investment (FDI) in defence sector from 49% to 74% under the automatic route.27 FDI beyond 74% is permitted with government approval which may be given where FDI is likely to result in access to modern technology.28 Since the increase in limit, an FDI inflow of Rs 186 crore has been reported in the defence sector.29 ## Research And Development Defence research is primarily carried out by DRDO. It is the research and development (R&D) wing of the Ministry of Defence. It is engaged in developing defence technologies such as aeronautics, armaments, missiles, and engineering systems. The 1 "World military spending rises to almost $2 trillion in 2020", Stockholm International Peace Research Institute, as accessed on January 10, 2022, https://www.sipri.org/media/pressrelease/2021/world-military-spending-rises-almost-2-trillion- 2020. 2 40th Report: Demands for Grants (2018-19) General Defence Budget, Border Roads Organisation, Indian Coast Guard, Military Engineer Services, Directorate General Defence Estates, Defence Public Sector Undertakings, Welfare of Ex-Servicemen, Defence Pensions, Ex-Servicemen Contributory Health Scheme, Standing Committee on Defence, Lok Sabha, March 12, 2018, http://164.100.47.193/lsscommittee/Defence/16_Defence_40.pdf. 3 Chapter 11, Defence and Internal Security, Volume-I Main Report, 15th Finance Commission, October 2020 4 32nd Report, Creation of Non-Lapsable Capital Fund Account, Instead of the Present System, Standing Committee on Defence, Lok Sabha, August 2017, http://164.100.47.193/lsscommittee/Defence/16_Defence_32.pdf. 5 48th Report, Action Taken by the Government on the Observations/Recommendations contained in the Forty-second Report (16th Lok Sabha) on 'Demands for Grants of the Ministry of Defence for the year 2018-19 on Capital Outlay on Defence Services, Procurement Policy and Defence Planning (Demand No. 21), Standing Committee on Defence, Lok Sabha, January 2019, http://164.100.47.193/lsscommittee/Defence/16_Defence_48.pdf. 6 21st Report, Demands for Grants (2021-22) Capital Outlay on Defence Services, Procurement Policy, Defence Planning and Married Accommodation Project, Standing Committee on Defence, Lok Sabha, March 2021, http://164.100.47.193/lsscommittee/Defence/17_Defence_21.pdf. 7 "FinMin eyes new ways to boost defence fund", Business Standard, February 7, 2022, https://www.businessstandard.com/article/economy-policy/finance-ministry-eyes-newways-to-boost-non-lapsable-defence-fund-122020700004_1.html. Standing Committee on Defence (2021) observed a steady drop in the research and development expenditure incurred by DRDO as a percentage of India's GDP.30 expenditure (in Rs crore) | Year | R&D Expenditure | % of GDP | |---------|--------------------|-------------| | 2016-17 | 13,501 | 0.088% | | 2017-18 | 15,399 | 0.091% | | 2018-19 | 17,122 | 0.09% | | 2019-20 | 17,731 | 0.087% | | 2020-21 | 16,466 | 0.084% | Sources: 22nd Report, Demands for Grants (2021-22), Ordnance Factories, Defence Research and Development Organisation, Directorate General of Quality Assurance and National Cadet Corps, Standing Committee on Defence; PRS. The Committee noted that the expenditure incurred on defence research and development has remained around 1% of GDP which is substantially less as compared to other developed nations.30 The Committee recommended providing adequate allocations to DRDO so that it can scale up its research and development activities. There is a need to enhance the expenditure of DRDO as a percentage of GDP as well as a percentage of the total defence budget so that it can take up flagship projects for the design and development of weapon systems.30 8 "One Rank One Pension (OROP)", Press Information Bureau, Ministry of Defence, November 3, 2021. 9 19th Report, Demands for Grants (2021-22), General Defence Budget, Border Roads Organisation, Indian Coast Guard, Defence Estates Organisation, Defence Public Sector Undertakings, Canteen Stores Department, Welfare of Ex-Servicemen and Defence Pensions, Standing Committee on Defence, Lok Sabha, March 2021, http://164.100.47.193/lsscommittee/Defence/17_Defence_19.pdf. 10 3rd Report, Demands for Grants (2019-20), Capital Outlay on Defence Services, Procurement Policy, Defence Planning and Married Accommodation Project, December 2019, http://164.100.47.193/lsscommittee/Defence/17_Defence_3.pdf. 11 18th Report, Action Taken by the Government on the Seventh Report (17th Lok Sabha) on 'Capital Outlay on Defence Services, Procurement Policy, Defence Planning and Married Accommodation Project (Demand No. 20)', Standing Committee on Defence, Lok Sabha, March 2021, http://164.100.47.193/lsscommittee/Defence/17_Defence_18.pdf. 12 "Strength of Defence Forces", Press Information Bureau, Ministry of Defence, July 24, 2019. 13 41st Report, Demands for Grants (2018-19) Army, Navy and Air Force, Standing Committee on Defence, Lok Sabha, March 2018, http://164.100.47.193/lsscommittee/Defence/16_Defence_41.pdf. 14 "MoD issues RFP for construction of six P-75(I) submarines for Indian Navy", Press Information Bureau, Ministry of Defence, July 20, 2021. 15 Report No. 3 of 2019: Performance Audit Report of the Comptroller and Auditor General of Indian on Capital Acquisition in Indian Air Force, Comptroller and Auditor General, February 13, 2019. 16 29th Report: Preparedness of Armed Forces- Defence Production and Procurement, Committee on Estimates, July 25, 2018, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_29.p df. 17 Defence Procurement Procedure 2016, Ministry of Defence, July 2016, https://www.mod.gov.in/sites/default/files/dppm.pdf_0.pdf. 18 Defence Acquisition Procedure, 2020, Ministry of Defence, September 2020, https://www.mod.gov.in/sites/default/files/DAP2030new_0.pdf. 19 "MoD's big push to Atmanirbhar Bharat initiative", Press Information Bureau, Ministry of Defence, August 9, 2020. 20 "MoD notifies 'Second Positive Indigenisation List' of 108 items to promote self-reliance & defence exports", Press Information Bureau, Ministry of Defence, May 31, 2021. 21 Lok Sabha Unstarred Question No. 953, Ministry of Defence, December 3, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU953.pdf. 22 TIV of arms imports to the top 50 largest importers, 2020-2020, Stockholm International Peace Research Institute, as accessed on January 11, 2022, https://armstrade.sipri.org/armstrade/html/export_toplist.php. 23 Report of Committee of Experts for Amendments to DPP 2013 Including Formulation of Policy Framework, July 2015, https://www.mod.gov.in/sites/default/files/Reportddp.pdf. 24 CG-DL-E-01102021-230101, Ministry of Defence, October 1, 2021, https://egazette.nic.in/WriteReadData/2021/230101.pdf. 25 "Seven new defence companies, carved out of OFB, dedicated to the Nation on the occasion of Vijayadashami", Press Information Bureau, Ministry of Defence, October 15, 2021. 26 "Raksha Mantri Shri Rajnath Singh unveils Defence Acquisition Procedure - 2020", Press Information Bureau, Ministry of Defence, September 28, 2020. 27 "Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence Sector", Press Information Bureau, Ministry of Commerce & Industry, September 18, 2020. 28 "FDI in Defence Sector", Press Information Bureau, Ministry of Defence, September 14, 2020. 29 Starred Question No. 161, Rajya Sabha, December 13, 2021, https://pqars.nic.in/annex/255/AS161.pdf. 30 22nd Report, Demands for Grants (2021-22), Ordnance Factories, Defence Research and Development Organisation, Directorate General of Quality Assurance and National Cadet Corps, Standing Committee on Defence, Lok Sabha, March 2021, http://164.100.47.193/lsscommittee/Defence/17_Defence_22.pdf. ## Demand For Grants 2022-23 Analysis Food And Public Distribution The Ministry of Consumer Affairs, Food and Public Distribution has two Departments: (i) Food and Public Distribution, and (ii) Consumer Affairs. Allocation to the Ministry accounts for 6% of the budget of the central government in 2022-23.1 Department of Consumer Affairs is responsible for spreading awareness among consumers about their rights, protecting their interests, implementing standards, and preventing black marketing.2 In 2022-23, the Department has been allocated Rs 1,725 crore, a 30% decrease over the revised estimate of 2021-22.3 Department of Food and Public Distribution is responsible for ensuring food security through procurement, storage, and distribution of food grains, and for regulating the sugar sector.4 In 2022- 23, the Department has been allocated Rs 2,15,960 crore (99% of the Ministry's allocation).5 This is a decrease of 28% as compared to the revised estimate of 2021-22. Department 2020-21 Actuals 2021-22 Revised 2022-23 Budgeted % change in 2022-23 BE over 2021-22 RE Food & Public Distribution 5,55,432 3,02,000 2,15,960 -28% Consumer Affairs 11,365 2,454 1,725 -30% Total 5,66,797 3,04,454 2,17,684 -28% Sources: Expenditure Budget, Union Budget 2022-23; PRS. This note examines the allocation to the Department of Food and Public Distribution. It also discusses the broad issues in the sector and key observations and recommendations made in this regard. ## Overview Of Finances Food subsidy is the largest expenditure by the Department of Food and Public Distribution. 96% of the Department's allocation in 2022-23 is towards food subsidy (see Table 7 in the Annexure for more details). The subsidy is provided to the Food Corporation of India (FCI) and states for procuring food grains from farmers at government notified prices and selling them at lower subsidised prices (known as Central Issue Prices), under the National Food Security Act, 2013. The Act mandates coverage of 75% of the population in rural areas and 50% in urban areas, and covers 81 crore persons.6,7 The subsidy also covers the storage cost incurred by FCI in maintaining buffer stocks in order to ensure food security in the country. Table 2 shows the expenditure on food subsidy during 2012-23. Table 2: Expenditure on food subsidy (Rs crore) Year Allocation Expenditure % utilisation 2012-13 75,000 85,000 113% 2013-14 90,000 92,000 102% 2014-15 1,15,000 1,17,671 102% 2015-16 1,24,419 1,39,419 112% 2016-17 1,34,835 1,10,173 82% 2017-18 1,45,339 1,00,282 69% 2018-19 1,69,323 1,01,327 60% 2019-20 1,84,220 1,08,688 59% 2020-21 1,15,570 5,41,330 468% 2021-22 2,42,836 2,86,469# 118% 2022-23 2,06,831* - - Note: *Budget estimate; #Revised estimate. Sources: Expenditure Budget, Union Budgets (various years); PRS. The central government provides food subsidy to FCI as reimbursement of the loss it incurs in its procurement, storage, and distribution operations. During the period 2016-20, although the Department used to receive sufficient allocation for payment to FCI, due to budget cuts made during the year, the actual amount paid to FCI was much lower. The Comptroller and Auditor General (CAG) of India (2019) observed that when the food subsidy budget is not sufficient to clear FCI's dues, such dues are carried over to the next year.8 Due to such carryovers every year, payment due to FCI for food subsidy increased from Rs 81,303 crore at the end of 2016-17 to Rs 2,43,779 crore at the end of 2019-20.9 The Department was allocated Rs 1,84,220 crore for food subsidy in 2019-20. However, only 59% of the allocation was utilised as the food subsidy provided to FCI decreased from Rs 1,51,000 crore (budget estimate) to Rs 75,000 crore. As directed by the Ministry of Finance, the Department deferred the payment of food subsidy due to FCI, resulting in an underspending of Rs 76,000 crore.10 In the meanwhile, the government provided loans to FCI from the National Small Savings Fund (NSSF) to meet its operational requirements. NSSF loans worth Rs 2,54,600 crore were outstanding with FCI at the end of 2019-20.11 In her 2021-22 budget speech, the Finance Minister announced that the government will discontinue the NSSF loans given to FCI and accordingly make budget provisions in 2020-21 and 2021-22.12 Following this announcement, the total expenditure on food subsidy increased to Rs 5,41,330 crore in 2020-21, an increase of 398% over the expenditure in 2019- 20. Out of this the food subsidy given to FCI was Rs 4,62,789 crore in 2020-21. According to the revised estimate for 2021-22, there are estimated to be no NSSF loans outstanding with respect to FCI.13 Note that in 2021-22, FCI has claimed Rs 2,17,460 crore as food subsidy which is 95% of the food subsidy bill for the entire year. Against this, in the revised estimate of 2021-22, the central government has provided Rs 2,10,929 crore which is lesser than the subsidy claimed by FCI. In 2022-23, the central government has allocated Rs 2,06,831 crore for food subsidy out of which Rs 1,45,920 (71%) crore is for providing food subsidy to FCI. Subsidy Received Note: Data for 2021-22 is up to January 31, 2022. Sources: Report of Comptroller and Auditor General of India on Compliance of the Fiscal Responsibility and Budget Management Act, 2003 (2018); Food Corporation of India; PRS. Since April 2020, the government has been implementing the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in phases. Under the programme, which was announced in March 2020, the government has been allocating additional 5 kg of wheat or rice to 80 crore people free of cost under the National Food Security Act, 2013.14 This is over and above the monthly entitlements under the National Food Security Act. In the first and second phases of the scheme, the government allocated one kg of pulses and chana respectively to the beneficiaries.15 The fifth phase of the scheme, which was approved by the Cabinet in November 2021, will run from December 2021 till March 2022.16 The government is expected to incur an expenditure of nearly Rs 2.6 lakh crore under the five phases of the scheme.16 The fifth phase alone is estimated to entail an additional food subsidy bill of Rs 53,345 crore. ## Components Of Food Subsidy Expenditure on food subsidy can be classified under the following three heads (break-up in Table 3): - Subsidy to FCI: The Food Corporation of India (FCI) receives subsidy for procuring food grains from farmers at government notified prices and selling them at lower subsidised prices. It also receives subsidy for the storage cost incurred in maintaining buffer stocks. - Subsidy to states: Under the decentralised procurement scheme, states may choose to undertake the operations of procurement, storage, and distribution on behalf of FCI. In such cases, states are provided with subsidy. Currently, 17 states undertake procurement of rice and wheat. - Sugar subsidy: Sugar subsidy is provided for giving one kg of sugar per month at subsidised rates to families covered under the Antyodaya Anna Yojana (i.e., poorest of the poor families). In 2022-23, subsidies to FCI and states form 71% and 29% of the allocation for food subsidy, respectively. Subsidy 2020-21 Actuals 2021-22 Revised 2022-23 Budgeted % change in 2022-23 BE over 2021- 22 RE Subsidy to FCI 4,62,789 2,10,929 1,45,920 -31% 78,338 75,290 60,561 -20% Subsidy to states (decentralised procurement) Sugar subsidy 203 250 350 40% Total 5,41,330 2,86,469 2,06,831 -28% Sources: Expenditure Budget, Union Budget 2022-23; PRS. ## Issues In The Sector FCI and state agencies procure food grains from farmers at the government notified Minimum Support Prices (MSPs). These food grains are provided to the economically weaker sections at subsidised prices through fair price shops under the Public Distribution System (PDS). The central and state governments provide subsidised food grains to beneficiaries under the National Food Security Act, 2013 as well as under certain other welfare schemes such as the Mid-Day Meal scheme. In this section, we examine some issues relating to the: (i) factors increasing food subsidy bill, (iii) procurement and storage of food grains, and (iv) sugarcane dues to farmers. ## Minimum Support Price And Farm Production Minimum support price is the assured price announced by the central government at which food grains are procured from the farmers by central and state governments along with their agencies.6 This procurement is done for the central pool from which allocations are made under PDS and also kept as reserves. MSPs are announced each year for 23 crops. However, procurement is limited to a few crops such as rice, wheat, pulses, and coarse grains. Figure 2 shows that 49% of the rice produced in 2020-21 was procured by the government while the figure for wheat was 40%. Under the National Food Security Act, the central and state governments have to undertake necessary reforms in targeted PDS.6 One of those reforms is to diversify the commodities distributed under PDS.6 Note: Wheat produced in 2020-21 was procured in 2021-22. Sources: Department of Food and Public Distribution; PRS. The Economic Survey of 2019-20 noted that the government procures around 40-50% of the total market surplus of rice and wheat.17 MSP was designed to be indicative prices for farmers at the start of the sowing season and act as an insurance in times of fall in prices. The Survey pointed out that the increasing trend in MSPs gives a signal to farmers to opt for the crops that have an assured procurement system.17 This also shows that market prices do not offer remunerative options for farmers and MSPs act as maximum prices that farmers can realise.17 This puts pressure on the water table as these crops (especially paddy and sugarcane) are water-intensive.18 Also, the bulk of MSP procurement is geographically concentrated in a few states. As shown in Figure 3, in 2020-21, 64% of the rice procured was from five states. However, the contribution of these states in the total production of rice in the same year was only 36%. Similarly, 80% of the wheat procured in 2021-22 was from the three states of Punjab, Madhya Pradesh and Haryana. Taken together these states contributed to only 43% of the total wheat production in 2020-21. Note that the National Food Security Act provides for geographical diversification of procurement operations.6 Sources: Department of Food and Public Distribution; PRS. Note: Wheat procured in 2021-22 is for crop produced in 2020- 21. Sources: Department of Food and Public Distribution; PRS. ## Revision Of Central Issue Price (Cip) Under the National Food Security Act, 2013, food grains are allocated to the beneficiaries at the CIP. These prices have not changed since July1, 2002.19 | Food grain | AAY | BPL | APL | |---------------|--------|--------|--------| | Rice | 3 | 5.65 | 8.3 | | Wheat | 2 | 4.15 | 6.1 | Note: AAY - Antyodaya Anna Yojana, BPL - Below Poverty Line, APL - Above Poverty Line. Sources: FCI; PRS. Food subsidy has three elements: (i) consumer subsidy, (ii) cost of maintaining buffer stock, and (iii) subsidy on coarse grains, regularisation of FCI's operational losses and other non-plan allocation to states.20 Consumer subsidy is the difference between the economic cost and CIP. Economic cost includes cost of procurement, acquisition, and distribution. In 2002-03, from when the CIP has been effective, the economic cost of rice was Rs 11.7 per kg and for wheat it was Rs 8.8 per kg.20 In 2022-23, the economic cost of rice and wheat is estimated to increase to Rs 36.7 per kg and Rs 25.9 per kg repectively.20 Due to nonrevision of CIP to reflect the increase in economic cost of food grains distributed under PDS, the food subsidy bill has increased over the years. The Standing Committee on Food, Consumer Affairs and Public Distribution (2017) noted that the food subsidy bill has increased due to increase in MSP of wheat and rice with respect to the CIP, increased off take of food grains under targeted PDS, and implementation of national Food Security Act, 2013 in all states/UTs. 21 The 15th Finance Commission observed that the increase in economic cost of food grains will need to be partially offset by increasing CIP of subsidised food grains.22 The Economic Survey 2020-21 noted that the central government's food subsidy bill is becoming unmanageably large.23 The Survey said that while it is difficult to reduce the economic cost of food management, there is a need to consider revising CIP to reduce food subsidy bill.23 ## Delivery Of Food Subsidy Leakages in PDS: Leakages refer to food grains not reaching the intended beneficiaries. Note that recent data on leakage is not publicly available. The latest available data is for 2011. According to the 2011 data, leakages in PDS were estimated to be 46.7%.24,25 Leakages may be of three types: (i) pilferage or damage during transportation of food grains, (ii) diversion to non-beneficiaries at fair price shops through issue of ghost cards, and (iii) exclusion of people entitled to food grains but who are not on the beneficiary list.26,27 Studies have shown that targeting mechanisms such as TPDS are prone to large exclusion and inclusion errors.28 Exclusion errors occur when entitled beneficiaries do not get food grains. It refers to the percentage of poor households that are entitled to but do not have PDS cards. Exclusion errors had declined from 55% in 2004-05 to 41% in 2011-12.29 Inclusion errors occur when those who are ineligible get undue benefits. Inclusion errors had increased from 29% in 2004-05 to 37% in 2011- For eliminating leakages, states/UTs have been suggested two, options: (i) direct cash transfer and (ii) automation of fair price shops (FPSs).30 The direct cash transfer scheme is being implemented in Chandigarh and Puducherry from September 2015 and in part of Dadra and Nagar Haveli from March 2016.30 Direct cash transfers give the option to beneficiaries to buy the food grains of their choice and diversify consumption based on dietary preferences. However, beneficiaries may have to face higher costs in accessing the cash transfer due to factors such as distance and higher waiting time for cash withdrawal.30 There have also been certain reports of inadequate availability of food grain in the open market. The High-Level Committee on Restructuring of FCI (2015) had suggested that switching to DBT for food subsidy would reduce the food subsidy bill of the government by more than Rs 30,000 crore annually.30 It suggested that cash transfers can be indexed with the overall price level to protect the amount of real income transfers. The High-Level Committee had also recommended the introduction of biometric authentication and Aadhaar to address leakages in PDS.24 In February 2017, the Ministry made it mandatory for beneficiaries under the National Food Security Act, 2013 to use Aadhaar as proof of identification for receiving food grains.31 Note that non-linking of Aadhaar with ration cards is not a ground for cancellation of ration cards.32 The deadline for applying for Aadhaar enrolment in order to avail subsidised food grains or cash transfer of food subsidy, has been extended to March 31, 2022.33 As on December 9, 2020, 91% of the ration cards have been seeded with Aadhaar. States and UTs have deleted 4.28 crore bogus ration cards during 2014- 2021.32 This is due to measures such as the use of information technology reforms, digitisation of ration cards data, de-duplication process, permanent migration, and identification of ineligible/duplicate ration cards. Note that beneficiaries may face issues with Aadhaar authentication while availing PDS benefits. According to the data submitted by UIDAI to the Supreme Court in Justice K. S. Puttaswamy vs Union of India, the Aadhaar authentication failure rate (across all purposes) was 8.5% for iris scans and 6% for fingerprints.34 In its judgement, the Court held that services cannot be denied to beneficiaries due to Aadhaar authentication failure.34 In addition to implementing cash transfers, automation of FPSs is done by installing electronic point of sale devices (ePoS). This helps in transparent distribution of food grains after unique identification of beneficiaries30. In addition to this, ePoS devices also upload the electronic records of sale transactions to centralised servers in states/UTs.30 At all India level, as of December 2020, 92% of FPSs have been automated. ## Is Pending | Operational | % FPS | |----------------|----------| | State/UT | | | Total | | | FPS | ePoS | | Andaman and | | | Nicobar | | | 464 | 445 | | Arunachal | | | Pradesh | | | 1,943 | 683 | | Assam | 38,237 | | Chhattisgarh | 12,304 | | Delhi | 2,018 | | Karnataka | 19,935 | | Manipur | 2,333 | | Meghalaya | 4,709 | | Mizoram | 1,241 | | Sikkim | 1,362 | | Uttarakhand | 9,908 | Note: Data as on December 9, 2020. Sources: 12th Report, Standing Committee on Food, Consumer Affairs and Public Distribution (2020-21); PRS. One Nation One Ration Card (ONORC): From April 2018, the Department has been implementing the Integrated Management of Public Distribution System scheme. 35 The scheme aims to provide nation-wide portability of ration cards through ONORC.35 It allows all beneficiaries under the National Food Security Act, 2013 to collect their entitled food grains from any FPS in the country. As of August 2021, the scheme has been implemented in 34 states/UTs with 24 crore portability transactions carried out between April 1, 2020 and September 30, 2021.36 Note that between August 2019 and November 2020, out of 18.98 crore portability transactions, only 22,087 transactions were for inter-state portability while the rest were for intra-state portability.30 This could be due to: (i) restrictions by states on biometric authentication of beneficiaries due to COVID-19 and (ii) lack of awareness among beneficiaries.30 ## Procurement Of Food Grains The Department of Food and Public Distribution is the nodal department for making policies with regard to procurement, movement, scientific research, storage, distribution, and sale of food grains. FCI and other state agencies procure wheat and paddy at MSP.37 Coarse grains are procured by state government agencies for the central pool as per the direction of the central government.37 There are two broad procurement systems: (i) centralised procurement and (ii) decentralised procurement.38 Under the centralised procurement system, food grains are procured either directly by the FCI or by state government agencies. The food grains procured by state agencies are handed over to FCI for storage, distribution, or transportation. Under decentralised procurement, state government/agencies procure, store, and distribute rice/wheat/coarse grains within the state. The excess stocks of rice and wheat are handed over to FCI in the central pool. 15 states procure rice and eight states procure wheat under decentralised procurement. Presently, FCI plays only a supporting role in procurement of food grains and direct procurement by FCI is less than 5%. All operations are conducted by state agencies. | | Year | Rice | Wheat | |----------|---------|---------|----------| | 2015-16 | 342.18 | | 280.88 | | 2016-17 | 381.06 | | 229.61 | | 2017-18 | 381.74 | | 308.24 | | 2018-19 | 443.99 | | 357.95 | | 2019-20 | 518.26 | | 341.32 | | 2020-21 | 601.85 | | 389.92 | | 2021-22* | 452.26 | | 433.44 | Note: *Data for rice procurement for 2021-22 is up to February 10, 2022. Sources: FCI; PRS. The Standing Committee on Food, Consumer Affairs, and Public Distribution (2021) noted that after 23 years of its inception, decentralised procurement is not carried out in all states.35 Decentralised procurement has increased the efficiency of PDS by making it possible to supply food grains suited to local tastes.35 The Committee expected the central government to take steps for motivating the remaining states to adopt the scheme. This will help lower the cost of distribution. It recommended the Department/FCI to take steps to create necessary infrastructure in coordination with state governments.35 ## Storage Capacity Note: Data as on April 1 of each year. Sources: FCI; PRS. The Department also has the responsibility to ensure availability of storage capacities in various states. In 2022-23, the central government has allocated Rs 33 crore for creation of storage capacity through FCI and state governments.5 FCI has its own network of storage infrastructure. It also hires additional storage facilities from state warehousing corporations and Central Warehousing Corporation.35 The existing storage facilities are primarily conventional godowns where food grains are stacked in bags.35 During peak procurement periods, FCI also uses cover and plinth (CAP) facilities for short-term storage of food grains.35 As on April 1, 2021, FCI had storage capacity of 415 lakh metric tonnes.39 Note: Data as on June 1 of every year. Data for covered and CAP storage. Sources: Standing Committee on Food, Consumer Affairs and Public Distribution; PRS. The Standing Committee (2021) noted that the utilisation of hired storage capacity is much higher than the storage capacity owned by FCI.35 This is despite internal audit, audit by Comptroller and Auditor (CAG) of India, and review of capacity utilisation. The Committee recommended that godowns should be hired only when it is absolutely necessary.35 It recommended that FCI should utilise its own storage capacity to the maximum to save funds spent on renting storage space. The Standing Committee (2021) was informed that storage capacity is hired only when there is absolute necessity for it.35 This is the reason that hired capacity is utilised fully. Also, once constructed, owned capacity cannot be shifted to a different location due to change in procurement pattern or change in offtake of food grains.35 The Standing Committee noted that during 2020-21, FCI could not achieve physical and financial targets for construction of godowns.35 For instance, the physical targets for construction of godowns in north-eastern states was 30,020 metric tonnes. However, as on January 31, 2021, no construction had taken place. Similarly, for states other than north-eastern states, the target was 6,220 metric tonnes. But, again, no construction took place. The Committee observed that the Department/FCI should make efforts to expedite completion of ongoing godown construction projects. FCI faces problems in the construction of godowns in the north eastern regions due to: (i) difficult terrain, (ii) land acquisition restrictions, (iii) law and order situation, and (iv) inclement weather.35 The Committee recommended that the Department should take up the matter with the states/UTs to solve the problem of storage. It also recommended creating mini godowns in different parts of states/UTs.35 ## Sugarcane The Department is also responsible for formulation of policies and regulations for the sugar sector. This includes fixing the Fair and Remunerative Price (FRP) of sugarcane which is payable to farmers by sugar factories, training in sugar technology, and regulation of supply of free sale sugar. As of November 26, 2021, Rs 4,940 crore are pending in dues to sugar farmers for the sugar seasons (October-September) of 2018-19, 2019-20, and 2020-21.40 Sugarcane dues: The sugar sector has been facing certain issues related to profitability and liquidity in the last few years.41 Depressed sugar prices have often led to sugar mills unable to pay the entire compensation to farmers for buying sugarcane. Certain state governments fix their own State Advised Price at levels higher than the FRP announced by the central government. This causes further strain on the financial health of the sugar mills.41 A Task Force on Sugarcane and Sugar Industry (2020) recommended that sugarcane prices must be linked to sugar prices.41 Increases in FRP should be kept moderate and state announcing SAP should bear the additional costs associated with it.41 The Task Force recommended a staggered payment mechanism for sugarcane so that the entire dues to the farmers are cleared within two months. The central government also fixes the minimum selling price for white/refined sugar. This was increased from Rs 29 per kg to Rs 31 per kg with effect from February 14, 2019.42 The task force had recommended increasing the minimum selling price of sugar to Rs 33 per kg with it being reviewed six months after notification.41 This would aid sugar mills to cover their cost of production and maintenance costs. The central government has taken measures to divert excess sugarcane/sugar for production of ethanol.43 Note that in every sugar season, the production of sugar is around 320-330 lakh metric tonne as against the domestic consumption of 260 lakh metric tonne.43 This subdues the price of sugar in the domestic market leading to loss for sugar mills. In the last three sugar seasons, about Rs 22,000 was generated by sugar mills/distilleries from sale of ethanol to oil marketing companies.43 In sugar season 2021-22, 35 lakh metric tonne of excess sugar is likely to be diverted for producing ethanol as compared to around 24 lakh metric tonne in 2020-21.43 Sugar Development Fund (SDF): SDF was established in 1982 and grants loans to sugar mills for schemes such as modernisation and expansion of sugar factory, and cane development.44 The task force recommended to levy a cess on sugar at Rs 50 per quintal for three years.41 This would add about Rs 4,500 crore to the fund which can act as a comfort for banks lending to sugar mills for paying dues to farmers and improving technologies. 1 Ministry-wise Summary of Budget Provisions, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sumsbe.pdf. 2 About DCA, Department of Consumer Affairs, https://consumeraffairs.nic.in/about-us/about-dca. 3 Department of Consumer Affairs, Expenditure Budget, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe14.pdf. 4 Introduction, Department of Food and Public Distribution, https://dfpd.gov.in/index.htm. 5 Department of Food and Public Distribution, Expenditure Budget, Union Budget 20222-23, https://www.indiabudget.gov.in/doc/eb/sbe15.pdf. 6 The National Food Security Act, 2013, Ministry of Consumer Affairs, Food and Public Distribution, http://www.egazette.nic.in/WriteReadData/2013/E_29_2013_429 .pdf. 7 Lok Sabha Unstarred Question No. 1192, Ministry of Consumer Affairs, Food and Public Distribution, February 9, 2021, http://164.100.24.220/loksabhaquestions/annex/175/AU1192.pdf. 8 Report no. 20 of 2018: 'Compliance of the Fiscal Responsibility and Budget Management , Act, 2003 for the year 2016-17', Comptroller and Auditor General of India, January 2019, https://www.cag.gov.in/sites/default/files/audit_report_files/Repo rt_No_20_of_2018_Compliance_of_the_Fiscal_Responsibility_a nd_Budget_Management_Act_2003_Department_of_Economic_ Affairs_Minis.pdf.. 9 Subsidy Position of FCI, Finance and Accounts, Food Corporation of India, as accessed on January 20, 2022, https://fci.gov.in/finances.php?view=109. 10 Lok Sabha Unstarred Question No. 47, Ministry of Consumer Affairs, Food and Public Distribution, February 2, 2021, http://164.100.24.220/loksabhaquestions/annex/175/AU47.pdf. 11 Statement of Extra Budgetary Resources, Expenditure Profile, Union Budget 2021-22, https://www.indiabudget.gov.in/doc/eb/stat27.pdf. 12 Budget Speech, Union Budget 2021-22, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf. 13 Sources and Application of National Small Savings Fund as on 31st March, 2022, Receipt Budget, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/rec/annex8.pdf. 14 Finance Minister announces Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus, Press Information Bureau, Ministry of Finance, March 26, 2020. 15 Starred Question No. 157, Lok Sabha, December 8, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AS157.pdf. 16 Cabinet approves extension of Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) for another four months (December 2021-March 2022), Press Information Bureau, Cabinet, November 24, 2021. 17 Chapter 4, Volume I, Economic Survey 2019-20, Ministry of Finance, January 2020, https://www.indiabudget.gov.in/budget2020- 21/economicsurvey/doc/echapter.pdf. 18 Agriculture and Food Management, Chapter 7, Volume II, Economic Survey 2018-19, January 2019, https://www.indiabudget.gov.in/budget2019- 20/economicsurvey/doc/vol2chapter/echap07_vol2.pdf. 19 Pricing, Overview of TPDS, Sales, Food Corporation of India, as accessed on January 21, 2022, https://fci.gov.in/sales.php?view=41. 20 Budget and Cost, Finance and Accounts, Food Corporation of India, as accessed on January 21, 2022, https://fci.gov.in/finances.php?view=109. 21 Report no. 15, Standing Committee on Food, Consumer Affairs Department of Food and Public Distribution', Lok Sabha, March 2017, http://164.100.47.193/lsscommittee/Food,%20Consumer%20Affa irs%20&%20Public%20Distribution/16_Food_Consumer_Affair s_And_Public_Distribution_15.pdf. 22 Chapter 4, Volume-I Main Report, 15th Finance Commission, October 2020 23 Chapter 7, Agriculture & Food Management, Volume-2, Economic Survey 2020-21, January 2021, https://www.indiabudget.gov.in/budget2021- 22/economicsurvey/doc/echapter_vol2.pdf. 24 Report of the High Level Committee on Reorienting the Role and Restructuring of Food Corporation of India, January 2015, http://www.fci.gov.in/app2/webroot/upload/News/Report%20of %20the%20High%20Level%20Committee%20on%20Reorientin g%20the%20Role%20and%20Restructuring%20of%20FCI_Engl ish_1.pdf. 25 Third Report of the Standing Committee on Food, Consumer Affairs and Public Distribution: Demands for Grants 2015-16, Department of Food and Public Distribution, http://164.100.47.193/lsscommittee/Food,%20Consumer%20Affa irs%20&%20Public%20Distribution/16_Food_Consumer_Affair s_And_Public_Distribution_3.pdf. 26 The Case for Direct Cash Transfers to the Poor, Economic and Political Weekly, April 2008, http://www.epw.in/system/files/pdf/2008_43/15/The_Case_for_D irect_Cash_Transfers_to_the_Poor.pdf. 27 Performance Evaluation of Targeted Public Distribution System, Planning Commission of India, March 2005, http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds. pdf. 28 Report of the Expert Group to advise the Ministry of Rural Development in the methodology for conducting the Below Poverty Line (BPL) Census for 11th Five Year Plan, August 2009, https://rural.nic.in/sites/default/files/ReportofExpertGroupChaire d-Dr.N.C.Saxena.pdf. 29 Role of the Public Distribution System in Shaping Household Food and Nutritional Security in India, NITI Aayog, December 2016. 30 12th Report, Strengthening of Public Distribution System - Augmenting Use of Technological Means and Implementation of 'One Nation, One Ration Card' Scheme, Standing Committee on Food, Consumer Affairs and Public Distribution, Lok Sabha, March 2021, http://164.100.47.193/lsscommittee/Food,%20Consumer%20Affa irs%20&%20Public%20Distribution/17_Food_Consumer_Affair s_And_Public_Distribution_12.pdf. 31 S.O. 371(E), Notification, Ministry of Consumer Affairs, Food and Public Distribution, February 8, 2017, https://egazette.nic.in/WriteReadData/2017/174131.pdf. 32 Unstarred Question No. 1522, Rajya Sabha, Ministry of Consumer Affairs, Food and Public Distribution, December 10, 2021, https://pqars.nic.in/annex/255/AU1522.pdf. 33 S.O. 5314(E), Notification, Ministry of Consumer Affairs, Food and Public Distribution, December 20, 2021, https://egazette.nic.in/WriteReadData/2021/232018.pdf. 34 Justice K. S. Puttaswamy (Retd.) and Another vs Union of India and Others, W. P. (C.) No. 494 of 2012, https://main.sci.gov.in/supremecourt/2012/35071/35071_2012_Ju dgement_26-Sep-2018.pdf. 35 13th Report, Procurement, Storage and Distribution of Foodgrains by Food Corporation Of India, Standing Committee on Food, Consumer Affairs and Public Distribution, August 2021, http://164.100.47.193/lsscommittee/Food,%20Consumer%20Affa irs%20&%20Public%20Distribution/17_Food_Consumer_Affair s_And_Public_Distribution_13.pdf. 36 "One Nation. One Ration Card", Press Information Bureau, Ministry of Consumer Affairs, Food & Public Distribution, November 3, 2021. 37 Overview, Procurement, Food Corporation of India, as accessed on January 18, 2022, https://fci.gov.in/procurements.php?view=51. 38 Policy and System, Procurement, Food Corporation of India, as accessed on January 18, 2022, https://fci.gov.in/procurements.php?view=86. 39 Overview, Storage and Contract, Food Corporation of India, as accessed on January 18, 2021, https://fci.gov.in/storages.php?view=35. 40 Unstarred Question No. 466, Lok Sabha, Ministry of Consumer Affairs, Food & Public Distribution, http://164.100.24.220/loksabhaquestions/annex/177/AU466.pdf. 41 Report of the Task Force on Sugarcane and Sugar Industry, NITI Aayog, March 2020, https://www.niti.gov.in/sites/default/files/2021- 08/10_Report_of_the_Task_Force_on_Sugarcan_%20and_Sugar _Industry_0.pdf. 42 Sugar Pricing Policy, Department of Food & Public Distribution, as accessed on January 24, 2022, https://dfpd.gov.in/gen_policy.htm. 43 "Centre doubles incentive on sugar sacrificed for producing ethanol from October 2021", Press Information Bureau, Ministry of Consumer Affairs, Food & Public Distribution, October 1, 2021. 44 Sugar Development Fund (SDF) Schemes in brief, Department of Food & Public Distribution, as accessed on January 24, 2022, https://dfpd.gov.in/sdfbrief_c.htm. 2020-21 Actuals 2021-22 Budgeted 2021-22 Revised 2022-23 Budgeted % change in 2022-23 BE over 2021-22 RE Food subsidy 5,41,330 2,42,836 2,86,469 2,06,831 -28% Subsidy to Food Corporation of India (FCI) 4,62,789 2,02,616 2,10,929 1,45,920 -31% Subsidy to states (decentralised procurement) 78,338 40,000 75,290 60,561 -20% Sugar subsidy payable under PDS 203 220 250 350 40% Assistance to state agencies for intra-state movement of food grains and for margin of fair price shops' dealers 6,483 4,000 6,000 - -100% Investment in equity capital of FCI 1,000 2,500 2,500 1,900 -24% Scheme for defraying expenditure on transport and marketing of sugar exports, including handling and processing 301 2,000 3,503 - -100% Scheme for assistance to sugar mills for 2019-20 season 3,900 1,000 2,150 - -100% Scheme for creation and maintenance of buffer stock of sugar 600 650 765 - -100% Financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity 150 300 160 300 88% Schemes for development of sugar industries 175 187 143 85 -41% Scheme for extending soft loan to sugar mills 418 - - - - Department 5,55,432 2,53,974 3,02,000 2,15,960 -28% Sources: Demand no. 15, Department of Food and Public Distribution, Expenditure Budget, Union Budget 2022-23; PRS. | | | | Year | Procurement | | Offtake | % Offtake | Stocks | |---------|-------|-------|---------|---------------|-------|------------|--------------|-----------| | Rice | Wheat | Total | Rice | Wheat | Total | Rice | Wheat | Total | | 2004-05 | | | | | | | | | | 24.7 | 16.8 | 41.5 | 23.2 | 18.3 | 41.5 | | | | | 100% | | | | | | | | | | 13.3 | 4.1 | 18.0 | | | | | | | | 2005-06 | | | | | | | | | | 27.6 | 14.8 | 42.4 | 25.1 | 17.2 | 42.3 | | | | | 100% | | | | | | | | | | 13.7 | 2.0 | 16.6 | | | | | | | | 2006-07 | | | | | | | | | | 25.1 | 9.2 | 34.3 | 25.1 | 11.7 | 36.8 | | | | | 107% | | | | | | | | | | 13.2 | 4.7 | 17.9 | | | | | | | | 2007-08 | | | | | | | | | | 28.7 | 11.1 | 39.8 | 25.2 | 12.2 | 37.4 | | | | | 94% | | | | | | | | | | 13.8 | 5.8 | 19.8 | | | | | | | | 2008-09 | | | | | | | | | | 34.1 | 22.7 | 56.8 | 24.6 | 14.9 | 39.5 | | | | | 70% | | | | | | | | | | 21.6 | 13.4 | 35.6 | | | | | | | | 2009-10 | | | | | | | | | | 32.0 | 25.4 | 57.4 | 27.4 | 22.4 | 49.8 | | | | | 87% | | | | | | | | | | 26.7 | 16.1 | 43.3 | | | | | | | | 2010-11 | | | | | | | | | | 34.2 | 22.5 | 56.7 | 29.9 | 23.1 | 53.0 | | | | | 93% | | | | | | | | | | 28.8 | 15.4 | 44.3 | | | | | | | | 2011-12 | | | | | | | | | | 35.0 | 28.3 | 63.3 | 32.1 | 24.3 | 56.4 | | | | | 89% | | | | | | | | | | 33.4 | 20.0 | 53.4 | | | | | | | | 2012-13 | | | | | | | | | | 34.0 | 38.2 | 72.2 | 32.6 | 33.2 | 65.8 | | | | | 91% | | | | | | | | | | 35.5 | 24.2 | 59.8 | | | | | | | | 2013-14 | | | | | | | | | | 31.9 | 25.1 | 57.0 | 29.2 | 30.6 | 59.8 | | | | | 105% | | | | | | | | | | 30.6 | 17.8 | 49.5 | | | | | | | | 2014-15 | | | | | | | | | | 31.6 | 28.0 | 59.6 | 30.7 | 25.2 | 55.9 | | | | | 94% | | | | | | | | | | 23.8 | 17.2 | 41.3 | | | | | | | | 2015-16 | | | | | | | | | | 34.1 | 28.1 | 62.2 | 31.8 | 31.8 | 63.6 | | | | | 102% | | | | | | | | | | 28.8 | 14.5 | 43.6 | | | | | | | | 2016-17 | | | | | | | | | | 36.5 | 23.6 | 60.1 | 32.8 | 29.1 | 61.9 | | | | | 103% | | | | | | | | | | 29.8 | 8.1 | 38.1 | | | | | | | | 2017-18 | | | | | | | | | | 37.6 | 30.6 | 68.2 | 35.0 | 25.3 | 60.3 | | | | | 88% | | | | | | | | | | 30.0 | 13.2 | 43.3 | | | | | | | | 2018-19 | | | | | | | | | | 42.7 | 35.0 | 77.7 | 34.4 | 31.5 | 65.9 | | | | | 85% | | | | | | | | | | 37.7 | 34.9 | 72.7 | | | | | | | | 2019-20 | | | | | | | | | | 46.1 | 34.1 | 80.2 | 35.0 | 27.2 | 62.2 | | | | | 78% | | | | | | | | | | 49.2 | 24.7 | 74.0 | | | | | | | | 2020-21 | | | | | | | | | | 58.2 | 39.0 | 97.2 | 56.3 | 36.8 | 93.1 | | | | | 96% | | | | | | | | | | 49.9 | 27.3 | 78.0 | | | | | | | Sources: Database on Indian Economy, Reserve Bank of India, as of February 7, 2022; PRS. Online Allocation State/ UT Digitisation of Ration Cards Aadhaar Seeding with Ration Cards of Food grains Computerisation of Supply Chain Andhra Pradesh 100% 100% Implemented Implemented Arunachal Pradesh 100% 45% - - Assam 100% 0% Implemented - Bihar 100% 83% Implemented Implemented Chhattisgarh 100% 100% Implemented Implemented Goa 100% 100% Implemented Implemented Gujarat 100% 98% Implemented Implemented Haryana 100% 100% Implemented Implemented Himachal Pradesh 100% 94% Implemented Implemented Jharkhand 100% 97% Implemented Implemented Karnataka 100% 100% Implemented Implemented Kerala 100% 98% Implemented - Madhya Pradesh 100% 92% Implemented Implemented Maharashtra 100% 96% Implemented Implemented Manipur 100% 31% Partial - Meghalaya 100% 0% - - Mizoram 100% 83% Implemented - Nagaland 100% 57% - - Odisha 100% 92% Implemented Implemented Punjab 100% 98% Implemented - Rajasthan 100% 96% Implemented - Sikkim 100% 87% Implemented - Tamil Nadu 100% 100% Implemented Implemented Telangana 100% 100% Implemented Implemented Tripura 100% 98% Implemented Implemented Uttar Pradesh 100% 92% Implemented Implemented Uttarakhand 100% 90% Implemented - West Bengal 100% 63% Implemented Implemented Andaman and Nicobar Islands 100% 100% Implemented Implemented Chandigarh 100% 100% Direct Benefit Direct Benefit Dadra and Nagar Haveli 100% 100% Implemented Implemented Daman and Diu 100% 100% Implemented Implemented Delhi 100% 100% Implemented Implemented Jammu and Kashmir 100% 59% - - Lakshadweep 100% 98% - NA Puducherry 100% 100% Direct Benefit Direct Benefit Total 100% 84% 30 21 Sources: Department of Food and Public Distribution; PRS. Year Paddy (common) % increase over last year Wheat % increase over last year 2011-12 1,080 8.0% 1,285 14.7% 2012-13 1,250 15.7% 1,350 5.1% 2013-14 1,310 4.8% 1,400 3.7% 2014-15 1,360 3.8% 1,450 3.6% 2015-16 1,410 3.7% 1,525 5.2% 2016-17 1,470 4.3% 1,625 6.6% 2017-18 1,550 5.4% 1,735 6.8% 2018-19 1,750 12.9% 1,840 6.1% 2019-20 1,815 3.7% 1,925 4.6% 2020-21 1,868 2.9% 1,975 2.6% 2021-22 1,940 3.9% 2,015 2.0% Sources: Commission for Agricultural Costs and Prices, Ministry of Agriculture and Farmers' Welfare; PRS. State Arrears of 2018-19 Arrears of 2019-20 Arrears of 2020-21 Total Arrears Andhra Pradesh 37 43 37 117 Bihar 50 39 4 93 Chhattisgarh 6 - 64 70 Goa 2 - - 2 Gujarat - - 44 44 Haryana - - 63 63 Karnataka 9 5 - 14 Madhya Pradesh 2 - 1 3 Maharashtra 81 - 394 475 Odisha - - - 0 Punjab - 43 9 52 Tamil Nadu 73 - 25 98 Telangana - - - 0 Uttar Pradesh - - 3,752 3752 Uttarakhand 105 - 52 157 Total 365 130 4,445 4,940 Sources: Lok Sabha Starred Question No. 466, December 1, 2021; PRS. ## Demand For Grants 2022-23 Analysis Road Transport And Highways The Ministry of Road Transport and Highways formulates and administers policies for road transport, and transport research. It is also involved with the construction and maintenance of the National Highways (NHs) through the National Highways Authority of India (NHAI), and the National Highways and Infrastructure Development Corporation Limited (NHIDCL). It also deals with matters relating to road transport, safety, and vehicle standards, through the implementation of the Motor Vehicles Act, 1988. In 2022-23, the Ministry of Road Transport and Highways has been allocated nearly Rs 68,000 crore more than the revised expenditure in 2021-22. In absolute terms, this is the highest increase (from revised estimates of 2021-22) among all ministries in 2022-23. Nearly all of this additional allocation has been earmarked for investment in NHAI. After many years, NHAI will not have any borrowings, and rely entirely on budgetary resources. As of November 2021, NHAI's total debt stood at Rs 3.38 lakh crore.1 This is nearly 150% more than the allocation to NHAI in 2022-23. This note looks at the proposed expenditure of the Ministry for the year 2022-23, its finances over the last few years, and issues with the same. ## Announcements In The 2022-23 Budget Speech2 In the budget speech, the Finance Minister made the following announcements regarding the roads sector: - PM GatiShakti Master Plan for Expressways will be formulated in 2022-23 to facilitate faster movement of people and goods. - The National Highways network will be expanded by 25,000 km in 2022-23. - ## Allocations In Union Budget 2021-22 Fund Allocation3 The total expenditure on the Ministry of Road Transport and Highways for 2022-23 is estimated at Rs 1,99,108 crore. This is 52% higher than the revised estimates for 2021-22. Road Transport and Highways (in Rs crore) % 2021-22 2022-23 Change (2022 BE 2020-21 Actual RE BE over 2021 RE) Revenue 9,964 9,898 11,364 15% Capital 89,195 1,21,251 1,87,744 55% Total 99,159 1,31,149 1,99,108 52% Note: BE - Budget Estimate; RE - Revised Estimate. Sources: Demands for Grants 2022-23, Ministry of Road Transport and Highways; PRS. In 2022-23, capital expenditure is estimated at Rs 1,87,744 crore while revenue expenditure is estimated at Rs 11,364 crore. Since 2015-16, the share of capital expenditure of the Ministry has increased significantly, while revenue expenditure has gradually declined. In 2022-23, 94% of the Ministry's spending is estimated to be on capital expenditure. Overview of Finances ## Utilisation Of Funds In the past few years, the expenditure of the Ministry has seen a significant increase. Between 2011-12 to 2016-17, the compounded annual growth rate (CAGR) of the actual expenditure was 15%. For the period of 2016-17 to 2021-22, the CAGR stands at 20%. Note: Figures for 2021-22 are revised estimates. Sources: Ministry of Road Transport and Highways budget documents 2010-22; PRS. Between 2012-13 and 2017-18, the actual expenditure by the Ministry has been lower than the budget estimates (see Figure ). As per the revised estimates of 2021-22, the Ministry is expected to exceed its budgeted expenditure by 11%. Before this, the Ministry had exceeded its budgeted expenditure by 8% in 2020-21 and 9% in 2018-19. This was largely due to additional expenditure incurred on capital outlay towards roads and bridges. Expenditure of the central government In 2022-23, of the total allocation to the Ministry, the highest is towards NHAI at Rs 1,34,015 crore (67%).3 This is followed by allocation towards roads and bridges at Rs 64,573 crore (32%).3 | RE 2021- | BE 2022- | % | |-------------|------------|----------| | Major head | | | | Actual | | | | 2020- | | | | 22 | 23 | Change | | 21 | | | | NHAI | 46,062 | 65,060 | | Roads and | | | | bridges | | | | 53,112 | 65,707 | 64,573 | | 231 | 229 | 356 | | Road | | | | transport | | | | and safety | | | | Secretariat | 131 | 154 | | Recoveries | -376 | 0 | | Total | 99,159 | 1,31,149 | Note: BE - Budget Estimate; RE - Revised Estimate. Percentage change is from RE 2021-22 to BE 2022-23. Sources: Demands for Grants 2022-23, Ministry of Road Transport and Highways; PRS. NHAI: The central government develops and maintains NHs through the NHAI. In 2022-23, NHAI has been allocated Rs 1,34,015 crore, which is 106% more than the revised estimate of 2020-21. Of the budgeted amount, 75% (Rs 1,00,100 crore) will be provided from the Central Road and Infrastructure Fund, 15% (Rs 20,000 crore) will come from the monetisation of the National Highways, and the remaining 10% (Rs 13,915 crore) will be provided from the Permanent Bridge Fees Fund.3 Note that the allocation towards NHAI has more than tripled from 2019-20 (budget estimates) to 2022-23 (revised estimates). In 2020-21, the actual expenditure exceeded the budget estimates by 8%. In 2021-22, the revised estimates are again expected to exceed the budget estimates by 8%. Note that in 2019-20, the actual expenditure fell short of the budgeted estimate by 14%, Expenditure on the NHAI includes funding towards the umbrella highway scheme, Bharatmala Pariyojana. This scheme seeks to optimise the efficiency of freight and passenger movement by bridging critical infrastructure gaps. It also aims to increase the number of districts with NH linkages from 300 to 550.4 Under Phase I of Bharatmala Pariyojana, 34,800 km of roads will be developed over a period of five years (2017-18 to 2021-22) . Phase I will also subsume 10,000 km of balance roadworks under the National Highway Development Programme. The estimated cost of Phase I is Rs 5,35,000 crore, spread over five years. As of December 2021, road projects with an aggregate length of 19,926 km, and costing Rs 5.98 lakh crore have been approved under Bharatmala Pariyojana Phase-I.5 Of this, road length of 6,976 km has already been completed.5 This corresponds to 35% of the approved project length. Roads and bridges: Expenditure under roads and bridges includes development of NHs, projects related to expressways, increasing the number of lanes under various projects, and development of road connectivity in left-wing extremism affected areas. In 2022-23, the allocation towards roads and bridges is Rs 64,573 crore. This is a decrease of 2% over the revised estimates of 2021-22. In 2019-20 and 2020-21, the actual expenditure for roads and bridges exceeded the budget estimates by 1% and 9% respectively. As per the revised estimates of 2021-22, the revised allocation towards roads and bridges is estimated to again exceed the budget estimate by 9%. In 2017-18 and 2018-19, the actual allocation was less than budget estimates by 9% and 8% respectively. Funds managed by the Ministry The Ministry manages its expenditure through various funds. Their details are provided below. Central Road and Infrastructure Fund (CRIF): A majority of the Ministry's expenditure is managed through transfers from the CRIF. A portion of the cess collected on motor spirit and high-speed diesel is earmarked for the development of NHs and SHs, and the amount is transferred to the non-lapsable CRIF. This amount is eventually released to the NHAI, and to the state/UT governments for the development of road infrastructure, and other projects (such as ports, railway track, airports) in the country.3 For 2022-23, the transfer from CRIF towards the Ministry is estimated at Rs 1,59,616 crore.1 This is 61% more than the revised transfer in 2021-22 (Rs 99,239 crore). The Ministry also allocates funds for state roads using the CRIF (Figure ).6 The allocation for state roads from the CRIF in 2022-23 is estimated to be Rs 250 crore. Between 2017-18 and 2020-21, the total utilisation by states for these funds was above 86%. Permanent Bridge Fees Fund (PBFF): Funds transferred to the PBFF relate to the revenue collected by the government through: (i) fees levied for the use of certain permanent bridges on NHs by motor vehicles, (ii) toll on NHs, and (iii) revenue share received on some PPP projects. These funds are then released to the NHAI for the development of NHs entrusted to it.3 For 2022-23, the transfer from PBFF is estimated at Rs 13,921 crore.1 This is a 10% increase from the transfer in 2021-22 at the revised estimates stage (Rs 12,670 crore). National Investment Fund (NIF): The NIF was created in 2005, and is credited with proceeds from disinvestments of public sector enterprises. The Ministry finances the Special Accelerated Road Development Programme in North East (SARDP- NE) with funds from the NIF. For 2022-23, the transfer from NIF is estimated at Rs 10,565 crore.1 This is an 25% increase from the transfer in 2021-22 (Rs 8,430 crore) at the revised estimates stage. National Highways Fund (NHF): In August 2016, the Union Cabinet had authorised NHAI to monetise certain public funded NH projects.7 Such monetisation includes transferring operations and maintenance of stretches of NHs to private contractors on a long-term basis. In 2022-23, Rs 20,000 crore is estimated to be generated through such monetisation. This is a 54% annual increase from the monetisation amount in 2021-22 (Rs 13,000 crore) at the revised stage. | 2021-22 | 2022-23 | % | |------------|------------|--------| | Funds | | | | 2020-21 | | | | Actual | RE | BE | | CRIF | 79,286 | 99,239 | | PBFF | 11,519 | 12,670 | | NHF | 7,262 | 13,000 | | NIF | 2,963 | 8,430 | Note: BE - Budget Estimate; RE - Revised Estimate. Percentage change is from RE 2021-22 to BE 2022-23. Sources: Demands for Grants 2021-22, Ministry of Road Transport and Highways; PRS. ## Issues To Consider As of March 2019, India had about 64 lakh km of roads, second only to the United States which has about 66 lakh km of road length.15 This road length includes National Highways (NHs), Expressways, State Highways (SHs), district roads, PWD roads, and project roads. As of March 2019, there were 1.3 lakh km of National Highways, and nearly 1.8 lakh km of State Highways.8 In India, road infrastructure is used to transport over 60% of total goods and 85% of total passenger traffic.9 NHs comprise about 2% of the road network but carry about 40% of the total road traffic.10 The Economic Survey (2020) also noted that road transport is the dominant mode of transportation in the country.11 The entire transport sector contributed to about 4.6% of the Gross Value Added in 2018-19, of which road transport contributed about 67%.11 In April 2018, the Ministry of Road Transport and Highways switched from the linear system to the lane-kilometres for calculating the amount of work completed.12 The linear system doesn't distinguish between roads of equal length, but different width. The 'lane-mile' system is used in the USA, while 'lane-kilometre system' is used in Canada.13,14 The figure below shows the trend of award and construction of road projects in India (Figure ). ## Note: Data for 2021-22 is as on February 10, 2022. Sources: Economic Survey 2020-21; Ministry of Roads Dashboard; PRS. In the Budget Speech in 2020-21, the Union Finance Minister made several announcements for the roads sector. This included awarding 8,500 km and constructing another 11,000 km of NH corridors. In 2021-22 (as of February 2022), 6,895 km of road projects have been awarded, and 6,968 km of NHs have been constructed. This accounts for 81% of the award target and 63% of the construction target, respectively.5 In the Budget Speech 2022-23, the Finance Minister announced that by March 2023, the NH network will be expanded by 25,000 km.2 Other announcements in the 2020-21 Budget included: (i) development of National Highways in Tamil Nadu (3,500 km), Kerala (1,100 km), West Bengal (675 km), and Assam (1,300 km), and (ii) further progress on some key economic corridors (such as the Delhi-Mumbai Expressway, Bengaluru-Chennai Expressway). For details on the status of implementation of these announcements, refer to Table in the Annexure (on page 10). The daily road construction increased from 28 km/day in 2019-20 to 36.5 km/day in 2020-21. As per the Economic Survey (2021-22), this is due to the nearly 30% increase in public expenditure by the central government.15 To achieve the target of expanding the NH network by 25,000 km, construction pace will have to be about 68 km/day.2 This is 87% higher than the pace in 2020-21 (of 36.5 km/day). The length of the National Highway network has increased from 91,300 km in March 2014, to 1,40,000 km in December 2021.8,16 Note that since 2014-15, nearly 49,100 km of State Roads have been notified as National Highways.17 As per the Ministry of Statistics and Programme Implementation (2021), 888 projects worth Rs 5.45 lakh crore are underway in the roads sector. This accounts for more than 50% of all infrastructure projects in India by volume (1,673 projects), and more than 21% by value (Rs 25 lakh crore).18 Of these 888 projects, 97 projects have witnessed time delays, while 144 projects have a cost overrun.18 This may be due to several constraints, such as: (i) lack of equity with developers, (ii) higher cost of financing, (iii) shortfall in funds for maintenance, (iv) unavailability of land for the expansion of NHs, (v) significant increase in land acquisition cost, and (vi) bottlenecks and checkpoints on NHs which could adversely impact benefits of GST.19 The Standing Committee on Transport (2020) had also highlighted NHAI's increasing debt which could lead to severe financial issues in the future.20 We discuss some of these issues below. ## Issues With Financing The figure below highlights the share of total investment in the roads sector in India.6 The total investment in road sector has grown at a CAGR of 22% from 2014-15 to 2020-21. The share of borrowings in this investment has grown from 6% in 2014-15 to 37% in 2020-21. In 2019-20, 43% of the investment in roads sector was sourced from borrowings. Further, the share of budgetary support declined from 57% in 2014-15 to 44% in 2019-20. In 2020-21, the budgetary support to the roads sector has again increased to 56%.6,15 The share of private investment has also declined from 37% in 2014-15, to only 7% in 2020-21. Sources: 312th Standing Committee Report (2022); PRS. The Standing Committee on Transport (2020) noted that increasing the gross budgetary support to the Ministry while the private sector investment is declining may not be a sustainable growth plan.20 The Committee had made similar observations in 2016 and 2018 and had suggested that the government should devise ways to mobilise funds from other sources and establish appropriate financial institutions and models to encourage the return of private investment to the road sector.21,22 The Kelkar Committee (2015) had also observed that since infrastructure projects span over 20-30 years, a private developer may lose bargaining power because of abrupt changes in the economic or policy environment.33 It recommended that the private sector must be protected against such loss of bargaining power. To revive private sector participation, a new mode of contract called the Hybrid Annuity Mode (HAM) was introduced.20 Under this model, 40% of the project cost is paid by the government/ executing agency as grant to the private developer. Further, the traffic risk is taken by the project executing agency. The concessionaire is responsible for the Operation & Maintenance during the concession period, while tolling rights remain with the employer.23 Between 2017-18 and 2019-20, HAM projects worth Rs 1.15 lakh crore were approved for NHAI. This was 44% of all projects by value.24 The Ministry expects to raise Rs 86,182 crore up to 2024-25 to fund projects under the National Infrastructure Pipeline, by monetising its assets under the Toll-Operate-Transfer (TOT) model.20The Standing Committee (2020) had observed that in 2019-20, the Ministry could only raise Rs 5,000 crore by monetising assets in TOT mode, against a target of Rs 10,000 crore. In 2020- 21, against a monetisation revenue of Rs, 10,250 crore, only Rs 7,262 crore could be raised (70%). In 2022-23, the Ministry plans to raise Rs 20,000 crore through such monetisation. In August 2021, the central government unveiled the National Asset Monetisation Pipeline (NMP). The NMP aims to monetise core brownfield infrastructure assets (such as roads, rail, ports, power transmission lines) to mobilise Rs 5.97 lakh crore from 2021-25.25 The central government targets monetising 26,700 km of roads, with a potential revenue of Rs 1.60 lakh crore (27% of the total potential monetisation value).26 Only NHs with four lanes and above have been considered for asset monetisation. As of February 2022, 20 stretches (1,407 km) have already been monetised through TOT mode in four Bundles.5 A sum of Rs 15,703 crore has already been realised and remitted to the Consolidated Fund of India.5 ## Borrowings After many years, no borrowing have been estimated for NHAI in 2022-23. Between 2017-18 and 2021-22, NHAI has been borrowing an average of Rs 63,300 crore per year. NHAI's total debt grew from Rs 1.22 lakh crore in March 2018 to Rs 3.38 lakh crore in November 2021.27,1 The Standing Committee on Transport (2020) had noted that NHAI's debt has been increasing and as of March 2020, the amount of debt NHAI had to repay was more than twice the annual budgetary allocation of the Ministry for 2020-21.20 To reduce debt servicing costs of NHAI, the Committee (2021) recommended: (i) exploring funding from insurance companies and pensions funds, both Indian and foreign, and (ii) requesting the RBI to make the road infrastructure sector eligible for priority sector lending.28 Taking note of the stressed assets of banks in the road sector, the Committee also recommended mandating the National Infrastructure Investment Fund and the upcoming Development Finance Institution (announced in 2021-22 Budget session) to facilitate offloading long term infrastructure loans from banks. In its Annual Report (2018), NHAI had noted that with the debt obligations increasing due to deferment of debt repayment, exposure of financial institutions that lend to the roads sector has increased significantly, reaching defined exposure norms for the sector.10 The Comptroller and Auditor General of India (2016) had also noted several procedural inefficiencies with NHAI.29 For example, NHAI could not realise toll on certain projects due to delays in approvals, toll operations, and other procedural lapses. NHAI did not adhere to the Ministry's guidelines on maintenance of project wise balance sheet and cash flow.29 Inefficient bidding processes for engaging toll collection agencies also led to the loss of revenue.29 The Committee on Public Undertakings (2017) had also noted several issues in the financial performance of NHAI such as: (i) insufficiency of funds, (ii) gap between the funds allocated to the Ministry, and released to NHAI, and (iii) under-utilisation of funds.30 The Standing Committee on Transport (2020) had recommended that the Ministry should constitute an Advisory Committee to look into the increasing debt of NHAI, and the efficacy of the measures undertaken by the Ministry and NHAI to monetise their assets.20 Further, the Ministry may increase toll charges across the country and postpone certain projects, as the present financial health of NHAI is not sustainable in the long run and may create bigger issues in the roads sector in the future. Committees have also suggested more due diligence on the part of NHAI. The Standing Committee on Transport (2019) recommended that NHAI should compare its project cost estimates with the actual costs incurred on road projects.31 If there is a substantial difference between the bid price offered by the concessionaire and the project cost estimates made by the government, NHAI should review its cost estimation methodologies. The Committee (2019) also suggested that the NHAI or central government should appoint a credit rating agency to assess the financial strength of private players and their ability to meet debt repayment obligations.31 ## Private Financing And Contracts In its Annual Report (2018), NHAI had noted that the recent economic slowdown has led to lower revenue realisation than expected. Several developers had significantly leveraged their balance sheets in anticipation of high revenue, and with lower revenue realisation they face issues with debt servicing.10 This also adds stress on the existing road infrastructure loan portfolios of financial institutions. It has been noted that private financing for the roads sector is a challenge.10,32 Several PPP road projects have not been able to attract bids.32 The major highway developers in the country are also facing financial capacity constraints. Further, there is a lack of debt products that are aligned with the revenue stream profile of highway projects (longterm projects where toll collection can begin only after the entire project is completed). This makes financing of such projects difficult, and has resulted in some projects getting stalled at the construction stage. This also discourages prospective bidders.32 The Committee on Revisiting and Revitalising the PPP model of Infrastructure Development (Chair: Dr. Vijay Kelkar) had looked at issues with PPP projects in India, in November 2015.33 It had recommended setting up an independent regulator for the roads sector to help bring in and regulate private players in the sector. It had also noted that service delivery (such as constructing roads) to citizens is the government's responsibility and should not be evaded through PPPs. Non-performing assets: The Standing Committee on Transport (2016) had observed that several long term loans disbursed for the road sector are turning into non-performing assets (NPAs).21 Project bids are often made without proper study, and projects are awarded in a hurry. This results in stalling of projects, and concessionaires leave mid-way. Banks and other infrastructure lending institutions have also been reluctant to finance the highways sector. This has led to difficulties in debt servicing, putting additional stress on the road infrastructure portfolios. Besides increasing the cost of the project, delays also make it difficult to obtain additional debt.21 The Standing Committee on Transport (2016) recommended that banks should take due diligence while disbursing loans to concessionaires. It also suggested that the bank NPAs (related to the roads sector) may be supported by government allocation. Banks could be empowered to recover the bad debts. Further, in light of huge NPAs lying with a single bank, the Standing Committee (2019) recommended that guidelines prescribing a limit up to which a bank can lend to a single borrower be framed to minimise the risk involved in lending.31 The Standing Committee on Transport (2019) also suggested that NHAI should revisit the financial requirements for bidders to ensure their eligibility for the bidding process.31 While the onus of the feasibility of the bids made by the concessionaire lies mainly with the banks, NHAI should exercise due diligence while awarding projects to concessionaire with poor performance history. ## Project Delays And Increase In Project Costs The Committee on Public Undertakings (2017) had noted that from 1995, till June 2016, out of the total 388 projects completed, only 55 projects were completed on or before time.30 Delays in the completion of the projects were mainly attributed to: (i) the long time taken in land acquisition, and obtaining environment and forest clearances, (ii) poor performance of concessionaires due to economic slowdown, (iii) cash flow problems, and (iv) law and order issues.30 The Ministry has also noted that recently projects have also been halted due to NCLT proceedings against the developer.34 Such delays increase project costs, eventually making certain projects unviable. As of December 2021, the cumulative cost overrun of projects in the road sector is estimated to be greater than Rs 8,120 crore.18 In order to resolve languishing projects the Ministry has taken some steps which include: (i) implementing an exit policy which allows private developers to take out their entire equity and exit operational Build-Operate-Transfer (BOT) projects two years from the start of operations irrespective of date of award; (ii) providing rationalised compensation to concessionaires for languishing NH projects in BOT mode for delays not attributable to concessionaires; and (iii) a one-time fund infusion by NHAI which enables revival and physical completion of languishing BOT projects that have achieved at least 50% physical progress, on a case to case basis, among others.31 ## Increase In Land Acquisition Costs From January 1, 2015, the compensation for land acquired by NHAI is determined as per the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013. The Committee on Public Undertakings (2017) had noted that due to higher compensation under the 2013 Act, the expenditure by the Ministry of Road Transport on land acquisition increased from Rs 9,097 crore in 2014-15 to Rs 21,933 crore in 2015-16.30 In 2017-18, NHAI spent more funds on land acquisition (41% of the expenses) as compared to project expenditure (39%).10 The Standing Committee on Transport (2020) noted that the average rate of land acquisition has increased significantly from about Rs 0.92 crore per hectare in 2013-14 to Rs 3.13 crore per hectare (ha) in 2019- 20 (an increase of 240%). The Committee on Public Undertakings (2017) also observed that farmers who were entitled to lesser compensation under the older law, have been approaching courts for increased compensation.30 This has further delayed the land acquisition process and added to the cost of projects. In October 2021, the central government issued new guidelines for public procurement and project management. Most government procurement for public works (such as construction of highways and buildings) uses the L1 system (least cost). The Economic Survey (2021) notes that the L1 system may not be appropriate for complex projects needing innovation, quality, speed, and functionality. The revised guidelines allow the use of quality-cum-cost based system for selecting bidders. The new guidelines also stipulate timely release of 75% or more of bills, raised within 10 working days of the submission of the bill. This will help reduce delays in project execution, cost overruns, and disputes. ## Investment In Maintenance Of Roads In 2022-23, the Ministry has allocated Rs 2,586 crore towards the maintenance of roads and highways (including toll bridges). This is 7% lesser than revised expenditure on maintenance in 2021-22. In both 2018-19 and 2019-20, the actual expenditure on maintenance was less than 60% of the budget estimates (Figure ). The amount allocated towards maintenance, Rs 2,586 crore, is about 1.3% of the ministry's budget. This is for a total NH length of 1.4 lakh km (as of December 2021).35 In comparison, in 2020-21, the US government seeks to allocate $23.74 billion (about Rs 1.7 lakh crore, which is 51% of its total budget on highways) towards its National Highway Performance Program, to improve the condition and performance of their National Highway System (roughly 3.5 lakh km of length).36 The National Transport Development Policy Committee (2014) had noted that the amount spent on maintenance of roads is low.37 This results in roads with potholes, weak bridges, and poor pavements, and has safety consequences. Further, maintenance is carried out only when required, as opposed to being a part of preventive measures.37 The Standing Committee on Transport (2018, 2020) had also raised concerns that the entire amount allocated towards maintenance does not get fully utilised as well.20,22 Over the years, the Standing Committee has repeatedly noted that the entire length of NHs in the country cannot be maintained with this amount. NITI Aayog (2018) had noted that the amount allocated for maintenance is about 40% of the amount required.38 Maintenance of roads should be given top priority as it increases the life span of roads. The Standing Committee (2020) has recommended that the budget for maintenance of NHs should be increased.20 NITI Aayog has suggested that 10% of the Ministry's annual budget should be earmarked for maintenance.38 The Standing Committee (2015) had suggested that an effective monitoring mechanism for repair and maintenance of roads should be put in place.32 Further, there should be penalties for contractors and engineers in case of poor quality repair, maintenance, and construction. ## Investment In Road Safety In 2022-23, the Ministry has allocated Rs 356 crore towards road transport and safety. This is a 56% increase over the revised expenditure on maintenance in 2021-22. Note that between 2017- 18 and 2020-21, the actual expenditure on safety has not exceeded 61% of the budget estimates (Figure). Sources: Ministry of Road Transport and Highways budget documents 2010-22; PRS. The allocation towards safety provides for various things such as road safety programmes, setting up of facilities on NHs, extending relief to accident victims, strengthening of public transport, research and development, and training. The amount allocated towards road safety in 2022- 23 is less than 0.2% of the Ministry's total budget. In comparison, in 2019 the US federal government spent about $2.7 billion on its Highway Safety Improvement Programme (6% of its total expenditure on highways).36 The Standing Committee on Transport (2020) suggested that the Ministry may seek higher fund allocation towards road safety, and driver training programmes. In 2019, there were about 4.5 lakh road accidents in India, which killed about 1.5 lakh people and injured about 4.5 lakh people.39 In 2020, the number of accidents reduced to 1.3 lakh, killing 1.3 lakh people.40 In 2020, the major causes of road accident deaths were over-speeding (57%) and careless driving (26%).40 This reduction in accidents and fatalities could be due to the Covid-19 lockdown, which restricted movement of people. As per the World Road Statistics, 2018, India ranks first in the number of road accident deaths (among 199 countries reported), followed by China and the US. As per the WHO Global Report on Road Safety 2018, about 11% of the accident related deaths in the world occur in India.39 The Standing Committee (2021) observed that a large number of black spots still remain unidentified, given the extremely high number of road accidents that take place in India each year.28 During the last five years, the Ministry has identified 5,803 blackspots.41 Out of these, 3,996 blackspots have been identified on NHs currently entrusted to NHAI.41 As of August 2021, 60% of the blackspots identified during 2015-18 have been rectified.41 Further, as of August 2021, only 70% of the blackspots identified during 2011-14 have been rectified. The Standing Committee (2022) recommended the Ministry to speed up the rectification of black spots to avoid potential road accidents.41 The Standing Committee (2021) also recommended detailed examination of all projects, especially to eliminate geometrical design errors that may compromise the safety of the road users.28 Further, the Standing Committee (2021) observed that the number of ambulances (111), patrol vehicles (509), tow away cranes (443) available with the Ministry are not commensurate with the size of the NH network in India.28 The Committee (2022) recommended finalising the tender for Computer Aided Dispatch System for on-road units at the earliest, to provide timely emergency care to accident victims during the golden hour. 41 In 2019, Parliament passed the Motor Vehicles (Amendment) Bill, 2019 which seeks to address various issues around road safety. It increases the penalties for various offences under the Act, and provides for a Motor Vehicle Accident Fund which would be used for the treatment of persons injured in road accidents. In August 2021, the central government constituted the National Road Safety Board, which will advise the central and state governments on all aspects of road safety and traffic management.42 The Ministry has notified several Rules to implement provisions of the Act, such as: (i) protection of Good Samaritans, (ii) conditions for states to levy higher penalties than those in the Act, and (iii) amendments to obtaining driving licenses, among others.35 In August 2021, the Ministry notified Rules for electronic monitoring of roads.43 As per these Rules, state governments must place electronic enforcement devices (like speed camera, CCTVs, speed gun, body wearable cameras) at: (i) high-risk and high density corridors on national and state highways, and (ii) critical junctions in major cities with more than one million population.43 Connectivity in remote areas The Ministry also allocates funds towards the development of highways in areas with poor connectivity. Some of these projects include the Special Accelerated Road Development Programme in North East (SARDP-NE), Externally Aided Projects and Roads Projects in Left-Wing Extremism Affected Areas. In 2022-23, Rs 10,565 crore has been allocated towards the SARDP-NE project. This is a 25% annual increase from the revised expenditure in 2021-22. Between 2017-18 and 2019-20, the fund utilisation of the project has been consistently greater than 90%. In 2020-21, the actual expenditure exceeded the budgeted expenditure by 17%. The Standing Committee on Transport has repeatedly (2018, 2020) noted under-achievement of targets in SARDP-NE.20,22 The Standing Committee (2020) noted that projects in the north eastern region face delays of almost a decade in completion. This causes inconvenience to the commuters, and also adds to the project cost.20 To ensure timely completion of projects, the Committee (2021) recommended the Ministry to: (i) ensure that contractors with poor track record are not awarded road projects, and (ii) work in close coordination with Environment and Forest Departments to avoid issues related to obtaining environment/forest/wildlife clearances.44 The Committee (2021) also recommended investing in research for the best construction techniques in the hilly and flood prone regions of the north east.44 In 2020-21, Rs 425 crore was allocated for development of road connectivity in areas affected by Left Wing Extremism.45 This is similar to the allocations in 2019-20 (Rs 415 crore) and 2018-19 (Rs 490 crore).45 The Ministry aims to develop 1,177 km of NHs, and 4,276 km of state roads in Left Wing Extremism affected areas. The Standing Committee on Transport (2021) asked the Ministry to evaluate the reasons for the slow pace of progress in this scheme.45 Some of these reasons are: (i) poor availability of law and order situation, 1 Rajya Sabha Unstarred question no. 1213, Ministry of Road Transport and Highways, December 8, 2021, https://pqars.nic.in/annex/255/AU1213.pdf. 2 Union Budget Speech 2022-23, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf. 3 Notes on Demands for Grants 2022-23 Demand no 86, Ministry of Road Transport and Highways, https://www.indiabudget.gov.in/doc/eb/sbe86.pdf. 4 Lok Sabha Unstarred question no. 1129, Ministry of Road Transport and Highways, December 21, 2017. 5 Implementation of Budget Announcements 2021-22, , https://www.indiabudget.gov.in/doc/impbud2020-21.pdf. 6 "312th Report: 'Review of Central Road and Infrastructure Fund (CIRF) Works', Standing Committee on Transport, Tourism and Culture, February 3, 2022, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/166/312_2022_2_17.pdf. 7 "Cabinet authorized National Highways Authority of India to monetize public funded national highway projects", Press Information Bureau , Cabinet Committee on Economic Affairs (CCEA), August 3, 2016, http://pib.nic.in/newsite/PrintRelease.aspx?relid=148306. 8 Table 1.28: Operations of Road Transport, Economy Survey 2021-22 Statistical Appendix, February 2022, https://www.indiabudget.gov.in/economicsurvey/doc/stat/tab128 .pdf. 9 Basic Road Statistics of India 2016-17, Ministry of Road Transport and Highways, http://morth.nic.in/showfile.asp?lid=4585. 10 Annual Report 2017-18, National Highways Authority of India, Ministry of Road Transport and Highways, https://nhai.gov.in/writereaddata/Portal/Images/pdf/Compressed NHAIAnnualReportEnglishcorrected.pdf. 11 Volume 2, Economic Survey 2020-21, January 29, 2021, https://www.indiabudget.gov.in/economicsurvey/. 12 "Shri Nitin Gadkari announces adoption of international system of counting of Lane Kilometres", Press Information Bureau, Ministry of Road Transport & Highways, April 3, 2018, https://pib.gov.in/PressReleasePage.aspx?PRID=1527463. 13 "Simplified Highway Capacity Calculation Method for the Highway Performance Monitoring System", Federal Highway Administration, October 2017, https://www.fhwa.dot.gov/policyinformation/pubs/pl18003/hpm s_cap.pdf. 14 "The Canadian Transportation System", Government of Canada, May 8, 2018, https://www144.statcan.gc.ca/tdihcdit/cts-rtc-eng.htm. 15 Chapter 8: Industry and Infrastructure, Economic Survey 2021-22, February 2022, https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/ echap08.pdf. (ii) limited availability of dedicated security forces, and (iii) delays in land acquisition.45,46 The Ministry has taken some steps to improve the participation of private contractors. These include: (i) authorising the government to accept bids up to 10% above the schedule of rates, and (ii) clubbing and splitting of works to reduce risk.45 ## 17 Rajya Sabha Untarred Question 2001, Ministry of Road Transport and Highways, December 15, 2021, https://pqars.nic.in/annex/255/AU2001.pdf. 18 Sector-wise analysis of cost overrun in projects, 116th Project Implementation An Overview - December 2021, Ministry of Statistics and Programme Implementation, http://www.cspm.gov.in/english/pio_report/PIO_December_202 1.pdf. 19 Chapter 8: Industry and Infrastructure, Economic Survey 2016-17, Volume 2, August 2017, http://www.indiabudget.gov.in/es2016-17/echapter_vol2.pdf. 20 "278th Report: Demands for Grants (2020-21) of Ministry of Road Transport and Highways", Standing Committee on Transport, Tourism and Culture, March 12, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/127/278_2020_9_15.pdf. 21 "236th Report: Infrastructure Lending in Road Sector", Standing Committee on Transport, Tourism and Culture, August 10, 2016, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20Transport,%20Tourism%20and%20Culture /236.pdf. 22 "259th Report: Demands for Grants (2018-19) of the Ministry of Road Transport and Highways", Standing Committee on Transport, Tourism and Culture, March 6, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/102/259_2018_6_17.pdf. 23 "Targets of NH construction", Press Information Bureau, Ministry of Road Transport and Highways, March 12, 2020, https://pib.gov.in/PressReleasePage.aspx?PRID=1606078. 24 "285th Report: Action Taken by the Government on the Recommendations/Observations of the Committee contained in its Two Hundred and Seventy Eighth Report on Demands for Grants (2020-21) of Ministry of Road Transport and Highways", Standing Committee on Transport, Tourism and Culture, February 3, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/148/285_2021_7_12.pdf. 25 Volume 1, Report of the Task Force on National Infrastructure Pipeline, Ministry of Finance, https://dea.gov.in/sites/default/files/Report%20of%20the%20Ta sk%20Force%20National%20Infrastructure%20Pipeline%20%2 8NIP%29%20-%20volume-i_1.pdf. 26 Volume 2, National Monetisation Pipeline, NITI Aayog, August 23, 2021, http://www.niti.gov.in/sites/default/files/2021- 08/Vol_2_NATIONAL_MONETISATION_PIPELINE_23_Au g_2021.pdf. 27 Rajya Sabha Unstarred question no. 416, Ministry of Road Transport and Highways, December 1, 2021, https://pqars.nic.in/annex/255/AU416.pdf. 28 "296th Report: Role of Highways in Nation Building", Standing Committee on Transport, Tourism and Culture, July 28, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/148/296_2021_10_17.pdf. 29 Chapter 12: Ministry of Road Transport and Highways, Report No. 9 of 2017, 2016, Compliance Audit Union Government Commercial, Comptroller and Auditor General of India, April 5, 2017, http://www.cag.gov.in/sites/default/files/audit_report_files/Exec utive_Summary_report_No_9_%20of_2017_on_compliance_au dit_observations_union_government.pdf. 30 "19th Report, Committee on Public Undertaking: 'National Highways Authority of India'", Lok Sabha, August 2, 2017, http://164.100.47.193/lsscommittee/Public%20Undertakings/16 _Public_Undertakings_19.pdf. 31 "272nd Report: Action Taken by the Government on the Recommendations/Observations of the Committee contained in its Two Hundred and Thirty Sixth Report on 'Infrastructure Lending in Road Sector'", Standing Committee on Transport, Tourism and Culture, December 9, 2019, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/127/272_2020_9_12.pdf. 32 "220th Report: Demands for Grants (2015-16) of Ministry of Road Transport and Highways", Standing Committee on Transport, Tourism and Culture, April 28, 2015, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/31/220_2016_7_17.pdf. 33 "Report of the Committee on Revisiting and Revitalising Public Private Partnership Model of Infrastructure", Department of Economic Affairs, Ministry of Finance, November 2015, https://www.pppinindia.gov.in/infrastructureindia/documents/10 184/0/kelkar+Pdf/0d6ffb64-4501-42ba-a083-ca3ce99cf999. 34 Lok Sabha Starred Question No. 249, Answered on 5th December, 2019, Ministry of Road Transport and Highways. 35 Rajya Sabha Starred Question No. 183, Ministry of Road Transport and Highways, December 15, 2021, https://pqars.nic.in/annex/255/AS183.pdf. 36 FHWA FY 2019 Budget, Federal Highway Administration, https://www.fhwa.dot.gov/cfo/fhwa-fy-2019-cj-final.pdf. oads_v3_p1.pdf. 38 Strategy for New India @ 75, NITI Aayog, November 2018, https://niti.gov.in/sites/default/files/2019- 01/Strategy_for_New_India_0.pdf. 39 Road Accidents in India 2019, Transport Research Wing, Ministry of Road Transport and Highways, http://morth.nic.in/sites/default/files/RA_Uploading.pdf. 40 Chapter -1A Traffic Accidents, National Crime Records Bureau, https://ncrb.gov.in/sites/default/files/adsi2020_Chapter- 1A-Traffic-Accidents.pdf. 41 307th Report: Action Taken by the Government on the Recommendations/Observations of the Committee contained in its Two Hundred and Ninety Sixth Report on the subject 'Role of Highways in Nation Building', Standing Committee on Transport, Tourism and Culture, February 2, 2022, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/166/307_2022_2_9.pdf. 42 S.O. 3627 (E), Gazette of India, Ministry of Road Transport and Highways, September 3, 2021, https://egazette.nic.in/WriteReadData/2021/229453.pdf. 43 G.S.R. 575 (E), Gazette of India, Ministry of Road Transport and Highways, August 11, 2021, https://egazette.nic.in/WriteReadData/2021/229080.pdf. 44 "301st Report: Action Taken by the Government on the Recommendations/Observations of the Committee contained in its Two Hundred and Eighty Seventh Report on the 'Demands for Grants (2021-22) of Ministry of Road Transport and Highways", Standing Committee on Transport, Tourism and Culture, December 17, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/166/301_2021_12_14.pdf. 45 "287th Report: 'Demands for Grants (2021-22) of Ministry of Road Transport and Highways", Standing Committee on Transport, Tourism and Culture, March 9, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/20/148/287_2021_7_11.pdf. 46 Rajya Sabha Unstarred Question No. 1566, Ministry of Road Transport and Highways, December 2, 2019, https://pqars.nic.in/annex/250/AU1566.pdf. ## Budget Announcements Status Of Implementation Developing National Highways (Nhs) In Various States | Developing 3,500 km of NHs in Tamil Nadu | Project length of 125 km is completed, and 2,214 km is ongoing. | |-----------------------------------------------------------------------|---------------------------------------------------------------------| | Developing 1,100 km of NHs in Kerala | Project length of 632 km is ongoing. | | Developing 675 km of NHs in West Bengal | Project length of 21 km is completed, and 1,194 km is ongoing. | | Developing 1,300 km of NHs in Assam | Project length of 20 km is completed, and 743 km is ongoing. | | Delhi-Mumbai Expressway: 260 km will be awarded | | | before 31.3.2021. | | | | | | Out of the total length of 1,380 km, 1,337 km length has been awarded | | | for construction. Of this, 450 km has been completed, and 887 km is | | | under construction. | | ## Developing Flagship Corridors In Various States The complete corridor of 262 km has been awarded in the month of September 2021. Bengaluru - Chennai Expressway: 278 km will be initiated in the current financial year. Construction will begin in 2021-22. As on date, out of the 329 km complete length of the corridor, 220 km has been awarded for construction. Delhi - Dehradun economic corridor: 210 km corridor will be initiated in the current financial year. Construction will begin in 2021-22 Kanpur - Lucknow Expressway: 63 km expressway will be initiated in 2021-22. Bids for the Kanpur –Lucknow Expressway have been invited and in advanced stage of land acquisition. Chennai - Salem corridor: 277 km expressway will be awarded, and construction would start in 2021-22. The flagship 277 km Chennai Salem corridor is in pre-construction stage with studies undertaken like Social Impact Assessment (SIA) to analyse and create proper alternatives as per guidelines of the Supreme Court. Raipur - Vishakhapatnam: 464 km will be awarded in the current year. Construction will start in 2021-22. Out of the total corridor length of 464 km, projects have already been awarded for 356 km. Amritsar - Jamnagar: Construction will commence in 2021-22. As on date, over 260 km of the corridor has already been constructed. The complete greenfield section of 762 km from Sangriya to Santalpur and 63 km brownfield section from Bhatinda to Sangriya have been awarded. Delhi - Katra: Construction will commence in 2021-22. Out of a total corridor length of 670 km, 580 km has been awarded. The remaining stretches to be awarded in FY 2021-22. Sources: Implementation of Budget Announcements (2020-21); PRS. ## Demand For Grants 2022-23 Analysis Home Affairs The Ministry of Home Affairs is responsible for matters concerning internal security, central armed police forces, border management, disaster management, census, and centre-state relations. In addition, the Ministry makes certain grants to union territories (UTs), since they are not covered by the Finance Commission's recommendations on devolution and, thus, do not have any share in central taxes. This note analyses the expenditure trends and budget proposals for the Ministry of Home Affairs for 2022-23, and discusses issues across the sectors administered by the Ministry. Overview of Finances In 2022-23, the Ministry of Home Affairs has been allocated Rs 1,85,777 crore. This is an increase of 7% over the revised estimates for 2021-22 (Rs 1,73,083 crore). The budget for the Ministry constitutes 4.7% of the total expenditure budget of the union government in 2022-23, and is the fourth highest allocation. Figure 1 shows the expenditure of the Ministry between 2012 and 2023. Since 2019, expenditure of the Ministry also includes grants to the newly formed UTs of Jammu and Kashmir, and Ladakh. The average annual growth rate in expenditure over the last ten years has been 14.3%. Note: Figures for 2021-22 are Revised Estimates and for 2022-23 are Budget Estimates. Source: Union Budgets 2014-15 to 2022-23; PRS. Figure shows the percentage of over/under utilisation of funds allocated to the Ministry between 2012-13 and 2021-22. Since 2015-16, the expenditure of the Ministry has been higher than the budgeted expenditure in all years except in 2020-21, when the actual expenditure was 14% lower than the allocation. This was due to restricted spending by the government owing to the COVID-19 pandemic.1 Note: Figures for 2021-22 are Revised Estimates. Source: Union Budgets 2013-14 to 2022-23; PRS. Of the Ministry's total budget for 2022-23, (i) 63% of the expenditure is on police, (ii) 32% is on grants to UTs, and (iii) 5% is on miscellaneous items such as disaster management, rehabilitation of refugees and migrants, and conducting the Census. Table1 shows the allocations to these three heads. Major Head 2020-21 Actuals 2021-22 Revised 2022-23 Budget % Change (BE 2022-23/ RE 2021-22) Police 91,611 1,09,266 1,17,688 8% UTs 47,605 57,533 58,757 2% Others 5,042 6,284 9,332 49% Total 1,44,258 1,73,083 1,85,777 7% Note: BE - Budget Estimates, RE - Revised Estimates. Expenditure under 'Others' includes disaster management and administrative matters. Source: Union Budget 2022-23; PRS. Police: Expenditure on police includes allocation towards the Central Armed Police Forces, the Intelligence Bureau, and the Delhi Police. For 2022- 23, Rs 1,17,688 crore has been allocated towards police. This is an increase of 8% over the revised estimates for 2021-22. Grants and loans to UTs: In 2022-23, Rs 58,757 crore has been allocated towards grants and loans for the administration of UTs. This is an increase of 2% over the revised estimates for 2021-22 (Rs 57,533 crore). The allocation to the UTs of Jammu and Kashmir, and Ladakh (both formed after the reorganisation of the former state of Jammu and Kashmir in 2019) is 71% of the total amount allocated to all UTs. Other items: Other expenditure items of the Ministry include disaster management, rehabilitation of refugees and migrants, and administrative matters (relating to the Census, the secretariat and Cabinet). In 2022-23, these items have been allocated Rs 9,332 crore. This is 49% higher than the revised estimates for 2021-22 (Rs 6,284 crore). This is primarily on account of increase in allocation towards the Census survey and the office of the Registrar General of India, from Rs 520 crore (at the revised estimate stage) in 2021-22 to Rs 3,676 crore in 2022-23. ## Analysis Of Key Areas Of Expenditure Police In 2022-23, Rs 1,17,688 crore has been budgeted for police expenditure. This includes allocations to various police organisations, including: (i) the Central Armed Police Forces, primarily responsible for border protection and internal security, (ii) Delhi Police, responsible for maintenance of law and order in Delhi, and (iii) Intelligence Bureau, the nodal agency for collection of domestic intelligence. Further, funds are also allocated for modernisation of police, and border infrastructure. 2020- 21 2021-22 Revised 2022-23 Budget % Change (BE 2022- Actual 23/ RE 2021-22) 73,650 81,396 87,444 7% Central Armed Police Forces Delhi Police* 8,016 11,136 10,096 -9% 1,951 3,023 3,919 30% Police Infrastructure 2,351 2,793 3,168 13% Intelligence Bureau 2,057 3,346 2,754 -18% Modernisation of police 1,534 2,701 2,745 2% Border Infrastructure Others** 2,053 4,871 7,562 55% Total 91,611 1,09,266 1,17,688 8% Note: *Includes expenditure on traffic management, expansion of communication infrastructure, and induction of latest technology. **Includes schemes for safety of women, central police organisations, and Land Port Authority of India. BE - Budget Estimates, RE - Revised Estimates. Source: Union Budget 2022-23; PRS. The total budget for police in 2022-23 has increased by 8% over the revised estimates for 2021-22. Over the last ten years (2013-23), expenditure on police has increased at an average annual rate of 10.3% (Figure ). Note: Revised Estimates used for 2021-22 and Budget Estimates for 2022-23. Actuals used for all other years. Source: Union Budgets 2015-16 to 2022-23; PRS. Figure shows the percentage over/under utilisation of the amount budgeted for police from 2012-22. Since 2015-16, the actual expenditure on police has been higher than the budget estimate, except in 2020- 21, when spending was 13% lower than the budget. 2021-22 Note: Figures for 2021-22 are Revised Estimates. Source: Union Budgets 2013-14 to 2022-23; PRS. ## Central Armed Police Forces The Central Armed Police Forces (CAPFs) comprise seven forces: (i) the Central Reserve Police Force (CRPF) which assists in internal security and law and order, (ii) Central Industrial Security Force (CISF) which protects vital installations (such as airports) and public sector undertakings, (iii) the National Security Guard (NSG) which is a special counterterrorism force, and (iv) four border guarding forces, namely, the Border Security Force (BSF), the Indo- Tibetan Border Police (ITBP), the Sashastra Seema Bal (SSB), and the Assam Rifles (AR). Table 13 in the Annexure shows the expenditure on each of the CAPFs in the past ten years. The CAPFs have been allocated Rs 87,444 crore in 2022-23. This accounts for 74% of the expenditure on police, and is 7% higher than the revised estimates for 2021-22 (Rs 81,396 crore). Of this, the highest expenditure is towards the CRPF, which will receive 34% (Rs 29,325 crore) of the total allocation for CAPFs, followed by the BSF, which will receive 27% (Rs 22,718 crore) of the allocation. In 2022-23, out of the total spending on CAPFs, only 2% is on capital expenditure, while the remaining 98% is on revenue expenditure. This is in line with the average trend in the last ten years (Table 3). Capital expenditure includes spending on procuring machinery, equipment and vehicles, while revenue expenditure includes spending on salaries, arms and ammunition, and clothing. Note that the capital component does not include funds for construction. | Year | Revenue | % | Capital | % | |-------------------------|------------|---------|------------|-------| | Revenue | | Capital | | | | 2013-14 | 34,679 | 98% | 651 | 2% | | 2014-15 | 39,333 | 98% | 654 | 2% | | 2015-16 | 43,935 | 98% | 734 | 2% | | 2016-17 | 51,529 | 98% | 946 | 2% | | 2017-18 | 56,801 | 98% | 1,206 | 2% | | 2018-19 66,507 | 98% | 1,164 | 2% | | | 2019-20 | 74,366 | 98% | 1,306 | 2% | | 2020-21 | 72,796 | 99% | 855 | 1% | | 2021-22 | 80,391 | 99% | 1,005 | 1% | | 2022-23 | 85,648 | 98% | 1,796 | 2% | Note: Figures for 2021-22 are Revised Estimates and for 2022-23 are Budget Estimates. Figures for all other years are actuals. Source: Union Budgets 2015-16 to 2022-23; PRS. ## Vacancies As on January 1, 2020, 10% of the total sanctioned posts in CAPFs were vacant.2 Of these vacancies, 26% were in BSF and 24% in the CRPF. Table shows the percentage of vacancies in each CAPF. | CAPFs | | Sanctioned | % Vacancies | | |----------|-----|---------------|---------------|----------| | Strength | | | | | | Actual | | | | | | Strength | | | | | | CRPF | | 3,24,340 | | 2,99,410 | | BSF | | 2,65,173 | | 2,37,750 | | CISF | | 1,62,541 | | 1,41,650 | | SSB | | 97,244 | | 78,809 | | ITBP | | 89,567 | | 82,631 | | AR | | 66,408 | | 60,524 | | NSG | | 10,844 | | 9,857 | | Total | | 10,16,117 | 9,10,631 | 10% | The Standing Committee on Home Affairs (2019) noted that continued vacancies were observed in the CAPFs.3,4 The Standing Committee (2018) observed that there was a lack of planning and estimation of future vacancies, leading to delays in recruitment.5 It recommended the Ministry to proactively identify and report vacancies to recruitment agencies on time. ## Modernisation Of Capfs The Modernisation Plan II (2012-17) aimed at providing financial support to CAPFs for arms, clothing, and equipment. The Estimates Committee (2018) noted that the procurement process under the Modernisation Plan was cumbersome and timeconsuming.6 It recommended the Ministry to take action to address bottlenecks in procurement. It also recommended the Ministry and CAPFs to hold negotiations with ordnance factories and manufacturers to ensure uninterrupted supply of equipment and other infrastructure.6 In 2022-23, the Modernisation Plan IV has been allocated Rs 248 crore, up from the revised estimate for 2021-22 (Rs 100 crore). The 15th Finance Commission (2021) recommended establishing the Modernisation Fund for Defence and Internal Security to bridge the gap between budgetary requirements and allocation for capital outlay in defence and internal security. The fund will have an estimated corpus of Rs 2.4 lakh crore over 2021-26.7 ## Training And Management All CAPFs have set up training institutes to meet their training requirements and impart professional skills on specialised topics. The Estimates Committee (2020) recommended that the contents of training should include latest technologies such as IT and cyber security alongside conventional training.8 The Standing Committee on Home Affairs (2022) noted that the CAPFs are often roped in to assist state police forces to contain regional issues such as naxalism and organised crimes.9 It recommended establishing training centres where personnel of both the forces may undergo joint training programmes. In terms of organisational management, the Standing Committee (2019) highlighted the issue of stagnation in promotion among personnel of the CAPFs. For example, promotion from constable to head constable takes 12-13 years (against the required period of five years) in the ITBP, and 22 years in the CISF.5,10 In this context, the Standing Committee (2018) recommended expediting cadre review of the CAPFs to ensure that promotions take place on time.10 ## Living Conditions The Standing Committee on Home Affairs (2018, 2019) has highlighted shortfall in housing, poor quality of food, and lack of access to clean drinking water as issues faced by CAPFs personnel.3,4,5 The Standing Committee (2019) observed that the housing satisfaction level as against authorised dwelling units (39%) in the border-guarding CAPFs was quite low.4 It noted that the housing problem was even more acute when comparing the satisfaction level against the sanctioned strength. Within the available housing, there was a further shortage of housing for non-gazetted officers. The government stated that this is primarily due to difficulty in land acquisition and limited executive power at the local level. Housing shortage has also been highlighted as an issue for other CAPFs.4 As of November 2021, housing satisfaction level in CAPFs was 47% as against authorised dwelling units.11 Further, CAPFs also face challenges pertaining to food quality and access to drinking water. In case of the border guarding CAPFs, the Standing Committee (2019) observed that it was difficult to ensure a regular supply of nutritious food due to postings in remote areas. Additionally, as per government estimates, 82% of ITBP, 78% of SSB, 43% of AR, and 16% of BSF out-posts had not been provided with potable water. The Committee, thus, recommended routine inspection of the quality and supply of food, and to ensure continued access to water for personnel.3,4,5 For other CAPFs, it recommended establishing location-specific systems of procurement and provision of food, and ensuring quality checks through external food inspections.4 ## Mobility And Connectivity In Border Areas Mobility of border guarding forces is an issue which affects their operational efficiency.5 The Standing Committee on Home Affairs (2018) noted that there is: (i) a shortage of 4,210 km of road at the Indo- Pakistan and Indo-Bangladesh border where BSF personnel are located, and (ii) a lack of adequate allweather roads in remote areas where Assam Rifles personnel are posted.5 The Standing Committee (2019) also noted that there is no provision for mobile connectivity in many border outposts, and recommended the Ministry to provide optical fibre cable connectivity and expand telecom connectivity. In 2022-23, Rs 2,745 crore has been budgeted for border infrastructure and management (Table 5). This is an increase of 2% over the revised estimates for 2021-22 (Rs 2,701 crore). This includes allocations for maintenance of border works, border check posts and out posts, and capital outlay for various items including barbed wire fencing, construction of roads, and hi-tech surveillance on the Indo-Bangladesh and Indo-Pakistan borders. | Department | 2020-21 | |---------------|------------| | Actuals | | | 2021-22 | | | Revised | | | 2022-23 | | | Budget | | | % Change | | | (BE 2022-23/ | | | RE 2021-22) | | | 226 | 314 | | and Border | | | Check post | | | 1,308 | 2,387 | | Outlay | | | Total | 1,534 | Note: BE - Budget Estimates, RE - Revised Estimates. Source: Union Budget 2022-23; PRS. Between 2015-16 and 2022-23, the expenditure on border infrastructure and management has increased at an average annual growth rate of 9%, with a significant increase in 2021-22 (Figure ). Note: Revised Estimates used for 2021-22 and Budget Estimates used for 2022-23. Figures for all other years are actuals. Source: Union Budgets 2017-18 to 2022-23; PRS. An amount of Rs 10,096 crore has been allocated to the Delhi Police in 2022-23. This is 9% lesser than the revised estimates for 2021-22 (see Table ). ## Vacancies And Inadequate Women Representation As on March 15, 2021, 15% of the total sanctioned posts in the Delhi Police were vacant.12 Vacancies in Delhi Police from 2015 to 2021 are given in Table 6. | Year | | Sanctioned | % | |----------|--------|---------------|------| | strength | | | | | Actual | | | | | strength | | Vacancies | | | 2015 | | | | | | | | | | 82,242 | | | | | | | | | | 77,083 | | | | | | | | | | 6% | | | | | | | | | | 2016 | | | | | | | | | | 82,242 | 76,348 | | | | | | | | | 7% | | | | | | | | | | 2017 | | | | | | | | | | 84,417 | | | | | | | | | | 82,979 | | | | | | | | | | 2% | | | | | | | | | | 2018 | | | | | | | | | | 86,531 | | | | | | | | | | 74,712 | | | | | | | | | | 14% | | | | | | | | | | 2019 | | | | | | | | | | 91,963 | | | | | | | | | | 82,190 | | | | | | | | | | 11% | | | | | | | | | | 2020 | 91,962 | 82,195 | 11% | | 2021* | 94,353 | 80,074 | 15% | Note: *as on March 15, 2021. Source: Bureau of Police Research and Development; Starred Question No. 302, Rajya Sabha, March 24, 2021; PRS. The Standing Committee on Home Affairs (2014) stated that steps should be taken to assess the actual requirement of police strength to improve the policepopulation ratio.14 It recommended that the Delhi Police may take the assistance of the Bureau of Police Research and Development to improve the operational efficiency of the organisation. Further, the Standing Committee (2021) noted that women were not adequately represented in the Delhi Police.13 Despite the Ministry having advised states/ UTs to provide 33% reservation to women in their police forces, women representation was less than 14% in the Delhi Police.13 The Committee noted that low representation of women in police forces acts as a barrier for women victims of crime seeking to approach police stations. It recommended the Ministry along with Delhi Police to conduct special recruitment drives to increase the representation of women on priority and in a time-bound manner. ## Quality Of Investigation The number of cases of crimes reported to and solved by Delhi Police from 2015 to 2018 is given below. by the Delhi Police (2015-2018) | Year | | Cumulative | |----------------|----------|---------------| | Cases reported | | | | Cumulative | | | | Cases solved | | | | % Cases | | | | unsolved | | | | 2015 | 1,91,377 | 52,091 | | 2016 | 2,09,519 | 55,957 | | 2017 | 2,33,580 | 81,219 | | 2018* | 1,25,668 | 37,390 | Note: Data pertains only to crimes under the Indian Penal Code, 1860. *Up to July 15, 2018. Source: Starred Question No. 227, Rajya Sabha, August 8, 2018; PRS. The Standing Committee on Home Affairs in its report on the functioning of Delhi Police (2014) had recommended that investigation should be separated from law-and-order duties.14 This is primarily because police personnel were found to be overburdened by a variety of tasks including administration and personal security. In 2015, the Committee was informed that the proposal for creation of additional posts in the Delhi Police for separating functions of investigation from law and order had been cleared by the Ministry of Home Affairs and sent to the Ministry of Finance for approval.15 In 2021, the Delhi Police Commissioner issued a standing order to ensure segregation of these functions (with exceptions in certain situations) by designating separate inspectors for both functions.16 The Standing Committee (2014) had also suggested that since investigation requires legal expertise, the training module of Delhi Police must include advanced courses on law and jurisprudence.14 ## Corruption And Transparency The Standing Committee on Home Affairs (2014) stated that public perception and anecdotal evidence pointed towards widespread corruption and rentseeking within the Delhi Police.14 It also observed that extraneous pressure on investigating agencies was impacting quality of investigations and delaying resolution of cases.14 In this regard, it recommended several measures including: (i) establishing vigilance squads and ensuring strict follow-up actions to investigations, (ii) prompt enquiry into complaints of corruption, and (iii) mandatory filing of returns of assets by officers of every rank. The central government has stated that vigilance units of Delhi Police strictly monitor police personnel and are empowered to take suo-moto action. Helplines to complain about instances of corruption have also been established by the Ministry.17 ## Intelligence Bureau The Intelligence Bureau (IB) is responsible for collecting intelligence within India, and is the primary agency for counter-intelligence. In 2022-23, an amount of Rs 3,168 crore has been allocated to the IB, which is 13% higher than the revised estimates for 2021-22 (Rs 2,793 crore). ## Multi Agency Centre In 2000, the central government set up a Group of Ministers (GoM) to comprehensively review the national security framework.18 The GoM recommended the Ministry of Home Affairs to put in place arrangements for intelligence sharing, in which the IB would play the lead role, along with representatives of the state and central police forces.18 Based on these recommendations, the Multi Agency Centre was set up in the IB, to collate and share intelligence with all other security agencies.18 Further, Subsidiary Multi Agency Centres have been set up at the state level to ensure better coordination between intelligence agencies.18 The Standing Committee on Home Affairs (2017) had observed that state agencies have made lower contribution in the overall inputs received by the Multi Agency Centre.18 It recommended the Ministry to hold consultations with states to find out the reasons for this low level of contribution. Further, the Committee recommended that there should be a mechanism to perform validity checks on information obtained from other agencies, before it is shared with the Multi Agency Centre.18 ## Modernisation Of Police Forces For 2022-23, the central government has made allocations towards four items related to modernisation of police forces. These are: (i) Modernisation of State Police Forces Scheme; (ii) the Crime and Criminal Tracking Network and Systems (CCTNS) scheme; (iii) Security Related Expenditure (SRE) scheme; and (iv) Special Infrastructure Scheme (SIS) for Left Wing Extremist (LWE) Areas. In 2022-23, Rs 2,754 crore has been allocated for modernisation of police forces, which is 18% lower than the revised estimates for 2021-22 (Table). However, there has been a 158% increase in allocation towards the Modernisation of State Police Forces Scheme and the CCTNS scheme. Note that the central government has approved continuation of the umbrella scheme for modernisation of police forces with a central outlay of Rs 26,275 crore for the period 2021-22 to 2025- 26.19 This includes Rs 4,846 crore for modernisation of state police forces, and Rs 18,839 crore for security related expenditure for the UT of Jammu and Kashmir, insurgency-affected north eastern states, and areas affected by left wing extremism.19 | 2022- | Major Head | 2020-21 | |------------------------------------------------------|---------------|------------| | Actuals | | | | 2021-22 | | | | Revised | 23 | | | Budget | | | | % Change | | | | (BE 2022-23/ | | | | RE 2021-22) | | | | 1,897 | 3,105 | 2,133 | | for LWE areas | | | | 160 | 240 | 621 | | Modernisation | | | | of State Police | | | | Forces and | | | | CCTNS | | | | Total | 2,057 | 3,346 | | Note: BE - Budget Estimates, RE - Revised Estimates. | | | | Source: Union Budget 2022-23; PRS. | | | Between 2011-12 and 2022-23, the expenditure on modernisation of police forces has increased at an average annual rate of 15%, despite a reduction in the last three years (Figure). Note: Revised Estimates used for 2021-22 and Budget Estimates used for 2022-23. Actuals used for all other years. Source: Union Budgets 2013-14 to 2022-23; PRS. ## Scheme For Modernisation Of State Police Forces The Modernisation of State Police Forces Scheme is a centrally sponsored scheme aimed at reducing the dependence of states on the army and CAPFs for the purposes of internal security and law and order.20 The focus of the scheme is on equipping state police forces with infrastructure such as modern weaponry and communication equipment. It also includes construction of police stations and police housing. Allocation and release of funds under the scheme in the last nine years is shown below. | Year | Allocation | Funds released | |---------|---------------|-------------------| | 2013-14 | 1,342 | 1,338 | | 2014-15 | 1,398 | 1,397 | | 2015-16 | 662 | 662 | | 2016-17 | 595 | 594 | | 2017-18 | 769 | 452 | | 2018-19 | 769 | 769 | | 2019-20 | 811 | 781 | | 2020-21 | 771 | 103 | The funds allocated under the modernisation scheme lapse at the end of the year if they are not released to states. Table shows that almost the entire amount allocated under the scheme was released in most years. In other years, funds allocated to most states could not be released, as they had substantial unspent balances and had not submitted utilisation certificates in respect of funds released during the previous year.9 The cost-sharing pattern between centre and states under the scheme is: (i) 90:10 for north-eastern and Himalayan states, and (ii) 60:40 for all other states.21 The Standing Committee on Home Affairs (2022) recommended bringing more states with strategic international borders under the first category, so that they can avail additional funds under the scheme.9 At present, the scheme allows expenditure under two items (viz., mobility, and construction of police infrastructure including housing) only to Jammu and Kashmir, insurgency affected north-eastern states, and districts affected by left wing extremism. The Standing Committee (2022) recommended the Ministry to consider including these items under the scheme for all states/UTs, to help increase the number of operational vehicles and improve the housing satisfaction level of police personnel.9 The Standing Committee (2022) noted that as on January 1, 2020, 257 police stations did not have vehicles, 638 police stations did not have telephones, and 143 police stations did not have wireless/ mobiles.9 Many of these police stations were in sensitive states/UTs (such as Punjab, and Jammu and Kashmir).9 The Committee recommended the Ministry to take certain steps in coordination with states for modernising their police forces. These include: (i) setting up adequate manufacturing units for non-lethal weaponry in India, (ii) developing a scientific approach to policing by leveraging technologies such as artificial intelligence and big data, (iii) deploying drones or unmanned aerial vehicles for surveillance of crime hotspots, crowd control, and disaster management, and (iv) installing CCTV cameras in police stations and court premises. The Comptroller and Auditor General of India (CAG) has highlighted lapses in the implementation of the modernisation scheme in various states. Issues including shortage of modern weaponry, obsolete communication sets susceptible to interception, and slow progress of planned construction work were observed by the CAG in Karnataka (2018), Maharashtra (2017), and Jharkhand (2020).22,23,24 ## Crime And Criminal Tracking Network And Systems (Cctns) Scheme CCTNS is a project aimed at creating a nationwide IT-enabled tracking system for investigation of crime and detection of criminals. As on August 11, 2021, Rs 1,949 crore (out of an allocation of Rs 2,000 crore) had been spent on CCTNS since its commencement. The Standing Committee on Home Affairs (2022) noted that CCTNS has been made operational in all states/UTs.9 It recommended integrating CCTNS data in real time with data of courts, prisons, prosecution, and forensics, as part of the Interoperable Criminal Justice System (ICJS). This will reduce duplication of work and errors, speed up trials, and increase police efficiency. The Committee also recommended digitising certain services rendered by police personnel (such as issuance of passport verification reports, arms license verification reports, and character certificates).9 This would not only save citizens from multiple visits to police stations, but also avoid the diversion of police personnel for such routine administrative work and they could be utilised in handling core functions of investigations and maintenance of law and order. The Standing Committee (2022) noted that FIRs are being registered electronically in 16,074 police stations. It observed that e-FIR facility is presently available in Delhi, Rajasthan, Uttar Pradesh and Odisha for registering certain cases. The Committee recommended the Ministry to coordinate with states to: (i) initiate the facility in the remaining states/UTs, and (ii) extend the facility to non-heinous crimes. ## Disaster Management The Ministry of Home Affairs is the nodal ministry for handling all types of disasters other than drought (which is handled by the Ministry of Agriculture).25 Disaster management includes capacity building, mitigation, and response to natural calamities and man-made disasters. Allocation towards various items is shown in Table . ## Table 10: Expenditure On Major Items Related To Disaster Management (In Rs Crore) Department 2020-21 Actuals 2021-22 Revised 2022-23 Budget % Change (BE 2022- 23/ RE 2021-22) 1,030 1,313 1,336 2% National Disaster Response Force 76 185 300 62% National Cyclone Risk Mitigation Project 106 128 86 -33% Disaster management infrastructure Other schemes 113 239 107 -55% Total 1,324 1,865 1,828 -2% Note: BE - Budget Estimates, RE - Revised Estimates. Source: Union Budget 2022-23; PRS. Currently, the central and state governments share costs for disaster management initiatives. The cost-sharing pattern between centre and states is: (i) 90:10 for northeastern and Himalayan states, and (ii) 75:25 for all other states. In 2021, the 15th Finance Commission recommended retaining this pattern.7 ## National Disaster Response Force The National Disaster Response Force is a specialised force responsible for disaster response and relief. For 2022-23, the budget estimate for the Force is Rs 1,336 crore, which is 2% higher than the revised estimates for 2021-22. The Standing Committee on Home Affairs (2018) noted that there was a standard operating procedure for deployment of the National Disaster Response Force during a disaster, according to which states can requisition for forces.32 However, states may be unable to make optimal assessment of the requirements, which could lead to competing demands for mobilisation of forces in disasterstricken areas. The Committee, therefore, recommended the National Disaster Management Authority to make an independent assessment of the number of battalions required to be deployed. This would ensure rational assessment of needs and optimal prepositioning of the Force.32 ## National Cyclone Risk Mitigation Project The National Cyclone Risk Mitigation Project (NCRMP) was launched by the Ministry of Home Affairs with the aim of minimising vulnerability in states/UTs that are prone to cyclone hazards. Key objectives of the project include: (i) improving early warning dissemination systems, and (ii) construction and maintenance of cyclone shelters.26 For 2022-23, a budgetary allocation of Rs 300 crore has been made towards this project. This is a 62% increase from the revised estimates for 2021-22. The Standing Committee (2018) noted that forecasting the rapid intensification of cyclones is an area of concern. It stated that rapid intensification of cyclones is no longer a rare phenomenon due to global warming, and recommended bolstering the existing capacity for advanced cyclone warning.32 The Standing Committee (2020) further stated that commissioning of early-warning dissemination systems in states including Odisha and Andhra Pradesh may increase pre-cyclone preparedness.32 However, it noted that construction had not begun for projects commissioned in 2015, which may have adverse impacts during the cyclonic season. ## National Disaster Response Fund The Disaster Management Act, 2005 mandates the creation of a National Disaster Response Fund and State Disaster Response Funds.27 Relief assistance is provided to states from the National Disaster Response Fund in case of severe natural calamities, where the State Disaster Response Fund is insufficient to cover the required expenditure.28 Allocations to the National Disaster Response Fund are made by the Ministry of Finance, though it is administratively controlled by the Ministry of Home Affairs.28 The National Disaster Response Fund is financed through the National Calamity Contingency Duty (NCCD) imposed on specified goods under central excise and customs.29 For the year 2022-23, a budgetary allocation of Rs 6,400 crore has been made to the fund, which is a 4% increase from the revised estimates for 2021-22 (Rs 6,130 crore). ## Response Fund (In Rs Crore) Department 2020-21 Actuals 2021-22 Revised 2022-23 Budget % Change (BE 2022- 23/ RE 2021-22) 5,820 6,130 6,400 4% National Disaster Response Fund Note: Allocation to the National Disaster Response Fund is made by the Ministry of Finance. BE - Budget Estimates, RE - Revised Estimates. Source: Union Budget 2022-23; PRS. The 15th Finance Commission has recommended setting up national- and state-level mitigation funds, in addition to the existing disaster response funds (together known as disaster risk management funds).30 This would address the full cycle of disaster management needs, namely, response and relief, recovery and reconstruction, preparedness and capacity building, and mitigation. The mitigation funds will be used for local and community-based interventions which reduce risks and promote environment-friendly settlements and livelihood practices. Further, the 15th Finance Commission (2021) recommended providing central assistance to states on a graded cost-sharing pattern. States must contribute: (i) 10% of assistance for grants of up to Rs 250 crore, (ii) 20% of assistance for grants of Rs 250-500 crore, and (iii) 25% of assistance for grants of over Rs 500 crore.7 ## Damage Assessment In order to receive assistance from the NDRF, state governments must submit a memorandum indicating the damage and requirement of funds.31 On receipt of the memorandum, an Inter-Ministerial Central Team (IMCT) is constituted, which will submit a report after an on-the-spot assessment of the damage. After this, a High-Level Committee approves the amount of relief to be released from the NDRF. The Standing Committee on Home Affairs (2018) noted that there was a significant difference between funds sought by state governments and amounts approved by the High-Level Committee.32 The shortfall was more than 70% in most cases, and even more than 95% in some. According to the Standing Committee, a reason for this shortfall could be that by the time the IMCT reaches the disaster-affected area, the signs of disaster are on the verge of diminishing. Thus, it recommended that the IMCT should make a preliminary visit to the affected areas within one week of the disaster. Further, a joint preliminary damage assessment should be done with the state governments concerned.32 For recovery and reconstruction assistance from the disaster response funds, the 15th Finance Commission in its report for the year 2020-21 recommended that each disaster should be followed by a post-disaster needs assessment (PDNA).30 This will be undertaken by the state governments for small-scale disasters, and jointly by the central and state governments for disasters of rare severity. The PDNA should cover the damage, loss, recovery and reconstruction needs of different sectors (such as housing, infrastructure, and livelihood), and indicate inter-sectoral needs as well as the annual requirements of each sector. The governments will contribute only part of the requirements of each sector, while the rest will be contributed by the disaster-affected people. The Finance Commission also recommended that there should be a third-party audit of funds released under this mechanism. ## Grants To Uts For 2022-23, Rs 58,757 crore has been allocated towards grants and loans for the administration of UTs. This is an increase of 2% over the revised estimates for 2021-22 (Rs 57,533 crore). Of the total allocation, the highest share is for the UTs of Jammu and Kashmir (61%), and Ladakh (10%). These two UTs were formed after the reorganisation of the former state of Jammu and Kashmir in 2019. Allocation towards each of the UTs is shown below. ## Territories (In Rs Crore) | Union | 2020- | 2022- | |-----------------|---------|---------| | Territory | 21 | | | 2021-22 | | | | Revised | | 23 | | % Change | | | | (BE 2022- | | | | Actuals | | Budget | | 23/ RE | | | | 2021-22) | | | | 30,757 | 34,704 | 35,581 | | Kashmir | | | | Ladakh | 2,374 | 5,958 | | 4,825 | 5,924 | 5,704 | | Andaman and | | | | Nicobar Islands | | | | Chandigarh | 4,224 | 4,428 | | 1,379 | 2,313 | 2,374 | | Haveli and | | | | Daman & Diu | | | | Puducherry | 1,703 | 1,880 | | Lakshadweep | 1,232 | 1,296 | | Delhi | 1,112 | 1,030 | | Total | 47,605 | 57,533 | Note: BE - Budget Estimates, RE - Revised Estimates. Source: Union Budget 2022-23; PRS. 3 Report No. 220: 'Action Taken by Government on the Recommendations/Observations Contained in the Two Hundred Fifteenth Report on Working Conditions in Non-Border Guarding Central Armed Police Forces (Central Industrial Security Force, Central Reserve Police Force and National Security Guard)', Standing Committee on Home Affairs, December 11, 2019, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/122/220_2020_9_12.pdf. 4 Report No. 221: 'Action Taken by Government on the Recommendations/Observations Contained in the Two Hundred Fourteenth Report on Working Conditions in Border Guarding Forces', Standing Committee on Home Affairs, December 11, 2019, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/122/221_2020_12_16.pdf. 5 Report No. 214: 'Working Conditions in Border Guarding Forces (Assam Rifles, Sashastra Seema Bal, Indo-Tibetan Border Police and Border Security Force)', Standing Committee on Home Affairs, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/107/214_2018_12_15.pdf. 6 Report No. 28: 'Central Armed Police Forces and Internal Security Challenges - Evaluation and Response Mechanism', Committee on Estimates, Lok Sabha, March 16, 2018, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_28.pf 7 Report for 2021-26, 15th Finance Commission, February, 2021, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/R eports/XVFC%20Complete_Report.pdf. 8 Report No. 2: 'Action taken by the Government on the recommendations contained in Twenty-Eight Report (Sixteenth Lok Sabha) of the Committee on Estimates', Lok Sabha, 2020, http://164.100.47.193/lsscommittee/Estimates/17_Estimates_2.pdf. 9 Report No. 237: 'Police - Training, Modernisation and Reforms', Standing Committee on Home Affairs, February 10, 2022, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/161/237_2022_2_17.pdf. 10 Report No. 215: 'Working Conditions in Non-Border Guarding Central Armed Police Forces', Standing Committee on Home Affairs, December 12, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/107/215_2018_12_15.pdf. 11 "Ministry of Home Affairs - Review of 2021", Ministry of Home Affairs, Press Information Bureau, January 10, 2022. 12 Data on Police Organisations, 2020, Bureau of Police Research and Development, Ministry of Home Affairs, October, 2020. 13 Report No. 230: 'Atrocities and Crimes against Women and Children', Standing Committee on Home Affairs, Rajya Sabha, March 15, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/143/230_2021_3_12.pdf. 14 Report No. 176: 'The Functioning of Delhi Police', Standing Committee on Home Affairs, February 19, 2014, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/15/176_2016_6_17.pdf. 15 Report No. 189: 'Action taken by the Government on the Recommendations/Observations contained in the 176th Report on the Functioning of Delhi Police', Standing Committee on Home Affairs, Rajya Sabha, December 7, 2015, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/15/189_2018_7_15.pdf. 16 "Delhi police chief issues order to segregate duties", The Hindu, November 28, 2021. Affairs, December 12, 2015, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/15/189_2018_7_15.pdf. 18 Report No. 203: 'Border Security: Capacity Building and Institutions', Standing Committee on Home Affairs, April 11, 2017, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/15/203_2017_4_11.pdf. 19 "Government of India under leadership of Prime Minister, Shri Narendra Modi approves continuation of umbrella scheme of Modernisation of Police Forces (MPF)", Ministry of Home Affairs, Press Information Bureau, February 13, 2022. 20 Modernisation of State Police Forces (MPF) Scheme, Ministry of Home Affairs, last accessed on February 11, 2022, https://www.mha.gov.in/division_of_mha/Police%20Modernisatio n%20Division/modernisation-of-state-police-forces-mpf-scheme. 21 Unstarred Question No. 1017, Ministry of Home Affairs, Rajya Sabha, February 10, 2021, https://pqars.nic.in/annex/253/AU1017.pdf. 22 Audit Report (General and Social Sector) for the year ended March 2017 for Karnataka, Comptroller and Auditor General, https://cag.gov.in/sites/default/files/audit_report_files/Report_No_ 2_of_2018_- _General_and_Social_Sector_Government_of_Karnataka.pdf. 23 Audit Report (General and Social Sector) for the year ended March 2016 for Maharashtra, Comptroller and Auditor General, https://cag.gov.in/sites/default/files/audit_report_files/Report_No.4 _of_2017_%E2%80%93_General_and_Social_Sector_Governmen t_of_Maharashtra.pdf. 24 Audit Report on General, Social and Economic Sectors for year ending in March, 2018, CAG, 2020, https://cag.gov.in/uploads/download_audit_report/2017/Report%2 02%20of%202020%20GSES%202017- 18,%20Jharkhand,%20Eng-05f6c7ef871cbb3.88824404.pdf. 25 Report of the Fourteenth Finance Commission, 2014, http://www.thehinducentre.com//multimedia/archive/02321/14th_F inance_Commi_2321247a.pdf. 26 Aims and Objectives, National Cyclone Risk Mitigation Project (NCRMP), last accessed on February 13, 2022, https://ncrmp.gov.in/aims-objectives/. 27 The Disaster Management Act, 2005, https://ndma.gov.in/sites/default/files/PDF/DM_act2005.pdf. 28 "Operational Guidelines for Constitution and Administration of the National Disaster Response Fund", Ministry of Home Affairs, September 28, 2010, http://doe.gov.in/sites/default/files/Guidelines%20for%20National %20Disaster%20Response%20Fund%20%28NDRF%29.pdf. 29 Report No. 71: 'Central Assistance for Disaster Management and Relief', Standing Committee on Finance, Lok Sabha, http://164.100.47.193/lsscommittee/Finance/16_Finance_71.pdf. 30 Report for the year 2020-21, 15th Finance Commission of India, November 2019, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/R eports/XVFC_202021%20Report_English_Web.pdf. 31 National Disaster Management Plan, Government of India, 2016, https://ndma.gov.in/images/policyplan/dmplan/National%20Disast er%20Management%20Plan%20May%202016.pdf. 32 Report No. 211: 'The Cyclone Ockhi- Its Impact on Fishermen and damage caused by it', Standing Committee on Home Affairs, April 2, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/15/101/211_2018_7_11.pdf. Table 13: Expenditure on the Central Armed Police Forces in the last ten years (in Rs crore) Department 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 CRPF 11,124 12,747 14,327 16,804 18,560 21,974 25,133 24,410 27,307 29,325 BSF 10,294 11,687 12,996 14,909 16,019 18,652 20,254 19,322 21,491 22,718 CISF 4,301 4,955 5,662 6,563 7,614 9,115 10,421 11,218 11,373 12,202 SSB 2,719 3,148 3,418 4,045 4,641 5,420 6,382 6,017 6,940 7,654 ITBP 3,051 3,399 3,773 4,641 5,078 5,699 6,625 6,143 6,965 7,461 AR 3,276 3,450 3,848 4,724 5,031 5,694 5,632 5,499 6,046 6,658 NSG 498 527 569 697 968 1,007 1,114 930 1,151 1,293 66 74 78 92 95 110 111 112 122 132 Departmental Accounting Total 35,329 39,988 44,669 52,474 58,007 67,670 75,672 73,650 81,396 87,444 Note: Revised Estimates used for 2021-22, and Budget Estimates used for 2022-23; actuals used for all other years. CRPF - Central Reserve Police Force; BSF - Border Security Force; CISF - Central Industrial Security Force; AR - Assam Rifles; ITBP - Indo- Tibetan Police Force; SSB - Sashastra Seema Bal; NSG - National Security Guard. Source: Union Budgets 2015-16 to 2022-23; PRS. on December 9, 2021) (in Rs crore) Vacancies Year Sanctioned strength Actual strength (in %) State Releases from NDRF % of total releases 2012 8.9 7.6 14% Gujarat 1,000 28% 2013 9.1 8.3 9% Jharkhand 200 6% 2014 9.3 8.7 6% Karnataka 629 18% 2015 9.5 8.9 7% Maharashtra 701 20% 2016 9.7 9 7% Odisha 500 14% 2017 10.8 9.2 15% Tamil Nadu 214 6% 2018 9.9 9.3 6% West Bengal 300 8% 2019 10.1 9.2 9% Total 3,544 2020 10.2 9.1 10% Source: Unstarred Question No. 2668, Lok Sabha, December 14, 2021; PRS. Note: Figures for each year are as of January 1 of that year. Source: Bureau of Police Research and Development; PRS. ## Demand For Grants 2022-23 Analysis Railways The Railways finances were presented on February 1, 2022, by the Finance Minister Ms. Nirmala Sitharaman along with the Union Budget 2022-23. The Ministry of Railways manages the administration of Indian Railways and policy formation through the Railway Board. Indian Railways is a commercial undertaking of the central government.1 - Operating Ratio: Operating Ratio is a ratio of working expenses to the receipts from traffic. A lower ratio implies better profitability and availability of resources for capital spending. In 2022-23, the Railways' Operating Ratio is estimated to be 96.98%. This would be an improvement over the operating ratio of 98.93% in 2021-22 (revised estimates). Operating ratio of 96.15% was estimated at the budget stage in 2021-22. ## 2022-23 Budget Announcements2 Key announcements and proposals related to Railways made in Budget 2022-23 include: Expenditure of Railways is financed through: (i) its internal resources (freight and passenger revenue, and leasing of railway land), (ii) budgetary support from the central government, and (iii) extrabudgetary resources (primarily borrowings but also includes institutional financing, public-private partnerships, and foreign direct investment). Railways' working expenses (salaries, staff amenities, pension, asset maintenance) are met through its internal resources. Capital expenditure (such as procurement of wagons and station redevelopment) is financed through internal resources, budgetary support from the central government, and extra-budgetary resources. - Railways will develop new products and efficient logistics services for small farmers, and small and medium enterprises. It will also take steps towards integration of postal and railway networks to provide seamless solutions for movement of parcels. This note looks at the proposed expenditure of Railways for the year 2022-23, its finances over the last few years, and issues with the same. - 100 PM-GatiShakti Cargo Terminals for multimodal logistics facilities will be developed over next three years. ## Highlights - Multimodal connectivity between mass urban transport and railway stations will be facilitated on priority. - 400 new-generation Vande Bharat trains will be manufactured over next three years. - Revenue: Railways' internal revenue for 2022-23 is estimated at Rs 2,40,000 crore, an increase of 19% over the revised estimates of 2021-22. In 2021-22, revenue is estimated to be 7% lower than the budget estimate. - 2,000 km of network will be brought under Kavach, the indigenous technology for safety and capacity augmentation. - 'One Station-One Product' concept will be popularised to help local businesses and supply chains. For information on status of 2021-22 budget announcements, please see Table 12 in annexure. ## Overview Of Finances Railways' Internal Revenue - Traffic revenue: Total revenue from traffic for 2022-23 is estimated to be Rs 2,39,600 crore, an increase of 19% over revised estimates of 2021-22. Freight revenue is estimated to be Rs 1,65,000 crore in 2022-23, an increase of 14% over the revised estimates of 2021-22. The passenger revenue is estimated to be Rs 58,500 crore, an increase of 32% over a low base in 2021-22 (due to COVID-19). In 2021-22, passenger revenue is estimated to be 27% lower than the budget estimate, whereas freight revenue is estimated to be 5% higher than the budget estimate. Railways earns its internal revenue primarily from passenger and freight traffic. In 2022-23, Railways is estimated to earn 69% of its internal revenue from freight and 24% from passenger traffic. The remaining 7% will be earned from other miscellaneous sources such as parcel service, coaching receipts, and sale of platform tickets. - Expenditure: The total revenue expenditure by Railways for 2022-23 is projected to be Rs 2,34,640 crore, an increase of 17% over revised estimates of 2021-22. In 2021-22, revenue expenditure is estimated to be 5% lower than the budget estimate. In 2022-23, capital expenditure is projected at Rs 2,45,800 crore, an increase of 14% over the revised estimates of 2021-22. The revised estimates for capital expenditure in 2021-22 is marginally higher than the budget estimate. ## Growth In Revenue to grow at a compounded annual growth rate (CAGR) of 5.9%. This is lower than the CAGR of 7.1% observed between 2012-13 and 2018-19. While revenue from freight traffic is estimated to grow at 6.7% between 2018-19 and 2022-23, revenue from passenger traffic is estimated to grow at 3.5%. Between 2012-13 and 2018-19, freight and passenger revenue had grown at a CAGR of 6.9% and 8.5%, respectively. ## Shortfall In Revenue As discussed above, Railways' internal revenue registered a negative year-on-year growth in both 2019-20 and 2020-21. This resulted in a significant difference in actual revenue as compared to the budget estimates (Figure 2 on next page). On average, between 2011-12 and 2018-19, internal revenue realised by Railways was 6% lower than the budget estimates. While freight revenue saw a shortfall of 3% as compared to the budget estimates during this period, the corresponding figure for passenger services was higher at 8%. Railways' total internal revenue for 2022-23 is estimated at Rs 2,40,000 crore, an increase of 19% over the revised estimates of 2021-22. In 2021-22, total internal revenue is estimated to be 7% lower than the budget estimate. While freight earnings are estimated to be 5% higher than the budgeted, passenger earnings are estimated to be 27% lower. In both 2019-20 and 2020-21, Railways' internal revenue registered a negative growth year-on-year (Figure 1 on next page). In 2019-20, freight revenue was 11% lower than the previous year, whereas passenger revenue was severely hit in 2020-21. Passenger services were suspended for about 10 days in March 2020 and through April-May 2020 to mitigate the impact of COVID-19.3 After that, services were resumed in a phased manner.4 Railways ran special trains in place of regular trains up until November 2021.5 Pre-COVID regular trains have been resumed since then.5 The second class of such trains continue to run as reserved, except if any relaxation permitted in special case.5 Between 2018- 19 and 2022-23, Railways' revenue is estimated ## | | | % Change | % Change | |-----------------------------------------------|--------------------------------------|-------------|----------------| | 2020-21 | 2021-22 BE 2021-22 RE | 2022-23 BE | (2021-22 BE to | | 2021-22 RE) | | | | | (2021-22 RE to | | | | | 2022-23 BE) | | | | | | | | | | | | | | | | | | | | Receipts | | | | | | | | | | 1 Passenger Revenue | 15,248 | 61,000 | 44,375 | | 2 Freight Revenue | 1,17,232 | 1,37,810 | 1,45,275 | | 3 Other traffic sources | 8,090 | 18,300 | 12,100 | | 4 | Gross Traffic Receipts (1+2+3) | 1,40,571 | 2,17,110 | | 5 Miscellaneous | 213 | 350 | 250 | | 6 | Total Internal Revenue (4+5) | 1,40,784 | 2,17,460 | | 7 | Budgetary Support from Government | 29,926 | 1,07,300 | | 8 | Extra Budgetary Resources | 1,23,196 | 1,00,258 | | 9 Special Loan from Govt.* | 79,398 | | | | | | | | | | | | | | 10 | Total Receipts (6+7+8+9) | 3,73,303 | 4,25,018 | | | | | | | Expenditure | | | | | 11 Ordinary Working Expenses | 1,35,845 | 1,54,399 | 1,49,800 | | 12 Appropriation to Pension Fund | 523 | 53,300 | 49,000 | | 13 Appropriation to Depreciation Reserve Fund | 200 | 800 | 500 | | 14 | Total Working Expenditure (11+12+13) | 1,36,568 | 2,08,499 | | 15 Miscellaneous | 1,669 | 2,400 | 1,825 | | 16 | Total Revenue Expenditure (14+15) | 1,38,236 | 2,10,899 | | 17 | Total Capital Expenditure | 1,55,181 | 2,15,058 | | 18 Appropriation of Special Loan from Govt.* | 79,398 | | | | | | | | | | | | | | 19 | Total Expenditure (16+17+18) | 3,72,815 | 4,25,957 | | 20 | Net Revenue (6-16) | 2,547 | 6,561 | | 21 | Operating Ratio | 97.45% | | | # | | | | | | 96.15% | 98.93% | 96.98% | | | | | | Note: *The central government provided a special loan from its general revenue for COVID related resource gap in 2020-21 and to liquidate adverse balance in Pension Fund in 2019-20. #If the appropriation to the Pension Fund were to be per the requirement, the operating ratio for 2020-21 would have been 131.5%. RE - Revised Estimate, BE - Budget Estimate. ## Challenges In Raising Revenue Sluggish Growth In Traffic Volume 2013-14 and 2018-19. In freight traffic volume, there has been an uptick during 2021-22, which Railways expects to sustain in 2022-23. In 2022-23, Railways is estimated to register freight traffic volume of 868 billion Net Tonne km (NTKM), which is 8% higher than the revised estimates for 2021-22 (807 billion NTKM). This is mainly on account of estimated increase in coal freight (Table 2 on next page). In 2021-22, freight traffic volume as well as revenue is expected to be 5% higher than the budget estimate. 1 NTKM implies 1 tonne of freight was transported over 1 km. The freight traffic volume is estimated to grow at CAGR of 4.1% between 2018-19 and 2022-23. Over the last decade, both rail-based passenger and freight traffic have grown at a modest rate (see Figure 3 and Figure 4). Between 2012-13 and 2022-23, freight and passenger traffic volume are estimated to grow at a CAGR of 2.3% and 0.01%, respectively. This has affected Railways' earnings from its core business of running freight and passenger trains. Railways is estimated to register passenger traffic volume of 1,099 billion Passenger km (PKM) in 2022-23. 1 PKM implies 1 passenger was transported over 1 km. Passenger traffic in 2022-23 is estimated to be lower than every year between Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. % change 21-22 to 18-19 21-22 RE 22-23 BE 22-23 CAGR 18-19 to 22-23 Coal 311 314 354 13% 3.3% Cement 68 77 84 9% 5.4% Other goods 59 77 81 5% 8.2% Iron ore 43 66 72 9% 13.5% Foodgrains 58 77 65 -15% 3.3% Container services 58 58 63 9% 2.1% Pig iron & finished steel 50 51 57 10% 3.3% Fertilisers 47 42 44 4% -1.5% Petroleum & lubricants 29 30 31 6% 1.7% 15 16 17 7% 2.4% Raw material for steel plants Total 739 807 868 8% 4.1% Note: RE: Revised Estimates, BE: Budget Estimates. Sources: Union Budget of various years; PRS. Note that over the years, Railways has steadily lost freight traffic share to other modes of transport. Share of Railways in total freight traffic had declined from 89% in 1950-51 to 30% in 2011-12.6 During the same period, the share of roads on total freight traffic increased from 11% to 61%. As per the draft National Rail Plan 2030 (NRP), the share of Railways in total freight traffic stood at 27% in 2020.7 NRP aims to increase Railways' modal share in freight traffic to 45% by 2050. NITI Aayog (2018) had highlighted a shortfall in carrying capacity and a lack of price competitiveness as some of the reasons for the decline in freight share.8 It had observed that since passenger and freight traffic run on the same tracks, India has not been able to increase speed or capacity in a significant manner when compared to global benchmarks. Note that various dedicated freight corridors have been planned by Railways for improvement in facilities for freight. It has taken certain initiatives to attract freight including: (i) operation of Kisan Rail to attract freight for agricultural produce (1,806 trains on 153 routes as of December 2021), and.(ii) time tabled parcel services for courier and e-commerce companies. 9,10 ## Dependence On Coal For Freight Revenue The freight basket has mostly been limited to raw materials for certain industries such as power plants, and the iron and steel plants (Figure 5). In 2022-23, three commodities are estimated to contribute 63% of the total freight revenue: (i) coal (47%), (ii) iron ore (9%), and (iii) cement (7%). Source: Expenditure Profile, Union Budget 2022-23; PRS. While the share of coal in freight volume has been slowly coming down (from 43% in 2015-16 to 39% in 2021-22), its contribution to revenue has been increasing (from 45% in 2015-16 to 47% in 2021- 22). This may be indicative of an increasing dependency on coal for revenue as compared to other items in the freight basket. However, as per the budget estimates, share of coal in traffic volume is estimated to increase in 2022-23, whereas its contribution to revenue is estimated to decrease. Sources: Railways Budget of various years; Union Budget of various years; PRS. Implications of clean energy transition on Railways' freight revenue In 2022-23, about 46% of the total coal freight volume is estimated to be for thermal power plants. As part of its initiatives in response to climate change, India has pledged to: (i) install 500 GW of non-fossil energy capacity by 2030, (ii) meet 50% of energy requirements from renewable energy by 2030, (iii) reduce carbon emissions by one billion tonnes by 2030, (iv) reduce carbon intensity of its economy to less than 45% by 2030, and (v) achieve target of net zero emission by 2070.11 Action towards these targets would involve phasing down coal-fired power plants and other usage of coal. Any significant shift in coal usage in the country might pose a challenge for Railways' freight revenue and overall sustainability of its finances.12 ## Widening Losses From Passenger Services Passenger traffic is broadly divided into two categories: suburban and non-suburban traffic. Suburban trains are passenger trains that cover short distances of up to 150 km and help move passengers within cities and suburbs. Majority of the passenger revenue (94.4% in 2019-20) comes from the nonsuburban traffic (or the long-distance trains). Over the years, Railways has been unable to meet its operational cost of passenger services. Except AC-3 Tier segment, all other segments of passenger services have registered losses during the 2015-20 period (Table 3). These losses are compensated by earnings from freight services. NITI Aayog (2016) noted that such cross-subsidisation has resulted in high freight tariffs.14 It also observed (2018) that high freight tariffs are one of the reasons for a suboptimal share of Railways in freight.8 | | | | | Class | 2015-16 2016-17 2017-18 2018-19 2019-20 | |-----------------------------------------|-----------------------------------------|--------------------------------|--------|----------|--------------------------------------------| | AC-1st Class | -176 | -139 | -165 | -249 | -403 | | 1st Class | -58 | -53 | -35 | -39 | -38 | | AC 2 Tier | -463 | -559 | -604 | -908 | -1378 | | AC 3 Tier | 898 | 1,041 | 739 | 318 | 65 | | AC Chair car | -6 | 118 | 98 | 243 | -182 | | Sleeper Class | -8,301 | -9,313 -11,003 -13,012 -16,056 | | | | | Second class | -8,570 -10,025 -11,524 -13,214 -14,457 | | | | | | Ordinary | | | | | | | Class | | | | | | | -13,238 -14,648 -16,568 -19,124 -20,450 | | | | | | | -5,125 | -5,324 | -6,184 | -6,754 | -6,938 | | | EMU | | | | | | | suburban | | | | | | | services | | | | | | | Total | -36,286 -37,937 -46,025 -55,020 -63,364 | | | | | | Source: CAG; PRS. | | | | | | In 2019-20, Railways made losses of Rs 63,364 crore on passenger and other coaching services, a 15% increase in losses over the previous year (Rs 55,020 crore).12,13 Profit from freight services in 2019-20 was Rs 28,746 crore, inadequate to completely subsidise the losses from passenger services.13 The revenue from passenger services was Rs 50,669 crore. Thus, Railways spent Rs 2.3 to earn one rupee from passenger services.13 Losses in passenger services are primarily caused due to: (i) passenger fares being lower than the costs, and (ii) concessions to various categories of passengers (senior citizens, National award winners etc.).14 Railways classifies these provisions as social service obligations. The Committee on Restructuring Railways (2015) had observed that several decisions on the Indian Railways such as increase in fares, introduction of new trains, and provision of halts are not taken based on commercial considerations.16 The Standing Committee on Railways (2020) had recommended that both freight and passenger fares should be rationalised prudently.15 It observed that any fare increase needs to take into account the competition from other transport modes.15 The Committee recommended that the social service obligations of Railways should be revisited.15 ## Expenditure Over the last decade, Railways' expenditure has increased at a comparatively higher rate than its internal revenue. This is mainly on account of a higher capital spending supported by grants from the central government and extra-budgetary resources (Figure 8). Between 2012-13 and 2022-23, the internal revenue is estimated to increase at a CAGR of 6.6%, whereas revenue and capital expenditure are estimated to increase at a CAGR of 7.1% and 17.4%, respectively. Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. ## Reliance On Budgetary Support And Extra-Budgetary Resources To Fund Capital Expenditure Owing to modest revenue surplus observed by Railways, capital expenditure has largely been funded through: (i) budgetary support from the central government, and (ii) extra-budgetary resources. For instance, only 2.8% of the total estimated capital expenditure in 2022-23 will be funded through internal revenue of Railways. Extra Budgetary Resources (such as market borrowings and external investments). External investments in Railways could be in the form of public-private partnerships (PPPs), joint ventures, or market financing by attracting private investors to potentially buy bonds or equity shares in Railways. Railways mostly borrows funds through the Indian Railways Finance Corporation (IRFC). IRFC borrows funds from the market (through taxable and tax-free bond issuances, term loans from banks and financial institutions), and then follows a leasing model to finance the rolling stock assets and project assets of Indian Railways. Up until 2014-15, budgetary support from the central government used to be the primary source for funding capital expenditure (Figure 9). However, between 2015-16 and 2020-21, the increase in capital expenditure was sustained through an increased reliance on extra budgetary resources. The Committee on Restructuring Railways (2015) had observed that increased reliance on borrowings could further exacerbate the financial situation of Railways.16 Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Railways Budget of various years; Union Budget of various years; PRS. In 2021-22 and 2022-23, budgetary support from the central government has seen a significant increase. However, note that this might have been made possible due to the central government running a large fiscal deficit in these two years (6.9% and 6.4% of GDP respectively).2 The central government aims to bring down its fiscal deficit to 4.5% of GDP by 2025-26.2 This might pose a challenge in sustaining the budgetary support levels seen in 2021-22 and 2022-23. 2020-21 Actuals 2021-22 Revised 2022-23 Budget % Change (21-22 RE to 22-23 BE) 29,926 1,17,300 1,37,300 17% Gross Budgetary Support 1,23,196 95,200 1,01,500 7% Extra Budgetary Resources Internal Resources 2,059 2,500 7,000 180% Total 1,55,181 2,15,000 2,45,800 14% Source: Expenditure Profile, Union Budget 2022-23; PRS. ## Inadequate Resources For Debt Servicing Railways pays lease charges to IRFC. The lease charges have a principal and interest component. The principal component of the lease charges forms part of the capital expenditure of Railways. In 2022- 23, allocation towards payment of principal component of lease charges is estimated at Rs 22,188 crore, an increase of 51% over 2021-22 (Rs 14,702 crore as per revised estimates). CAG (2020) had observed that ideally, the principal component of lease charges should be paid from the Capital Fund.12 Capital Fund is a dedicated fund of Railways to repay the principal component of market borrowing and financing works of capital nature. However, no allocation has been made to this fund between 2015-16 and 2021-22. In 2022-23, apportionment to capital fund is estimated to be Rs 2,360 crore. The Ministry of Railways noted that appropriation to the Capital Fund is made from net revenue after meeting obligatory revenue expenditure.12 The Ministry further observed that no appropriation is being made to the Capital Fund due to inadequate internal resources. Hence, gross budgetary support provided by the central government has been used to pay the principal component of lease charges. CAG (2020) observed that utilisation of gross budgetary support for repayment of lease charges is not a healthy trend as it deprives Railways of additional investments in capital works.12 CAG (2019) had observed that if obligations towards IRFC have to be met from budgetary support, the government might as well borrow directly from the market, as the cost of borrowings would be lower.17 ## Future Capital Expenditure Requirements The Ministry of Railways has prepared the National Rail Plan 2030 for augmenting its infrastructure during the 2021-51 period.7 The draft of the National Rail Plan 2030 (NRP), released in December 2020, noted that Railways could be left with a financing gap of over two lakh crore rupees for its capital expenditure projects in next five years.7 This relates to the funding gap for projects under the annual work plan of Railways and the National Infrastructure Pipeline prior to the National Rail Plan.7 The National Infrastructure Pipeline is a plan of infrastructure projects worth Rs 102 lakh crore between 2019-20 and 2024-25. It includes projects worth Rs 13.7 lakh crore for Railways pertaining to track infrastructure, terminal infrastructure, rolling stock, and urban public transport (Table 5 on next page). The draft National Rail Plan envisages an additional capital expenditure worth Rs 5.8 lakh crore during the 2021-26 period (Table 6 on next page).7 However, note that there may be some overlap in projects envisaged under the National Rail Plan and the National Infrastructure Pipeline.7 Railways under the National Infrastructure Pipeline (in Rs crore) Year Amount 2019-20 1,33,387 2020-21 2,62,465 2021-22 3,08,800 2022-23 2,73,831 2023-24 2,21,209 2024-25 1,67,870 Total 13,67,563 Source: Draft National Rail Plan, Ministry of Railways; PRS. The draft National Rail Plan estimates that on average, funds available with Indian Railways for capital expenditure over the next five years will be: (i) about Rs 60,000 crore per annum as gross budgetary support, (ii) about Rs 7,000 crore per annum from internal resources, and (iii) a maximum of Rs 1,30,000 crore per annum from extra budgetary resources.7 It noted that it would be challenging to fund the projects envisaged under the National Rail Plan from internal resources due to persistently high operating ratio.7 Rail Plan (in Rs lakh crore) Head 2021 -26 2026 -31 2031 -41 2041 -51 Total Dedicated Freight Corridors - 1.5 0.5 0.3 2.3 High Speed Rail Corridors - 5.1 2.9 7.0 15.0 Network improvements 1.3 0.7 2.2 1.8 6.0 Flyovers and Bypasses 0.8 - - - 0.8 Terminals 0.6 0.2 0.1 0.04 0.9 Rolling Stock 3.1 1.7 3.6 4.8 13.2 Total 5.8 9.2 9.3 13.9 38.2 Source: Draft National Rail Plan, Ministry of Railways; PRS. ## Revenue Expenditure In 2022-23, the total revenue expenditure by Railways is estimated at Rs 2,34,640 crore, which is an increase of 17% over the revised estimates of 2021-22 (Rs 2,01,125 crore). In 2022-23, key items of revenue expenditure include: (i) staff costs (43%), (ii) pension (22%), (iii) fuel (15%), and (iv) interest component of lease charges (9%). ## Staff Wages And Pension Staff wages and pension constitute about 68% of the Railways' estimated revenue expenditure in 2022-23. For 2022-23, the expenditure on staff is estimated at Rs 99,840 crore, which is an increase of 10% over 2021-22. The Committee on Restructuring Railways (2015) had observed that the Railways' expenditure on staff is extremely high and unmanageable.16 It also sees a significant jump every few years due to revisions by the Pay Commission. In 2021-22, staff wages are estimated at Rs 90,619 crore at the revised ## National Monetisation Pipeline In August 2021, the central government launched the National Monetisation Pipeline (NMP). NITI Aayog (2021) had noted that traditional sources of capital are expected to finance 83-85% of capital expenditure envisaged under National Infrastructure Pipeline.18 About 15%-17% of the aggregate outlay is expected to be met through innovative mechanisms such as asset recycling and monetisation. For NMP aims to monetise assets which are central to business objectives of a government body and are being utilised for delivering infrastructure services. The pipeline will be implemented over four years (between 2022-23 and 2024- 25). Monetisation under NMP will not involve disinvestment and monetisation of non-core assets such as land, building, and pure play real estate assets. Under NMP, value of Railways' assets to be monetised is estimated to be Rs 1,52,496 crore. This is about 26% of the value of all the assets of the central government covered under NMP (six lakh crore rupees in value terms). | Asset Class | | |------------------------------|-------------------------| | Railway Stations | | | 400 (5.5% of total | | | stations) | | | Passenger Trains | 90 (5% of total trains) | | Railway Track | | | 1 route of 1,400 km | | | (2% of network) | | | Konkan Railways | 741 km | | Hill Railways | | | four in number (a total | | | of 244 km route) | | | Railway owned Goods sheds | | | 265 (21% of total good | | | sheds) | | | Dedicated Freight Corridor | | | (DFC) track and allied infra | | | 673 km (20% of total | | | DFC network) | | | Railway colonies and stadia | 15 | Source: NITI Aayog; PRS. stage, which is 3% less than the budget estimate. Note that Railways has a total of 15,07,694 sanctioned posts, out of which around 2,37,295 posts are lying vacant, i.e., there is a vacancy of about 16% (as of March 2020).19 If all of these posts were to be filled, staff costs for Railways would be higher than the current level. Allocation to the Pension Fund in 2022-23 is estimated at Rs 60,000 crore, which is an increase of 22% over the revised estimates for 2021-22. Appropriation to the pension fund was much less than required in 2019-20 and 2020-21 (59% and 99% less than the budget estimate, respectively). A special loan of Rs 79,398 crore was extended by the central government to Railways to meet the obligations towards the pension fund for 2019-20 and 2020-21. In 2021-22, appropriation to pension fund is estimated to be 8% less than the budget estimate. The Standing Committee on Railways (2017) had observed that the pension bill may increase further in the next few years, as about 40% of the Railways staff was above the age of 50 years in 2016-17.20 The Standing Committee on Railways (2020) noted that the new pension scheme implemented in 2004 to reduce the pension bill will show results only around 2034-35.15 The Committee recommended that feasibility of bearing a part of pension liabilities from the general revenue of the central government till 2034-35 should be explored.15 The Committee on Restructuring Railways (2015) had also observed that employee costs (including pensions) reduce Railways' ability to generate a surplus and allocate resources towards operations.16 It had recommended that Railways should rationalise its manpower, and make the organisation more business-oriented. It should be amenable to private participation while retaining an optimal level of functional specialisation within.16 ## Fuel And Electricity In 2022-23, the expense on fuel and electricity is estimated to be Rs 31,854 crore, an increase of 15% over 2021-22 (Rs 27,629 crore). ## Lease Charges The interest component of lease charges forms part of the revenue expenditure of Railways. In 2022-23, Rs 20,013 crore is estimated to be spent on the interest component of lease charges, which is an increase of 33% over 2021-22 (Rs 15,068 crore). ## Appropriation To Funds Depreciation Reserve Fund (Drf) Appropriation to the DRF is intended to finance the costs of new assets replacing old ones. In 2022-23, appropriation to DRF is estimated at Rs 2,000 crore. In the last few years, appropriation to DRF has declined (Figure 10). In recent years, appropriation has also been lower than the budget estimates. As per CAG (2021), at the end of 2019-20, the value of over-aged assets pending for replacement using this fund was estimated to be Rs 95,217 crore.13 This includes: (i) Rs 58,887 crore on track renewal and (ii) Rs 26,547 crore on rolling stock. It observed that in the backdrop of declining revenue surplus, replacement and renewal of over aged assets could become a burden for the central government.13 Note: BE: Budget Estimates; RE: Revised Estimates. Revised estimates for 2021-22 shown as Actuals. Sources: Railways Budget of various years; Union Budget of various years; PRS. ## Private Sector Participation In Operating Trains In July 2020, proposals were invited for private participation in the operation of passenger train services over 109 origin- destination pairs of routes through the introduction of 151 trains across 12 clusters.21 The private entity would be responsible for financing, procuring, operating, and maintaining these trains. Bids were opened in July 2021.22 In all, five bids were received for three clusters.22 No bids were received for the remaining nine clusters.22 The Ministry of Railways observed that the decline in appropriation to DRF is due to major part of renewal and replacement works having safety implications being financed through Rashtriya Rail Sanraksha Kosh (RRSK).15 RRSK was created in 2017-18 to finance critical safety-related works of renewal, replacement, and augmentation of assets. The fund has a corpus of one lakh crore rupees over five years (partially funded by the central government). Railways is required to allocate Rs 5,000 crore annually to RRSK during these five years.15 The Ministry observed that RRSK will not continue beyond 2021-22. Beyond 2021-22, all renewal and replacement works will be financed from DRF. This could lead to an increase in appropriation to DRF in the coming years. Note that allocation has been made towards RRSK in 2022-23 at the budget stage. ## Rashtriya Rail Sanraksha Kosh (Rrsk) In 2022-23, Railways has allocated Rs 2,000 crore towards RRSK. However, the actual appropriation to RRSK has been less than the requirement of Rs 5,000 crore in all four years between 2018-19 and 2021-22. In 2021-22, at the revised stage, no allocation has been made towards the fund. The Ministry of Railways noted that the desired level of appropriation to RRSK has not been made due to adverse resource position.15 The Standing Committee on Railways (2020) observed that the purpose of RRSK is gradually being eroded due to non-appropriation of required funds from internal resources of Railways.15 | Year | Budget | Actual | % change | |--------------------|-----------|-----------|-------------| | (Budget to Actual) | | | | | 2017-18 | 1,000 | 0 | -100% | | 2018-19 | 5,000 | 3,024 | -40% | | 2019-20 | 5,000 | 201 | -96% | | 2020-21 | 5,000 | 1,000 | -60% | | 2021-22 RE | 5,000 | 0 | -100% | | 2022-23 BE | 2,000 | - | - | Note: RE: Revised Estimates, BE: Budget Estimates. Sources: Union Budget of various years; PRS. ## Revenue Surplus And Operating Ratio Railways' surplus is calculated as the difference between its total internal revenue and its total expenditure (this includes working expenses and appropriation to pension and depreciation funds). In 2022-23, Railways expects to generate a surplus of If appropriation to the pension fund were to be as per the requirement, the operating ratio for 2019-20 and 2020-21 would have been 114.2% and 131.5%, respectively.23,24 ## Network Expansion And Modernisation Rs 5,360 crore. This is an increase of 513% over revised estimates for 2021-22 (Rs 875 crore). In 2021-22, Railways had estimated a surplus of Rs 6,561 crore at the budget stage.2021-22, Railways had estimated a surplus of Rs 6,561 crore at the budget stage. Railways has not been able to meet some key physical targets for expansion and modernisation in recent years. It has missed its budget targets in all three years between 2017-18 and 2020-21 for: (i) construction of new lines, and (ii) gauge conversion (Table 9). While examining the progress of construction of new lines, the Standing Committee on Railways (2020) had observed that revision in allocation towards capital expenditure requires reworking of priorities and rescheduling of activities, which leads to tardy progress in the construction of new lines.15 In 2018-19 and 2019-20, Railways also missed targets for electrification of railway lines. Note that Railways aims to achieve 100% electrification of all broadgauge routes by 2023. As per revised estimates for 2021-22, achievement will be less than the initial target in case of wagons and track renewals. Table 13 in annexure provides details on key physical targets. Operating Ratio is the ratio of the working expenditure (expenses arising from day-to-day operations of Railways) to the revenue earned from traffic. Therefore, a higher ratio indicates a poorer ability to generate a surplus that can be used for capital investments such as laying new lines or deploying more coaches. Operating Ratio of Railways has consistently been higher than 90% for more than a decade (Figure 11). In 2022-23, Railways has estimated an operating ratio of 97.0%, an improvement over operating ratio of 98.9% estimated in 2021-22. In 2019-20, the operating ratio worsened to 98.4% as compared to the estimated ratio of 95%. The CAG (2020) had noted that if certain advances for 2019-20 were not included in receipts for 2018-19, the operating ratio for 2018-19 would have been 101.8%.12 Note: RE: Revised Estimates. Positive number means higher achievement than targeted. Sources: Union Budget of various years; PRS. 1 "Evolution - About Indian Railways", Ministry of Railways, last accessed on February 5, 2022, | 2018- | 2019- | 2020- | |-------------------|---------|---------| | Indicator | | | | 2017- | | | | 18 | 19 | 20 | | 2021- | | | | 22 RE | | | | -49% | -52% | -28% | | Construction of | | | | new lines | | | | (Route Kms) | | | | Gauge conversion | | | | (Route Kms) | | | | -50% | -40% | -32% | | Doubling of lines | | | | (Route Kms) | | | | -45% | 20% | -45% | | Wagons | | | | (vehicle units) | | | | -48% | -20% | -24% | | Track renewals | | | | (Route Kms) | | | | 12% | 7% | 15% | | Electrification | | | | (Route Kms) | | | | 2% | -12% | -37% | 12 Report No. 8 of 2020: Railways Finances, Financial Audit, For the year ended March 2019, Report of the Comptroller and Auditor General of India, July 20, 2020, https://cag.gov.in/uploads/download_audit_report/2020/Report%20No.%208%20of%202020_English- 05f75b32f3ecdc0.39910555.pdf. December 21, 2021, https://cag.gov.in/uploads/download_audit_report/2021/Railway%20Finance%20Report-13-2021- 061c1c356591929.85046974.pdf. 14 "Reviewing the Impact of "Social Service Obligations" by Indian Railways", NITI Aayog, http://niti.gov.in/writereaddata/files/document_publication/Social-Costs.pdf. 15 "3rd Report: Demand for Grants (2020-21) - Ministry of Railways", Standing Committee on Railways, March 2020, http://164.100.47.193/lsscommittee/Railways/17_Railways_3.pdf. Board, Ministry of Railways, June 2015, 18 National Monetisation Pipeline, Volume II: Asset Pipeline, NITI Aayog, https://www.niti.gov.in/sites/default/files/2021- 08/Vol_2_NATIONAL_MONETISATION_PIPELINE_23_Aug_2021.pdf. 19 Annual Report on Pay and Allowances of Central Government Civilian Employees 2019-20, Department of Expenditure, Ministry of Finance, https://doe.gov.in/sites/default/files/Annual%20Report%202019-20.pdf. 20 "13th Report: Demands for Grants (2017-18)", Standing Committee on Railways, March 10, 2017, http://164.100.47.193/lsscommittee/Railways/16_Railways_13.pdf. Origin Destination (OD) pairs of routes", Press Information Bureau, Ministry of Railways, July 1, 2020. 22 Statement on Implementation of Budget Announcements of 2021-22, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/impbud2020-21.pdf. 23 Notes on Overview of Receipts and Expenditure- Railways, Expenditure Profile, Union Budget 2022-23, 24 Notes on Overview of Receipts and Expenditure- Railways, Expenditure Profile, Union Budget 2021-22, https://www.indiabudget.gov.in/budget2021-22/doc/eb/railstat1.pdf. ## Annexure % change (2021-22 RE 2020-21 2021-22 Revised 2022-23 Budget % share in 2022-23 BE to 2022-23 BE) Commodity Earning Volume Earning Volume Earning Volume Earning Volume Earning Volume Coal 49,578 2,39,390 68,520 3,13,869 77,250 3,54,008 12.7% 12.8% 47% 41% Iron Ore 12,661 62,523 13,690 65,640 14,949 71,843 9.2% 9.5% 9% 8% Cement 9,714 73,605 11,069 77,117 12,022 83,752 8.6% 8.6% 7% 10% Other Goods 8,510 66,465 10,493 77,305 11,019 81,180 5.0% 5.0% 7% 9% Miscellaneous earnings 1,493 - 2,600 - 10,000 - 284.6% - 6% - Pig Iron & finished steel 7,417 49,123 9,036 51,437 9,970 56,755 10.3% 10.3% 6% 7% Foodgrains 9,213 80,681 9,605 76,691 8,196 65,434 -14.7% -14.7% 5% 8% Container Service 5,114 55,331 6,452 57,653 7,042 62,815 9.1% 9.0% 4% 7% Petroleum & Lubricants 5,727 29,970 5,879 29,644 6,227 31,396 5.9% 5.9% 4% 4% Fertilisers 5,826 49,011 5,436 42,258 5,666 44,044 4.2% 4.2% 3% 5% Raw Material for Steel Plants 1,979 13,663 2,494 15,616 2,659 16,650 6.6% 6.6% 2% 2% Total 1,17,232 7,19,762 1,45,275 8,07,230 1,65,000 8,67,877 13.6% 7.5% 100% 100% Note: NTKM - Net Tonne Kilometre (One NTKM is the net weight of goods carried for a kilometre). RE: Revised Estimates; BE: Budget Estimates. Source: Expenditure Profile; Union Budget 2022-23; PRS. % change (2021-22 RE 2020-21 2021-22 Revised 2022-23 Budget to 2022-23 BE) Earning Volume Earning Volume Earning Volume Earning Volume Total Suburban 589 30,075 1,259 73,721 2,623 1,57,435 108% 114% Total Non-Suburban 14,659 2,01,051 43,116 5,68,914 55,877 9,41,692 30% 66% Sleeper Class (M&E) 5,436 98,476 15,840 2,59,098 18,181 3,04,243 15% 17% Second Class (M&E) 2,132 55,447 6,667 1,63,835 14,521 3,65,063 118% 123% AC 3 Tier 4,750 32,174 14,128 97,538 12,905 91,149 -9% -7% AC 2 Tier 1,472 7,609 4,023 20,288 4,679 24,137 16% 19% Second Class (Ordinary) 217 4,456 374 18,930 2,758 1,42,806 637% 654% AC Chair Car 390 2,153 1,299 7,028 1,904 10,537 47% 50% AC First class 233 671 612 1,751 636 1,860 4% 6% Executive Class 28 72 156 386 205 520 32% 35% Sleeper Class (Ordinary) -2 -14 1 21 45 972 4,424% 4,529% First Class (M&E) 2 1 15 16 25 27 65% 69% First Class (Ordinary) 1 6 1 23 17 378 1,507% 1,543% Total 15,248 2,31,126 44,375 6,42,635 58,500 10,99,127 32% 71% Note: PKM - Passenger Kilometre (One PKM is when a passenger is carried for a kilometre). RE: Revised Estimates; BE: Budget Estimates. Source: Expenditure Profile; Union Budget 2022-23; PRS. ## Table 12: Status Of 2021-22 Budget Announcements For Railways Announcement Status - **Monetisation of assets**: Monetising operating public infrastructure assets is a very important financing option for new infrastructure construction. A National Monetisation Pipeline of potential brownfield infrastructure assets will be launched. Railways will monetise Dedicated Freight Corridor (DFC) assets for operations and maintenance, after commissioning. - **National Rail Plan (NRP)**: Indian Railways has prepared a National Rail Plan for India - 2030. The Plan is to create a 'future ready' Railway system by 2030. - **Capital Expenditure**: A record sum of Rs 1,10,055 crore is being provided for Railways, of which Rs 1,07,100 crore is for capital expenditure. - **Commissioning of DFCs**: It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022. The Sonnagar - Gomoh Section (263.7 km) of Eastern DFC will be taken up in PPP mode in 2021-22. Gomoh-Dankuni section of 274.3 km will also be taken up in short succession. - **New DFCs**: We will undertake future dedicated freight corridor projects namely (i) East Coast corridor from Kharagpur to Vijayawada, (ii) East-West Corridor from Bhusaval to Kharagpur to Dankuni, and (iii) North-South corridor from Itarsi to Vijayawada. - **Electrification**: Broad Gauge Route Kilometers (RKM) electrified is expected to reach 46,000 RKM by the end of 2021 from 41,548 RKM on October 1, 2021. 100% electrification of Broad-Gauge routes will be completed by December 2023. - **Introduction of Vista Dome LHB coaches**: We will introduce the aesthetically designed Vista Dome LHB coach on tourist routes to give a better travel experience to passengers. - **Safety**: The safety measures undertaken in the past few years have borne results. To further strengthen this effort, high density network and highly utilized network routes of Indian railways will be provided with an indigenously developed automatic train protection system that eliminates train collision due to human error. - **Land Monetisation**: Rail Land Development Authority has been involved for monetisation of identified Railway assets of: (i) 111 Railway land parcels, (ii) 84 Railway colonies, (iii) four Hill Railways in Darjeeling, Kalka-Shimla, Matheran and Nilgiri, (iv) Karnail Singh Stadium & 15 other stadiums, and (v) 84 Multi-Functional Complexes (MFCs). 13 MFCs have been completed and balance are in different stages. - **Monetisation of DFC** is planned to be taken up after the Western DFC and Eastern DFC become fully operational. - **Private Train Operators**: Bids were invited in July 2021 for private sector participation in operating trains in 12 clusters. In all, five bids were received for three clusters. No bids were received for the remaining nine clusters. - **CONCOR Divestment**: Central government is considering strategic divestment of 30.8% equity in CONCOR. Department of Investment and Public Asset Management has appointed Advisors for this purpose. Issuance of Expression of Interest is the next step in this process which will be issued after finalisation of Railway's proposed Land License Policy. - The NRP is already being used in prioritising projects as super critical/critical and fixing the timelines. Vision 2024 has been developed as part of NRP for execution of super critical/critical projects. - The NRP has also emphasised the justification for new DFC corridors for which surveys are underway. - In addition, the NRP lays a pipeline of projects to be completed by 2030, which are in process for inclusion in future budgets as per timeframe provided in the NRP. - In 2021-22, gross budgetary support is estimated to be Rs 1,17,300 crore (revised estimates). - As of March 2021, total 1,110 Km has been commissioned out of total 2,843 Route km. Balance to be commissioned sectionwise in phases by June 2022. Approval of Public Private Partnership Appraisal Committee received for Sonnagar- Gomoh section on December 27, 2021. - Preliminary reports are targeted by January 2022 including FIRR and EIRR, and Final Reports by October 2022. - Total 47,807 RKMs (74%) have been electrified up to December 31, 2021. - 20 LHB VISTADOME coaches have been manufactured till December 31, 2021. (7 in 2020-21 and 13 in 2021-22) - 23,215 RKM work has been approved by competent authority. ## Table 13: Key Physical Targets | 2020-2021 | 2021-2022 | 2022-23 | |---------------------------------------|--------------|------------| | | | | | Budget | | | | Target | | | | Achievement | | | | Budget | | | | Target | | | | Revised | | | | Target | | | | Budget | | | | Target | | | | Construction of New Lines (Route Kms) | 500 | 286 | | Gauge conversion (Route Kms) | 600 | 470 | | Doubling of Lines (Route Kms) | 1,900 | 1,614 | | Rolling Stock | | | | | | | | | | | | a (i) Diesel Locomotives | ... | 10 | | a (ii) Electric Locomotives | 725 | 754 | | b Coaches | 6,534 | 4,903 | | c Wagons (vehicle units) | 12,000 | 10,062 | | Track renewals (Route Kms) | 4,000 | 4,363 | | Electrification Projects (Route Kms) | 6,000 | 6,015 | Sources: Union budget documents of various years; PRS. ## Demand For Grants 2022-23 Analysis Rural Development The Ministry of Rural Development is responsible for the development of and welfare activities in rural areas. It aims at increasing livelihood opportunities, providing social safety nets, and improving infrastructure for growth. The Ministry has two departments: (i) Rural Development, and (ii) Land Resources. This note presents the budgetary allocations to the Ministry for 2022-23, and analyses various issues related to the schemes implemented by it. ## Allocation In Union Budget 2022-23 The Ministry of Rural Development has been allocated Rs 1,38,204 crore in 2022-23.1 Table 1 gives the trend in budgetary allocation towards the Ministry over the past three years. In 2022-23, the Department of Rural Development has been allocated Rs 1,35,944 crore, which is an 11% decrease from the revised estimates of 2021- 22. The Department of Land Resources has been allocated Rs 2,259 crore, which is a 52% increase over the revised estimates of 2021-22. | Department | | |--------------|----------| | 20-21 | | | Actuals | | | 21-22 | | | RE | | | 22-23 | | | BE | | | % Change | | | (22-23 BE/ | | | 21-22 RE) | | | Rural | | | Development | 1,96,417 | | Land | | | Resources | 1,176 | | Total | 1,97,593 | Note: BE is budget estimate and RE is revised estimate. Sources: Demands for Grants 2022-23, Ministry of Rural Development; PRS. ## Policy Announcements In The Budget Speech 2022-23 - The one lakh crore allocation towards states for capital expenditure will include supplemental funding for priority segments of PM Gram Sadak Yojana, including support for the states' share. - Border villages will be covered under the new Vibrant Villages Programme. The activities will include construction of village infrastructure, housing, tourist centres, road connectivity, provisioning of decentralised renewable energy, direct to home access for Doordarshan and educational channels, and support for livelihood generation. - To enable affordable broadband and mobile service proliferation in rural and remote areas, five per cent of annual collections under the Universal Service Obligation Fund will be allocated. - Use of 'Kisan Drones' will be promoted for crop assessment, digitisation of land records. ## Overview Of Finances: Department Of Rural Development The Department implements schemes targeted at poverty reduction, provision of basic services, employment generation, and habitation development. Since 2012, expenditure of the Department has seen an average annual growth of 10.5%. In 2020-21, expenditure of the Department increased significantly primarily due to the additional expenditure on the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and direct benefit transfer towards PM Jan Dhan Yojana account holders. In 2020-21, while the budgeted allocation towards the Department was Rs 1,20,147 crore, the actual expenditure was 61% higher at Rs 1,96,417 crore. The Standing Committee on Rural Development (2020) had noted that the allocation to the Department is much lower than the amount demanded by the Ministry.2 Such lack of funds could affect the timely progress of the schemes. However, in 2021-22, the Committee noted that unspent balance of Rs 40,294 crore had accrued over all the schemes of the Department, which may raise questions on utilisation of the funds.3 Note: Values for 2021-22 and 2022-23 are revised estimates and budget estimates respectively. Sources: Union Budgets 2012-13 to 2022-23; PRS. ## Major Schemes Under The Department In 2022-23, 54% of the Department's expenditure is estimated to be on MGNREGS. This is followed by the rural component of Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) (15%), and Pradhan Mantri Gram Sadak Yojana (PMGSY) (14%). Awaas Yojana - Gramin, PMGSY is Pradhan Mantri Gram Sadak Yojana, NRML is National Rural Livelihood Mission, NSAP is National Social Assistance Program, Others include Rurban Mission, and projects like socio-economic and caste survey. Sources: Demands for Grants 2022-23, Department of Rural Development: PRS. % Change (22-23 21-22 RE 22-23 BE Scheme 20-21 Actuals BE/ 21-22 RE) MGNREGS 1,11,170 98,000 73,000 -26% PMAY-G 19,269 20,390 20,000 -2% PMGSY 13,688 14,000 19,000 36% NRLM 9,208 11,710 13,336 14% NSAP 42,443 8,730 9,652 11% Others 639 728 956 31% Total 1,96,417 1,53,558 1,35,944 -11% Note: BE is budget estimate and RE is revised estimate. Others include projects like management support to rural development programs, socio-economic and caste census survey and centre's expenditure. Sources: Demands for Grants 2022-23, Department of Rural Development, Ministry of Rural Development; PRS. ## Key Issues And Analysis Expenditure On Mgnregs Shot Up During Covid-19 MGNREGS seeks to provide guaranteed 100 days of wage employment per year to every rural household whose adult member volunteers to do unskilled manual work.4 The scheme has statutory backing through the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The Act specifies a list of works that can be undertaken to generate employment. These are related to water conservation, land development, construction, and agriculture, among others. The scheme covers all districts of the country barring the ones with 100% urban population.5 Figure 3 shows the expenditure on the scheme from 2012-13 to 2022-23. Note: Values for 2021-22 and 2022-23 are revised estimates and budget estimates respectively. Sources: Union Budgets 2012-13 to 2022-23; PRS. In 2022-23, the scheme has been allocated Rs 73,000 crore. This is 26% lower than the revised estimates of 2021-22. This decline is primarily because the scheme received additional allocation in 2020-21 and 2021-22 to address the employment demand during the COVID-19 pandemic. In 2020-21, the scheme was allocated Rs 61,500 crore at the budget stage, however the actual expenditure went up to Rs 1,11,170 crore (an increase of 81%). In 2021-22, allocation to the scheme was increased to Rs 73,000 crore at the budget stage. The revised expenditure is estimated to be Rs 98,000 crore (an increase of 34%). Note that as on September 1, 2021, funds amounting to Rs 52,223 crore had already been released.6 This suggests that the actual expenditure on the scheme overshot the budget estimates due to the pandemic induced distress. However, since 2015- 16, expenditure on the scheme has consistently been higher than the amount estimated at the budget stage. Table 3 shows the trends in allocation and actual expenditure on MGNREGS since 2012-13. Year Budgeted Actuals % utilised 2012-13 33,000 30,273 -8% 2013-14 33,000 32,992 0% 2014-15 34,000 32,977 -3% 2015-16 34,699 37,341 8% 2016-17 38,500 48,215 25% 2017-18 48,000 55,166 15% 2018-19 55,000 61,815 12% 2019-20 60,000 71,687 19% 2020-21 61,500 1,11,170 81% 2021-22 73,000 98,000 34% 2022-23 73,000 Note: The 'actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets 2012-13 to 2022-23; PRS. ## While Demand For Mgnrega Work Has Increased, Uptake Of Employment Has Been Poor Demand for work: MGNREGS is a demand driven scheme. According to the Ministry, in 2021-22 (as on December 15, 2021), 7.27 crore households had demanded employment under the scheme.7 Of these, 7.24 crore households were offered employment, while 6.36 crore households (87%) availed such employment. As per the Ministry, this could be due to better employment opportunities available elsewhere, or illness, and other such factors. The number of households engaged in MGNREGA work has increased from 5.12 crore in 2016-17 to 6.81 crore in 2021-22.8 Demand for work also shot up significantly during the pandemic. According to the Ministry, 1.85 crore persons were offered work in May 2021, which was 52% higher than the work offered in May 2019.9 The demand under MGNREGS is related to the movement of migrant labour. That is, states from which labour migrates would have seen higher demand under the scheme since migrant labourers returned to their home states during the COVID-19 pandemic. The Economic Survey 2021-22 noted that for several migrant source states such as Bihar, Madhya Pradesh, Odisha, and West Bengal the MGNREGS employment in most months of 2021 was lower than the corresponding levels in 2020.10 On the other hand, the demand for MGNREGS employment was higher for migrant recipient states like Karnataka, Maharashtra, Punjab, and Tamil Nadu for most months in 2021 over 2020.10 Employment provided: The scheme guarantees 100 days of employment. However, from 2016-17 to 2020-21, the average number of days of employment has been 48 days, with a maximum of 52 days of employment in 2020-21.11 Since 2016- 17, on average, less than 10% of the households completed 100 days of wage employment. The Standing Committee on Rural Development (2022) noted that despite MGNREGA being a demand driven scheme where workers can move to better opportunities, these figures are quite low.6 According to the Committee workers opt out of MGNREGA works due to low wage rates which hampers the amount of work completed. Year Employment days / household | 2016-17 | | 46 | |-----------|-----|-------| | 2017-18 | | 46 | | 2018-19 | | 51 | | 2019-20 | | 48 | | 2020-21 | | 52 | Sources: Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022; PRS. Work Completed: The scheme also aims to create durable assets to improve rural livelihood through the work done while providing employment. In 2020-21 and 2021-22, while the demand for work has increased and the number of persons being employed has also increased, the percentage of work completed under the scheme has been lower than 40%.11 ## Delays In Wage Payments Have Improved But Persist; Wage Rates Are Low In A Few States Indexing of minimum wage rate: The Ministry of Rural Development notifies the MGNREGA wage rate every year for states/UTs. Each state/UT may notify wages over and above the wage-rate notified by the central government. Skilled wage rate is decided by states governments. The minimum wage rate is fixed by the central government on the basis of the Consumer Price Index-Agricultural Labourers (CPI-AL). If this is not available, the minimum wage rate fixed by the states for agricultural labourers is considered.12 The Ministry revises the wage rate every year based on changes in CPI-AL.13 The Standing Committee on Rural Development (2020) had noted that the wage rate under MGNREGS is less than the minimum wages fixed by states.2 Further, the agricultural labourers receive wages higher than the MGNREGS workers. It recommended increasing the minimum wages under MGNREGS periodically after taking inflation into account.2 Note that in March 2020, under the Pradhan Mantri Garib Kalyan Yojana, MGNREGA wage was increased from Rs 182 a day to Rs 202 a day.14 In 2021-22, till February 2022, the average wage rate was Rs 209 per day per person.15 However, in six states the average wage paid was less than the minimum wage notified by the centre (Bihar,Chhattisgarh, Madhya Pradesh, Rajasthan, Telangana, and Tripura).16 The Committee on Alignment of MGNREGS wages under the Ministry of Rural Development (2017) noted that the type of work done by agricultural labourers and MGNREGS workers is different.17 Thus, there should be difference in their minimum wages. It also noted that the Consumer Price Index-Rural was more recent and provided for higher expenditure on education and medical care compared to CPI-AL.17 It recommended using CPI-Rural instead of the existing CPI-AL for revising MGNREGS wages.17 The Standing Committee on Rural Development (2020) noted the disparity in MGNREGS wages in various states. The Committee on Alignment of MGNREGS (2017) noted that this variation is not desirable for a programme where wage component is fully funded by the centre. It recommended convergence on Schedule of Rates across states to avoid variation.17 Payment delays have reduced: Under MGNREGS wage payments must be made within 15 days of the date of closure of the muster roll.5 Delays in payments are calculated from the 16th day onwards. Table 5 shows the percentage of delayed payments out of the total payments over the past six years, and delay in payments. The proportion of delayed payments has reduced from 71.6%% in 2014-15 to 1.4% in 2021-22. The Economic Survey (2018-19) noted that the implementation of direct benefit transfer has helped in reducing delays in payments.18 However, the Standing Committee on Rural Development (2022) noted that failed transactions and non-completion of Aadhaar based payments affects timely transfer of wages.6 It also noted that there were several instances where the amount transferred does not credit to the beneficiaries' accounts and causes delays in the actual realisation of wages. under MGNREGS (in %) Composition of delayed Year % Delayed Payment payments(%) >90 days 61-90 31-60 15-30 2014-15 71.6% 13.4% 9.8% 22.0% 26.3% 2015-16 63.1% 9.5% 8.1% 19.0% 26.5% 2016-17 56.6% 14.2% 8.4% 15.9% 18.1% 2017-18 15.5% 1.8% 0.9% 3.6% 9.2% 2018-19 10.5% 1.9% 0.7% 2.0% 5.8% 2019-20 6.2% 1.9% 0.7% 1.1% 2.6% 2020-21 3.5% 1.5% 0.3% 0.5% 1.3% 2021-22 1.4% 0.5% 0.1% 0.2% 0.6% Sources: MGNREGS MIS Report, Delayed Payments, last accessed on February 11, 2022; PRS. No unemployment allowance given in 2021- 22 so far: Currently under MGNREGS, a daily unemployment allowance is paid from state government funds (if employment is not provided by the state government within 15 days of application).4 A CAG report (2013) on the scheme had stated that this puts an additional burden on the states.19 It suggested that the Ministry of Rural Development should consider partial reimbursement of unemployment allowance.19 In recent years, the amount of unemployment allowance paid by states has reduced. In 2017- 18, the total unemployment allowance paid by 11 states was Rs 2.82 lakh.6 This further reduced to Rs 63,000 in 2018-19 (paid by eight states), and Rs 12,000 in 2019-20 (paid by four states).6 In 2020-21, only Maharashtra had paid such allowance, amounting to a total of three thousand rupees. The Standing Committee on Rural Development (2022) noted that in 2021- 22, till November 5, no states had paid such allowance.6 The Ministry had responded to this stating that in 2021-22 (as on August 31, 2021), 99.26% beneficiaries who had demanded for work had been offered the work.6 The Standing Committee (2022) noted that low or no payment of unemployment allowance is a blatant violation of the MGNREG Act.6 It noted that even though it is the states' responsibility to provide the allowance, the centre being the nodal agency should act upon this issue, and devise measures to oversee the implementation of the provision of unemployment allowance. ## Target Of Houses To Be Constructed Under Pradhan Mantri Awaas Yojana- Gramin (Pmay-G) Has Not Been Met PMAY-G has the second highest allocation in the Department's budget in 2022-23, at Rs 20,000 crore, which is 2% lower than the revised estimate of 2021-22. Since 2010-11, expenditure on the scheme has seen an average annual growth of 6%. The scheme was launched in 2016, as part of the central government's target to provide housing for all by 2022. PMAY-G subsumed the erstwhile Indira Awaas Yojana for rural housing. Note: Value for 2021-22 is revised estimate, value for 2022- 23 is budget estimate. Values for years prior to 2016-17 relate to Indira Awaas Yojana. Sources: Union Budgets from 2010-11 to 2022-23; PRS. Houses constructed: Since the scheme was announced in 2016-17, the target for construction for houses has not been met in any of the years. The rate of construction (completed vs sanctioned) has also declined since 2019-20. In 2021-22, the completion rate (till February 2021) was at 15%. Poor construction rates for 2020-21 and 2021-22 may be due to the inability to carry out construction due to the COVID-19 pandemic. The Standing Committee on Rural Development (2020) had noted that progress under the scheme has been slow.2 It observed that one of the biggest hurdles for the timely completion of houses, is delay in the release of instalments under PMAY-G to beneficiaries. It recommended the Department of Rural Development to streamline the method for the timely release of instalments and explore ways to ensure that construction of houses is completed within the targeted time frame. Note: No target set for 2021-22. Sources: Dashboard, PMAY-G, Ministry of Rural Development, last accessed on February 11, 2022; PRS. Increase in financial assistance under PMAY-G: Under PMAY-G, financial assistance of Rs 1,20,000 in plain areas and Rs 1,30,000 in hilly areas is provided to rural BPL households for construction of a dwelling unit. The Standing Committee on Rural Development (2019) had noted that the financial assistance provided is not proportionate with the rising inflationary cost of the construction, material and other aspects of house building.20 Further, Standing Committee on Rural Development (2020-21) noted the disparity in assistance for constructing a house in rural and urban areas (assistance of about Rs 2,50,000 per house). It noted that there are several logistical issues in rural areas that may not be there in urban areas. It recommended the Ministry to increase the assistance provided by them under the PMAY-G scheme and bring parity between the per-unit assistance in rural and urban areas.20 Coverage of the scheme: Questions have also been raised around the coverage of the scheme and whether all intended beneficiaries are included. Under PMAY-G beneficiaries are selected based on the housing deficiency and other social deprivation parameters in the Socio Economic and Caste Census, 2011 (SECC), and as verified by the Gram Sabhas. The Standing Committee on Rural Development (2021) had noted that to ensure that Gram Sabhas are making fair assessments, the rejected applicants should be cross-checked by independent agencies and more accountability be brought into the process.21 Anomalies in the SECC 2011 data could also exclude people from benefitting under the scheme. It recommended that a new strategy be designed to identify beneficiaries. ## Pradhan Mantri Gram Sadak Yojana Pradhan Mantri Gram Sadak Yojana (PMGSY) seeks to provide all-weather road connectivity to all eligible unconnected habitations, existing in the core network in rural areas of the country. The scheme has been allocated Rs 19,000 crore in 2021-22, which is an increase of 36% over the revised estimate of 2021-22. Declining fund allocation and poor utilisation: While the allocation in 2022-23 sees a significant increase from the revised estimates of last year, the expenditure on the scheme has been decreasing since 2015-16 (see Figure 8). Further since 2016-17, the Ministry has been spending less than the amount allocated at the budget stage (see Table 6). This trend of underutilisation has been worsening between 2016-17 and 2020-21. Year Budgeted Actuals % utilisation 2014-15 14,391 14,188 -1% 2015-16 14,291 18,290 28% 2016-17 19,000 17,923 -6% 2017-18 19,000 16,862 -11% 2018-19 19,000 15,414 -19% 2019-20 19,000 14,017 -26% 2020-21 19,500 13,688 -30% 2021-22 15,000 14,000 -7% 2022-23 19,000 Note: The 'Actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets from 2014-15 to 2022-23; PRS. Slow pace of work under the scheme: Till December 8, 2021, under phase I of the scheme, 6,45,627 km of road length has been sanctioned, of which, 6,10,179 km has been completed.22 PMGSY II was launched in 2013 to consolidate the existing rural road network, under which 50,000 km of road length was targeted for upgradation. As on December 8, 2021, 49,885 km has been sanctioned and 45,573 km has been constructed.22 In July 2019, PMGSY III was approved for consolidation of 1.25 lakh km roads length through routes and major rural links connecting habitations. As on December 8, 2021, 71,902 km has been sanctioned and 19,649 km has been constructed.22 Phase III is to be implemented till March 2025. | | Sanctioned | Constructed | Balance | |-----------|---------------|----------------|------------| | Phase I | 6,45,627 | 6,10,179 | 20,340 | | Phase II | 49,885 | 45,573 | 3,860 | | Phase III | 71,902 | 19,649 | 52,152 | Source: Lok Sabha Starred Question No. 226, December 14, 2021; PRS. While targets under various phases of the scheme are being met, the progress has been slow. The Standing Committee on Rural Development (2021) noted that projects under PMGSY do not get completed in the prescribed time frame.3 Such delays result in escalation of the project costs which affects the overall expenditure. Delays are also caused due to delays in obtaining clearances for projects from various ministries. In 2020, the Committee had noted that the pace of work under the scheme has been slow, especially in hilly states like Uttarakhand.2 It noted that the delay in approval of Detailed Project Reports (DPRs) is the main cause for the slow pace of the scheme. It recommended that the Department of Rural Development ensure timely preparation and approval of DPRs and increase the pace of completion of projects. Figures 9 and 10 give details of length of roads constructed and habitations connected in the last ten years, under the scheme. Note: Road length includes roads constructed under Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA). Sources: Sanctioned road length under PMGSY, Rural Dashboard, Monitoring and Accounting System (OMMS), Ministry of Rural Development, last accessed on February 11, 2022; PRS. Note: Road length includes roads constructed under Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA). Sources: Sanctioned road length under PMGSY, Rural Dashboard, Monitoring and Accounting System (OMMS), Ministry of Rural Development, last accessed on February 11, 2022; PRS. ## Issues With Contracting And Poor Maintenance Affects Quality Of Roads Built Under Pmgsy The Standing Committee on Rural Development (2021) noted that contractors tend to quote 25- 30% lower than the minimum bid amount to acquire project tenders under the scheme.3 This affects the quality of roads constructed under PMGSY. Often contracts are also sublet to petty contractors who are not involved at the time of awarding bids. This is done for further costcutting in projects and profiteering. For ensuring sustainability of roads built under PMGSY, each contractor has to provide for: (i) defect liability for five years, and (ii) paid routine maintenance after completion of work. The Standing Committee on Rural Development (2020, 2021) has consistently noted that roads constructed are not up to the prescribed standards and there has been deterioration in the roads despite the five-year warranty period.2,3 It has recommended the Ministry to ensure stricter norm compliance and hold the contractors and agencies accountable for their negligence. ## National Social Assistance Program The National Social Assistance Program (NSAP) is a welfare program comprising of sub-schemes aimed at providing assistance to citizens in case of unemployment, old age, sickness, and any form of disability. The major schemes include Indira Gandhi National Old Age Pension Scheme, Indira Gandhi National Widow Pension Scheme, and Indira Gandhi National Disability Pension Scheme. It also includes funds provided to Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders through direct benefit transfers (DBT). In 2022-23, the scheme has been allocated Rs 9,652 crore, which is a 11% increase over the revised estimates of 2021-22. The expenditure on the scheme was increased substantially in 2020-21, owing to Rs 30,945 crore spent on DBT to women account holders of PMJDY (Rs 500 for three months).23 This was an initiative under the PM Garib Kalyan Package to combat the economic effects of the COVID-19 pandemic. Table 8: Allocation under NSAP (in Rs crore) 20-21 Actuals 21-22 RE 22-23 BE 8,965 5,945 6,564 Indira Gandhi National Old Age Pension Scheme 1,881 1,845 2,027 Indira Gandhi National Widow Pension Scheme 375 583 675 National Family Benefit Scheme 30,944 - - DBT to PMJDY Women Account Holders Others 278 358 386 Total 42,443 8,730 9,652 Sources: Demands for Grants 2022-23, Department of Rural Development; PRS. expenditure under the scheme since 2014-15. Table 9: Expenditure under NSAP (Rs crore) Year Budgeted Actuals % utilised 2014-15 10,635 7,087 -33% 2015-16 9,082 8,616 -5% 2016-17 9,500 8,854 -7% 2017-18 9,500 8,694 -8% 2018-19 9,975 8,418 -16% 2019-20 9,200 8,692 -6% 2020-21 9,197 42,443 361% 2021-22 9,200 8,730 -5% 2022-23 9,652 Note: The 'Actuals' figure for 2020-21 is the revised estimate. Sources: Union Budgets from 2014-15 to 2022-23; PRS. Increase of assistance amount: The Standing Committee on Rural Development (2020,21) has consistently noted that the assistance amount (ranging from Rs 200 to Rs 500 per month) under the different components of the scheme is inadequate. It recommended the Department of Rural Development to increase the assistance amounts under the scheme. PM Jan Dhan Yojana: PMJDY was launched in August 2014 to increase banking penetration, promote financial inclusion and provide at least one bank account per household across the country. As on February 2, 2022, 44.58 crore accounts have been opened under PMJDY (since its launch).24 67% of these accounts have been opened in rural and semi-urban bank branches. The remaining 33% are in urban metro centres. Deposits of Rs 1.58 lakh crore have been made and 31.38 crore RuPay debit cards have been issued.24 ## National Rural Livelihoods Mission The National Rural Livelihoods Mission (NRLM) aims to reduce poverty through promotion of diversified and gainful selfemployment and skilled wage employment opportunities. In 2022-23, the scheme has been allocated Rs 13,336 crore, which is a 14% increase over the revised estimates of 2021-22. Table 10 shows the actual expenditure by states under the scheme since 2012-13. Table 10: Expenditure under NRLM (Rs crore) Year Budgeted Actuals % utilisation 2012-13 3,915 2,195 -44% 2013-14 4,000 2,022 -49% 2014-15 4,000 1,413 -65% 2015-16 2,505 2,514 0% 2016-17 3,000 3,157 5% 2017-18 4,500 4,327 -4% 2018-19 5,750 5,783 1% 2019-20 9,024 9,022 0% 2020-21 9,210 9,208 0% 2021-22 13,678 11,710 -14% 2022-23 13,336 Note: Actuals for 2021-22 are revised estimates. From 2015-16, allocation to start-up village entrepreneurship program has also been included. Sources: Union Budgets from 2012-13 to 2022-23; PRS. Table below shows progress under components of the scheme since 2016-17. Number of households mobilised into Self Help Groups 2016-17 74,01,665 2017-18 88,29,599 2018-19 97,37,594 2019-20 89,17,895 2020-21 62,06,775 2021-22 45,37,327 Source: Aajeevika - Deen Dayal Antyodaya Yojana - NRLM, Rural Dashboard, Ministry of Rural Development, last accessed on February 11, 2022; PRS. CIF disbursed to SHG (in Rs lakh) Revolving fund disbursed to SHGs (in Rs lakh) 2016-17 1,91,734 26,762 1,35,033 80,847 2017-18 2,95,303 41,756 2,33,094 1,38,356 2018-19 4,29,557 62,221 2,73,485 1,67,613 2019-20 4,37,881 63,459 3,26,505 2,10,188 2020-21 5,03,485 72,712 4,07,600 2,47,260 2021-22 3,87,996 59,315 3,85,576 2,79,453 Source: Aajeevika - Deen Dayal Antyodaya Yojana - NRLM, Rural Dashboard, Ministry of Rural Development, last accessed on February 11, 2022; PRS. ## Overview Of Finances: Department Of Land Resources The Department of Land Resources aims to increase productivity of degraded land through integrated watershed management. It also aims to develop an integrated land information management system to improve real-time information on land, and to optimise use of land resources. It implements two key schemes: (i) Integrated Watershed Development Component of Pradhan Mantri Krishi Sinchai Yojana (WDC- PMKSY), and (ii) the Digital India Land Records Modernisation Programme (DILRMP). In 2021-22, the Department has been allocated Rs 2,259 crore, which is a 52% increase over the revised estimates of 2021-22. ## Department Of Land Resources (Rs Crore) | Major Heads | | |---------------|-----| | 20-21 | | | Actuals | | | 21-22 | | | RE | | | 22-23 | | | BE | | | % Change | | | (22-23 BE/ | | | 21-22 RE) | | | WDC - PMKSY | 938 | | DILRMP | 225 | | Secretariat | 13 | | Total | | Note: WDC - PMKSY is the Watershed Development Component under Pradhan Mantri Krishi Sinchai Yojana. DILRMP is Digital India Land Records Modernisation Programme. BE is budget estimate and RE is revised estimate. Sources: Demands for Grants 2022-23, Department of Land Resources, Ministry of Rural Development; PRS. ## Watershed Development Component Of Pradhan Mantri Krishi Sinchai Yojana The Integrated Watershed Management Programme aims to develop rain fed portions of net cultivated area and culturable wastelands.25 In 2015, it was subsumed as one of the components of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). Activities under the Watershed Development Component are drainage line treatment, soil and moisture conservation, rain water harvesting, and afforestation, among others. The scheme has been allocated Rs 2,000 crore in 2022-23, which is a 64% increase over the revised estimate of 2021-22. Note that there has been under-utilisation of the budgeted amounts for the last five years. Slow progress of projects: The Standing Committee on Rural Development (2020, 2021) noted the slow pace of completion of projects under the scheme. As of February 10, 2022, 1,139 projects were ongoing and under various stages of implementation.26 The Standing Committee (2021) noted that projects are delayed in some states due to lack of focus by state governments and delay in release of central funds to the state level nodal agencies. The Committee recommended accelerating the pace of project completion. The centre must work with the state level nodal agencies to ensure that projects are not delayed. Table 14: Expenditure under WDC-PMKSY (Rs crore) Year Budgeted Actuals % utilised 2015-16 1,530 1,527 0% 2016-17 1,550 1,510 -3% 2017-18 2,150 1,671 -22% 2018-19 2,251 1,786 -21% 2019-20 2,066 1,467 -29% 2020-21 2,000 938 -53% 2021-22 2,000 1,216 -39% 2022-23 2,000 - Note: The 'Actuals' figure for 2021-22 is revised estimate. Sources: Union Budgets from 2015-16 to 2022-23; PRS. ## Digital India Land Records Modernisation Programme (Dilrmp) DILRMP is a part of the Digital India initiative.27 The scheme was changed into a Central Sector Scheme in April 2016.28 With this change, the scheme is now implemented by the central government with 100% of the grants coming from the centre. Major components of the programme include: (i) computerisation of all existing land records, (ii) digitisation of maps, (iii) survey/re-survey, and updating of all settlement records, and (iv) computerisation of the registration process and its integration with the land records maintenance system. In 2022-23, the scheme has been allocated Rs 239 Development, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe88.pdf. 2 Report No. 4, Demands for Grants (2020-21), Department of Rural Development, Standing Committee on Rural Development, March 3, 2020, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_4.pdf. 3 Report No. 13, Demands for Grants (2021-22), Department of Rural Development, Standing Committee on Rural Development, March 9, 2021, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_13.pdf. 4 The National Rural Employment Guarantee Act, 2005 https://nrega.nic.in/amendments_2005_2018.pdf. crore which is a 4% decrease from the revised estimates of 2021-22. Over the past few years the amount allocated towards the scheme at the budget stage has typically not been fully utilised, with the actual expenditure in some years being 50% less than the amount allocated at the budget stage. However, in 2021-22, expenditure on the scheme is estimated to be 67% more than the amount allocated at the budget stage. on DILRMP (Rs crore) Year Budgeted Actuals % utilised 2015-16 90 40 -56% 2016-17 150 139 -7% 2017-18 150 93 -38% 2018-19 250 68 -73% 2019-20 150 44 -71% 2020-21 239 225 -6% 2021-22 150 250 67% 2022-23 239 - Note: The 'actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets 2015-16 to 2022-23; PRS. Progress of components under DILRMP: DILRMP is currently being implemented in all states, but with differential progress.29 While significant progress has been made across various components of the scheme, several key components are still lagging behind. Land records have been computerised for 93% of the villages.29 The record of rights have been digitised for 84% of the villages.29 Survey/re-survey work has been completed in only 12% of the villages. 68% of the cadastral maps have been digitised. Land records and property registration has been integrated in 75% of villages. Textual and spatial data has been integrated in 56% villages. http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_and_Panch ayati_Raj_20.pdf. 7 Unstarred Question No. 3781, Lok Sabha Questions, Ministry of Rural Development, December 21, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU3781.pd f 8 Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022, http://mnregaweb4.nic.in/netnrega/MISreport4.aspx. 9 "In FY 2021, 1.85 crore persons have been offered work under MGNREGA; 52% higher than the same period in FY 2019", Ministry of Rural Development, Press Information Bureau, May 17, 2021. 10 Chapter 10, Social Infrastructure and Employment, Economic Survey 2021-22, Ministry of Finance, https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/ echap10.pdf. 11 Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022, https://ruraldiksha.nic.in/RuralDashboard/MGNREGA_New.asp x. 12 The National Rural Employment Guarantee Act, 2005, https://nrega.nic.in/amendments_2005_2018.pdf. 13 Unstarred Question No. 2219, Ministry of Rural Development, August 6, 2021, https://pqars.nic.in/annex/254/AU2219.pdf. 14 "Finance Minister announces Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus", Press Information Bureau, Ministry of Finance, March 26, 2020. 15 "Program Specific", Dashboard, Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022; PRS. 16 R7.2.1 Average wage As per measurement pattern during the Financial Year 2021-2022, The Mahatma Gandhi National Rural Employment Guarantee Act, Ministry of Rural Development, last accessed on February 11, 2022, http://mnregaweb4.nic.in/netnrega/avg_wage_paid.aspx?fin_yea r=2021- 2022&source=national&Digest=9W1xBQWtfJS+lGqDnrVHsA. 17 "Report of the Committee on Alignment of MGNREGA Wages with Minimum Agricultural Wages." July, 2017. Ministry of Rural Development, MGNREGA Division. http://www.im4change.org/siteadmin/tinymce/uploaded/Draft% 20report%20of%20Nagesh%20Singh%20Committee%20July% 202017.pdf. 18 Effective use of technology for welfare schemes - Case of MGNREGS. Economic Survey 2018-19, Volume I. https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapte r/echap10_Vol1.pdf. 19 "Report No. 6, Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme", Comptroller and Auditor General of India, 2013, http://www.cag.gov.in/sites/default/files/audit_report_files/Unio n_Performance_Civil_Ministry_Rural_Development_6_2013.p df. 20 Report No. 1, Demands for Grants (2019-20), Ministry of Rural Development, Standing Committee on Rural Development, December 5, 2019, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_1.pdf. 21 Report No. 16, Pradhan Mantri Awaas Yojana - Gramin: PMAY-G, Standing Committee on Rural Development, August 2, 2021, http://164.100.47.193/lsscommittee/Rural%20Development%20 and%20Panchayati%20Raj/17_Rural_Development_16.pdf. 22 Starred Question No. 226, Lok Sabha Questions, Ministry of Rural Development, December 14, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AS226.pdf. 23 "Direct cash transfer to women PMJDY account holders under PM Garib Kalyan Package for the month of April 2020 in the light of COVID-19 pandemic", Ministry of Rural Development, April 3, 2020. 24 "Progress-Report, PMJDY" , last accessed on February 11, 2022, https://pmjdy.gov.in/account 25 Programme Details, Watershed Development Component Of Pradhan Mantri Krishi Sinchai Yojana (WDC-PMKSY), Department Of Land Resources, Ministry of Rural Development https://dolr.gov.in/programme-schemes/pmksy/watersheddevelopment-component-pradhan-mantri-krishi-sinchai-yojanawdc-pmksy. 26 Unstarred Question no. 1596, Lok Sabha Questions, Ministry of Jal Shakti, February 10, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AU1596.pd f. 27 Digital India Land Records Modernization Program, Department of Land Resources, Ministry of Rural Development, http://nlrmp.nic.in/faces/common/home.xhtml. 28 "Rationalization of Centrally Sponsored Scheme DILRMP as Central Sector Scheme", Department of Land Resources, Ministry of Rural Development, September 22, 2016, http://dolr.nic.in/dolr/downloads/PDFs/DILRMP%20Clarifi cations%202016-09-22.pdf. 29 Digital India Land Records Modernization Programme - MIS 2.0, last accessed on February 11, 2022, https://dilrmp.gov.in/faces/common/dashboard.xhtml. ## Demand For Grants 2022-23 Analysis Agriculture And Farmers' Welfare The Ministry of Agriculture and Farmers' Welfare has two Departments: (i) Agriculture, Cooperation and Farmers' Welfare, which implements policies and programmes related to crop husbandry and manages agriculture inputs, and (ii) Agricultural Research and Education, which coordinates and promotes agricultural research and education. This note examines the budget allocations and expenditure of the two Departments of the Ministry, major schemes of the departments, and discusses issues in the agriculture sector. ## Overview Of Finances The Ministry has been allocated Rs 1,32,514 crore in 2022-23, a 4.5% increase over the revised estimates of 2021-22.1 Allocation to the Ministry accounts for 3.4% of the government's budget. 55% of the allocation to the Ministry in 2022-23 is for the PM-KISAN scheme (Rs 68,000 crore). All other programmes of the Ministry, including interest subsidy and crop insurance, have been allocated Rs 64,514 crore in 2022-23. In 2021-22, the expenditure of the Ministry is estimated to be Rs 1,26,808 crore as per the revised estimate, which is 4% lower than the budget estimate.2 Sources: Expenditure Budget, Union Budgets (2014-22); PRS. Before PM-KISAN, the Ministry's expenditure saw a large increase in 2016-17 due to the interest subsidy provided on short-term credit to farmers. The subsidy, earlier provided by the Ministry of Finance, is being provided by the Ministry of Agriculture and Farmers' Welfare since 2016-17. This year, the subsidy has been provided under the Modified Interest Subvention Scheme (MISS). ## Policy Proposals In The Budget Speech In the 2022-23 budget speech, the Finance Minister made the following proposals regarding agriculture: - A fund will be set up to finance start-ups relevant for farm produce supply chains, under the co-investment model. It will be facilitated through the National Bank for Agriculture and Rural Development. - Legislative changes will be brought in to promote agro-forestry. - A scheme in Public-Private Partnership (PPP) model will be launched for the delivery of digital and hi-tech services to farmers. It will include public sector research and extension institutions, private agri-tech players and stakeholders of agri-value chain. Departments of the Ministry of Agriculture and Farmer's Welfare Within the two departments under the Ministry, the Department of Agriculture, Cooperation and Farmers' Welfare has received 94% of the allocation to the Ministry in 2022-23, while 6% has been allocated to the Department of Agricultural Research and Education (Table 1). % change 2022-23 over Department 2020-21 Actuals 2021-22 Revised 2022-23 Budget 2021-22 1,08,273 1,18,294 1,24,000 5% Agriculture, Cooperation and Farmers' Welfare 7,554 8,514 8,514 0% Agricultural Research and Education Ministry 1,15,827 1,26,808 1,32,514 5% Sources: Expenditure Budget, Union Budget 2022-23; PRS. The Department of Agriculture, Cooperation and Farmers' Welfare has been allocated Rs 1,24,000 crore in 2022-23, which is a 5% increase over the revised estimates of 2021-22. 83% of the Ministry's budget is proposed to be spent on three schemes under this Department: (i) the income support scheme, i.e., PM-KISAN (55%), (ii) Modified Interest Subvention Scheme (MISS) (16%), and (iii) the crop insurance scheme, i.e., Pradhan Mantri Fasal Bima Yojana (13%). The Department of Agricultural Research and Education has been allocated Rs 8,514 crore in 2022-23, the same amount as the revised estimate for 2021-22.3 Allocation to the Indian Council of Agricultural Research (ICAR) accounts for 69% of the Department's allocation in 2022-23. See Tables 6 and 7 in the Annexure for more details. Allocation vs actual expenditure: Expenditure of both the Departments has been lower than their budget allocations in almost all years during the period 2012-22 (Figure ). The Ministry spent 19% less than its budget allocation in 2020-21. The Standing Committee on Agriculture (2020-21) noted in March 2021 that large amount of funds surrendered adversely affect the implementation of the schemes under the department and the flow of expenditure should be resolved with state governments.4 Note: Figures for 2021-22 are revised estimates. Sources: Expenditure Budget, Union Budgets (2012-23); PRS. Major Schemes of the Ministry ## Pm-Kisan In February 2019, the government launched the PM-KISAN scheme to provide income support of Rs 6,000 per year to farmer families (disbursed in three instalments of Rs 2,000). The scheme aims to supplement the financial needs of farmers in procuring inputs for appropriate crop health and yields.5 Earlier, only small and marginal landholder farmer families, i.e., families with total cultivable landholding of up to two hectares, were eligible for the scheme. In May 2019, the Union Cabinet approved the extension of the scheme to all farmer families irrespective of their size of landholdings. With this increase in coverage, expenditure on the scheme was estimated to increase from the budget allocation of Rs 75,000 crore to Rs 87,218 crore in 2019-20.6 However, in 2019-20, the Ministry spent Rs 48,714 crore on the scheme, 35% lower than the budget allocation. Figure 3 shows the difference in the budgeted and actual expenditure under the scheme. For 2022- 23, the allocation has been increased to Rs 68,000 crore, 1% increase over the revised estimate in 2021-22 (Rs 67,500 crore). Note: Figures for 2021-22 are revised estimates. Sources: Expenditure Budget, Union Budgets (2019-23); PRS. Implementation: Initially, the scheme was expected to cover 12.5 crore beneficiaries.6 With the increase in coverage, this was revised to 14.5 crore beneficiaries.6 Till December 2022, 11.61 crore beneficiaries have been covered (farmers registered and seeking benefit under the scheme) which is close to 3 crore below the estimated beneficiaries .7 However, the coverage under different instalments vary. Figure depicts the number of payments from 2019-20 to 2021-22 per instalment.8 2021-22 has highest number of instalments across the three periods from 2019-22. The Standing Committee (2021) recommended that necessary steps should be taken to register all eligible farmers under the scheme.9 The Standing Committee on Agriculture (2020) had noted that the scheme is facing the following issues in implementation: (i) non-availability of proper land records in some states, (ii) slow identification of beneficiaries and delay in the uploading of data by states, (iii) issues with the matching of demographic data between the PM-KISAN database and Aadhaar data, (iv) incorrect bank accounts, and (v) poor internet connectivity in rural areas hampering the uploading of data.10 In a response to the Standing Committee in 2021, the Ministry re-iterated that many of the above issues still prevail. The Committee recommended that the government should hold regular consultation with states to resolve issues and take corrective steps. Land as an eligibility criterion: Farmer families owning cultivable landholding are eligible for receiving income support under the scheme. The beneficiaries are identified by states based on their land records. The scheme does not cover landless agricultural labourers who form 55% of the agricultural workers in the country (Figure ).11 Agricultural workers include cultivators and labourers working in the agriculture sector. The share of landless agricultural labourers in total agricultural workers has increased over the years from 28% in 1951 to 55% in 2011. The Standing Committee (2020) noted that tenant farmers, who are a significant part of landless farmers in many states, do not receive the income support benefits.10 It recommended the government to examine this issue in coordination with states so that landless farmers can also receive benefits under the scheme. ## Rashtriya Krishi Vikas Yojana The Rashtriya Krishi Vikas Yojana (RKVY) umbrella scheme was initiated in 2007 for ensuring holistic development of agriculture and allied sectors by allowing states to choose their own development activities as per district and state agriculture plans.12 With the aim of making farming a remunerative economic activity, the Ministry provides financial assistance to states to spend on sub-schemes such as: (i) pre-harvest and post-harvest infrastructure, (ii) value addition using agri-business models, and (iii) projects based on local and national priorities. It was revised in 2017 as RKVY- Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) with similar objectives to be completed until 2019-20.13 The scheme was further extended till March 31, 2022.14,15 While the administrative approval for 2022-23 is pending, it is likely to be provided by the end of March, 2022. The allocation for Rashtriya Krishi Vikas Yojana, has seen a significant jump in allocation from Rs 2,000 crore in 2021-22 (revised estimate) to Rs 10,433 crore in 2022-23 (budget estimate). This is because the scheme has been restructured and erstwhile schemes viz. Pradhan Mantri Krishi Sinchai Yojna-Per Drop More Crop, Paramparagat Krishi Vikas Yojna, National Project on Soil and Health Fertility, Rainfed Area Development and Climate Change, Sub-Mission on Agriculture Mechanization including Management of Crop Residue. have been merged with RKVY.16 Table in the Annexure provides details on the components of RKVY and their previous allocations. The Standing Committee on Agriculture (2017) observed that the allocations for the scheme under the Green Revolution Programme are not utilised optimally and timely.25 This is due to a delay in the approval of projects and funds by states and consequent slow pace of implementation, causing a reduction in the release of funds. For instance, in 2021-22, budget allocation of Rs 3,712 crore to the scheme has been revised down to Rs 2,000 crore.17 The Standing Committee on Agriculture (2020) noted that the scheme's allocation gets cut at the revised stage as states are not able to timely submit their utilisation certificates, due to the delays in completion of infrastructure projects.10 The Standing Committee on Agriculture (2021) recommended that the guidelines of the scheme should be changed to ensure that the states are provided funds for their upcoming projects in the agriculture sector.9 It recommended that there is a need to increase the time period for submission of utilisation certificates for schemes involving infrastructure projects. Soil Health Cards: In order to provide farmers with information regarding the quality of their soil, the Soil Health Card scheme was launched in 2015.18 Under the scheme, farmers are issued soil health cards, which contain information such as nutrient status of soil and recommended dose of nutrients to be provided to improve its fertility. This scheme has now been merged with RKVY. In 2021-22, Rs 315 crore had been allocated for the National Project on Soil Health and Fertility which decreased by 68% at the revised stage (at Rs 100 crore). During the first cycle (2015-17) of the scheme, 10.74 crore soil health cards were provided as per the target.19 During the second cycle (2017-19), 11.87 crore soil health cards were provided against the target of 12.41 crore cards. During the period 2019-21, 19.6 lakh soil health cards have been distributed under the Model Village Programme (84% of the target).20 ## Pradhan Mantri Fasal Bima Yojana Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016-17 to provide crop insurance to farmers.21 All farmers, including sharecroppers and tenant farmers, who are growing notified crops in notified areas are eligible under the scheme. In 2022-23, the scheme has been allocated Rs 15,500 crore, a 3% decrease over the 2021-22 revised estimate. Participation of states: The Standing Committee on Agriculture (2021) noted that some recent revisions in the scheme guidelines may lead state governments to withdraw from it. The Committee has recommended revising amendments which: (i) prohibit states which delay the release of subsidies (beyond specified timeline) from participating in the scheme, and (ii) mandate state governments to bear the entire subsidy for areas/ crops which have a higher premium rate than the specified rates.25 The Committee further noted that several states such as Bihar and West Bengal have withdrawn from the scheme, while Punjab never implemented it. It attributed this to financial constraints and low claim ratios during the normal seasons. It recommended enacting measures to increase participation by states. Delays in settlement: The Standing Committee (2021) recognised delays in settlement of insurance claims as one of the biggest challenges in implementation of the scheme.24 It recommended implementing a timeline for settlement of claims by insurance companies. In cases where delays are caused by failure of the state governments to pay subsidy, it suggested returning the premium with interest to farmers within a fixed time frame. Coverage of farmers: During the period 2016-19, the scheme covered 36-40% of the farmers.22 Note that before Kharif season 2020, enrolment was mandatory for farmers with loans and optional for others. To address the demand of farmers, the scheme has been made voluntary for all farmers.23 Further, the Standing Committee on Agriculture (2021) noted that farmers who have taken loans can opt out of the scheme by submitting a declaration form.24 However, due to lack of awareness, several farmers do not submit the requisite form and face mandatory deduction of premium from their bank accounts. It recommended amending this provision to require such farmers who have taken a loan and want to avail the scheme, to opt in separately. Assessment of losses: The Standing Committee on Agriculture (2017) observed that states are not readily accepting and adopting the technologies used for assessing yield loss.25 The Committee recommended the Ministry to pursue states to adopt technology aids and satellite imagery for crop cutting experiments. Under the revised guidelines of the scheme, the government has proposed a twostep process of using weather and satellite indicators for an early assessment of yield loss.23 However, the Standing Committee (2021) observed that yield-related disputes and delayed transmission of yield data are now a major reason for delays in settlement of claims.24 It noted that this data is provided by state governments based on crop cutting experiments which are highly time consuming and labour intensive. It recommended the adoption of smart sampling techniques by all states to address this. Grievance redressal: The Standing Committee on Agriculture (2019) observed that farmers are facing issues in lodging complaints with the insurance companies due to the absence of local offices of the companies at the district and block-level.22 It recommended that the Ministry should ensure the availability of a common helpline number for lodging of complaints. Under the revised scheme guidelines, states have to constitute grievance redressal committees at the district and state level.26 However, in 2021, the Standing Committee on Agriculture noted that only 15 states and union territories have notified Grievance Redressal Committees at both the state and district level. It recommended ensuring the formulation of these Committees in all other states.24 ## Key Issues In The Sector Growth Of The Agriculture Sector Growth of the sector comprising of agriculture and allied activities has been volatile over the years (Figure ). In 2021-22, the sector is estimated to grow at 3.9%, as compared to a 3.3% growth in 2020-21.27,28 Sources: MOSPI; PRS. Sources: Agricultural Statistics at a Glance 2020, Ministry of Agriculture and Farmers' Welfare; CSO, MOSPI; PRS. The contribution of the agriculture sector in the economy has significantly decreased from 51% in 1951 to 19% in 2011, and further to an estimated 16% in 2020-21.28 Meanwhile, the share of workers who are dependent on agriculture has decreased at a lower rate from 70% in 1951 to 55% in 2011. This implies that the average income of these workers grew at a slower pace than that of workers in other sectors. The Committee on Doubling Farmers' Income (Chair: Mr. Ashok Dalwai, 2017) observed that one way of significantly improving income of farmers, and hence, growth of the sector is by shifting the agricultural workforce to more productive employment in non-farm sectors.29 However, as of 2018-19, receipts from non-farm businesses only contributed to 6% of an agricultural household's average monthly income. Table provides details on the growth in the farmer's income, including income from crop production and farming of animals, from 2012-13 to 2018-19. ## Household | Year | 2012-13 | 2018-19 | % change | |----------------------|------------|------------|--------------| | Income: wages | 2071 | 4063 | 96% | | Net receipt: crop | | | | | production | 3081 | 3798 | 23% | | Net receipt: farming | | | | | animals | 763 | 1582 | 107% | | Net receipt: non- | | | | | farm business | 512 | 641 | 25% | | Total Income | 6426 | 10218 | 59% | Note: In 2018-19, total income includes Rs 134 per month from leasing of land. Data for the same is unavailable for 2012-13. CP stands for crop production, NFB for non-farm business. Sources: NSS 70th and NSS 77th Round, MOSPI; PRS. ## Agricultural Credit Agriculture credit is provided to farmers at a subsidised cost through interest subsidy.30 An interest subsidy of two percent is provided to farmers on their short-term crop loans of up to three lakh rupees. An additional interest subsidy of three percent is provided to farmers repaying their loan on time, i.e., within a year. Under the Agricultural Infrastructure Fund, interest subsidies on loans for long-term credit are provided to farmers. In 2022-23, Rs 19,500 crore has been allocated for interest subsidy under a new Modified Interest Subvention Scheme (MISS). The previous scheme on interest subsidy for short-term credit to farmers scheme from previous years has not been allocated an amount this year. The allocation for MISS is an increase of 7% over the 2021-22 revised estimate for the interest subsidy for short-term credit to farmers scheme (Rs 18,142). However, a significant difference has been observed in the last few years between the estimates presented in the budget (even the revised estimate) and the actual expenditure at the end of the year (Table 3). actual expenditure on interest subsidy (Rs crore) | Year | Budgeted | Revised | Actuals | % shortfall | |---------|-------------|------------|------------|----------------| | 2016-17 | 15,000 | 13,619 | 13,397 | -11% | | 2017-18 | 15,000 | 14,750 | 13,046 | -13% | | 2018-19 | 15,000 | 14,987 | 11,496 | -23% | | 2019-20 | 18,000 | 17,863 | 16,219 | -10% | | 2020-21 | 21,175 | 19,832 | 17,790 | -16% | | 2021-22 | 19,468 | 18,142 | - | -7% | Sources: Expenditure Budget, Union Budgets (2016-21); PRS. Short-term vs long-term loans: In 2015, the Committee on Medium-term Path on Financial Inclusion under the Reserve Bank of India (RBI) observed that the interest subsidy provided for short-term crop does not incentivise farmers to take up long term loans for capital formation.31 Shortterm crop loans are used for pre-harvest activities such as weeding, harvesting, sorting, and transporting. Long-term loans are taken to invest in agricultural machinery and equipment, or irrigation system. The Committee observed that the scheme does not incentivise long-term capital formation in agriculture, which is essential to boost productivity in the sector. Capital formation through investment in agriculture helps in improving the stock of equipment, tools and productivity of natural resources, which, in turn, enables the farmers to use their resources, particularly land and labour, more productively.32 However, the rate of capital formation over the past few years has been decreasing. provides details on the rate of capital formation from 2011-12 to 2019- 20. Source: Agricultural Statistics at a Glance 2020, Ministry of Agriculture and Farmers' Welfare; CSO, MOSPI; PRS Over the past few decades, the trend of short-term and long-term agricultural credit has reversed. In 1990-91, a majority of the agricultural credit were long-term loans, whereas short-term loans were only about a quarter of the total credit.33 In 2019- 20, the share of long-term loans in total agricultural credit was at 40% (Figure 9).34 A lower share of long-term agricultural credit implies that farmers are taking more loans for recurring expenditure rather than to fund long-term investments. (2020) and the RBI Working Group on Agriculture Credit; PRS. The Committee on Doubling Farmers' Income (2017) recommended that the central and state governments should provide interest subsidy on long-term or investment credit taken by farmers, particularly small and marginal farmers.35 In May 2020, under the Aatmanirbhar Bharat Economic Package, the central government announced the setting up of an Agriculture Infrastructure Fund (AIF) of one lakh crore rupees for financing farmgate infrastructure.36 Under the AIF, the government provides an interest subsidy of 3% on loans of up to two crore rupees issued under the Fund. This subvention will be available for a maximum period of seven years.37 In case of loans beyond two crore, the interest subvention will be limited up to two crore.37 AIF has been allocated Rs 500 crore in 2022-23, which is a 150% increase from the revised estimates of 2021-22 (Rs 200 crore). Small and marginal farmers: Farmers with landholdings of less than a hectare primarily borrow from informal sources of credit such as moneylenders, whereas those with landholdings of one or more hectares primarily borrow from banks (Figure 10).31 Informal sources of credit are typically offered at higher rates of interests, and may not have proper documentation. Note that 68% of the agricultural landholdings in the country belong to the marginal (less than one hectare) category.38 Another 18% belong to the small category (between one to two hectare). Further, the share of the marginal category in total agricultural landholdings has been increasing over the years, from 51% in 1970-71 to 68% in 2015- 16.38 The RBI Internal Working Group on Agricultural Credit (2019) noted that only 41% of the small and marginal farmers have been covered by banks. Sources: NSS 77th Round, MoSPI; PRS. Land ownership: Access to agricultural credit is linked to formal land titles. The RBI Committee on Financial Inclusion (2015) observed that the owner of the land is often not the cultivator, even in the case of small and marginal holdings. For example, a landowner may get the benefit of subsidised credit at times and may be the moneylender to his cultivator.31 The Committee recommended that agricultural credit must flow to the actual cultivator for which substantial reform is necessary.31 Further, it stated that the subsidised credit increases the probability of misuse. The Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households (2016) also recommended the transfer of benefits to farmers directly, instead of subsidy and waivers that are implemented through other authorities.39 An Internal Working Group of the RBI constituted to review Agricultural Credit (2019) noted that the absence of a proper land leasing framework and a lack of land records restricted access to institutional credit.40 It recommended the central government to encourage states to digitise and update land records in a time-bound manner. The 2015 RBI Committee on Financial Inclusion recommended that credit eligibility certificates, which would act as tenancy or lease certificates, should be issued to tenant farmers.31 These certificates would enable landless tenant cultivators to obtain agricultural credit. ## Minimum Support Prices (Msps) MSP is the assured price announced by the central government at which foodgrains are procured from farmers by the central and state governments and their agencies, for the central pool of foodgrains.41 The central pool is used for providing foodgrains under the Public Distribution System and other welfare schemes at subsidised prices and also kept as reserve in the form of buffer stock. The cost of procuring from farmers at MSP and distributing under PDS at subsidised prices is borne by the Department of Food and Public Distribution. However, MSPs are notified based on the recommendations of the Commission for Agricultural Costs and Prices, an attached office of the Ministry of Agriculture and Farmers' Welfare.42 The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of 1.5 times of the cost of production.43 While MSPs are annually announced for 23 crops, public procurement is limited to a few crops such as paddy, wheat, and, to a limited extent, pulses. The foodgrain procurement is largely concentrated in a few states. Three states (Madhya Pradesh, Punjab, and Haryana) producing 46% of the wheat in the country account for 85% of its procurement. For rice, six states (Punjab, Telangana, Andhra Pradesh, Chhattisgarh, Odisha, and Haryana) with 40% production have a 74% share in procurement. According to the central government's procurement policy, the objective of public procurement is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale.44 If farmers get a better price in comparison to MSP, they are free to sell their produce in the open market. The Economic Survey 2019-20 observed that the regular increase in MSP is seen by farmers as a signal to opt for crops which have an assured procurement system (for example, rice and wheat).45 It also noted that this indicates market prices do not offer remunerative options for farmers, and MSP has, in effect, become the maximum price that the farmers are able to realise. Thus, MSP incentivises farmers to grow crops which are procured by the government. As wheat and rice are major food grains provided under the PDS, the focus of procurement is on these crops. This skews the production of crops in favour of wheat and paddy (particularly in states where procurement levels are high) and does not offer an incentive for farmers to produce other items such as pulses. Further, this puts pressure on the water table as these crops are water-intensive crops. In a report to measure the efficacy of MSPs, NITI Aayog (2016) found that a low proportion of farmers (10%) were aware of MSPs before the sowing season.46 62% of the farmers were informed of MSPs after sowing their crops. Figure The pricing policy of MSPs would be effective only if farmers are aware of it at the time of deciding what crops to grow. NITI Aayog recommended that the awareness level of farmers regarding MSPs must be increased and the mediums of dissemination of this information must be strengthened.46 Other issues with the implementation of the MSP regime include long distances to the procurement centres, increasing transportation cost for farmers, irregular hours of the procurement centres, lack of covered storage godowns and inadequate storage capacity, and delays in the payment of MSPs to farmers. ## Irrigation As of 2020-21, 49% of the country's net sown area was under irrigation.47 The remaining agricultural area in the country depends on rainfall. As of 2016-17, major irrigation sources for agriculture include tubewells (48%) and other wells (16%), and canals (23%). Sources such as canals and tubewells use the flood irrigation technique, where water is allowed to flow in the field and seep into the soil.48 This results in wastage of water since excess water seeps into the soil or flows off the surface without being utilised. It has been recommended that farmers move from flood irrigation to micro-irrigation systems (drip or sprinkler irrigation systems) to conserve water.49 The Pradhan Mantri Krishi Sinchai Yojana was launched in 2015 to increase the coverage of the area under irrigation.50 The Ministry implemented the 'Per Drop More Crop' component until 2021- 22 under the scheme to increase water efficiency through micro-irrigation and other interventions. The component of the scheme now continues under RKVY for 2022-23. During the period 2013-21, 60.3 lakh hectares of area has been covered under micro-irrigation (Table 4).51 | Year | Target | Achievement | Achievement % | |---------|-----------|----------------|------------------| | 2013-14 | 6.6 | 4.3 | 66% | | 2014-15 | 5.7 | 4.3 | 74% | | 2015-16 | 5.0 | 5.7 | 115% | | 2016-17 | 8.0 | 8.4 | 105% | | 2017-18 | 12.0 | 10.5 | 87% | | 2018-19 | 16.0 | 11.6 | 72% | | 2019-20 | 14.0 | 11.7 | 84% | | 2020-21 | - | 9.4 | - | | 2021-22 | - | 2.7 | - | | Total | 67.3 | 72.4 | 90% | Sources: Pradhan Mantri Krishi Sinchai Yojana website; PRS. Shortfall in funds: Allocation to the scheme for 2021-22 has been revised down by 50% from Rs 4,000 crore to Rs 2,000 crore (revised estimate). Over the years, the budget of the scheme is usually cut down at the revised stage, resulting in a lower expenditure than the allocation (Table 5). scheme with its actual expenditure (in Rs crore) | Year | Allocation* | Expenditure | % shortfall | |---------|----------------|----------------|----------------| | 2015-16 | 1,800 | 1,556 | 14% | | 2016-17 | 2,340 | 1,991 | 15% | | 2017-18 | 3,400 | 2,819 | 17% | | 2018-19 | 4,000 | 2,918 | 27% | | 2019-20 | 3,500 | 2,700 | 23% | | 2020-21 | 4,000 | 2,562 | 36% | | 2021-22 | 4,000 | 2,000 | | | # | | | | | | 50% | | | Note: *Budget estimate; #Revised estimate used as expenditure. Sources: Expenditure Budget, Union Budgets (2015-22); PRS. ## Horticulture Between 2001-02 and 2020-21, the production of horticulture crops increased from 146 million tonnes to 331 million tonnes (Figure 14).52 This implies that the horticulture production increased at an average rate of 4.4%. Production of food grains increased at a rate of 2% during the same period. In 2020-21, vegetables and fruits are estimated to contribute to 60% and 31% of the total horticultural production, respectively.53 | 2001-02 | 2003-04 | |-----------|-----------| | 2005-06 | | | 2007-08 | 2009-10 | Sources: Directorate of Economics and Statistics, Ministry of Agriculture and Farmers' Welfare; PRS. The National Mission on Horticulture seeks to promote horticulture by providing availability of quality inputs such as planting material, and postharvest interventions such as reduction in losses and access to markets. This Mission has been subsumed as Integrated Development of Horticulture component under the Krishionnati Yojana. The component has been allocated Rs 1,900 crore in 2022-23, 19% higher than the allocation for the horticulture mission in 2021-22 (Rs 1,594 as per the revised estimate). However, over the past few years, the actual expenditure on horticulture schemes has been lower than the allocation made in the budget (Table 6). | Year | Allocation* | Expenditure | % shortfall | |------------------------------|----------------|----------------|----------------| | 2016-17 | 1,620 | 1,493 | 8% | | 2017-18 | 2,320 | 2,027 | 13% | | 2018-19 | 2,536 | 1,997 | 21% | | 2019-20 | 2,225 | 1,331 | 40% | | 2020-21 | 2,300 | | | | 1,423 | | | | | 38% | | | | | 2021-22 | | | | | 2,385 1,594 | | | | | # | | | | | | | | | | 33% | | | | Note: *Budget estimate; #Revised estimate used as expenditure. ## Use Of Fertilisers While the Ministry of Chemicals and Fertilisers is responsible for monitoring the production, distribution, and prices of fertilisers, the Ministry of Agriculture and Farmers' Welfare is responsible for the promotion of balanced use of fertilisers.54 Balanced use refers to the use of a proper combination of various nutrients and other micronutrients. Three major nutrients are primarily used: Nitrogen (N), Phosphatic (P), and Potassic (K). The government subsidises fertilisers through: (i) subsidy for urea (containing N fertiliser), and (ii) nutrient-based subsidy for P and K fertilisers. The fertiliser subsidy is provided to the fertiliser manufacturers and importers so that farmers can directly buy them at affordable or subsidised prices. In 2022-23, Rs 1,05,262 crore has been allocated to the Department of Fertilisers for fertiliser subsidy, a decrease of 25% over the revised estimates of 2021-22 (Table 7). Further, the allocation for subsidies of Urea and nutrient-based fertiliser in 2022-23 is 17% and 35% lower than the revised estimates of 2021-22. In 2021-22, the department has been allocated Rs 1,40,122 crore at the revised stage, which is 75% higher than budget estimate (Rs 80,011 crore). Note that the government had increased the subsidy rate for Phosphate by 204% from Rs 14.9 per kg in 2020-21 to Rs 45.3 per kg in 2021-22.55,56,57 This was in response to a sharp increase in international prices of raw materials used in the manufacture of fertilisers.58 In 2020-21, the actual expenditure included one-time allocation of Rs 32,155 crore to clear off pending dues of fertiliser subsidy of previous financial years.59 Dues had built up due to insufficient budget allocation over the years. Adjusted for this onetime expenditure in 2021-22 RE, the decrease in allocation for 2022-23 BE is 2.5%. % Subsidy 2020-21 Actuals 2021-22 Revised 2021-22 Budgeted change in BE 2022-23 over RE 2021-22 Urea 90,549 75,930 63,222 -16.7% Nutrient based 37,372 64,192 42,000 -34.6% Fertiliser subsidy 1,27,922 1,40,122 1,05,262 -24.9% Sources: Expenditure Budget No.6, Union Budget 2022-23; PRS. Subsidy policy of government The Standing Committee on Chemicals and Fertilisers (2020) observed that many fertiliser manufacturing plants are operating with very old technology and systems, and not at their highest efficiency.60 The government bears the cost of their inefficiency in the form of higher subsidy. The Committee recommended that the companies should be set free to manufacture and sell fertilisers as per their own system. A farmer should have the choice to buy from various brands of fertilisers while getting the subsidy directly in his bank account. This will push manufacturers to produce and sell their fertilisers in the most cost-effective manner and push the inefficient ones out. It recommended that the government should set out a clear and firm roadmap for switching to a direct subsidy system, where the manufacturing and importing of fertilisers is set free to market forces. ## Import Dependence For Fertilisers The Standing Committee on Chemicals and Fertilisers (2021) had observed that India is dependent on imports of different fertilisers either in the form of finished fertilisers or their raw material.61 This is due on non-availability or scarce availability of resources in cases of phosphatic and potassic fertilisers. Import dependence is up to 25% in case of urea, 90% in case of phosphatic fertilisers (either as raw material or finished fertilisers) and 100% in case of potassic fertilisers. Figure provides details on the production and import of major fertilisers during the last few years. The Standing Committee (2020) took note of the rise in import of fertilisers and recommended that the department should take measures to augment domestic production of urea.61 It should find ways to increase domestic production of potassic and phosphatic fertilisers through: (i) import of necessary raw material or (ii) setting up of production facilities in those countries where raw material including potash and phosphates are available in plenty. Table 13 in Annexure give fertiliser-wise details on consumption, import and production. Note: comprises Urea, DAP, MOP, NPKS, and SSP. Source: Report no. 20, Standing Committee On Chemicals & Fertilizers (2020-21): 'Demands for Grants (2020-21)', Lok Sabha, March 17, 2021; PRS Prices of urea are controlled by the government, whereas that of P and K fertilisers are marketdriven.54 This has led to lower prices of urea (N) over the years, whereas the market prices of P and K fertilisers have remained higher. This is one of the reasons for imbalanced use of nutrients as urea is used more than other fertilisers.54 While the ratio recommended for use of the N, P, and K fertilisers is 4:2:1, the ratio was 6.3:2.5:1 in 2019-20.62 Table 12 in the Annexure shows their consumption trend. ## Non-Availability Of Fertilisers The Standing Committee on Chemicals and Fertilisers (2021) had observed that there are numerous reports of non-availability or delayed availability of fertilisers in different parts of the country, particularly during peak cultivation seasons. The Department in its response had noted that it makes fertilisers available to states. State government distribute fertilisers as per their own distribution plans. The Committee recommended that: (i) the department should implement ground level monitoring mechanism up to block and village levels, (ii) conduct periodic review of district and state level availability of fertilisers, and (iii) ensure that states are taking necessary action in cases of artificial scarcity, black marketing, or hoarding. ## Balanced Use Of Fertilisers With the usage of urea more than other fertilisers, there has been an imbalance use of nutrients for soil fertilisation. This is because of lower prices of urea (N) over the years, whereas the market prices of P and K fertilisers have remained higher. Prices of urea are controlled by the government, whereas that of P and K fertilisers are market-driven.54 While the ratio recommended for use of the N, P, and K fertilisers is 4:2:1, the ratio was 6.3:2.5:1 in 2019-20.63 Table 12 in the Annexure shows their consumption trend. ## Agricultural Marketing The Integrated Scheme on Agriculture Marketing (ISAM) includes sub-schemes such as: (i) agriculture marketing infrastructure, to create storage capacity and farmer consumer markets, (ii) market research and information network, (iii) strengthening of Agmark grading facilities, (iv) agro-business development to provide market linkages to farmers, and (v) e-NAM (National Agriculture Market), which is a national electronic market platform on which farmers can sell their produce. It will now be continued as the Agricultural Marketing Scheme under Krishionnati Yojana in 2022-23. In 2022-23, the scheme has been allocated Rs 500 crore. This is an 89% increase over 2021-22 revised estimate for ISAM. However, the allocation for 2021-22 has been revised down by 36%, from Rs 410 crore to Rs 264 crore. Till February 11, 2022, 1,000 mandis across 18 states and three union territories have been integrated with e-NAM.64,65 Regulation: Agriculture markets in most states are regulated by the Agriculture Produce Marketing Committees (APMCs) established by the state governments. APMCs were set up to ensure fair trade between buyers and sellers for effective price discovery of farmers' produce.66 APMCs can: (i) regulate the trade of farmers' produce by providing licenses to buyers, commission agents, and private markets, (ii) levy market fees or any other charges on trade, and (iii) provide necessary infrastructure within their markets to facilitate the trade. Figure provides details of percentage of agricultural households reporting sale of crops according to market type for major foodgrain crops. The Standing Committee on Agriculture (2019) observed that the APMC laws are not implemented in their true sense and need urgent reforms.66 Issues identified by the Committee include: (i) most APMCs have a limited number of traders operating, which leads to cartelization and reduces competition, and (ii) undue deductions in the form of commission charges and market fees.66 Traders, commission agents, and other functionaries organise themselves into associations, which do not allow easy entry of new persons into market yards, stifling competition.67 The Acts are highly restrictive in promotion of multiple channels of marketing and competition in the system.66 Parliament enacted three laws in September 2020: (i) the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, (ii) the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and (iii) the Essential Commodities (Amendment) Act, 2020.68,69,70 These laws collectively sought to: (i) facilitate barrier-free trade of farmers' produce outside the markets notified under the various state APMC laws, (ii) define a framework for contract farming, and (iii) impose stock limits on agricultural produce only if there is a sharp increase in retail prices. The three laws together aimed to increase opportunities for farmers to enter into sale contracts, increase the availability of buyers, and permit buyers to purchase bulk produce. However, following protests against the laws, in January 2021, the Supreme Court stayed their implementation until further orders.71 In November 2021, these Acts were repealed with the passage of the Farm Laws Repeal Bill, 2021.72 Marketing infrastructure: The Standing Committee on Agriculture (2019) noted that the availability of a transparent, easily accessible, and efficient marketing platform is a pre-requisite to ensure remunerative prices for farmers.66 Most farmers lack access to government procurement facilities and APMC markets.66 Small and marginal farmers (who hold 86% of the agricultural landholdings in the country) face various issues in selling their produce in APMC markets such as inadequate marketable surplus, long-distance to the nearest APMC markets, and lack of transportation facilities. The average area served by an APMC market is 496 sq. km., much higher than the 80 sq. km. recommended by the National Commission on Farmers (Chair: Dr. M. S. Swaminathan) in 2006.66 The Standing Committee (2019) noted that Gramin Haats (small rural markets) can emerge as a viable alternative for agricultural marketing if they are provided with adequate infrastructure facilities.66 It recommended that the Gramin Agricultural Markets scheme (which aims to improve infrastructure and civic facilities in 22,000 Gramin Haats across India) should be made a fully funded central scheme and scaled to ensure the presence of a Haat in each panchayat of the country.66 The central government has proposed development of basic infrastructure in Gramin Haats through the MGNREGS and of marketing infrastructure through the Agri-Market Infrastructure Fund.73 The Fund will be set up by NABARD to provide Rs 1,000 crore to states at a concessional interest rate for development of marketing infrastructure in Gramin Haats. ## Agricultural Research The Indian Council of Agricultural Research (ICAR) is an autonomous organisation under the Department of Agricultural Research and Education (DARE).74 The Council is the apex body for co-ordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country. Of the Rs 8,013 crore allocated to research and education under DARE, ICAR has been allocated Rs 5,877 crore (73%) for the year 2022-23. This is 7% higher than the revised estimate of 2021-22. The allocation is primarily for salaries, pensions, administrative expenses, and different schemes under ICAR. The Standing Committee on Agriculture (2019) noted that almost 75% of the allocation to the Department of Agricultural Research and Education is incurred on items such as salaries and pensions, and only 25% is available for research activities.75 The Committee recommended that more funds should be provided to the Department to promote agricultural research and education. It also recommended the Department to work towards attracting Corporate Social Responsibility (CSR) funds for investment in agricultural research. Research under crop sciences and animal sciences has been allocated Rs 719 crore and Rs 343 crore in 2022-23, respectively. Both allocations have decreased by more than 14% over their revised estimates of 2021-22. This is despite the recommendation of Standing Committee on Agriculture (2021) that the Department should continue to make persistent efforts to ensure the allocations to the department are adequately increased and are not reduced at any stage.76 International comparison: The Committee on Doubling Farmers' Income (Chair: Mr. Ashok Dalwai, 2017) observed that the expenditure on agricultural research in India has remained around 0.3-0.4% of the agriculture GDP since 2001 (except in 2011 when it was 0.52% because of higher plan allocations by the government).77 The Committee observed that this is substantively lower in comparison to many developed countries, and also vis-à-vis comparable developing economies. The share of agricultural research in agriculture GDP is much higher in Brazil (1.8%), Mexico (1.05%), Malaysia (0.99%), and China (0.62%). It observed that in the high-income countries, the share stands at 3.01%. The Committee recommended that expenditure on agricultural research should be increased to up to one percent of agriculture GDP. Agricultural machinery Mechanisation is another aspect which has a significant impact on agricultural productivity. The use of agricultural machinery in agriculture enables agricultural labour to be used in other activities. It makes activities such as tilling, spreading of seeds and fertilizers and harvesting more efficient, so that the cost of inputs is offset. It can also make the use of labour in agriculture more cost-effective. The status of mechanisation in agriculture varies for different activities: as of 2018, the penetration of powered machines in various farm activities is assessed in the range of 40 to 45 per cent.78 The highest level of mechanisation is observed in harvesting and threshing activities and irrigation. The lowest level of mechanisation is found in seeding and planting. To increase productivity, durable, light-weight, and low-cost farm equipment, specific to different crops and regions, should be made available for small and marginal farmers. Some challenges faced in farm mechanisation include: (i) different soil and climatic zones which require customised farm machinery, and (ii) dominance of small and marginal landholdings which makes investment in mechanisation unviable. To promote an inclusive growth of farm mechanization in the country, a Sub Mission on Agricultural Mechanization (SMAM) was launched in the year 2014-15.78 Under the scheme, assistance is given to state governments for: (i) providing training and demonstration of agricultural machinery, (ii) assisting farmers in procurement of various agricultural machinery and equipment, and (iii) setting up setting up of Custom Centre (CHC). During 2014-15 to 2020-21, a total of 27,828 CHC were established under the SMAM scheme.78 The Government has also developed and ## Launched Multi Lingual Mobile App Called Farm Machinery Solutions (Farms) Which Helps The 1 Ministry-wise Summary of Budget Provisions, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sumsbe.pdf. 2 Demand No. 1, Department of Agriculture, Cooperation and Farmers' Welfare, Expenditure Budget, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe1.pdf. 3 Demand No. 2, Department of Agricultural Research and Education, Expenditure Budget, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe2.pdf. 4 Report no. 23, Standing Committee on Agriculture: 'Demand for Grants (2021-22), Department of Agriculture, Cooperation and Farmers' Welfare', Lok Sabha, March 2021, http://164.100.47.193/lsscommittee/Agriculture,%20Animal%2 0Husbandry%20and%20Food%20Processing/17_Agriculture_2 4.pdf. 5 Operational Guidelines of "Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)", Ministry of Agriculture and Farmers Welfare, http://agricoop.gov.in/sites/default/files/operational_GuidePM.p df. 6 "PM-KISAN Scheme extension to include all eligible farmer families irrespective of the size of landholdings", Press Information Bureau, Cabinet, May 31, 2019. 7 Starred Question no. 43, Lok Sabha, December 12, 2021, http://loksabhaph.nic.in/Questions/QResult15.aspx?qref=31718 &lsno=17. 8 PM-KISAN scheme dashboard, Ministry of Agriculture and Farmers' Welfare, as on February 10, 2022, https://pmkisan.gov.in/. 9 Report no. 31, Standing Committee on Agriculture: 'Demand for Grants (2021-22), Department of Agriculture, Cooperation and Farmers' Welfare', Lok Sabha, December 2021, http://164.100.47.193/lsscommittee/Agriculture,%20Animal%2 0Husbandry%20and%20Food%20Processing/17_Agriculture_A nimal_Husbandry_and_Food_Processing_31.pdf. 10 Report no. 9, Standing Committee on Agriculture: 'Demand for Grants (2020-21), Department of Agriculture, Cooperation and Farmers' Welfare', Lok Sabha, March 2020, http://164.100.47.193/lsscommittee/Agriculture/17_Agriculture_ 9.pdf. 11 "March of Agriculture since Independence and Growth Trends", Report of the Committee on Doubling Farmers' Income, Ministry of Agriculture and Farmers Welfare, August 2017, http://farmer.gov.in/imagedefault/DFI/DFI%20Volume%201.pd f. 12 Revised guidelines, Rashtriya Krishi Vikas Yojana, Department of Agriculture, Cooperation and Farmers' Welfare, https://rkvy.nic.in/static/download/pdf/RKVY_14th_Fin._Com m.pdf. 13Awareness on Agri-Business Incubation, , Press Information Bureau, Ministry of Agriculture and Farmers Welfare, February 12, 2022. 14 F. 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of Food and Public Distribution, https://dfpd.gov.in/Procurement-Policy.htm. 45 Economic Survey 2019-20, Chapter 4, Volume 1, January 2020, https://www.indiabudget.gov.in/budget2020- 21/economicsurvey/doc/vol1chapter/echap04_vol1.pdf. 46 Evaluation Report on Efficacy of Minimum Support Prices (MSPs), NITI Aayog, January 2016, http://www.niti.gov.in/writereaddata/files/document_publication /MSP-report.pdf. 47 Land Use Statistics at a Glance, Directorate of Economics and Statistics, Ministry of Agriculture and Farmers' Welfare, as on February 1, 2022, https://eands.dacnet.nic.in/LUS_2016- 17/final%20lus%202007-08%20to%202016-17.xls. 48 "Agriculture: More from less", Economic Survey 2015-16, http://unionbudget.nic.in/es2015-16/echapvol1-04.pdf. 49 Natural Resource Management, State of Indian Agriculture 2015-16, Ministry of Agriculture and Farmers' Welfare, May 2016, http://agricoop.nic.in/imagedefault/state_agri_1516.pdf. 50 State of Indian Agriculture 2015-16, Ministry of Agriculture and Farmers Welfare, http://eands.dacnet.nic.in/PDF/State_of_Indian_Agriculture,201 5-16.pdf. 2022, https://pmksy.gov.in/mis/frmDashboard.aspx. Economics and Statistics, October 2021, https://eands.dacnet.nic.in/PDF/Agricultural%20Situation%20in %20India%20October,%202021.pdf. 53 Third Advance Estimates of Horticultural Production in 2020- 21, Ministry of Agriculture and Farmers' Welfare, https://pib.gov.in/PressReleasePage.aspx?PRID=1767513#:~:tex t=(3rdAdv.,Est.)&text=Total%20Horticulture%20production%2 0in%202020,Tonne%20achieved%20in%202019%2D20. 54 Report no. 43, Standing Committee on Chemicals and Fertilisers: 'Demand for Grants (2018-19), Department of Fertilisers', Lok Sabha, March 2018, http://164.100.47.193/lsscommittee/Chemicals%20&%20Fertili zers/16_Chemicals_And_Fertilizers_43.pdf. 55 "Cabinet approves fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the year 2020-21", Press Information Bureau, Ministry of Chemicals and Fertilizers, April 22, 2020. 56 Office Memorandum No. 23011/1/2021-P&K, Department of Fertilizers, Ministry of Chemicals and Fertilizers, May 20, 2021, https://fert.nic.in/sites/default/files/What-isnew/NBSNotification.pdf. 57 "Cabinet approves Nutrient Based Subsidy (NBS) rates for Phosphatic & Potassic (P&K) Fertilisers for the year 2021-22 (from 1st October, 2021 to 31st March, 2022)", Press Information Bureau, Ministry of Chemicals and Fertilizers, October 12, 2021. 58 "Notification on enhancing subsidy rates for DAP and other P & K fertilisers for upcoming Kharif season issued today", Press Information Bureau, Ministry of Chemicals and Fertilizers, May 20, 2021. 59 Report No 25, Action Taken Report on Report No 20: Demands for Grants (2021-22), Standing Committee on Chemicals and Fertilisers, December 2021, http://164.100.47.193/lsscommittee/Chemicals%20&%20Fertili zers/17_Chemicals_And_Fertilizers_25.pdf. 60 Report no. 5, Standing Committee on Chemicals and Fertilisers: 'Study of System of Fertiliser Subsidy', Lok Sabha, March 2020, http://164.100.47.193/lsscommittee/Chemicals%20&%20Fertili zers/17_Chemicals_And_Fertilizers_5.pdf. 61 Report no. 20, Standing Committee On Chemicals & Fertilizers (2020-21): 'Demands for Grants (2020-21)', Lok Sabha, March 17, 2021, http://164.100.47.193/lsscommittee/Chemicals%20&%20Fertili zers/17_Chemicals_And_Fertilizers_20.pdf. 62 Agricultural Statistics at a Glance 2019, Ministry of Agriculture and Farmers' Welfare, March 2020, https://eands.dacnet.nic.in/PDF/Agricultural%20Statistics%20at %20a%20Glance%20-%202020%20(English%20version).pdf. 63 Agricultural Statistics at a Glance 2019, Ministry of Agriculture and Farmers' Welfare, March 2020, https://eands.dacnet.nic.in/PDF/Agricultural%20Statistics%20at %20a%20Glance%20-%202020%20(English%20version).pdf. 64 Lok Sabha Starred Question No. 20, Ministry of Agriculture and Farmers' Welfare, February 2, 2021, http://164.100.24.220/loksabhaquestions/annex/175/AS20.pdf. 65 E-NAM portal, Ministry of Agriculture and farmers' Welfare, as on February 11, 2022, https://enam.gov.in/web/mandisonline. 66 Report No. 62, Standing Committee on Agriculture (2018-19): 'Agriculture Marketing and Role of Weekly Gramin Haats', Lok Sabha, January 3, 2019, http://164.100.47.193/lsscommittee/Agriculture/16_Agriculture_ 62.pdf. 67 Report of Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms, January 2013, https://dmi.gov.in/Documents/stminprreform.pdf. 68 The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, Gazette of India, Ministry of Agriculture and Farmers' Welfare, September 27, 2020, http://www.egazette.nic.in/WriteReadData/2020/222039.pdf. 69 The Essential Commodities (Amendment) Act, 2020, Gazette of India, Ministry of Consumer Affairs, Food and Public Distribution, September 27, 2020, http://www.egazette.nic.in/WriteReadData/2020/222038.pdf. 2020, http://www.egazette.nic.in/WriteReadData/2020/222040.pdf. India, W.P.(C) No. 1118/2020, Supreme Court of India, 1_19_25372_Order_12-Jan-2021.pdf. Marketing and Role of Weekly Gramin Haats', Lok Sabha, December 12, 2019, http://164.100.47.193/lsscommittee/Agriculture/17_Agriculture_ 8.pdf. 74 ICAR At a Glance, Indian Council of Agricultural Research, as on February 22, 2022. https://icar.org.in/content/about-us. 75 Report no. 3, Standing Committee on Agriculture: 'Demand for Grants (2019-20), Department of Agricultural Research and Education', Lok Sabha, December 2019, http://164.100.47.193/lsscommittee/Agriculture/17_Agriculture_ 3.pdf. 76 Report no. 32, Standing Committee On Agriculture, Animal Husbandry And Food Processing: 'Demands for Frants (2021- 22), Lok Sabha, December 2021, http://164.100.47.193/lsscommittee/Agriculture,%20Animal%2 0Husbandry%20and%20Food%20Processing/17_Agriculture_A nimal_Husbandry_and_Food_Processing_32.pdf. 77 "Science for Doubling Farmers' Income", Report of the Committee on Doubling Farmers' Income, Ministry of Agriculture and Farmers Welfare, February 2018, http://farmer.gov.in/imagedefault/DFI/DFI%20Vol-12A.pdf. 78 Agriculture and Food Management, Chapter 7, Prices, Agriculture and Food Management, Volume 1, Economic Survey 2020-21. ## Annexure Allocation To Major Expenditure Heads Under The Departments Table 6: Allocation under the Department of Agriculture, Cooperation and Farmers' Welfare (Rs crore) % change in BE 2022- Item 2020-21 Actuals 2021-22 Budgeted 2021-22 Revised 2022-23 Budgeted 23 over RE 2021-22 PM-KISAN 60,990 65,000 67,500 68,000 1% Interest subsidy for short-term credit to farmers/ Modified Interest Subvention Scheme (MISS)# 17,790 19,468 18,142 19,500 7% Pradhan Mantri Fasal Bima Yojana 14,161 16,000 15,989 15,500 -3% Pradhan Mantri Krishi Sinchai Yojana (Per Drop More Crop) 2,562 4,000 2,000 - - Market Intervention Scheme and Price Support Scheme (MIS-PSS) 1,358 1,501 3,596 1,500 -58% Agriculture Infrastructure Fund 22 900 200 500 150% Formation and Promotion of 10,000 Farmer Producer Organisations 241 700 250 500 100% Green Revolution/ RKVY and Krishionnati Yojana 9,748 13,408 8,889 17,616 98% Department 1,08,273 1,23,018 1,18,294 1,24,000 -4% Note: Expenditure and estimates of Rashtriya Krishi Vikas Yojna for 2020-22 were allocated as a part of Green Revolution. *: RKVY and Krishionnati Yojana for 2022-23 includes the merged schemes of National Project on Soil Health and Fertility, Sub-Mission on Agriculture Mechanisation, National Project on Agro- Forestry etc. moved from Green Revolution. #:The Interest Subsidy for short-term credit to farmers has been discontinued in 2022-23. Instead, the Modified Interest Sub-Scheme (MISS) has been launched in 2022-23. Sources: Demand no. 1, Expenditure Budget, Union Budget 2022-23; PRS. ## Table 7: Allocation Under The Department Of Agricultural Research And Education (Rs Crore) | Item | 2020-21 Actuals | 2021-22 Budgeted | 2021-22 Revised | 2022-23 Budgeted | |----------------------|--------------------|---------------------|--------------------|---------------------| | % change in BE | | | | | | 2022-23 over RE | | | | | | 2021-22 | | | | | | ICAR headquarters | 4,985 | 5,322 | 5,561 | 5,877 | | Crop sciences | 805 | 968 | 840 | 719 | | Agricultural | | | | | | education | | | | | | 526 | 613 | 553 | 455 | -18% | | Central agricultural | | | | | | universities | | | | | | 428 | 471 | 563 | 599 | 6% | | Animal and | | | | | | Fisheries sciences | | | | | | 400 | 462 | 400 | 343 | -14% | | Department | 7,554 | 8,514 | 8,514 | 8,514 | Sources: Demand no. 2, Expenditure Budget, Union Budget 2022-23; PRS. ## Table 8: Restructuring Of Green Revolution In 2022-23 | Previous Umbrella Scheme | Schemes | New Umbrella Scheme | |-------------------------------------|-------------------------------------------------------|-------------------------| | Green Revolution | Information Technology | | | Green Revolution | Integrated Scheme on Agriculture Census and | | | Statistics | | | | | | | | Green Revolution | Integrated Scheme on Agriculture Marketing | | | | | | | Green Revolution | National Food Security Mission | | | Green Revolution | Sub- Mission on Seed and Planting Material | | | | | | | Krishionnati Yojana | | | | Green Revolution | National Mission on Horticulture | | | Green Revolution | National Bamboo Mission | | | Green Revolution | National Mission on Oil Seed and Oil Palm | | | | | | | Green Revolution | Organic Value Chain Development for North East | | | Region | | | | | | | | Green Revolution | Sub - Mission on Agriculture Extension | | | Green Revolution | Integrated Scheme on Agricultural Cooperation | | | | | | | Integrated Scheme on | | | | Agricultural Cooperation | | | | | | | | Pradhan Mantri Krishi Sinchai Yojna | Pradhan Mantri Krishi Sinchai Yojana (PMKSY)- Per | | | Drop More Crop | | | | | | | | Green Revolution | National Project on Soil Health and Fertility | | | | | | | Green Revolution | Paramparagat Krishi Vikas Yojana | | | Rashtriya Krishi Vikas Yojna | | | | | | | | Green Revolution | Rashtriya Krishi Vikas Yojna | | | Green Revolution | Rainfed Area Development and Climate Change | | | | | | | Green Revolution | Sub- Mission on Agriculture Mechanisation | | | | | | | Green Revolution | Sub- Mission on Plant Protection and Plant Quarantine | | | | | | | Moved to Establishment | | | | Expenditure | | | | Green Revolution | National Project on Agro- Forestry | Subsumed in other CSS | | | | | | Green Revolution | National Project on Organic Farming | Moved to Establishment | | Expenditure | | | | | | | Source: Statement 4AA, Expenditure Profile, Union Budget 2022-23; PRS. ## Table 9: Components Of Rkvy In 2022-23 And Their Allocation Across The Years (In Rs Crore) Scheme 2021-22 Budgeted 2021-22 Revised 2022-23 Budgeted Rashtriya Krishi Vikas Yojna 3,712 2,000 10,433 Pradhan Mantri Krishi Sinchai Yojana (PMKSY)- Per Drop More Crop 4,000 2,000 - National Project on Soil Health and Fertility 315 100 - Rainfed Area Development and Climate Change 180 110 - Sub-Mission on Agriculture Mechanisation 1,050 850 - Paramparagat Krishi Vikas Yojana 450 100 - Total 9,707 5,060 10,433 Sources: Demand no. 1, Expenditure Budget, Union Budget 2022-23; PRS. ## Consumption Of Fertilisers | Year | Urea (N) | Phosphatic (P) | Potassic (K) | Total (N+P+K) | |---------|-------------|-------------------|-----------------|------------------| | 2006-07 | 137.7 | 55.4 | 23.3 | 216.5 | | 2007-08 | 144.2 | 55.1 | 26.4 | 225.7 | | 2008-09 | 150.9 | 65.1 | 33.1 | 249.1 | | 2009-10 | 155.8 | 72.7 | 36.3 | 264.9 | | 2010-11 | 165.6 | 80.5 | 35.1 | 281.2 | | 2011-12 | 173 | 79.1 | 25.8 | 277.9 | | 2012-13 | 168.2 | 66.5 | 20.6 | 255.4 | | 2013-14 | 167.5 | 56.3 | 21 | 244.8 | | 2014-15 | 169.4 | 60.9 | 25.3 | 255.8 | | 2015-16 | 173.7 | 69.8 | 24 | 267.5 | | 2016-17 | 167.4 | 67.1 | 25.1 | 259.5 | | 2017-18 | 169.6 | 68.5 | 27.8 | 265.9 | | 2018-19 | 176.3 | 69.7 | 27.8 | 273.8 | | 2019-20 | 191 | 76.6 | 26.1 | 293.7 | Sources: Agricultural Statistics at a Glance 2020, Ministry of Agriculture and Farmers' Welfare; PRS. | Year | Urea | DAP | MOP | NPK-S | SSP | Total | |-------------|---------|--------|--------|----------|--------|----------| | Production | | | | | | | | 2017-18 | | 240 | 47 | - | 88 | 39 | | 2018-19 | | 240 | 39 | - | 95 | 41 | | 2019-20 | | 245 | 46 | - | 96 | 43 | | 2020-21* | | 210 | 34 | - | 85 | 41 | | Import | | | | | | | | 2017-18 | | 60 | 43 | 35 | 5 | - | | 2018-19 | | 76 | 69 | 30 | 7 | - | | 2019-20 | | 92 | 54 | 29 | 9 | - | | 2020-21* | | 98 | 57 | 33 | 15 | - | | Consumption | | | | | | | | 2017-18 | | 303 | 90 | 30 | 91 | 54 | | 2018-19 | | 320 | 95 | 27 | 96 | 43 | | 2019-20 | | 337 | 101 | 28 | 105 | 44 | | 2020-21* | | 305 | 108 | 28 | 106 | 40 | Note: * Figures for 2020-21 is up to January 2021. DAP stands for Di-Ammonium Phosphate, MOP stands for Muriate of Potash, NPK-S stands for Nitrogen, Phosphorus and Potassium-S , SSP stands for Single Super Phosphate-Powder. Source: Report no. 20, Standing Committee On Chemicals & Fertilizers (2020-21): 'Demands for Grants (2020-21)', Lok Sabha, March 17, 2021 ## Demand For Grants 2022-23 Analysis Telecommunications The Department of Telecommunications under the Ministry of Communications is responsible for policy, licensing, monitoring, regulation, research, and international co-operation in the field of telecommunications. The Department administers several Public Sector Undertakings involved in providing telecommunication services, consultancy, and equipment manufacturing. This note presents the allocation to the Department in 2022-23 and trends in expenditure over the last few years, and discusses some of the issues in the sector. ## Overview Of Finances Expenditure1,2 In 2022-23, the Department has been allocated Rs 84,587 crore, an increase of 138% over revised estimates of 2021-22. This significant increase is mainly on account of capital infusion in BSNL. | | % | |-----------|-----------------------------| | 2020 | | | -21 | | | 2021 | | | -22 BE | | | 2021 | | | -22 RE | | | 2022 | | | -23 BE | | | change | | | (21-22 RE | | | to 22-23 | | | BE) | | | Revenue | 37,954 32,803 30,080 30,436 | | Capital | 4,356 25,934 | | Total | | Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Expenditure Budget; Union Budget 2022-23; PRS. In October 2019, Union Cabinet had approved a revival plan for BSNL and MTNL.3 The revival plan provides for: (i) capital infusion for allotment of 4G spectrum and (ii) costs to be incurred towards voluntary retirement scheme (VRS). The estimated outlay for the revival plan was Rs 40,983 crore. In addition, the cost for pension, gratuity, and commutation of employees opting for VRS was to be borne by the central government. The capital component of the revival plan comprises Rs 20,410 crore for administrative allotment of 4G spectrum. No allocation towards capital component was made in 2020-21. In 2021-22, the budgeted allocation towards this has been revised down to zero. This explains the decrease in capital expenditure of the department in 2021-22 from the budget stage to the revised stage. In 2022-23, capital infusion in BSNL is estimated to be Rs 44,720 crore, significantly higher than the initially approved amount (Table 2). As per the note to the demands of the Department, provision has been made for 4G spectrum, technology upgradation, and restructuring in BSNL. No allocation has been made towards MTNL. BSNL and MTNL (Rs crore) Particular 2020- 21 2021- 22 BE 2021- 22 RE 2022- 23 BE Capital infusion- BSNL 0 14,115 0 44,720 Capital infusion for 4G spectrum-MTNL 0 6,295 0 0 Implementation of VRS (BSNL/MTNL) 3,028 3,000 3,530 3,300 11,162 0 0 0 Ex-gratia payment to voluntarily retiring employees (BSNL/MTNL) Grants for payment of GST-BSNL 0 2,541 0 3,550 Grants for payment of GST-MTNL 0 1,133 0 0 Total 14,190 27,084 3,530 51,570 Note: RE: Revised Estimates; BE: Budget Estimates. Sources: Union Budget of various years; PRS. Between 2012-13 and 2022-23, the expenditure of the Department is estimated to increase at a CAGR of 14% (excluding allocation towards revival plan). A higher increase in expenditure since 2015-16 as compared to previous years is due to allocation towards Bharatnet (a scheme to connect all gram panchayats through optical fibre) and Optical Fibre Network for Defence Services schemes. A notable increase in 2020-21 and 2022-23 is due to expenditure towards revival plan for BSNL/MTNL. used for 2022-23. Sources: Union Budget documents of various years; PRS. Over the last 10 years, the actual expenditure by the Department has varied significantly as compared to the budget estimates (Figure 2 on next page). In 2015-16 and 2016-17, actual expenditure exceeded budget estimates by 52% and 29% respectively. In 2019-20, actual expenditure was 4% higher than the budgeted expenditure. In 2020-21 and 2021- 22, the actual expenditure by the department is estimated to be significantly lower than the budget estimates. This is mainly due to the carryover of allocation towards the revival plan for BSNL/MTNL from one year to another. High variability in budget estimates and actual expenditure may be indicative of issues with budget forecasting as well as scheme implementation. Note: Revised Estimates used for 2021-22. Sources: Union Budget documents of various years; PRS. ## Major Expenditure Heads In 2022-23, Rs 52,154 crore has been allocated towards support for PSUs, which is 62% of the total allocation for the department. Of this, Rs 51,570 crore (99%) has been allocated towards the revival of BSNL and MTNL (details in Table 2). ## Rs Crore) | Expenditure | 2021-22 | 2022-23 | |----------------|------------|------------| | % change | | | | (21-22 RE to | | | | Head | | | | 2020-21 | | | | Actuals | RE | BE | | 22-23 BE) | | | | Support to | | | | PSUs | | | | 14,765 | 3,994 | 52,154 | | Pension | 14,928 | 16,374 | | Bharatnet | 5,920 | 7,000 | | Compensation | | | | to TSPs | | | | 1,280 | 1,300 | 2,000 | | 4,000 | 5,200 | 1,961 | | Network for | | | | defence | | | | services | | | | PLI Scheme for | | | | Telecom Sector | | | | 0 | 0 | 528 | | Others | 1,417 | 1,682 | | Total | 42,310 | 35,550 | Note: BE - Budget Estimate; RE - Revised Estimate; TSP: Telecom Service Providers; PLI: Production-linked Incentive Scheme. Sources: Expenditure Budget; Union Budget 2022-23; PRS. The next highest allocation is towards pension (22%), followed by Bharatnet (8%), and compensation to Telecom Service Providers (TSPs) for augmentation of infrastructure in rural and remote areas, and maintenance of village public telephones. The pension provision is for pensionary benefits of the employees of the Department including employees absorbed in BSNL, and employees of MTNL with effect from April 2014.2 In 2022-23, allocation towards Network for Defence Services is estimated to be 62% lower than the revised estimate for 2021-22. This may be due to the scheme nearing completion. The scheme provides for optical fibre cable based network for defence services. In February 2021, a Production-Linked Incentive Scheme was notified to promote telecom and network products manufacturing in India.4 The scheme provides incentives to companies on the incremental sale of products manufactured in India. This scheme has been allocated Rs 528 crore in 2022-23. ## Expenditure From Usof The Universal Service Obligation Fund (USOF) has been established to provide widespread, nondiscriminatory, and affordable access to quality Information and Communication Technology services to people in rural and remote areas. The resources for the fund are raised through a Universal Access Levy (UAL) which is 5% of the Adjusted Gross Revenue (AGR) earned by all the operators under various licenses currently.5 Adjusted Gross Revenue is the value of gross revenue after deduction of taxes and roaming/PSTN charges from Gross Revenue. UAL is first credited to the Consolidated Fund of India and then disbursed to the USOF as per the budgetary proposal of the Department of Telecommunications. The schemes being funded through USOF include: (i) Bharatnet, (ii) setting up of towers in left-wing extremism affected areas, and (iii) comprehensive telecom development plan for the northeast region. A total expenditure of Rs 9,000 crore from this fund has been planned in 2022-23, an increase of 8% over the revised estimates of 2021-22 (Rs 8,300 crore). This includes Rs 7,000 crore for the Bharatnet scheme and Rs 2,000 crore for compensation to TSPs. Note: Revised Estimates used for 2021-22. Sources: Union Budget documents of various years; PRS. Between 2017-18 and 2021-22, in each year, actual expenditure from USOF has been significantly less than the budget estimate. In 2020-21 and 2021-22, actual expenditure is estimated to be 10% and 8% less than the budget estimate, respectively. Corresponding figure for 2017-18, 2018-19, and 2019-20 was 40%, 52%, and 65%. ## Balance Of Funds Under Usof In its audit report of the Ministry of Communications for the FY 2017-18, the Comptroller and Auditor General of India (CAG) observed that a large amount earned as UAL is yet to be transferred to the USOF.6 As of November 2021, a total of Rs 59,082 crore is yet to be transferred to the USOF by the central government.7 A total of Rs 1,21,569 crore has been earned as UAL between 2002-03 and 2021-22 (as of November 2021), out of which only Rs 62,487 crore has been disbursed (51%).7 The gap between UAL collected and disbursal has been high over the years, which has led to a rise in balance (Figure 4). In January 2015, the Telecom Regulatory Authority of India (TRAI) had observed that the Department has not been able to devise enough schemes to utilise the earnings of UAL.8 It also recommended reducing UAL from 5% to 3%.8 The Standing Committee on Information Technology (2018) noted that with increasing outlay on schemes including Bharatnet, Mobile Towers in Left Wing Extremism Affected Areas Phase-II and Comprehensive Telecom Development Plan for the North-East, the utilisation of USOF funds will improve.5 ## Note: UAL: Universal Access Levy; Balance: Balance at the end of that Financial Year. Sources: USOF Website as accessed on February 13, 2022; PRS. ## Bharatnet Bharatnet aims to create a network to connect all the Gram Panchayats (about 2.5 lakh) by broadband by laying around 6.5 lakh km of optical fibre. It seeks to provide all telecom service providers with non-discriminatory access to the network. These service providers include mobile operators, Internet Service Providers (ISPs), Cable TV operators, content providers. Bharat Broadband Network Limited (BBNL) is a special purpose vehicle to create, operate, maintain, and manage the Bharatnet infrastructure. The project is financed through the USOF. The estimated total cost of the project is Rs 42,068 crore. Bharatnet is divided into three phases. Phase-I to connect about 1.2 lakh GPs was completed in December 2017. Phase-II to connect the remaining gram panchayats is underway. Phase-III is earmarked for future purposes. The scheme also aims to provide lastmile connectivity through Wi-Fi by creating five access points per gram panchayat (12.5 lakh hotspots).9 In 2022-23, Rs 7,000 crore has been allocated towards Bharatnet, same as the revised estimates for 2021-22. Between 2017-18 and 2019-20, the actual expenditure under the scheme was much lower as compared to the budget estimates. In 2021-22, expenditure is estimated to be same as the budget estimate (Figure 5). Note: Revised Estimates used for 2021-22. Sources: Union Budget Documents of various years; PRS. ## Delay In Completion The Standing Committee on Information Technology (2018) noted that although approved in 2011, the initial target of Bharatnet had to be revised in 2014 due to inadequate planning and design, and unpreparedness to address the issues.10 Under the revised deadline, the phase-I was due by March 2017 but could be completed by December 2017.10 Phase-II which was to be initially completed by March 2019, the target was then revised to March 2020.10, 11 The Standing Committee on Information Technology (2020) noted that the project is estimated to be completed by August 2021.12 As of February 2022, the project is far from completion. Thus, the delay in the completion of phase-II is about 2 years and 11 months so far. Table 4 shows the status of Bharatnet as of December 2021.13,14 Under phase- II, as of December 2021, optical fibre cable (OFC) has been laid in 57,078 gram panchayats out of targeted 1.42 lakh gram panchayats (40%). Out of these, 45,340 gram panchayats have been made service-ready. Note that the National Digital Communications Policy 2018 aims to provide: (i) provide universal broadband connectivity at 50 Mbps to every citizen by 2022, and (ii) provide one Gbps connectivity to all gram panchayats by 2020, and 10 Gbps by 2022. | Parameter | Target | |--------------------------|-----------| | Achievement | | | in % | | | Length of OFC laid* | | | 6.5 lakh | | | km | | | 5.58 lakh km | 86% | | Number of panchayats | | | where OFC laid* | | | 2.5 lakh 1.81 lakh | 72% | | Number of panchayats | | | which are service-ready* | | | | | | 2.5 lakh 1.71 lakh | 68% | | Number of panchayats | | | where Wi-Fi installed# | | | | | | 2.5 lakh 1.04 lakh | 42% | | Number of panchayats | | | where Wi-Fi operational | | | # | | | | | | 2.5 lakh 0.53 lakh | 22% | Note: *as of December 6, 2021, #as of December 10, 2021. Sources: BBNL website as accessed on February 13, 2022; PRS. ## Network For Defence Services The Network for Defence Services project aims to provide a dedicated pan-India optical fibre cablebased network for use by defence services. The original total sanctioned cost of the project was Rs 13,334 crore.5 In May 2018, the central government announced that the budget of the project has been increased to Rs 24,664 crore.15 BSNL is the implementing agency for the project. A total of 60,000 km of the optical fibre network is to be laid under this project. In 2022-23, Rs 1,900 crore has been allocated towards this project, a decrease of 62% over revised estimates of 2021-22. Under this scheme, in 2018-19, only 43% of the allotted fund was utilised. In 2020-21, the actual expenditure was 20% less than the budget estimates (Figure 6). ## Delay In Completion The network for defence services project was to be completed by July 2015.5 The revised deadline for completion was set for May 2020, however, the target was subsequently revised to December 2020. As of February 2022, the project is still ongoing. The Standing Committee on Information Technology (2018) had observed that the delay has resulted in a massive cost overrun from the initial estimation of Rs 8,098 crore in 2009 to Rs.24,664 crore in 2018 (205% increase).5 ## Non-Tax Revenue From Communication Services16 Communication services are one of the major sources of non-tax revenue of the central government. In 2022-23, non-tax revenue from communication services is estimated to be Rs 52,806 crore, about 20% of the total non-tax revenue of the central government. This includes receipts from spectrum auctions, one-time fees from new operators and recurring license fees and spectrum charges from telecom service providers which is a percentage share of the AGR of the operators. In 2022-23, non-tax revenue from communication services is estimated to register a decrease of 27% over revised estimates of 2021-22. This may be due to the rationalisation of certain levies in September 2021 (discussed later). The Finance Minister in her budget speech in February 2022 noted that auction of 5G spectrum is expected to be conducted in 2022-23, however, as stated earlier, non-tax revenue in 2022-23 is estimated to be 27% lower than the revised estimates of 2021-22. In 2021-22, at the budget stage, non-tax revenue from communication services was projected to be Rs 53,987 crore. As per the revised estimates, this revenue is estimated to be Rs 71,959 crore, 33% higher than the budget estimate. ## Services (In Rs Crore) | | | % change | % change | | |-----------|----------|-------------|-------------|--------------| | Year | Budget | Actual | from Budget | Year-on-Year | | to Actual | | | | | | 2016-17 | 98,995 | 70,241 | -29% | 24% | | 2017-18 | 44,342 | 32,066 | -28% | -54% | | 2018-19 | 48,661 | 40,816 | -16% | 27% | | 2019-20 | 50,520 | | 69,846 | | | 2020-21 | 1,33,027 | | 45,501 | | | 2021-22 | 53,987 | | 71,959 | | | 2022-23 | 52,806 | | - | - | Note: Revised estimate for 2021-22 shown as actuals. Source: Union Budget Documents of various years; PRS. ## Support For The Telecom Sector In November 2019, the Union Cabinet had approved deferred payment of spectrum auction instalments due for years 2020-21 and 2021-22 to provide relief to telecom service providers.17 In September 2021, the Union Cabinet approved several measures for the telecom sector.18 These will have implications for the level of non-tax revenue of the central government from the communications sector going forward. - Definition of AGR: Non-telecom revenue will be excluded from the definition of Adjusted Gross Revenue (AGR) on a prospective basis. AGR is the value of gross revenue after deduction of certain taxes and certain charges such as roaming charges from gross revenue. Earlier, AGR also included revenue from any non-telecom operations such as income from investments and income from property rent. - Spectrum Usage Charges: Earlier, the TSPs paid a percentage of their AGR to the central government in the form of license fees and spectrum usage charges. No spectrum usage charges will be levied for spectrum acquired in future auctions. - Charges for spectrum sharing: Additional charges for spectrum sharing will be removed. - Interest and penalty on overdues: The interest rate applicable on late payment of dues will be reduced from October 1, 2021 (2% less than earlier). No penalty and interest on penalty will be levied on such delayed payments. - Moratorium on outstanding dues: A moratorium of up to four years will be allowed to the TSPs on payment of: (i) dues on account of license fees and spectrum usage charges for the years between 2003 and 2019 (as per a 2019 Supreme Court Judgement), and (ii) dues for spectrum purchased in past auctions (excluding 2021 auction). - Conversion of interest dues into equity: TSPs may pay interest amounts arising due to deferment of payment by way of equity. The central government will have an option to get equity in place of the outstanding dues at the end of the moratorium period. ## Issues For Consideration Performance Of Bsnl And Mtnl Mounting Losses BSNL and MTNL are the public sector undertakings (PSUs) engaged in providing telecommunication services in the country. BSNL and MTNL have been incurring losses continuously since FY 2009-10.19 As per the Department of Public Enterprises guidelines, both these PSUs have been declared as 'Incipient Sick'.19 A PSU is considered 'Incipient Sick' if its net worth is less than 50% of its paid-up capital in any financial year, or if it had incurred losses for three consecutive years.20 Between 2016-17 and 2021- 22, BSNL is estimated to make a cumulative loss of Rs 59,833 crore (Table 6), whereas MTNL is estimated to make a cumulative loss of Rs 18,058 crore (Table 7). Losses reduced in 2020-21 due to a reduction in salary expenditure owing to the implementation of the voluntary retirement scheme. In 2021-22, BSNL and MTNL are projected to make a loss of Rs 9,201 crore and Rs 2,520 crore, respectively. In 2021-22, losses are projected to increase as compared to 2020-21. ## (Amounts In Rs Crore) | Year | Income | Expenses | Profit (+)/Loss(-) | |----------|------------|-------------|----------------------| | 2016-17 | 31,533 | 36,327 | -4,794 | | 2017-18 | 25,071 | 33,809 | -7,993 | | 2018-19 | 19,321 | 34,225 | -14,904 | | 2019-20 | 18,907 | 34,406 | -15,500 | | 2020-21 | 18,595 | 26,036 | -7,441 | | 2021-22* | 20,885 | 30,086 | -9,201 | Note: *Figures for 2021-22 are projections. Source: Reports of the Standing Committee on Communication and Information Technology, Annual Reports of BSNL; PRS. ## (Amounts In Rs Crore) | Year | Income | Expenses | Profit (+)/Loss(-) | |----------|------------|-------------|----------------------| | 2016-17 | 3,552 | 6,494 | -2,942 | | 2017-18 | 3,116 | 6,090 | -2,974 | | 2018-19 | 2,606 | 5,997 | -3,391 | | 2019-20 | 2,227 | 5,997 | -3,770 | | 2020-21 | 1,788 | 4,250 | -2,462 | | 2021-22* | 2,020 | 4,540 | -2,520 | Note: *Figures for 2021-22 are projections. Source: Reports of the Standing Committee on Communication and Information Technology, Annual Reports of MTNL; PRS. ## Declining Market Share The market share of both BSNL and MTNL has declined in terms of share in the revenue. During the second quarter of 2016, BSNL and MTNL had a share of about 9.3% in the adjusted gross revenue of the sector from access services, which declined to 5.4% during the third quarter of 2021. As of September 2021, BSNL had a 9.7% share among the wireless subscribers, up from 8.9% as of September 2016. However, between September 2020 and 2021, BSNL lost about 5% of its wireless subscribers. During the same period, MTNL saw a further decline in its already modest market share in terms of subscriber base. Source: TRAI; PRS. ## Two Years On, The Revival Plan For Bsnl And Mtnl Yet To Be Fully Implemented The Standing Committee on Information Technology (2019) had noted that challenges for the PSU operators in earning revenue include: (i) absence of 4G services (except in a few places for BSNL) in data-centric telecom market, (ii) lack of cash flows hindering capital outlay and expansion, (iii) sharp decline in average revenue per user across all services due to competition in the sector, and (iv) rapid decline in landline business due to changing market needs. In October 2019, the Union Cabinet approved a revival plan for BSNL and MTNL. The plan also provided in-principle approval for the merger of both PSUs. However, the merger plan was called off in January 2021.21 Key features of the plan are as follows: (i) allotment of 4G spectrum with funding from the central government of Rs 23,814 crore, (ii) sovereign guarantee for raising long-term bonds of Rs 15,000 crore for restructuring debt and meeting expenditure requirements, and (iii) funding of Rs 17,169 crore for offering voluntary retirement scheme to employees aged 50 years and above, along with coverage of cost towards pension and gratuity. In addition, BSNL and MTNL were to monetise their assets to raise funds. - Capital infusion: As discussed earlier, capital infusion in both BSNL and MTNL for allotment of 4G spectrum is yet to take place. In both 2020-21 and 2021-22, the allocation was made in this regard at the budget stage, however, no funds were released. This expenditure is now estimated to be incurred in 2022-23 for BSNL. There is no allocation for MTNL on this account. The Standing Committee on Information Technology (2021) observed that while other parts of the revival plan such as VRS were successfully implemented, the revenue of BSNL and MTNL did not grow due to the noncommencement of 4G services.22 - Monetisation of assets: Total value of land/building assets identified for monetisation in BSNL and MTNL is Rs 67,837 crore, and Rs 17,985 crore, respectively.22 Expected revenue from monetisation in 2021-22 is Rs 1,200 crore for BSNL, and Rs 300 crore for MTNL.22 BSNL is raising about Rs 1,000 crore per annum from renting its towers (13,000 out of a total 68,000 towers).22 BSNL also raised Rs 400 crore from monetising fibre. - Voluntary Retirement Scheme (VRS): BSNL and MTNL spend a significant share of their income on staff salaries. As of June 2019, the employee cost for BSNL and MTNL was 75% and 87% of their total income respectively.23 In comparison, the employee cost for private telecom service providers varied between 5%-7% of their total income. BSNL had 1,55,296 employees as of October 2019. Under the voluntary retirement scheme implemented as part of the revival plan, 78,569 employees of BSNL opted for VRS.22 This has helped reduce the salary expenditure in BSNL by about 50% (about Rs 600 crore per month).22 Also, 75% of the employees of MTNL opted for VRS.22 - Debt restructuring with sovereign guarantee bond: As of March 2021, BSNL has raised Rs 8,500 crore with sovereign guarantee.22 ## Government'S Stake In The Telecom Sector Until the mid-1980s, telecommunications services were operated by the Department of Telecommunications (DoT) of the central government.24 In 1986, MTNL was established to provide telecom services in Delhi and Mumbai. For other parts of the country, DoT continued to provide telecom services. National Telecom Policy, 1994 opened up the telecom sector for the private sector. In October 2000, a corporate entity BSNL was established to take over the services activities of DoT. Over the years, the telecom sector in India has evolved from a public-sector led industry to a private-sector led industry. While the government-owned BSNL and MTNL have remained in business, they are distant competitors to private operators in the sector. As discussed earlier, these two companies have been making losses for about a decade now. As of September 2021, public sector operators had about a 10% share in the overall subscriber base. ## Government Might Become One Of The Largest Shareholders In Vodafone Idea Limited As discussed earlier, as part of reform measures for the telecom sector, the government has provided an option of paying interest dues by way of equity. The detailed guidelines about the modalities of such conversion are yet to be released. In January 2022, the Board of Vodafone Idea Limited approved the exercise of the option to convert outstanding interest dues into equity.25,26 The Net present value of the outstanding interest dues is estimated to be Rs 16,000 crore. If the government were to approve the conversion of dues of Vodafone Idea into equity, it is estimated to own 35.8% stake in the company, while the promoters will jointly hold 46.3%. The equity shares will be offered to the government on a preferential basis. Note that the shares of Vodafone Idea Limited have fallen by 15.2% in past one month.27 Two more companies Tata Teleservices and Tata Teleservices Maharashtra limited have also decided to offer pay interest dues by way of equity.28 Their interest dues are estimated to be about Rs 4,139 crore and Rs 850 crore. Upon conversion into equity, the government is estimated to have 9.5% shares each in the two companies. In January 2022, the Department of Telecommunications stated that: (i) these companies will continue to be managed as professionally-run private companies, (ii) conversion of liabilities will help companies regain the ability to invest and provide better services, and (iii) government can sell these shares at the appropriate time and thereby recover the due amount.29 It noted that this measure will prevent a scenario where there are very few players in the market. Such a potential lack of competition might have led to higher prices and poor services. However, such conversion will make the government an important stakeholder in the thirdlargest company in the sector in terms of market share. It also owns the fourth and fifth largest companies in the sector. This raises the question whether the government's role in the telecom business is set to increase in future and if so, its implications for the competition in the sector. ## India'S Preparedness For 5G 5G is the next technology frontier in the telecom sector. According to the High-Level Forum of the Department on 5G, 5G is predicted to create a cumulative economic impact of USD one trillion in India by 2035.30 As of January 2021, 118 operators in 59 countries have deployed 5G network.31Mostly, 5G has been launched partially in these countries. In India, the commercial rollout of 5G is yet to happen. The Standing Committee on Information Technology (2021) examined India's preparedness for 5G.31 The Committee noted that sufficient preparatory work has not been undertaken for the launch of 5G services in India. It highlighted: (i) inadequate availability of spectrum, (ii) high spectrum prices, (iii) poor development of use cases for 5G, (iv) low status of fiberisation, and (v) deficient backhaul capacity (links between the core network and sub-networks), as some of the key concerns.31 It noted that as of January 2021, 5G trials were not permitted by the department.31 In May 2021, the department permitted telecom service providers to start 5G trials in India. | Technology | World | India | |---------------|----------|----------| | 2G | 1991 | 1995 | | 3G | 1998 | 2008 | | 4G | 2008 | 2015 | | 5G | 2019 | - | Source: "21st Report: India's preparedness for 5G", February 2021, Standing Committee on Information Technology; PRS. ## Allocation Of 5G Spectrum Allocation of new bands of the spectrum is crucial for the rollout of 5G. However, the auction of the 5G spectrum is still pending. The Committee noted the concerns of the telecom companies that the reserve price set by TRAI (Rs 492 crore per MHz) for the 5G spectrum is exorbitantly high.31 It observed that considering the financial stress in the sector and that the 5G ecosystem is yet to be developed, high reserve price may have an adverse impact on the abilities of service providers to roll out 5G.31 The Committee further noted that based on the current availability of spectrum, approximately 50 MHz spectrum per operator can be ensured. This is substantially lower than the global average (about 100 MHz).31 It noted that in case of 4G too, the average spectrum per operator in India is around one-fourth of the global average.31 The Committee observed that there is an urgent need for an audit of all allocated spectrum for detecting under-utilisation and subsequently rationalising the allocation of spectrum.31 In November 2021, TRAI released a consultation paper inviting suggestions on various issues related to the auction of frequency bands identified for 5G including reserve prices, charges and fees.32 ## Digital Divide COVID-19 has brought focus on access to communication services. During the nationwide lockdown, internet access became crucial for adults to work from home and children to access education. However, notable gaps exist in India with regard to access to telecom services and the use of internet. International Telecommunications Union (ITU, 2019) notes that barriers are often related to age, gender, socioeconomic status, and geography.33 The Department of Telecommunications (2020) had noted that India has become the global leader in monthly data consumption.34 The Department also noted that the cost of data has reduced substantially thereby enabling affordable internet access.34 Regional Divide: The number of internet subscribers per 100 inhabitants for the country on aggregate was 61.1 as of June 2021. This was lower than the global average for developing countries in 2020 as per ITU (65.1).35 A substantial inter-state variation is seen on this parameter (Figure 9). Number of internet subscribers per 100 inhabitants in states such as Punjab, Himachal Pradesh, and Kerala circles were more than double of that in Bihar and Jharkhand, and Uttar Pradesh and Uttarakhand circles. Rural-Urban Divide: As of June 2021, while the number of internet subscribers per 100 inhabitants in urban areas was 105.1, the corresponding number for rural areas was 37.8, almost two-thirds less (Figure 10). ## Access To Broadband Communication can be classified among broadband and narrowband based on the bandwidth required for communication. Broadband communication uses a higher bandwidth and provides better speed. Telecom Regulatory Authority of India (2020) had observed that in the post-COVID-19 pandemic era, there will be an increasing reliance on broadband connectivity and demand for these services is likely to grow much faster.36 TRAI observed that India needs to improve in terms of access to fixed broadband as well as the speed of broadband. As of December 2020, only 9.1 out of 100 households had access to fixed broadband.36,37 TRAI noted that as per a March 2021 report by a private firm (Ookla), India experiences download speeds of 12.2 Mbps in case of mobile broadband and around 56.1 Mbps in case of fixed broadband.36 The corresponding global average was 48.4 Mbps and 98.7 Mbps, respectively.36 India ranked 131st among 140 nations in mobile broadband speed and 66th among 177 countries in fixed broadband speed according to the report by Ookla.36 It observed that India's broadband speed is the lowest among the BRICS countries (Figure 12). Note that the National Digital Communications Policy 2018 seeks to provide broadband connectivity at 50 Mbps to every citizen by 2022.36 In India, as of December 2020, 94% of internet subscribers in India use a broadband connection.36 However, a broadband connection in India is defined to have a minimum download speed of 512 kbps (kilo bits per second) to an individual subscriber. In other countries, this threshold is defined at a higher level. In USA, UK, and China, it is defined to be 25 Mbps (mega bits per second), 24 Mbps, and 20 Mbps, respectively.36 In August 2021, TRAI recommended re-defining broadband in India as: (i) basic broadband (download speed between two Mbps and 50 Mbps), (ii) fast broadband (download speed between 50 Mbps and 300 Mbps), and (iii) super-fast broadband (download speed of more than 300 Mbps.36 It also recommended a direct benefit transfer scheme in those rural areas where adequate fixed-broadband capacity is available but there is a lack of demand. It recommended overhauling right of way provisions and formulating a centrally sponsored scheme for incentivising states to undertake right of way related reforms. It recommended encouraging provisioning of common ducts by land-owning agencies for laying of telegraph wires. These will help in a quicker laying of optical fibres for broadband purposes. ## Promotion Of Domestic Manufacturing Of Telecom Equipment The Standing Committee on Information Technology (2019) had observed that India is highly dependent on the import of telecom equipment.38 During 2017-18 and 2018-19, India imported telecom equipment worth Rs 1.4 lakh crore and 1.2 lakh crore, respectively.38 The Committee observed that this indicates a lack of requisite ecosystem for the promotion of domestic manufacturing.38 Some of the reasons for the dependence on import are: (i) import of telecom equipment at zero duty as per existing tariff obligations under international treaties, (ii) low investment in research and development and creation of intellectual property rights, and (iii) lack 2 Expenditure Budget, Department of Telecommunications, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe13.pdf. 3 "Union Cabinet approves revival plan of BSNL and MTNL and in-principle merger of the two", Press Information Bureau, , Union Cabinet, October 23, 2019. 4 File No 13-01/2020-IC, Ministry of Communications, June 3, 2021, https://dot.gov.in/sites/default/files/PLI%20Scheme%20Guideli nes%20for%20Telecom%20%26%20Networking%20Product.p df?download=1. 5 "47th Report: Demands for Grants (2018-19) of Department of Telecommunications (Ministry of Communications)", Standing Committee on Information Technology, March 13, 2018, http://164.100.47.193/lsscommittee/Information%20Technology /16_Information_Technology_47.pdf. 6 "Report No 21 of 2018, Compliance and Performance Audit of Ministry of Communications and Ministry of Electronics & Information Technology", CAG, 2018, https://www.cag.gov.in/sites/default/files/audit_report_files/Rep ort_No_21_of_2018_Compliance_and_Performance_Audit_of_ Union_Government_Ministry_of_Communications_.pdf. 7 "Statement showing the balance of UAL amount available as potential fund under USO as on 30.11.2021", Universal Service Obligation Fund, Department of Telecommunications, website as accessed on February 13, 2022, http://www.usof.gov.in/usofcms/usof-fund-status-table.jsp. 8 "Recommendations on Definition of Revenue Base (AGR) for the Reckoning of Licence Fee and Spectrum Usage Charges", TRAI, January 6, 2015, https://main.trai.gov.in/sites/default/files/Reco-AGR-Final- 06.01.2015_0.pdf. 9 "Telecom at a Glance", Department of Telecommunications Website as accessed on February 1, 2022, http://dot.gov.in/sites/default/files/Telecom%20at%20a%20Glan ce.pdf?download=1. 10 "50th Report: Progress of Implementation of Bharatnet", Standing Committee on Information Technology, August 2018, http://164.100.47.193/lsscommittee/Information%20Technology /16_Information_Technology_50.pdf. of market access for indigenous manufacturers.38 The Committee noted that imports are likely to increase substantially with the introduction of newer technology such as 5G.38 The Standing Committee on Information Technology (2021) also stressed on the importance of enhancing domestic manufacturing capabilities in view of the adoption of 5G. It observed that the ecosystem should be developed for complete manufacturing rather than just assembly, as manufacturing gives higher value addition. The Committee also highlighted the importance of the promotion of research and development for the success of telecom manufacturing.31 The Committee noted that in 2018, TRAI had proposed the creation of a Telecom Research and Development Fund with an initial corpus of Rs 1,000 crore for promoting research, innovation, and manufacturing of indigenous telecommunications equipment. It recommended that this fund should be created at the earliest.31 In February 2021, the government notified a production-linked incentive scheme to promote manufacturing of telecom and network products in India.4 Communications, June 27, 2019, https://164.100.158.235/question/annex/249/Au621.pdf. 12 "6th Report: Demand for Grants (2020-21) of Department of Communications (Ministry of Communications), Standing Committee on Information Technology, March 2020, http://164.100.47.193/lsscommittee/Information%20Technology /17_Information_Technology_6.pdf. 13 "Bharatnet Status as on December 6, 2021", Website of BBNL as accessed on February 7,2022, http://bbnl.nic.in/Bharatnet.pdf. 14 "Bharatnet Usage Statistics as on December 10, 2021", Website of BBNL as accessed on February 7, 2022, http://www.bbnl.nic.in/usage2.pdf. 15 "Cabinet approves enhancement of budget for implementation of Network for Spectrum for Defence Services", Union Cabinet, Press Information Bureau, May 16, 2018. 16 Non-Tax Revenue, Union Budget, 2022-23, https://www.indiabudget.gov.in/doc/rec/ntr.pdf. 17 "Cabinet approves proposal for Mitigating financial stress being faced by the Telecom Services Sector", Press Information Bureau, Union Cabinet, November 20, 2019. 18 "Cabinet approves major reforms in telecom sector", Cabinet, Press Information Bureau, September 15, 2021. 19 Unstarred Question No 1773, Lok Sabha, Ministry of Communications, February 13, 2019, http://164.100.24.220/loksabhaquestions/annex/17/AU1773.pdf, 20 Official Memorandum, Department of Public Enterprises, October 29, 2015, https://dpe.gov.in/sites/default/files/R-79.pdf. 21 "BSNL-MTNL merger shelved as GoM says not feasible", Business Standard, January 25, 2021, https://www.businessstandard.com/article/economy-policy/bsnl-mtnl-merger-shelvedas-gom-says-not-feasible-cabinet-to-meet-soon- 121012500014_1.html. 22 "23rd Report: Demand for Grants (2021-22) of Department of Telecommunications", Standing Committee on Information Technology, March 2021, http://164.100.47.193/lsscommittee/Communications%20and%2 0Information%20Technology/17_Information_Technology_23.p df. 23 Minister's Reply to supplementary questions to the Starred Question No 61, Lok Sabha, Ministry of Communications, June 26, 2019, http://loksabhaph.nic.in/Questions/SQ_option16.aspx?qref=626 &lsno=17. 24 Telecom Sector in India, A Decadal Profile, Telecom Regulatory Authority of India, https://www.trai.gov.in/sites/default/files/201304121052403536 675NCAER--Report08june12.pdf. 25 Media Release-January 21, 2022, Vodafone Idea Limited, https://www.myvi.in/content/dam/microsite/pdfs/Results/Media _Release_Q32022.pdf. 26 Vodafone Idea Limited Transcript Q3 2022, https://www.myvi.in/content/dam/microsite/pdfs/Results/Transc ript_Q3_2022.pdf. 27 Website of BSE India as accessed on February 13, 2022, https://www.bseindia.com/stock-share-price/vodafone-idealtd/idea/532822/. 28 "Guidelines for telcos' dues conversion into equity likely in a month", Business Standard, January 13, 2022, https://www.businessstandard.com/article/companies/guidelines-for-telcos-duesconversion-into-equity-likely-in-a-month- 122011301200_1.html. 29 "Frequently Asked Questions (FAQs) on Telecom Reforms Package", Press Information Bureau, Ministry of Communications, January 12, 2022. 30 "Making India 5G Ready", Report of the 5G High Level Forum Prepared by Steering Committee, Department of Telecommunications, August 23, 2018, http://dot.gov.in/sites/default/files/5G%20Steering%20Committ ee%20report%20v%2026.pdf. 31 "21st Report: India's preparedness for 5G", Standing Committee on Information Technology, February 2021, http://164.100.47.193/lsscommittee/Information%20Technology /17_Information_Technology_21.pdf. 32 "Consultation Paper on Auction of Spectrum in frequency bands identified for IMT/5G", Telecom Regulatory Authority of India, November 30, 2021, https://www.trai.gov.in/sites/default/files/CP_30112021.pdf. 33 Website of International Telecommunications Union as accessed on February 16, 2021, https://www.itu.int/en/ITU- D/Statistics/Pages/stat/default.aspx. 34 Annual Report 2019-20, Department of Telecommunications, April 6, 2020, https://dot.gov.in/sites/default/files/Annual%20Report-2019- 20%28%20English%29.pdf. 35 Website of International Telecommunications Union as accessed on February 1, 2022, https://www.itu.int/en/ITU- D/Statistics/Pages/stat/default.aspx. 36 "Recommendations on Roadmap to Promote Broadband Connectivity and Enhanced Broadband Speed", Telecom Regulatory Authority of India, August 31, 2021, https://trai.gov.in/sites/default/files/Recommendations_3108202 1.pdf. 37 "Consultation Paper on Roadmap to Promote Broadband Connectivity and Enhanced Broadband Speed", Telecom Regulatory Authority of India, August 20, 2020, https://trai.gov.in/sites/default/files/Broadband_CP_20082020_0 .pdf. 38 "First Report: Demands for Grants (2019-20) of Department of Telecommunications (Ministry of Communications)", Standing Committee on Information Technology, December 2019, http://164.100.47.193/lsscommittee/Information%20Technology /17_Information_Technology_1.pdf. ## Demand For Grants 2022-23 Analysis Education The Ministry of Education consists of two departments: (i) school education and literacy, and (ii) higher education. The **Department of School Education and Literacy** is broadly responsible for education imparted between the ages of six to 18 years, i.e., school education. Under the Right to Education (RTE) Act, 2009 the government is mandated to provide elementary education to all children between 6-14 years of age. Secondary education is imparted between Class 9-12 for children between 14-18 years of age. The **Department of Higher Education** is responsible for higher education, and training for students above 18 years of age. Higher education includes undergraduate and postgraduate courses, doctoral degrees, and certificates following the completion of 12 years of schooling or equivalent. This note looks at the proposed expenditure of the Ministry for 2022-23, trends in this expenditure and discusses some of the issues related to the education sector. Budget speech 2022-23 highlights1 - To enable all states to provide supplementary education in regional languages for classes 1-12, 'one class-one TV channel' programme of PM eVIDYA will be expanded from 12 to 200 TV channels. - To promote critical thinking skills and creativity in vocational courses, 750 virtual labs (in science and mathematics), and 75 skilling e-labs (for simulated learning environment) will be established in 2022-23. - High-quality e-content in all spoken languages will be developed for delivery via internet, mobile phones, TV and radio through Digital Teachers. - A Digital University will be established to provide access to students across the country for world-class quality universal education with personalised learning experience at their doorsteps. This will be made available in different Indian languages and ICT formats. The best public universities and institutions in the country will collaborate as a network of hub-spokes. Allocation in Union Budget 2022-23 In 2022-23, the Ministry has been allocated Rs 1,04,277 crore. This is an 18.5% increase over the revised expenditure in 2021-22. The allocation constitutes 3% of the central government's estimated expenditure for 2022-23. In 2022-23, the Department of School Education and Literacy has been allocated Rs 63,449 crore, accounting for 61% of the Ministry's total allocation. The **Department of Higher Education** has been allocated Rs 40,828 crore, accounting for 39% of the Ministry's total allocation. Overview of finances As per the Economic Survey (2021-22), India's total public investment (centre and states combined) in education has nearly doubled from Rs 3.5 lakh crore in 2014-15 to Rs 6.9 lakh crore in 2021-22.2 However, the share of public investment in education has largely remained constant, at 10% of total government expenditure (centre and states combined) or 3% of GDP.2 This is much lesser than countries like Germany, USA, UK, and South Africa, which have a public investment of about 5-6% of their GDP in education. The National Policy on Education 1968 recommended the spending on education to be 6% of GDP. The National Education Policy, 2020 (NEP) reaffirms the recommendation of increasing public investment on education to 6% of GDP.3 2020- 21 2021-22 2022-23 Department Actual RE BE % change (RE to BE) s 51,842 51,970 63,449 22.1% School Education & Literacy Higher Education 32,378 36,032 40,828 13.3% Total 84,219 88,002 1,04,277 18.5% Note: BE - Budget Estimate; RE - Revised Estimates. Sources: Expenditure Budget - Ministry of Education, 2022-23; PRS. Table 2 shows the key heads under which the Ministry spends its funds. Table 2: Major heads of expenditure under the Ministry of Education (2022-23 Budget Estimates) Expenditure head Amount (in Rs crore) % of total Samagra Shiksha 37,383 36% Autonomous Bodies 12,359 12% PM POSHAN 10,234 10% Universities 9,914 10% IITs 8,495 8% UGC and AICTE 5,321 5% NITs and IIEST 4,364 4% Student Financial Aid 2,078 2% RUSA 2,043 2% Others 12,086 11% Total 1,04,277 100% Note: Autonomous Bodies include NCERT and Navodaya Vidyalaya Samiti (NVS); Universities include grants to central universities, and Deemed Universities promoted by central government. Sources: Expenditure Budget - Ministry of Education, 2022-23; PRS. In 2022-23, the highest expenditure (36%) is allocated towards Samagra Shiksha (Rs 37,383 crore), followed by: (i) autonomous bodies (12%) such as NCERT, (ii) PM POSHAN (10%), (iii) universities (10%), (iv) Indian Institutes of Technology (8%), and (v) statutory and regulatory bodies in higher education (University Grants Commission (UGC) and All India Council for Technical Education (AICTE)) (5%), among others. The Standing Committee on Human Resource Development/Education (2018, 2020, 2021) has repeatedly noted that the Department of School Education and Literacy is allocated funds much below its proposals.4,5,6 In 2018-19, 2020-21, 2021-22, the shortfall was Rs 15,500 crore, Rs 22,700 crore, and Rs 43,000 crore respectively. In other words, the Department only received 76%, 72% and 56% of the sought funding in these years, respectively. The Committee recommended additional funds for centrally sponsored schemes and central sector schemes under the department at the revised estimates stage. Note that in the years stated above (2018-19, 2020-21, and 2021-22), the Department could utilise 97%, 87%, and 95% of the allocated funds respectively. Similarly, for 2020-21, the Department of Higher Education received an allocation of Rs 39,466 crore, against a demand of Rs 58,251 crore.7 The Standing Committee on Human Resource Development (2020) noted that the allocation for Central Universities is inadequate as compared to their infrastructure, faculty and number of students enrolled.5 This affects the implementation of schemes. The Committee recommends increasing the budgetary allocations of the department of higher education. Department of School Education and Literacy School education generally refers to the education imparted to an individual in the 6-18 year old age group. The school education system in India comprises of more than 25 crore students, 96 lakh teachers, and 15 lakh schools (Table ). | | Public | % share | Private | % share | |----------|-----------------|------------|------------|------------| | Students | 15.5 crore 62% | 9.5 crore | 38% | | | Teachers | 57.5 lakh | 60% | 38.5 lakh | 40% | | Schools | 11 lakh | 73% | 4 lakh | 27% | Sources: UDISE Flash Statistics 2019-20; PRS. For 2022-23, most of the allocation to the Department of School Education and Literacy is for Samagra Shiksha (59%), autonomous bodies (19%), and the PM POSHAN scheme (16%). Autonomous bodies refers to the Kendriya Vidyalaya Sangathan, Navodaya Vidyalaya Samiti, National Council of Educational Research and Training (NCERT), Central Tibetan School Administration, and National Bal Bhawan. Table 4 shows the key expenditure heads of the department. | 2021- | 2022- | |--------------|---------| | Major Head | | | 2020-21 | | | Actuals | | | % change | | | (RE to BE) | | | 22 | | | RE | | | 23 | | | BE | | | 27,923 | 30,003 | | National | | | Education | | | Mission | | | -Samagra | | | Shiksha | | | 27,835 | 30,000 | | 89 | 3 | | -Teachers | | | Training and | | | Adult | | | Education | | | Autonomous | | | bodies | | | 10,388 | 11,073 | | PM | | | POSHAN | | | # | | | 12,878 | 10,234 | | Exemplar | - | | ASPIRE* | - | | Scholarship | | | Scheme** | | | 321 | 284 | | Others | 331 | | Total | 51,842 | Note: # Earlier known as National Programme of Mid-Day Meal in Schools; * Refers to Accelerating State Education Program to Improve Results, ** Refers to National Means-cum-Merit Scholarship Scheme. Sources: Expenditure Budget, 2021-22; PRS. Between 2011-12 and 2021-22, the Department's expenditure has seen a compounded annual growth of 2%. This is lesser than the CAGR of the Ministry's actual expenditure (3.8%), during the same time period (2011-12 to 2021-22). Note: *Figures for 2021-22 are revised estimates. Sources: Expenditure Budget, 2011-22; PRS. to the department between 2010-11 and 2020-21. Table 5: Comparison of budget estimates and the actual expenditure (2010-21) (in Rs crore) Year Budget Estimate Actuals Utilisation % (Actuals/BE) 2011-12 41,451 40,641 98% 2012-13 48,781 45,631 94% 2013-14 52,701 46,856 89% 2014-15 55,115 45,722 83% 2015-16 42,220 41,800 99% 2016-17 43,554 42,989 99% 2017-18 46,356 46,600 101% 2018-19 50,000 48,441 97% 2019-20 56,537 52,520 93% 2020-21 59,845 51,842 87% 2021-22* 54,874 51,970 95% Note: BE - Budget Estimate. *Revised Estimate Sources: Union Budgets, 2012-22; PRS. National Education Mission (NEM): The NEM consists of two expenditure heads: (i) Samagra Shiksha, and (ii) Teachers Training and Adult Education. Allocation to the NEM accounts for 36% of the total budget of the Ministry of Education. In 2022-23, the NEM has been allocated Rs 37,510 crore, which is a 25% increase as compared to 2021- 22. Samagra Shiksha was launched in July 2018. It aims to ensure inclusive and equitable quality education at all levels of school education. It subsumed three erstwhile centrally sponsored schemes: (i) Sarva Shiksha Abhiyan (SSA), (ii) Rashtriya Madhyamik Shiksha Abhiyan (RMSA), and (iii) Teacher Education (TE). In 2022-23, Samagra Shiksha has been allocated Rs 37,383 crore (25% increase over 2021-22). The allocation for Samagra Shiksha accounts for 59% of the total departmental allocation and 99% of the allocation for the National Education Mission. In 2021-22, Samagra Shiksha was allocated Rs 31,050 crore which was reduced to Rs 30,000 crore at the revised stage. In 2021-22, the Samagra Shiksha scheme received an allocation of Rs 31,050 crore, against a demand of Rs 57,914 crore. In March 2021, the Department stated that it needs Rs 19,164 crore for implementation of NEP interventions under the Samagra Shiksha scheme.6 Teacher Training and Adult Education has been allocated Rs 127 crore in 2022-23, which is 0.2% of the total departmental allocation. In 2020-21, teacher training and adult education had an allocation of Rs 250 crore at the budget stage, which was decreased to Rs 2.7 crore at the revised stage. (a decrease of 98%). PM POSHAN: In September 2021, the central government renamed the National Scheme for Mid- Day Meal in Schools to PM POSHAN.8 The Mid- Day Meal programme targeted enhancement of enrolment, retention, attendance, and nutritional levels among children studying in Class 1 to 8 across India. The erstwhile Mid-Day meal programme has been modified by: (i) extending the scheme to preprimary students studying in government and government aided primary schools, (ii) providing supplementary nutrition items to children in aspirational districts and districts with high prevalence of anaemia, (iii) involvement of women self-help groups and farmer producer organisations to use locally grown food items, and (iv) mandatory social audits in all districts. In 2022-23, PM POSHAN has been allocated Rs 10,234 crore, which is the same as the revised estimates of 2021-22. Autonomous bodies: These include: (i) Kendriya Vidyalaya Sangathan (KVS), (ii) Navodaya Vidyalaya Samiti (NVS), (iii) National Council of Educational Research and Training (NCERT), (iv) Central Tibetan School Administration (CTSA), and (v) National Bal Bhawan. In 2022-23, the allocation for autonomous bodies is Rs 12,359 crore (12% increase from 2021- 22). Exemplar: This is a new scheme launched by the Department of School Education and Literacy. In 2022-23, this scheme has been allocated Rs 1,800 crore. The scheme aims to qualitatively strengthen more than 15,000 schools, by incorporating all aspects of the National Education Policy 2020.9 The selected schools will include: (i) one primary and one elementary school in each block, (ii) one secondary and one senior secondary school in each district, and (iii) a few Kendriya Vidyalayas and Navodaya Vidyalayas. Over a period of time, these schools will become schools of excellence, and provide handholding and mentoring to other schools in their regions. ASPIRE (Accelerating State Education Program to Improve Results): This is a new scheme launched by the Department of School Education and Literacy. ASPIRE will assist the central government in implementing Samagra Shiksha, to improve education outcomes in Assam, Gujarat, Jharkhand, Tamil Nadu, and Uttarakhand.10 The key outcomes include: (i) foundational learning at the primary level, and (ii) reduced dropout rates at the secondary level. The scheme is supported by the Asian Development Bank, with a total support of about Rs 3,700 crore over a period of six years. National Means-cum-Merit Scholarship Scheme: The scheme provides one lakh scholarships of Rs 6,000 per annum each to eligible meritorious students in Class 9. The scholarship is provided up to Class 12 to prevent students from dropping out due to financial constraints. In 2022-23, Rs 350 crore has been allocated for the scheme. This is the same as the allocation for 2021- 22 at the budget estimates stage. In 2021-22, the revised expenditure for the scheme is Rs 284 crore. This is 19% less than the 2021-22 budget estimates (Rs 350 crore). ## Key Issues In School Education Issues Related To Access, Dropout, And Quality Of Learning Enrolment: Gross Enrolment Ratio (GER) is the student enrolment as a proportion of the corresponding eligible age group in a given year.11 For the year 2020-21, the GER of students at elementary, secondary, and senior secondary levels was 96%, 76%, and 50% respectively.6 The Standing Committee (2021) took note of the sharp decline in GER at senior secondary level (50%). This implies that curtailing dropouts at the senior secondary level remains a challenge. As per the NEP, more than three crore out of school children need to be enrolled in school to achieve 100% GER at all levels of school education, by 2030.3 Sources: Educational statistics at a Glance 2018; PRS. India's enrolment rate in Class 1-5 and Class 6-8 is comparable to that of developed countries. However, it is significantly less (68%) than these countries for Class 9-12 (see Figure 2). The NEP notes that the GER is lower for certain socio-economically disadvantaged groups, based on: (i) gender identities (female, transgender persons), (ii) socio-cultural identities (scheduled castes, scheduled tribes), (iii) geographical identities (students from small villages and small towns), (iv) socio-economic identities (migrant communities and low-income households), and (v) disabilities.3 ## Impact Of Covid On Enrolment As official data is only available up to 2019-20, the Economic Survey (2021-22) uses data from the Annual Status of Education Report (ASER) 2021, to assess the impact of the Covid pandemic on education in rural areas. As per ASER Rural (2021), the share of children (in the 6-14 years age group) not enrolled in schools increased from 2.5% in 2018 to 4.6% in 2021 (Table 6). Among all groups, the decline in enrolment was the most among the 7-10 year age group. In the 7-10 year age group, the decline of enrolment for boys was higher than that of girls. school type in rural areas (in percent) 6 to 14 age group 15 to 16 age group Category 2018 2021 2018 2021 Government 64.3% 70.3% 57.4% 67.4% Private 32.5% 24.4% 29.9% 25.2% Others 0.7% 0.7% 0.6% 0.9% Not Enrolled 2.5% 4.6% 12.1% 6.6% Total 100% 100% 100% 100% Sources: Economic Survey (2021-22); PRS. Further, despite the pandemic, the share of children (in the 15-16 years age group) not enrolled in schools decreased from 12.6% in 2018 to 7.1% in 2021. The ASER report also found an increase in the share of enrolment in government schools, and a simultaneous decrease in enrolment in private schools, in both age groups (Table 6). This may have been caused by: (i) shut down of low-cost private schools, (ii) financial distress of parents, (iii) disproportionately high fee in private schools, and (iv) return of families to villages. To deal with the increased enrolment in public schools, the Economic Survey (2021-22) recommends equipping them with additional teachers, classrooms, and teaching/ learning materials. Transition and dropouts: Transition rates reflect the dropout levels in the school education system. It is the percentage of pupils enrolled in the final grade of the current stage who proceed to the first grade of the next stage. Higher the transition rate, lower the dropout level. As of 2019-20, the transition rate from primary to upper primary and from elementary to secondary was more than 90%. However, the transition rate from secondary to higher secondary was only 72%. The transition rate for both genders is low for the transition from secondary to senior secondary (Class 10 to Class 11).12 Boys Girls Total Sources: UDISE Flash Statistics 2019-20, PRS. According to the Ministry, the most prominent reason for dropping out in 2015-16 was due to engagement in domestic activities (for girls), and engagement in economic activities (for boys).13 Other reasons for dropping out include loss of interest in studies, and financial constraints. 12) for 2015-16 | Reason for dropping out | Male | Female | |---------------------------------|---------|-----------| | Child not interested in studies | 23.8% | 15.6% | | Financial Constraints | 23.7% | 15.2% | | Engage in Domestic Activities | 4.8% | 29.7% | | Engage in Economic | | | | Activities | | | | 31.0% | 4.9% | | | School is far off | 0.5% | 3.4% | | Unable to cope up with | | | | studies | | | | 5.4% | 4.6% | | | Completed desired level/ | | | | Grade | | | | 5.7% | 6.5% | | | Marriage | | | | | | | | 13.9% | | | | Other reasons | 5.1% | 6.2% | Note: Other reasons include: (i) timings of educational Institution not suitable, (ii) language/medium of Instruction used unfamiliar, (iii) inadequate number of teachers, (iv) quality of teachers not satisfactory, (v) unfriendly atmosphere at school. For girl students, other reasons also include: (i) nonavailability of female teachers, (ii) non-availability of girl's toilet. Sources: Educational Statistics at Glance 2018, MHRD; PRS. The Standing Committee (2021) also noted that high drop out among girls at the secondary stage has a correlation with high incidence of child marriage.6 The Committee recommended conducting a survey to identify districts where dropout rates of Scheduled Caste (SC), Scheduled Tribe (ST) and girls were higher than the national average.14 For 2021-22, the allocation (budget estimates) for the North East Region was Rs 4,382 crore. The Standing Committee (2021) noted that this was lesser than the allocation in 2020-21. The Committee noted that the dropout rates in states like Arunachal Pradesh, Assam, Meghalaya are higher than the national average, and hence, need special interventions.6 In July 2020, the central government has issued guidelines for main streaming of children of migrant labourers. The guidelines allow for the smooth admission of these children into schools, without asking for any documents other than identity.15,16 To improve the retention of children in schools, the NEP recommends strengthening existing schemes and policies which are targeted at socioeconomically disadvantaged groups. For instance, schemes for free bicycles for girls from socioeconomically disadvantaged groups or scholarships to tackle dropouts. Further, it recommends setting up special education zones in areas with a significant proportion of such disadvantaged groups. A gender inclusion fund should also be set up to assist female and transgender students in getting access to education. The Standing Committee on Human Resource Development (2020) suggested that vocational training be provided to students dropping out at the secondary level. This will help them get job opportunities at the earliest and continue their studies.5 ## Response To Covid In January 2021, to prevent dropouts and ensure continuity in learning, the central government released guidelines to identify out of school children, and ensure continuity of learning.17,18 The guidelines provide that states must carry out identification of out of school children in the six to 18 years age group through a door-to-door survey, and prepare an action plan for their enrolment. When schools reopen, they must: (i) prepare and run school readiness modules/bridge course to allow students adjust to the school environment, (ii) relax detention norms to prevent drop out this year, and (iii) identify students across different grades based on their learning levels. ## Infrastructure In Schools As per the Economic Survey (2021-22), access to basic facilities (such as electricity and sanitation) in schools has improved. As of 2019-20, more than 90% schools had access to a hand wash facility. More than 95% schools had functional toilets, for both boys and girls. However, only 38% of all schools had access to computers, while only 22% of schools had access to a functional internet connection. The Department provides for the establishment of Kasturba Gandhi Balika Vidyalayas (KGBVs) in Educationally Backward Blocks (EBBs) of a State/UT, where the female rural literacy rate is below the national average.6 As of March 2021, 5,726 KGBVs have been sanctioned.6 Of these, 1,339 have been sanctioned in Aspirational Districts. Out of the 1,339 schools, only 1,016 are operational.6 The Standing Committee (2020) highlighted that delay in completion of infrastructure leads to cost overruns and students' dropouts in government schools.5 ## Quality Of Learning The National Achievement Survey (2017) observed that nearly 53% of class 3 students have achieved grade proficiency levels.19 This means that they can solve problems using simple logic, apply simple rules, follow simple instructions, and are able to use simple language to express themselves. This proportion of students who are grade proficient drops to 47% in class 5 and to a further 39% in class 8. Note that NAS is conducted for class 3, 5, and 8 and it measures learning level outcomes in language, mathematics, and environmental studies (for class 3 and 5), and language, mathematics, sciences, and social sciences (for class 8).19 Note: Below basic means learners at this level have not achieved the required learning for this grade. Sources: National Achievement Survey 2017, MHRD; PRS. The Central Advisory Board on Education (CABE, 2014), National Achievement Survey (2012 and 2017), and the Economic Survey (2016-17) also observed declining learning levels in elementary education even after the implementation of the Right to Education Act (RTE), 2009.20,21,22,23 Under the RTE Act, children are enrolled in the class that corresponds to their age, irrespective of their learning levels. This results in a situation where children may have different learning levels within the same class, depending on when they are enrolled in the schooling system. To close the gap in learning levels, the NEP has made several recommendations such as reforms in: (i) curriculum and nature of assessments, and (ii) improving foundational literacy and numeracy through incorporating early childhood care and education in the education system.3 ## Impact Of Covid On Quality Of Learning Due to the pandemic, schools were shut down during the resulting lockdowns. As a result, online learning became the dominant mode of learning.2 As of December 2020, while the number of internet subscribers per 100 inhabitants in urban areas was 103, the corresponding number for rural areas was 35, almost two-thirds less.24 According to the 75th round of National Sample Survey (2017-18), only 15% of the rural households had internet. In comparison, 42% of the urban households had internet facility. As per the survey, only 4.4% of the rural households had a computer (does not include a smartphone), the corresponding number for urban households was 23%. These figures are indicative of comparatively lesser access to internet and computers in rural areas. The Economic Survey (2021-22) observed that in spite of an increase in availability of smartphones, issues related to availability of devices, and internet access remained.2 This has negatively impacted the access to education in rural areas.2 Further, students in lower grade found it difficult to do online activities compared to higher-grade students.2 In the 2022-23 Union Budget speech, the Finance Minister noted that the closure of schools has negatively impacted children in rural areas, especially from the Scheduled Castes and Scheduled Tribes.1 To enable imparting supplementary teaching in regional languages, the 'One Class-One TV channel' programme of PM eVIDYA will be expanded from 12 to 200 TV channels.1 In an NCERT survey about the use of different digital tools, only 3% of the surveyed students reported using TV.25 The most preferred modes for students were smartphones (80%), and laptops (20%).25 A similar preference pattern was noted in teachers.25 The PM eVidya initiative was launched in May 2020 under the Aatma Nirbhar Bharat Abhiyaan. Under this initiative all states were provided access to various e-content through the web portal - DIKSHA. The e-content included courses for teachers, and quizzes. In addition, the initiative provided for Swayam Prabha channels, which helped in telecasting educational programmes for students who did not have internet access. The initiative also included a channel for differently abled children.26 ## Foundational Literacy And Numeracy The NEP also notes lack of foundational literacy and numeracy as a reason behind poor learning levels at subsequent stages of education. It observed that more than five crore students currently enrolled in elementary school (26% of students) have not attained foundational literacy and numeracy (the ability to read and understand basic text and carry out basic addition and subtraction). The NEP aims to achieve universal foundational literacy and numeracy in primary school by 2025.3 This implies that every child, by grade 3, must be able to read with comprehension, write, perform basic mathematical operations, and learn basic life skills. To achieve this by 2026-27, a national mission named National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN Bharat) has been launched.27 The Mission specifies yearly targets for achieving learning outcome at various grade levels. To track the progress of students, school based assessment and large-scale standardised assessment will be conducted.28 Training for teachers will focus on bridging the language barrier, and encouraging peer learning.83 A five tier structure will be in place for implementing the scheme (at the national, state, district, block, and school levels). To achieve universal foundational literacy and numeracy, the NEP also recommends Early Childhood Care and Education (ECCE) for making children school ready before starting instructionbased learning. ## Early Childhood Care And Education The NEP observes that over 85% of a child's cumulative brain development happens before the age of six. To ensure healthy brain development and growth, it recommends universalising access to quality Early Childhood Care and Education (ECCE). This will ensure that students entering Grade 1 are school ready. ECCE consists of play-based and activity-based learning comprising of alphabets, language, puzzles, painting, and music for children in early years of their life. The NEP recommended that ECCE for children in the age group of 3-6 should be incorporated in the school structure by restructuring the school curriculum As of June 2018, the enrolment rate across the country for age-group 3-5 stands at 33%.29 This implies that nearly only one in every three students in the 3-5 age-group is receiving early education. There are wide variations amongst states in this regard. In states like Punjab, Kerala, Himachal Pradesh, Telangana and Tamil Nadu, the agespecific attendance ratio (for 3-5 years) is more than 50% while in Karnataka and Bihar, it is around 20% only. In contrast, the enrolment rate in early childhood education for OECD countries (generally developed countries) is 87%.30 In the United Kingdom, since September 2010, all families who have a three to four year old child are eligible for 570 hours a year (over 38 weeks) of government funded early education.31 As of 2018, 94% of the three and four year old children benefitted from universal funded early education.32 While early child care is not mandatory in New Zealand, the New Zealand Government subsidises all children who attend early learning services for up to six hours a day (a total of 30 hours per week), up until children go to school or turn six.33 Other measures to be taken in this regard include: (i) filling teacher vacancies at the earliest, (ii) ensuring a pupil to teacher ratio of 30:1 for effective teaching, and (iii) training teachers to impart foundational literacy and numeracy. ## Curriculum The NEP noted that the current curriculum system is based on rote learning. The Policy specifies reduction in the content of subjects to core essentials to enhance critical thinking, and inquiry-based, discussion-based, discovery-based, and analysis-based learning.3 The Policy recommends various reforms in the curriculum system to shift the system towards a character and skill-building system. The reforms include: (i) introduction of experiential learning (such as hands-on learning, arts/sports-integrated learning), (ii) eliminating significant separation among curricular, extracurricular, or co-curricular in certain streams, and (iv) promoting mother tongue as medium of instruction, preferably till Class 8 and beyond.3 Further, it recommended that the existing system of exams be reformed. Board examinations should test only core concepts and cover a range of subjects. Students should be able to choose their subjects and have the option to take the exams on up to two occasions during a given year. To track students' progress throughout their school experience, examinations will be conducted in Class 3, 5, and 8. The examination in Class 3 will test basic foundational literacy and numeracy, and its results will only be used for the improvement of the school education system. Further, a National Assessment Centre will be set up under the MHRD as a standardsetting body for student assessment and evaluation.3 Note that under the RTE Act, the Continuous and Comprehensive Evaluation (CCE) is the evaluation mechanism for elementary education. CCE (e.g., paper-pencil test, drawing and reading pictures, and expressing orally) does not mean an absence of an evaluation, but it means an evaluation of a different kind from the traditional system of examinations. It has been recommended that proper design of assessment and using this information can help improve the quality and innovation in terms of teaching and learning.34 However, the CABE (2014) noted that CCE has not been adequately implemented or monitored. It recommended that there is a need to proactively communicate the intent of CCE among teachers for its effective implementation.35 ## Issues Related To Teachers, And Training Experts have identified various issues concerning the role of teachers to address the challenges confronting elementary education.36 These include: (i) low teacher accountability and appraisal, (ii) poor quality of the content of teacher-education and changes required in the curriculum of B. Ed and D. Ed courses, (iii) need for continuous in-service teacher training and upgradation of skill set, (iv) inadequate pupilteacher ratio and deployment of teachers for noneducational purposes, (v) teacher vacancies, and (vi) excessive recruitment of contract/para teachers. Over the last few years, the number of teachers in the schooling system has increased (from nearly 82 lakh in 2013-14 to nearly 89 lakh in 2016-17).11 This has led to a decline in the Pupil-Teacher Ratio (PTR) across school education (from 31.3 in 2013-14 to 28.4 in 2016-17). PTR is defined as the number of students per teacher. According to the RTE Act, 2009, the PTR should ideally be lower than 30:1 at the primary level, and 35:1 at the upper primary level. Amongst the states, only Uttar Pradesh and Bihar do not meet the RTE prescribed PTR at the primary level, with a PTR of 39 and 36, respectively. The NEP also observes that the quality of teacher education, recruitment, deployment, and service conditions are not up to desired standards. Further, it noted the significant teacher vacancies across India. It also adds that poor service conditions and culture, and lack of career progression amongst teachers affects their motivation and teaching quality. ## ## Department Of Higher Education Higher education includes under graduate and post graduate courses, doctoral degrees, and certificates following the completion of 12 years of schooling or equivalent. The higher education system in India comprises of more than 1,000 universities, 42,000 colleges, and 3.8 crore students.37 Most of the colleges in India are private unaided colleges (65%), followed by government colleges (21%), and private aided colleges (14%).38 % change Note: Figures for 2021-22 are revised estimates. Sources: Expenditure Budget, 2011-22; PRS. In 2022-23, the Department of Higher Education has been allocated Rs 40,828 crore (13% increase over revised estimates of 2021-22). This is 39% of the total budget allocation to the Ministry of Education. In 2021-22, the allocation for the department was Rs 38,351 crore, which was reduced to Rs 36,032 crore at the revised stage (6% decrease). Between 2011-12 and 2021-22, the Department's expenditure has seen a compounded annual growth of 6%. Figure 5 depicts the allocation to the Department of Higher Education from 2010-11 to 2021-22. between 2010-11 and 2020-21. actual expenditure (2010-21) (in Rs crore) Year Budget Estimate Actuals Utilisation % (Actuals/BE%) 2011-12 21,912 19,505 89% 2012-13 25,275 20,423 81% 2013-14 26,750 24,465 91% 2014-15 27,656 23,152 84% 2015-16 26,855 25,439 95% 2016-17 28,840 29,026 101% 2017-18 33,330 33,614 101% 2018-19 35,010 31,904 91% 2019-20 38,317 36,916 96% 2020-21 39,467 32,900 83% 2021-22 54,874 51,970 95% Note: Figures for 2021-22 are revised estimates. Sources: Union Budgets 2011-22; PRS. The utilisation has generally been below the budgeted amount. In 2016-17 and 2017-18, the Department's expenditure exceeded the budget estimates. Table 9 provides the major heads of financial allocation under the Department for 2021-22. % 2022- 2021-22 Major Head 2020-21 Actuals RE change (RE to 23 BE BE) Universities 8,807 9,288 9,914 7% IITs 6,681 8,345 8,495 2% 4,194 5,139 5,321 4% Statutory and regulatory bodies NITs and IIEST 3,252 3,699 4,364 18% Student Financial Aid 1,834 2,089 2,078 -1% RUSA 165 793 2,043 158% World Class Institutions 1,016 1,200 1,700 42% IISERs 993 1,121 1,380 23% IISc 604 622 727 17% IIMs 465 651 654 0% Digital India e-learning 280 368 421 15% IIITs 339 407 543 33% Research 214 144 219 51% Others 3,533 2,164 2,971 37% Total 32,378 36,032 40,828 13% Note: Universities include grants to central universities, and Deemed Universities promoted by central government. Sources: Expenditure Budget 2021-22; PRS. In 2022-23, the highest share of the departmental allocation is for universities (24%), IITs (21%), statutory and regulatory bodies (13%), and NITs and the Indian Institute of Engineering Science and Technology (11%). In December 2021, the Comptroller and Auditor General (CAG) had released its performance audit of the eight new IITs (in Bhubaneswar, Gandhinagar, Hyderabad, Indore, Jodhpur, Mandi, Patna, and Ropar), which were established during 2008-09.39 The report covers the activities of these IITs during 2014-19. The Ministry envisaged an overall intake of 18,880 students across the eight IITs between 2008- 14. The audit found that only 6,224 students (out of the planned intake of 18,800 students) were admitted during this period. Further, although the Ministry of Education had permitted an increase in sanction of faculty positions, the seven IITs had vacancies in faculty positions ranging from 5% to 36%. As of February 2022, there were 4,370 vacant faculty positions across the 23 IITs.40 The CAG also noted that the pace of infrastructure creation did not correspond with the pace of envisaged increase of student/faculty. The CAG recommended: (i) increasing the pace of establishing infrastructure, and (ii) attracting research from non-funding resources. In 2021-22, the allocation for Rashtriya Uchchtar Shiksha Abhiyan (RUSA) reduce from Rs 3,000 crore at the budget estimates stage, to Rs 793 crore at the revised estimates stage (Table). RUSA aims to improve the overall quality of existing state higher educational institutions.41 As of December 2021, more than 2,900 projects worth Rs 14,600 crore have been approved in all states (and UTs) under RUSA.42 Under RUSA, states were required to establish State Higher Education Councils for: (i) synergising resources from the centre and state, (ii) channelling resources to institutions from the state budgets, and (iii) planning, monitoring, quality control and co-ordination of higher education at state level.41 The allocation to World Class Institutions in 2022-23 is Rs 1,700 crore. This is 42% more than the allocation in 2021-22 at the revised estimates stage. The government has granted the status of Institution of Eminence (IoE) to ten private institutions and eight public institutions.43 These institutions have greater autonomy in admitting foreign students, fixing fees, and recruiting foreign faculty. Further, each public institution declared as an Institute of Eminence gets financial assistance of up to Rs 1,000 crore over five years.44 Issues in the higher education sector ## Enrolment The overall Gross Enrolment Ratio in higher education in India has increased from 19.4% in 2010- 11 to 27.1% in 2019-20.45 Gross Enrolment Ratio (GER) is the percentage of students enrolled in a higher education course from the age group of 18-23 years. In 2019-20, the GER for female students (27.3%) was higher than the GER for male students (26.9%).47 India's GER in higher education (27.1%) is much lesser than countries like USA (86%), Germany (68%), UK (57%) and China (43%).46 States where GER is below the national level include Bihar (14.5%), Assam (17.3%), and Chhattisgarh (18.5%).47 The Standing Committee (2016) had noted that the Gross Enrolment Ratio (GER) in higher education in the country has increased due to the government of India's efforts of setting up new Central Universities in the country, including Indian Institutes of Information Technology (IIITs).48 As of 2019-20, the highest enrolment is at the under graduate level (80%), followed by post graduate level (11%).47 Enrolment at the Ph.D level is just 1% of the total enrolment in higher education. Most students at the under graduate level are enrolled in the arts stream (30%), followed by science (16%), commerce (14%), and engineering (12%).47 The preferred subject at the post graduate level is social science, followed by science and management.47 At the Ph.D. level, majority of the students chose science. 47 The NEP aims to increase the GER in higher education to 50% by 2035. This will be achieved by improvement in the capacity of existing higher education institutes by restructuring and expanding existing institutes.3 Note that in countries like USA, where the GER in higher education is 86%, the average amount of student debt for federal loans is USD 27,000 (Rs 20 lakh).49 Further, NEP recommends that all institutes should aim to be large multidisciplinary institutes (with enrolments in thousands), and there should be one such institution in or near every district by 2030. Further, institutions should have the option to run open distance learning and online programmes to enhance the reach of higher education.3 ## Regulation Of Higher Education The NEP observes that higher education in India has been overly regulated with too little effect. It noted problems of concentration of power, conflict of interest, and a resulting lack of accountability in higher education regulation. In India, higher education is regulated by multiple authorities. The University Grants Commission (UGC) regulates universities and colleges teaching general subjects. It is empowered with disbursing grants to universities for their maintenance and development, and with regulating fees charged by them. It also has powers regarding the recognition, functioning, and de-recognition of deemed universities. Failure to comply with UGC standards may result in withdrawal of grants or termination of affiliation of a college to a university if the college does not comply with fee structure and other regulations.50 Universities in India (public or private) are established by an Act of Parliament or state legislatures. The central government can also declare an institution to be a deemed university based on recommendations of the UGC. Such universities are allowed to set their own syllabus, admission criteria, and fees. Some prominent higher educational institutions are also classified as institutions of national importance (INI). Universities awarding their own degrees can be classified into five categories based on their management: (i) Central Universities; (ii) State Universities; (iii) Private Universities; (iv) Institutions-deemed-to-be-a-University; and (v) Institutions of National Importance. Out of the 3.5 crore students enrolled in higher education, most attend state universities (85%), followed by central universities (7.7%), private universities (3.4%), deemed universities (2.5%), and institutes of national importance (0.8%).47 IITs, IIITs, NITs, IIEST, IISERs, and IIMs, among others, are recognised as institutes of national importance.51 In terms of type of universities, the highest budget allocation for 2022-23 went to institutes of national importance (38%), followed by central universities (24%) and state universities (5%). The All-India Council for Technical Education (AICTE) regulates universities or colleges offering technical courses such as engineering and management. These institutions are required to comply with the academic standards and regulations set by AICTE.52 Additionally, institutions offering courses related to medical, legal, nursing, or architectural education are regulated by 15 professional councils such as the Medical Council and the Bar Council. These councils also conduct qualifying examinations for entering the profession. For setting quality standards and accreditation, there are, currently, two accrediting institutions: (i) the National Board of Accreditation (NBA) established by AICTE, and (ii) the National Assessment and Accreditation Council (NAAC) established by UGC. The NBA only accredits programs in engineering, computer application, pharmacy, architecture, management, hotel management and catering technology.53 The NAAC undertakes quality assessment of higher educational institutes, and provides a final institutional grade on a four-point scale.54 The grades range from D (not accredited) to A++. The assessment is based on seven criteria, which include: (i) curricular aspects, (ii) teaching, learning and evaluation, and (iii) infrastructure and learning resources.55 As of December 2020, only 318 universities (30%) and 5,542 colleges (13%) were accredited by NAAC.38 Out of these, only 182 universities and 1,410 colleges had a rating of A and above. The Standing Committee on Human Resource Development (2016) noted that accreditation of higher educational institutions needs to be at the core of the regulatory arrangement in higher education. Further, the Committee recommends that credit rating agencies, reputed industry associations, and professional bodies should be encouraged to rate Indian universities and institutions. The Standing Committee on Human Resource Development (2020) noted higher education to be of global importance.7 The Committee recommended alignment of the higher education system in India with global standards by developing graduates with new skills, a broad knowledge base, and competencies. The Committee noted that this could be achieved by: (i) upgrading existing institutions, (ii) allocating more funds towards university-based research, and (iii) promoting collaborations among institutions. Earlier, the draft Higher Education Commission of India Bill (HECI) was placed in public domain for comments. The HECI will act as an umbrella body with four separate arms for: (i) standard-setting, (ii) accreditation, (iii) regulation, and (iv) funding. As of February 2022, stakeholder consultations for the bill are in progress.56 ## Issues Related To Teachers And Training As of September 2020, 6,210 teaching posts are vacant across 42 central universities which come within the purview of the Ministry of Education.57 As of December 2021, more than 14,400 teaching posts are vacant across all centrally funded higher education institutes.58,59 The Standing Committee on Human Resource Development (2016) noted that this could be due to two reasons: (i) young students don't find the teaching profession attractive, or (ii) the recruitment process is long and involves too many procedural formalities.48 The Standing Committee on Education, Women, Children, Youth, and Sports (2021) noted that the current evaluation system of faculty recruitment is ineffective.60 The Committee recommends transforming the National Eligibility Test to align with the latest modes of teaching and research. Further, the Committee observed a need for a mechanism to monitor faculty induction and development. The Committee recommended creating an independent cadre of faculty for all centrally funded institutes, through a common exam conducted by the National Testing Agency or Union Public Service Commission The NEP states that National Professional Standards for Teachers will be developed by 2022. The standards will specify expectations from a teacher at different levels of expertise. These standards will be revised in 2030 and thereafter every ten years to ensure the efficacy of the system. ## Infrastructure In Higher Education Institutes As of 2019-20, more than 80% universities had playgrounds, auditoriums, libraries, laboratories, conference halls, common roofs, cafeteria, computer centres, and first aid rooms.47 About half of all universities had theatres, indoor stadiums, and connectivity to the National Knowledge Network (NKN).47 The NKN is a high-speed internet backbone, connecting higher education institutes, research labs, and data centres for seamless sharing of research and knowledge.61 The Higher Education Financing Agency (HEFA) is tasked with the creation of high-quality infrastructure in premier educational institutions. It is jointly promoted by Canara Bank and the Ministry of Education with an authorised capital of Rs 10,000 crore. All the centrally funded higher educational institutions are eligible for joining as members of the HEFA.62 HEFA has been tasked to mobilise one lakh crore rupees to meet the infrastructure needs of higher educational institutions by 2022.63 In 2019-20, HEFA has sanctioned nearly Rs 8,600 crore for 48 projects, and disbursed nearly Rs 1,200 crore.64 ## Issues Related To Research Funding And Output India's investment in research and development (as a percentage of GDP) has reduced from 0.8% in 2008 to 0.7% in 2018.65 This is much lower than the United States (2.8%), China (2.1%), Israel (4.3%), and South Korea (4.2%).65 As a result, India's research output is lesser compared to some other countries. For example, in 2017, India's number of patent applications (46,000) were 7% of those filed by the United States (6 lakh), and just 3% of those filed by China (13.8 lakh).66 Further, the share of Indian residents in total applications has increased from 20% in 2010-11 to 40% in 2020-21.66 The Economic Survey (2021-22) notes that the number of patents granted in India has increased from 7,509 in 2010-11 to 28,391 in 2020-21.66 As of 2020, this was much lesser compared to China (5.3 lakh), USA (3.5 lakh), Japan (1.8 lakh), and Korea (1.3 lakh).66 In terms of publications, India's share of scientific publications increased from 3.1% in 2009 to 4.8% in 2016. As of 2016, both USA (18%) and China (19%) published approximately four times as many articles. In the 2021-22 Union Budget Speech, the Finance Minister announced the establishment of the National 3 National Education Policy 2020, Ministry of Human Resource Development, https://www.education.gov.in/sites/upload_files/mhrd/files/NEP_Fi nal_English_0.pdf. 4 Report No. 305, Demand for Grants 2018-19 of the Department of School Education and Literacy, Standing Committee on Human Resource Development, March 9, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/98/305_2018_9_15.pdf. 5 Report No. 312, Demand for Grants 2020-21 of the Department of School Education and Literacy, Standing Committee on Human Resource Development, March 5, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/123/312_2020_3_12.pdf. 6 Report No. 323, Demand for Grants 2021-22 of the Department of School Education and Literacy, Standing Committee on Human Resource Development, March 9, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/144/323_2021_7_15.pdf. 7 Report No. 313 - Demand for Grants 2020-21 of the Department of Higher Education, Standing Committee on Human Resource Development, March 5, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/144/313_2021_1_16.pdf. 8 "Cabinet approves Continuation/Revisions/Modifications of Centrally Sponsored National Scheme for PM POSHAN in Schools for five more years", Press Information Bureau, Cabinet Committee on Economic Affairs, September 29, 2021. 9 "Union Budget 2021-2022: Highlights for the Department of School Education and Literacy", Press Information Bureau, Ministry of Education, February 10, 2021, https://pib.gov.in/PressReleseDetailm.aspx?PRID=1696879. 10 Program Description, Program Implementation Document, India: Accelerating State Education Program to Improve Results, Asian Development Bank, November 2021, https://www.adb.org/sites/default/files/projectdocuments/53386/53386-001-pam-en.pdf. 11 Unified District Information System for Education+ Annual Report 2019-20, Ministry of Education, https://dashboard.udiseplus.gov.in/assets/images/pdf/UDISE+2019_ 20_Booklet.pdf. 12 UDISE Flash Statistics 2016-17, National Institute of Education Research Foundation (NRF).67 The NRF was given an outlay of Rs 50,000 crore over five years. As per the detailed project report, the NRF's key objectives will include: (i) funding competitive peer-reviewed grant proposals of all types, submitted in any of our official languages to individuals or groups of individuals, across all disciplines, and (ii) funding research infrastructure at individual institutions and other research equipment that can be shared across multiple institutions.65 The Standing Committee on Education (2021) recommended that funding from National Research Foundation (NRF) should focus on themes having national importance as identified after due consultations with different Ministries/organisations.58 https://www.education.gov.in/sites/upload_files/mhrd/files/statistics -new/ESAG-2018.pdf. Recommendations/Observations of the Committee contained in its Three Hundred and Twenty Third Report on Demands for Grants (2021-22) of Ministry of Education", Standing Committee on Education, Women, Children, Youth and Sports, February 3, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/144/330_2021_8_16.pdf. 15 "Steps taken by the Government to ensure no loss of education during Covid", Press Information Bureau, Ministry of Education, August 9, 2021, https://pib.gov.in/PressReleasePage.aspx?PRID=1744059. 16 "Guidelines for States and UTs for continuous education of children of migrant labour", July 13, 2020, Ministry of Education, https://www.education.gov.in/sites/upload_files/mhrd/files/Migrant %20labour%20guideline.pdf. 17 "Ministry of Education issues guidelines for identification, admission and continued education of migrant children", Press Information Bureau, Ministry of Education, January 10, 2021, https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=16874 42. 18 D.O. No. 18-94/2020, "Guidelines for Out of School Children and mitigation of loss of learning", January 7, 2021, Ministry of Education, https://www.education.gov.in/sites/upload_files/mhrd/files/guidelin es_oosc.pdf. 19 National Achievement Survey-2017, Ministry of Human Resource Development, https://ncert.nic.in/pdf/NAS/WithReleaseDate_NPPTL.pdf. 20 "Report of CABE Sub Committee on Assessment on implementation of CCE and no detention provision", 2015, Ministry of Human Resource Development, http://mhrd.gov.in/sites/upload_files/mhrd/files/docu ment-reports/AssmntCCE.pdf. 21 A summary of India's National Achievement Survey, Class VIII, 2012, National Council of Educational Research and Training, http://mhrd.gov.in/sites/upload_files/mhrd/files/upload_document/1 1-March-National-Summary-Report-NAS-Class-VIII.pdf. 22 National Achievement Survey 2017, Dashboard, http://nas.schooleduinfo.in/dashboard/nas_ncert#/. 23 Economic Survey, 2016-17, http://indiabudget.nic.in/es2016- 17/echapter_vol2.pdf. 24 The Indian Telecom Services Performance Indicators October - December 2020, https://www.trai.gov.in/sites/default/files/QPIR_27042021_0.pdf. 25 Students' Learning Enhancement Guidelines, NCERT, Ministry of Education, https://www.education.gov.in/sites/upload_files/mhrd/files/Learnin g_Enhancement_0.pdf. Ministry of Education, February 10, 2021, 27 "NIPUN Bharat", Ministry of Education, July 5, 2021, https://static.pib.gov.in/WriteReadData/specificdocs/documents/202 1/jul/doc20217531.pdf. 28 NIPUN Bharat Implementation Guidelines, Ministry of Education, July 5, 2021, https://www.education.gov.in/sites/upload_files/mhrd/files/NIPUN_ BHARAT_GUIDELINES_EN.pdf. 29 Household Social Consumption on Education in India, NSS 75th Round, MOSPI, July 2020. 30 Enrolment in childcare and pre-school, OECD-Education at a Glance-2019, Organisation for Economic Cooperation and Development. 31 UIN 158280, tabled on June 27, 2018, Question for Department of Education, https://questions-statements.parliament.uk/writtenquestions/detail/2018-06-27/158280. 32 Provision for children under 5 years of age in England, January 2018, Department for Education, https://assets.publishing.service.gov.uk/government/uploads/system /uploads/attachment_data/file/719273/Provision_for_children_unde r_5_2018_-_text.pdf. 33 Preschool care and education, New Zealand Now, https://www.newzealandnow.govt.nz/live-in-newzealand/education-and-schooling/preschool-care-and-education. 34 World Development Report, 2018, World Bank, http://www.worldbank.org/en/publication/wdr2018. 35 "Report of CABE Sub Committee on Assessment on implementation of CCE and no detention provision", Ministry of Human Resource Development, 2014, http://mhrd.gov.in/sites/upload_files/mhrd/files/documentreports/AssmntCCE.pdf. 36 "Vision of Teacher Education in India: Quality and Regulatory Perspective", Report of the High-Powered Commission on Teacher Education constituted by the Supreme Court of India, August 2012, Ministry of Human Resource Development. 37 Unstarred Question 1164, Ministry of Education, Rajya Sabha, July 29, 2021, https://pqars.nic.in/annex/254/AU1164.pdf. 38 Higher Education Profile 2019-20, Ministry of Education, https://www.education.gov.in/sites/upload_files/mhrd/files/statistics -new/he_profile_1920.pdf. 39 Report of the CAG on Performance Audit of Setting up of new Indian Institutes of Technology (IITs), December 2021, https://cag.gov.in/uploads/download_audit_report/2021/Report%20 No.%2020%20of%202021_IITs_English_PDF%20A- 061c2ed6ce12811.66323547.pdf. 40 Lok Sabha Unstarred Question No. 788, Ministry of Education, February 7, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AU788.pdf. 41 RUSA 2.0 Guidelines, Ministry of Education, http://rusa.nic.in/wp-content/uploads/2018/12/Final-Guidelines- Copy.pdf. 42 Unstarred Question 1937, Ministry of Education, Rajya Sabha, December 15, 2021, https://pqars.nic.in/annex/255/AU1937.pdf. 43 20 Institution recommended for status of 'Institutions of Eminence', Press Information Bureau, Ministry of Human Resource Development, August 2, 2019. 44 Lok Sabha, Unstarred Q No. 44, Ministry of Human Resource Development, Answered on November 18, 2019, http://loksabhaph.nic.in/Questions/QResult15.aspx?qref=6362&lsn o=17. 46 Education Statistics at a Glance 2018, Ministry of Human Resource Development, March 2018. 47 All India Survey on Higher Education 2019-20, Ministry of Education, https://www.education.gov.in/sites/upload_files/mhrd/files/statistics -new/aishe_eng.pdf. 48 Report No. 284 - Issues and Challenges before Higher Education Sector in India, Standing Committee on Human Resource Development, December 14, 2016, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/16/284_2017_4_11.pdf 49 Student Debt, National Center for Education Statistics, https://nces.ed.gov/fastfacts/display.asp?id=900. 50 University Grants Commission Act, 1956, https://www.ugc.ac.in/oldpdf/ugc_act.pdf. 51 Institutions of National Importance, Ministry of Education, https://www.education.gov.in/en/institutions-national-importance. 52 All India Council for Technical Education Act, 1987, http://legislative.gov.in/sites/default/files/A1987-52.pdf. 53 Accreditation, National Board of Accreditation, https://www.nbaind.org/accreditation. 54 Grading System of NAAC, http://naac.gov.in/docs/Promotional%20Materials/Microsoft%20W ord%20-%20Grading%20_System_%20NAAC.docx.pdf. 55 Distribution of weightages across Key Indicators (KIs), http://naac.gov.in/images/docs/Key-Indicators-and-Weightages.pdf. 56 Implementation of Budget Announcements 2021-22, , https://www.indiabudget.gov.in/doc/impbud2020-21.pdf. 57 Lok Sabha, Unstarred Question No. 202, Vacant teachers and other staff posts, Ministry of Education, September 14, 2020. 58 Report No. 324, Standing Committee on Education, Women, Children, Youth and Sports, Rajya Sabha, February 2, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/144/324_2021_7_13.pdf. 59 Lok Sabha, Unstarred Question No. 202, Vacant teachers and other staff posts, Ministry of Education, September 14, 2020. 60 Report No. 322, Standing Committee on Education, Women, Children, Youth and Sports, February 2, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/16/144/322_2021_2_17.pdf. 61 Features, National Knowledge Network, https://nkn.gov.in/en/about-us-lt-en/features-lt-en. 62 "Cabinet approves establishment of Higher Education Financing Agency for creating capital assets in higher educational institutions", Press Information Bureau, Cabinet, September 12, 2016. 63 About Us, Higher Education Financing Agency, https://hefa.co.in/about-us/. 64 Unstarred Question 1975, Ministry of Education, Rajya Sabha, December 15, 2021, https://pqars.nic.in/annex/254/AU1975.pdf. 65 Detailed Project Report on National Research Foundation, Prime Minister's Science, Technology and Innovation Advisory Council (PM-STIAC), December 2019, https://www.psa.gov.in/psaprod/2020-11/English%20NRF.pdf. 66 'Chapter 9: Services', Economic Survey, 2021-22, Ministry of Finance, https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/ech ap09.pdf. 67 Budget Speech 2021-22, https://www.indiabudget.gov.in/budget2021- 22/doc/Budget_Speech.pdf. 2021-22 2022-23 Major Heads 2020-21 Actuals RE BE % change (RE to BE) Department of School Education and Literacy 51,842 51,970 63,449 22.1% National Education Mission 27,923 30,003 37,510 25% -Samagra Shiksha 27,835 30,000 37,383 25% -Teachers Training and Adult Education 89 3 127 4,518% Autonomous bodies 10,388 11,073 12,359 12% PM POSHAN 12,878 10,234 10,234 - Exemplar - - 1,800 - ASPIRE* - - 600 - National Means Cum Merit Scholarship Scheme 321 284 350 23% Others 331 376 596 58% Department of Higher Education 32,378 36,032 40,828 13% Statutory and regulatory bodies (UGC and AICTE) 4,194 5,139 5,321 4% NITs and IIEST 3,252 3,699 4,364 18% Student Financial Aid 1,834 2,089 2,078 -1% Rashtriya Uchhatar Shiksha Abhiyan (RUSA) 165 793 2,043 158% World Class Institutions 1,016 1,200 1,700 42% IISERs 993 1,121 1,380 23% IISc Bangalore 604 622 727 17% IIMs 465 651 654 0% Digital India e-learning 280 368 421 15% IIITs 339 407 543 33% Research and Innovation 214 144 219 51% Others 12,340 11,453 12,885 13% Total 32,378 36,032 40,828 13% Sources: Expenditure Budget 2022-23; PRS. ## Demand For Grants 2022-23 Analysis Health And Family Welfare In the last two years, the COVID-19 pandemic and its aftermath has highlighted the importance of a robust public health system. In India, states have the primary responsibility of managing the public health system. The Ministry of Health and Family Welfare sets the overall policy and regulatory framework of the health sector. It also implements the National Health Mission and various other schemes which deal with all levels of healthcare systems in the country. Last year, one of the focus areas in the union budget was health and well-being. This translated into announcement of the PM AtmaNirbhar Swasth Bharat Yojana which seeks to improve healthcare systems at the primary, secondary and tertiary levels; allocating Rs 35,000 crore towards the COVID-19 vaccination programme; and allocating additional grants to states for health, water and sanitation. While these programmes and schemes have helped in improving the status of the public health system in the country, there is still a long way to go. India's overall investment in its public health system is one of the lowest in the world. The physical infrastructure of health systems is still fairly poor, especially in rural areas. There is shortage of human resources (both doctors and support staff). People continue paying high amounts out of their own pocket implying that access to public health care, quality of public health care and overall insurance coverage needs to improve. The National Health Profile (2020) recognises that health financing is one the key ways to achieve universal health coverage, which is one of the goals under the National Health Policy, 2017.1 Appropriate health financing will also help ensure adequate funds for health care, provide equitable access to all population groups and reduce barriers to utilise health services. In this note we examine the trends in the financial allocation towards the Ministry of Health and Family Welfare, issues with health financing and key issues with the health sector. ## Overview Of Finances In 2022-23, the Ministry of Health and Family Welfare has been allocated Rs 86,201 crore.2 This is a marginal 0.2% increase over the revised estimates of 2021-22. The Department of Health and Family Welfare accounts for 96% of the Ministry's allocation at Rs 83,000 crore, while the Department of Health Research has been allocated Rs 3,201 crore (4% of the allocation). ## Highlights Of The Budget Speech 2022-23 An open platform will be rolled out for the National Digital Health Ecosystem. It will consist of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities. To improve access to quality mental health counselling and care services, a 'National Tele Mental Health Programme' will be launched. This will include a network of 23 tele-mental health centres of excellence, with NIMHANS as the nodal centre and International Institute of Information Technology, Bangalore providing technology support. The Department of Health and Family Welfare is broadly responsible for: (i) implementing health schemes, and (ii) regulating medical education and training. The Department of Health Research is broadly responsible for conducting medical research. ## Health And Family Welfare (In Rs Crore) | 2021-22 | 2022-23 | |---------------|------------| | % Change (RE | | | 2021-22 to BE | Item | | 2020-21 | | | Actuals | RE | | 2022-23) | | | 77,569 | 82,921 | | Health & | | | Family | | | Welfare | | | Health | | | Research | | | 3,125 | 3,080 | | Total | 80,694 | Note: BE - Budget Estimate; RE - Revised Estimates. Sources: Demand Number 46 and 47, Expenditure Budget 2022-23; PRS. COVID-19 related expenditure: In 2022-23, the only COVID-19 specific allocation under this Ministry is Rs 226 crore allocated towards the Insurance Scheme for Health Care Workers fighting COVID-19. In addition, the Ministry of Finance has allocated Rs 5,000 crore towards COVID-19 vaccination. As per the revised estimates of 2021-22, the Ministry of Health and Family Welfare has allocated Rs 16,545 crore towards COVID-19 related expenditure. This includes Rs 14,567 crore allocated towards the second phase of the COVID-19 Emergency Response and Health System Preparedness Package, and Rs 1,165 crore towards phase I (includes Rs 526 crore allocated to the Indian Council of Medical Research (ICMR) for procurement of testing kits, equipment). In 2021-22, the Ministry of Finance had estimated expenditure of Rs 35,000 crore towards COVID-19 vaccination. As per the revised estimates of 2021-22, this amount is estimated to increase to Rs 39,000 crore. In 2020-21 (actuals), the Ministry spent Rs 11,941 crore on COVID-19 which includes expenditure towards the Emergency Response and Health System Preparedness Package (Rs 10,529 crore), allocation to ICMR (Rs 1,275 crore), and vaccination for healthcare workers and frontline workers (Rs 137 crore). Table 2 details the main heads of expenditure under the Ministry allocated for the year 2022-23. | 2021-22 | 2022-23 | |------------------|-------------| | % Change (RE | | | 2021-22 to BE | Major Heads | | 2020-21 | | | Actuals | RE | | 2022-23) | | | National Health | | | Mission (total) | | | 37,080 | 34,447 | | 12,197 | 13,979 | | AIIMS, ICMR, | | | CGHS and other | | | autonomous and | | | statutory bodies | | | PMSSY | 6,840 | | PMJAY | 2,681 | | PM ABHIM | | | 2,815 | 2,350 | | National AIDS & | | | STD Control | | | Programme | | | Family Welfare | | | Schemes | | | 462 | 306 | | COVID-19 | 11,941 | | Others | 6,679 | | Total | 80,694 | Note: Expenditure on COVID includes allocation towards both phases of COVID-19 emergency response, vaccination of healthcare and frontline workers, insurance for healthcare workers, and procurement of COVID-19 testing kits; BE - Budget Estimate; RE - Revised Estimates; AIIMS - All India Institute of Medical Sciences (New Delhi); ICMR - Indian Council of Medical Research; CGHS - Medical Treatment of CGHS Pensioners; PMJAY - Pradhan Mantri Jan Arogya Yojana; PMSSY - Pradhan Mantri Swasthya Suraksha Yojana; PM ABHIM - Pradhan Mantri Ayushman Bharat Health Infrastructure Mission. Sources: Expenditure Budget 2022-23; PRS. ## Issues To Consider Investment In Public Health Has Been Low India's public health expenditure (centre and states) was 1.8% of the GDP in 2020-21.3 This is higher than the trend in the last decade when public health expenditure as percentage of GDP was between 1.1% - 1.5%.4,5 However, this allocation is much lower as compared to other countries.4,6,7,8 The Economic Survey 2020-21 observed that India ranks 179th among 189 countries in prioritising healthcare in the government budget.4 The National Health Policy, 2017 aims to increase public health expenditure to 2.5% of the GDP by 2025.1 The National Health Policy, 2017 noted that while general taxation would remain the largest means for financing health care, the government could consider imposing taxes on specific commodities such as tobacco, alcohol and foods having negative impact on health, and also levy taxes on extractive industries and pollution cess.1 In 2018-19, the central government announced a 4% Health and Education Cess in place of the 3% Education Cess on Income Tax and Corporation Tax, to cater to the education and health needs of the poor and rural families.9 In 2022-23, Rs 53,846 crore is estimated to be collected through the health and education cess, which is an 14% increase over the amount collected in 2021-22 (RE).10 In 2020-21, the central government introduced a 5% health cess which is imposed as customs duty on certain medical equipment.11 This was to be utilised for financing health infrastructure and services in aspirational districts. In 2022-23, Rs 870 crore is estimated to be collected under this health cess (customs), which is a 12% increase over the amount collected in 2021-22 (RE).10 The 15th Finance Commission noted that the health sector faces multiple challenges such as low investment, inter-regional disparities especially in nutrition levels and hunger, shortage of doctors, paramedics, hospitals, and inadequate numbers of primary healthcare centres.12 It recommended unconditional grants amounting to one lakh crore rupees for the health sector (for the time period 2021- 26). In addition, it suggested that by 2022, states should spend more than 8% of their budget on health. In 2021-22, as per budget estimates, states have allocated only 6% of their budget towards health. ## Allocation Towards The Department Of Health And Family Welfare Has Been Low Despite High Utilisation Between 2006 and 2022, the allocation to the Department of Health and Family Welfare has increased at a CAGR of 13%. (Compound Annual Growth Rate (CAGR) is the annual growth rate over a certain period of time.) Over the past few years, the Standing Committee on Health and Family Welfare has noted that the allocation towards the Department has been lower than the amount sought by the Department. This is despite budget utilisation being 100% or higher (post 2015-16). In 2020-21, the Department spent Rs 77,569 crore which was 19% more than what was estimated at the budget stage. In 2021-22 also, the Department is expected to exceed the budget estimate by 16%. Note: For 2021-22, % change in allocation is 2021-22 RE over 2021-22 BE; BE - Budget Estimate; RE - Revised Estimate. Sources: Expenditure Budgets, 2006-07 to 2022-23; PRS. ## Primary Healthcare Is Lacking And Requires More Investment Depending on the level of care required, healthcare in India is broadly classified into three types: primary care (provided at primary health centres), secondary care (provided at district hospitals), and tertiary care institutions (provided at specialised hospitals like AIIMS). Primary health care infrastructure provides the first level of contact between health professionals and the population.13 Based on the population served and the type of services provided, primary health infrastructure in rural areas consists of a three-tier system. This includes Sub-Centres (SCs), Primary Health Centres (PHCs), and Community Health Centres (CHCs).14 Primary healthcare systems are managed and administered by states (since public health is a state subject). The Ministry provides states with technical and financial assistance to help improve their public healthcare delivery systems. In the union budget 2017-18, it was announced that 1.5 lakh SCs and PHCs will be transformed into Health and Wellness Centres (HWCs) by December, 2022.15 Primary healthcare system: As on March 31, 2020, 1,55,404 SCs, 24,918 PHCs and 5,183 CHCs were functioning in rural areas.16 In urban areas, there were 2,517 SCs, 5,895 PHCs, and 466 CHCs.16 Note: PHC - Primary Health Centre; CHC: Community Health Centre. Sources: Rural Health Statistics 2017-19; PRS. Ayushman Bharat- Health and Wellness Centres Scheme (AB-HWC): HWCs provide a range of services beyond maternal and child healthcare services. These include: (i) care for non - communicable diseases, (ii) rehabilitative care, (iii) mental health services, (iv) first level care for emergencies and trauma, and (v) free essential drugs and diagnostic services.17 As on February 6, 2022, 90,030 HWCs were operational across the country.18 Note that the target is to create 1.5 lakh HWCs by December 2022. The number and distribution of SCs, PHCs and CHCs in rural areas is based on population norms. However, the Standing Committee on Health (2021) had noted that there are shortfalls of 23% in SCs, 28% in PHCs, and 37% in CHCs.19 The 15th Finance Commission also noted that there are critical gaps with respect to sub centres, PHCs, CHCs and wellness centres in some states.20 It noted that as of March 31, 2020, 885 PHCs and 33,886 SCs did not have the necessary infrastructure to meet the targets of the National Health Policy, 2017.12 As per the Rural Health Statistics 2019, SCs, PHCs, and CHCs still do not meet the required coverage targets (see Table 3). | Norm | | Average rural | Health | |--------------------------------------------|-------------------|--------------------|-----------| | Facility | | population covered | | | SC | 300 - 5,000 | 5,729 | | | PHC | 20,000 - 30,000 | 35,730 | | | CHC | 80,000 - 1,20,000 | 1,71,779 | | | Source: Rural Health Statistics 2019; PRS. | | | | The Standing Committee on Health (2021) also noted that inadequate primary health infrastructure in several areas and absence of an organised primary healthcare system in urban areas were some of the issues that led to poor management of the COVID-19 outbreak.21 The 15th Finance Commission observed that prevention and early management of health problems can reduce the need for complicated specialist care provided at the tertiary level.12 It recommended that the focus of healthcare provision in the country should be towards providing primary healthcare. The 15th Finance Commission noted that India is estimated to have 1.4 hospital beds per 1,000 people, which is half the global average of 2.9 beds (World Bank estimate in 2017).22 Over 60% of these beds are in the private sector.12 In comparison, China has over four beds per 1,000 people, Sri Lanka, the United Kingdom and the United States all have around three beds per 1,000 people, while Thailand and Brazil have more than two beds per 1,000 persons.12 The National Health Policy, 2017 aims to increase the availability to two beds per 1,000 people. This could be achieved by creating 3,000 to 5,000 hospitals with 200 beds each by 2025.12 National Health Mission: The National Health Mission (NHM) provides states with financial assistance towards interventions focused on strengthening primary and secondary healthcare. It comprises of a rural sub mission, the National Rural Health Mission (NRHM) and an urban sub-mission, National Urban Health Mission (NUHM). Key program components of the NHM include health system strengthening in rural and urban areas, Reproductive-Maternal- Neonatal-Child and Adolescent Health (RMNCH+A), and Communicable and Non-Communicable Diseases. States have the flexibility to plan and implement state specific action plans within these broad national parameters and priorities. They are provided with technical and financial assistance based on these plans, subject to availability of resources. In 2022-23, NHM has been allocated Rs 37,000 crore. Of this, Rs 22,317 crore has been allocated towards the Flexible Pool for RCH and Health System Strengthening, National Health programme and NUHM. Rs 6,343 crore has been allocated towards infrastructure maintenance. The allocation for NHM in 2022-23 is 7.4% higher than the revised estimates of 2021-22. Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM ABHIM): PM ABHIM was launched in October 2021 (renaming the Prime Minister Atmanirbhar Swasth Bharat Yojana that was announced in Budget 2021).23 It is a Centrally Sponsored Scheme (with some Central Sector component) spread over five years from 2021-22 to 2025-26. The Mission focuses on developing capacities of health systems and institutions across primary, secondary and tertiary healthcare levels, to prepare health systems in responding effectively to the current and future pandemics. One of the components seeks to enable early detection of diseases through HWCs. These HWCs will also provide medical consultation, test facilities and medicine free of cost. Further, 35,000 new critical care beds will be added in 600 districts, and referral facilities (transferring patients from one health care facility to other) will be provided in 125 districts. Under the second component, integrated public health laboratories will be created in 730 districts. Block level public health units will be created in 3,000 blocks. The network for diagnostic facilities will be strengthened by using five regional national centres for disease control, 20 metropolitan units, and 15 biosafety level labs. The Mission has been allocated Rs 5,846 crore in 2022-23. In 2021-22 (RE), the Mission was allocated Rs 1,040 crore. ## Poor Investment In Primary Health Care Allocation towards NHM and PM ABHIM form just about half of the Ministry's budget. The National Health Policy, 2017 suggests allocating up to twothirds or more of the budget to primary care, followed by secondary and tertiary care. The 15th Finance Commission also recommended that by 2022, twothirds of the total health expenditure should be on primary healthcare. Low investment in public health impacts the ability of the government to invest in primary health infrastructure, in increasing the human resources available, and ensuring that all citizens have access to basic health care. It has also resulted in citizens preferring to use private health facilities over government ones, and spending more from their pocket on basic health care. As per the 75th NSS survey (July 2017 and June 2018), about 33% ailments in rural areas and 26% in urban areas were treated in government hospitals.24 The remaining were treated in private hospitals (21% in rural, 27% in urban), or by private doctors/clinics (41% in rural, 44% in urban), and the rest with informal health care providers and charitable hospitals.24 This is despite higher average expense for treatment (without hospitalisation) in private hospitals (Rs 1,062) as compared to government hospitals (Rs 331).25 The 15th Finance Commission noted that private health care in India is expensive, and also lacks trained and skilled manpower. The 15th Finance Commission has recommended grants of Rs 70,051 crore, over the period of five years (2021-2026) through local governments, for strengthening the primary healthcare system. These grants will provide for: (i) conversion of rural SCs and PHCs to HWCs, (ii) support for diagnostic infrastructure for primary healthcare activities, and (iii) support for urban HWCs, SCs, PHCs, and public health units at the block level. The Commission also recommended that centrally sponsored schemes (CSS) in health should be flexible enough to allow states to adapt and innovate, and the focus of these schemes should shift from inputs to outcome. It also recommended strengthening local governments in terms of resources, health infrastructure and capacity building which would enable them to play an enhanced role in health care delivery, including in crisis times. ## Out-Of-Pocket Spending By Individuals Is High Poor public spending, and poor public health infrastructure has led to individuals spending higher amounts on healthcare services. Out-of-pocket expenditure is the payment made directly by individuals at the point of service where the entire cost of the health service is not covered under any financial protection scheme. The Economic Survey 2020-21 noted that in India out-of-pocket expenditure by households is one of the highest in the world.4 According to the National Health Accounts estimates, in 2017-18, out-of-pocket expenditure on health as a percentage of total health expenditure in the country was 48.8%.26 This has reduced from 69.4% in 2004- 05.26 In several cases, this expenditure is paid out through borrowings. As per the NSS Survey on Health in India (2018), in rural areas, 13.4% of the hospitalisation cases were financed by individuals through borrowings. In urban areas, this share was at 8.5%.27 Between 3-4% people in both rural and urban areas required support from friends and relatives.27 In 2017-18, private sector health expenditure was 5.8% of the total health expenditure. Government health expenditure (both centre and states) including capital expenditure was 40.8 % of the total health expenditure. The Ministry introduced the Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PMJAY) to provide health insurance coverage to poor and vulnerable families, for accessing secondary and tertiary healthcare services through empanelled public and private healthcare facilities.28 While PMJAY provides coverage for secondary and tertiary levels of healthcare. Of the health expenditure in 2017-18, 47% was towards primary care, 34% towards secondary care, and 14% towards tertiary care (the remaining is towards governance and supervision).26 The 15th Finance Commission noted that about 60 million Indians are pushed into poverty each year due to out-of-pocket payments for health. This implies that health insurance or any kind of financial protection measures must cover expenses at all levels of healthcare. The Economic Survey 2020-21 noted that increasing government spending on public health from 1% of the GDP to 2.5-3% of GDP will help in reducing out-of-pocket expenditure from 60% to 30%.3,4 It also noted that Indian states that have higher per capita spending on health have lower outof-pocket expenditure, which is also true at global level. ## Insurance Schemes To Help Reduce Out Of Pocket Spending Under PMJAY, insurance cover up to five lakh rupees per family per annum is provided to around 10.74 crore poor and vulnerable families, whose eligibility is determined as per the Socio-Economic Caste Census (2011).28 The insured families can access secondary and tertiary healthcare services through empanelled public and private facilities. The scheme subsumed two centrally sponsored schemes, namely, Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme. The scheme provides coverage for 1,573 procedures, and pre and post-hospitalisation expenses as well. Allocation: In 2022-23, PMJAY has been allocated Rs 6,412 crore, which is double the revised estimates of 2021-22 (Rs 3,199 crore). Experts have noted that this amount may be low considering the expenditure required on PMJAY. A study by the 15th Finance Commission on Ayushman Bharat (2019) estimated the demand and expenditure on PMJAY for the next five years.20 It stated that the total costs (centre and states) of PMJAY for 2019 could range from Rs 28,000 crore to Rs 74,000 crore. This estimate considers: (i) the assumption that all targeted beneficiaries will be covered (approximately 50 crore people), (ii) hospitalisation rates over time, and (iii) average expenditure on hospitalisation. These costs could go up to between Rs 66,000 crore and Rs 1,60,089 crore in 2023 (accounting for inflation). Implementation: The Economic Survey 2020-21 noted that PMJAY enhanced health insurance coverage. The proportion of health insured households increased by 54% in states that implemented PMJAY and decreased by 10% for states which did not implement it.4 However, utilisation of the amount allocated to the scheme has also been poor. While 83% of budget allocation was utilised in 2018-19, the utilisation decreased to 50% in 2019-20, and to 42% in 2020-21. In 2021-22, the allocation towards the scheme has been halved at the revised stage. This could imply gaps in implementation of the scheme. Table 4 shows details regarding the implementation of the Ayushman Bharat programme which includes PMJAY and Health and Wellness Centres. Table 4: Status of implementation of PMJAY (April 1, 2021 to November 28, 2021) Indicators All India Total footfalls 82.6 crore* Ayushman cards issued 17.2 crore Funds disbursed to states/UTs for implementation Rs 2,544 crore Total hospital admissions authorised 74.7 lakh Rs 2,450 crore* Claims paid towards authorised hospital admissions (COVID-19 and Non-COVID-19 treatment) Claims paid for authorised hospital admissions for COVID-19 treatment Rs 1,056 crore* Health and Wellness Centres 90,030* Note: *As on February 6, 2022. Sources: Lok Sabha Starred Question No. 95, Ministry of Health and Family Welfare, answered on December 3, 2021; HWC Portal, Ayushman Bharat; PRS. The Standing Committee on Health and Family Welfare (2020) noted that PMJAY faces various implementation challenges.29 One of the key issues is identification of beneficiaries. The scheme allows only those persons to avail insurance who have been included in the SECC 2011. This database is more than a decade old and hence may not capture the entire population in need of such insurance. The Standing Committee on Health (2021) had recommended that the Ministry should expand the list of beneficiaries under PMJAY.19 The Committee (2021) also noted that the utilisation of PMJAY was also adversely impacted due to COVID-19. Note that, the Standing Committee on Health (2018) and a study report of the 15th Finance Commission (2019) had noted that PMJAY is just an extension of RSBY which provided for coverage of up to Rs 30,000 per family per annum.20,30 Hence, to ensure proper implementation of the scheme, an analysis of the failures and inadequacies of RSBY should be done. This would look at whether: (i) RSBY covered all potential beneficiaries, (ii) hospitalisation rates increased under the scheme, and (iii) insurance companies were profitable under the scheme. The key challenges identified in the implementation of RSBY include: (i) low rate of enrolment of beneficiaries, (ii) increase in out-of-pocket expenditure, and (iii) issues in empanelment of healthcare service providers.31 ## Shortfall In Human Resources The Economic Survey 2020-21 observed that the aggregate density of health workers is closer to 23 per 10,000 population, which is the lower threshold recommended by the World Health Organisation (WHO).4 This is significantly lower than the adequate density of 44.5 health workers per 10,000 population, recommended by WHO to achieve the Sustainable Development Goals (SDG) targets by 2030. As of 2019, there is one doctor per 1,511 people, which is lower than the WHO standard of one doctor per 1,000 people.12 There is one nurse per 670 people, which is lower than the WHO standard of one nurse per 300 people.12 In December 2021, in response to a question on shortage of doctors, the Minister had replied that as of November 2021, the doctor-population ratio in the country is 1:834.32 This is assuming 80% availability of registered allopathic doctors and 5.65 lakh AYUSH doctors. As on March 31, 2020, there was a 2% shortage (based on the minimum requirement as per the norms) in the sanctioned posts of female health workers/ ANMs, and a 65.5% shortage of male health workers/ ANMs (at SCs and PHCs).16 With regard to allopathic doctors at PHCs, there was a shortfall of 6.8% of the total requirement for existing infrastructure.16 Further, there were vacancies even in these sanctioned posts. Vacancies for female health workers/ ANMs were at 14.1%, for of male health workers/ ANMs at 37% (at SCs and PHCs), and for doctors at PHCs at 24.1%.16 The 15th Finance Commission noted that there is regional and state-wide disparity in the availability of doctors. It recommended that an All India Medical and Health Service must be constituted under the All- India Services Act, 1951. Medical and Allied Healthcare education: In the last three years Parliament has passed various laws which seek to improve the regulation of medical education and profession in India. The National Medical Commission Act, 2019 sets up the NMC and replaces the Medical Council of India (MCI).33 The NMC will oversee medical education and practice in India. The National Commission for Allied and Healthcare Professions Act, 2021 seeks to regulate and standardise the education and practice of allied and healthcare professionals.34 Pradhan Mantri Swasthya Suraksha Yojana (PMSSY): PMSSY was introduced in 2003 with the objective of: (i) correcting regional imbalances in the availability of affordable and reliable tertiary healthcare services, and (ii) augmenting facilities for quality medical education in the country.35 This included establishing institutions like AIIMS and upgrading certain state government hospitals. The scheme covers 20 new AIIMS and 71 state government hospitals.35 In 2018, the Comptroller and Auditor General (CAG) noted that all new AIIMs overshot their completion time by almost five years.36 There were similar delays observed in the upgradation of state government hospitals. Further, it was found that the Ministry had estimated the capital cost for setting up six new AIIMS in Phase 1 to be Rs 332 crore per institute. After four years, this cost was revised to Rs 820 crore per institute, on account of shortcomings in planning and assessment of requirements. The Standing Committee on Health and Family Welfare (2017 and 2018) noted that this indicates poor assessment of time and cost which have left the allocated funds unused.30,37 Notes: Values for 2021-22 and 2022-23 are revised estimate and budget estimate respectively Sources: Union Budget 2010-11 to 2022-23; PRS. In 2022-23, PMSSY has been allocated Rs 10,000 crore. This is an increase of 35% over the revised estimates of 2021-22 (Rs 7,400 crore). The central government also provides grants to autonomous bodies such as AIIMS, New Delhi, Post Graduate Institute of Medical Education and Research, Chandigarh, and Jawaharlal Institute of Post Graduate Medical Education and Research, Puducherry. In 2022-23, these autonomous bodies have been allocated Rs 10,022 crore, which is an increase of 14% over the revised estimates of 2021-22. ## Key Health Indicators Have Improved But Still Far From Ensuring Overall Better Health Of Citizens While health financing as a percentage of GDP is a good metric to understand how much is a country investing in its health infrastructure, performance across certain key indicators is a reflection of how healthy the overall population is, and whether health services are accessible to all citizens. The results of National Family Health Survey-5 (NFHS-5) (2019-20) indicate several improvements in health indicators as compared to NHFS-4 (2015-16).38 These include: (i) reduction in infant mortality rate, (ii) improvement in immunisation coverage, (iii) increase in households with improved sanitation facility and clean cooking fuel, and (iv) increase in institutional births.39 Table 5: Status of some key targets of NHM Indicator Target (2012-20) Latest Status IMR 25 35 (2019-21) 113 (2016-18) MMR 100 per 1,00,000 live births TFR 2.1 2.0 (2019-21) < .001 0.02 (2019) Annual Malaria incidence Annual prevalence and mortality from Tuberculosis Reduce by half Incidence reduced from 300 per lakh in 1990 to 204 per lakh in 2017. Note: IMR-Infant Mortality Rate; MMR-Maternal Mortality Rate; TFR-Total Fertility Rate. Sources: Health and Family Welfare Statistics 2019-20; Special Bulletin on maternal Mortality in India 2016-18; National Family Health Survey-5 (2019-21); Unstarred Question No.711, Ministry of Health and Family Welfare, Lok Sabha, July 23, 2021; PRS. The Economic Survey 2020-21 noted that information asymmetry is one of the key reasons which exposes the healthcare sector to market failures. It noted that patients in India rarely know the value of information they receive in the healthcare sector. For example, in case of certain medical services such as preventive care or mental health, patients may never know about the quality of the services they received. The Survey recommended setting up a sectoral regulator (in private healthcare): (i) for supervision and regulation of the healthcare sector, and (ii) to prevent information asymmetry in the sector. Further, the Survey noted that mitigating information asymmetry in the healthcare sector will help achieve lower insurance premiums and better welfare of people. ## Health Research Is Still Lagging In 2021-22, the Department of Health Research has been allocated Rs 3,201 crore, which is a 4% increase over the revised estimates of 2021-22, and a 2% increase over the actual expenditure in 2020-21. The Standing Committee on Health and Family Welfare (2020) noted that the allocation to Department of Health Research is low compared to the requirement of funds needed for health research.39 It recommended that at least 10% of the budget for the Ministry of Health and Family Welfare should be earmarked towards health research. However, in 2021, the Committee recommended that the allocation towards the health research should be 5% of the total expenditure of the Ministry.40 As per the budget estimates of 2022-23, allocation towards the Department of Health Research is 4% of the total allocation of the Ministry. The Standing Committee on Health and Family Welfare (November 2020) noted that the allocation to Department of Health Research was one of the lowest in 2019-20 (Rs 1,861 crore) as compared to the allocation of other departments involved in scientific research.21 The Committee reiterated its recommendations to increase the budgetary outcomes of the Department of Health Research. The Committee noted that shortfall of funds may adversely impact the establishment of new Viral Research and Diagnostic Laboratories; Multi-Disciplinary Research Units in Medical Colleges, and Model Rural Health Research Units in states. Further, the Committee noted that there is inadequate investment on public health research, as India invests only 0.65% of GDP on overall research and development activities in the country across various sectors.21 It recommended that the Ministry of Health and Family Welfare should at least increase its spending on health research to the world average of 1.72% of GDP within two years. The Standing Committee on Health and Family Welfare (2017, 2018, 2021) had noted the persistent recurring mismatch between the projected demand for funds and actual allocation to the Department of Health Research.40,41,42 The Committee (2018) also noted that the Department had reported shortfall of funds for implementation of projects and on the other hand, there was underutilisation of funds released. This mismatch between demand and allocation has led to impact in terms of restrictions in the sanctioning of new labs, providing recurring grants to the ongoing projects, and upgradation of health research infrastructure.41 This also led to repercussions in the medical research output. For example, in 2019, only 799 research papers have been published by the ICMR and 25 patents have been filed.40 Under PM ABHIM, a national institution for One Health, four new National Institutes for Virology, a Regional Research Platform for WHO South East Asia Region, nine Biosafety Level III laboratories, five new Regional National Centre for Disease Control will be set up.43 Further, Integrated Public Health Labs will be set up in all districts. ## Digital Health Ecosystem The National Health Policy, 2017 had proposed setting up a National Digital Health Authority (NDHA) to regulate, develop and deploy digital health across the healthcare systems. The Policy suggested using digital tools extensively to improve the efficiency and outcomes of the healthcare system. It proposed an integrated health information system which serves the needs of all stake-holders and improves efficiency, transparency, and citizen experience. Ayushman Bharat Digital Mission: The Mission was launched in September 2021.44 It seeks to create a system of personal health records and ensure national portability in provision of health services. Under the Mission, every citizen will be provided with a digital health identity. Health records of citizens will be stored digitally to avoid the loss of any health records. Citizens will have an option to give their consent for sharing their health records with medical practitioners. In July 2021, the National Health Authority (NHA) had published a consultation paper to invite comments on the design and functionality of the Unified Health Interface (UHI).45 UHI is proposed to be a foundational layer of the National Digital Health Mission (NDHM) and is envisioned to expand interoperability of health services in India through open protocols. UHI aims at streamlining the digital health service experience by technology pathways that enable such services. The National Digital Health Mission has been allocated Rs 200 crore in 2022-23. As per the revised estimates of 2021-22, the Mission had been allocated Rs 75 crore. ## Covid-19: Financing The Additional Expenditure And Vaccination Developing Infrastructure To Manage Covid-19 In April 2020, the central government announced an investment of Rs 15,000 crore as COVID-19 Emergency Response and Health System Preparedness Package.46 The funds will be utilised over next four years for strengthening health system in the country. This includes: (i) setting up of diagnostic laboratories, (ii) strengthening existing health facilities (such as hospitals), and (iii) welfare of health workers (such as insurance for health workers). As on February 3, 2022, 3,249 operational laboratories (1,411 government, and 1,838 private) were reporting to ICMR.47 This is significantly higher than that in March 2020 (79).48 ICMR has setup 12 mentor institutes to expedite the approval process for labs applying for COVID-19 testing.49 The central government has also established an Indian SARS- CoV-2 Genomic Surveillance Consortium (INSACOG) for genomic sequencing and tracking the evolution of variant strains of SARS-CoV-2.50 As of December 21, 2021, INSACOG has 38 Genome Sequencing Laboratories across the country.50 The Standing Committee on Home Affairs (2020) noted that there is huge disparity in the infrastructure and services in public and private hospitals.51 This includes disproportionate availability of ICU beds in both public and private hospitals. It further noted that during the pandemic the largest share of burden was on government hospitals as private hospitals are either inaccessible or unaffordable for everyone. The Committee recommended that more funds should be allocated to public hospitals to strengthen the public health infrastructure. This will help the public hospitals to prepare appropriately for such pandemics in future. The Standing Committee on Health and Family Welfare (2020) on the outbreak of pandemic COVID- 19 and its management noted that there is shortage of healthcare providers in state run hospitals.21 Further, it noted that many hospitals and medical colleges across India are functioning below the sanctioned strength of faculty and speciality Departments are non-functional due to lack of required faculty. The Committee recommended the central and state governments to fill up the vacancies at the earliest. ## Table 6: Allocation For Covid-19 Related Expenditure | 2021-22 | 2022-23 | |--------------------------|------------| | Major Heads | | | 2020-21 | | | Actuals | RE | | 13,079 | 1,691 | | | | | COVID-19 Emergency | | | Response and Health | | | System Preparedness | | | Package | | | | | | 14,567 | | | | | | COVID-19 Emergency | | | Response and Health | | | System Preparedness | | | Package (Phase-II) | | | | | | 814 | 226 | | PM Garib Kalyan Package | | | - Insurance Scheme for | | | Health Care Workers | | | fighting COVID-19 | | | 137 | | | | | | COVID-19 vaccination for | | | healthcare workers and | | | frontline workers | | | Support for COVID | | | Vaccination * | | | | 39,000 | Note: * Allocation under Demand No. 42 (Transfer to states) of Ministry of Finance. Sources: Demand Numbers 42, 46, 47, Expenditure Budget 2022- 23; PRS. ## Covid-19 Vaccination Currently three vaccines are being administered in India - (i) Covishield, developed by the Serum Institute of India, (ii) Covaxin, developed by Bharat Biotech and (iii) Sputnik V, developed by Dr Reddy's Laboratories and Sputnik LLC. Covaxin was given emergency use authorisation (EUA) for children aged between 12-18 years in December 2021 and is being administered in the age group of 15-18 years since January 3, 2022.52,53,54,55 Further, priority groups who have already received two doses of vaccines will be given another precautionary dose from January 10, 2022. EUA refers to: (i) approving the use of unapproved medical products, or (ii) unapproved uses of approved medical products during public health emergencies (such as the COVID-19 pandemic).52 As of February 5, 2022, about 95 crore people had received the first dose of a vaccine, of which 73 crore people had been fully vaccinated.56 1.47 crore people have received a precautionary dose. The Drug Controller General of India (DCGI) has approved more vaccines for restricted emergency use in India. These include: (i) Moderna COVID-19 vaccine, (ii) Janssen (developed by Johnson and Johnson), (iii) ZyCov-D (developed by Zydus Cadila), (iv) Corbovax (developed by Biological E) and (v) Covovax developed by Serum Institute of India and ICMR).57,58,59,60 All these vaccines may be administered to all persons of 18 years of age and above. ZyCov-D may be administered to all persons of 12 years of age and above.59 In December 2021, DCGI granted emergency use authorisation to an antiviral drug, Molnupiravir. | Date | Group | |---------------------------------------------------|---------------------------| | January 16, | | | 2021 | | | Priority group including healthcare and frontline | | | workers | | | March 1, | | | 2021 | | | (i) People over the age of 60, and (ii) people | | | older than 45 with co-morbidities* | | | April 1, 2021 | People over the age of 45 | | May 1, 2021 | People over the age of 18 | | January 3, | | | 2022 | | | Children aged 15 to 18 years; precautionary | | | dose for priority groups | | Note: *Co-morbidities include heart failures, respiratory ailments, and lymphoma Sources: Ministry of Health and Family Welfare; PRS. Administration of vaccines: The central government constituted the National Expert Group on the COVID- 19 vaccine (NEGVAC) in August 2020 to advise on strategies to develop and distribute COVID-19 vaccine in India.62 The group is responsible for advising the government on matters such as: (i) prioritisation of population groups for vaccination, (ii) selection of vaccine candidates, (iii) inventory management and delivery, (iv) vaccine manufacturing, and (v) cold chain storage and associated infrastructure.62 For efficient and transparent administration of vaccine, the government: (i) prepared a database of healthcare and frontline workers, (ii) augmented cold chains, and (iii) procured syringes and needles.63 Further, the central government, in collaboration with state and district level authorities, developed a digital platform, COVID-19 Vaccine Information Network Co-WIN for vaccine administration and distribution.63 Production, procurement and pricing of vaccines: In January 2021, the government began procuring vaccines from manufacturers of Covishield and Covaxin (Serum Institute of India and Bharat Biotech).64 The central government procured 50% of total vaccines to vaccinate: (i) healthcare and frontline workers, and (ii) people over the age of 45 free of cost.65 . The government allocated vaccines to states from its share, based on certain criteria (such as number of cases and wastage of vaccine). The remaining 50% of doses could be procured by state governments and the open market (25% each). In May 2021, the Ministry of Health and Family Welfare announced that 51 crore vaccine doses will be procured between May-July 2021.66 A new policy was operationalised on June 21, 2021, under which centralised procurement of vaccines was established.67 Under the revised policy, 75% of procurement is conducted by the central government, and the remaining 25% is open for the private sector (with a cap on pricing).68 Prices for procurement by the government are periodically negotiated with manufacturers. The central government provides vaccines to states free of cost. Private hospitals can charge up to Rs 150 over the price of a vaccine.67 Note that in the United States and United Kingdom all vaccines are administered free of cost.69,70 In 2021-22, the Ministry of Finance had estimated expenditure of Rs 35,000 crore towards COVID-19 vaccination. As per the revised estimates of 2021-22, this amount is estimated to increase to Rs 39,000 crore. In 2022-23, the Ministry has allocated Rs 5,000 crore towards COVID-19 vaccination. The Standing Committee on Chemicals and Fertilisers (March 2021) noted that 276 crore doses of vaccine would be required to vaccinate all adults in India.71 It estimated that this would cost approximately Rs 68,310 crore. As on December 9, 2021, the central government had incurred an expenditure of Rs 19,675 crore for procurement of COVID-19 vaccines to supply them free of cost to states/UTs.72 The Standing Committee on Health and Family Welfare (2020) noted that India lacks cold-chain storage infrastructure required for such a large vaccination programme. It recommended the Ministry of Health and Family Welfare to upgrade its coldchain storage system to facilitate easy distribution of vaccine across the country.73 It further recommended the central government to ensure development of cold storage infrastructure across the country to ensure efficient administration of vaccines. | Name | Covishield | Covaxin | |----------------|---------------|------------| | Sputnik | | | | V | | | | 200 | 250*** | 995 | | Price/dose for | | | | government | | | | procurement* | | | | 600 | 1,200 | 948 | | Price/dose | | | | declared by | | | | manufacturer | | | | 180 | 210 | 197 | | Price for | | | | private | | | | hospitals | | | | GST and | | | | service | | | | charge** | | | | Maximum | | | | price of the | 780 | 1,410 | | vaccine | | | Department of Health Research, Ministry of Health and Family Welfare, Union Budget 2022-23, https://www.indiabudget.gov.in/doc/eb/sbe47.pdf. 3 Chapter 10, Social Infrastructure, Employment and Human Development, Economic Survey 2020-21, Volume II, Ministry of Finance, https://www.indiabudget.gov.in/budget2021- 22/economicsurvey/doc/vol2chapter/echap10_vol2.pdf. 4 Chapter 5, "Healthcare takes centre stage, finally!", Economic Survey 2020-21 Volume I, Ministry of Finance, https://www.indiabudget.gov.in/budget2021- 22/economicsurvey/doc/vol1chapter/echap05_vol1.pdf. 5 National Health Profile 2020, Ministry of Health and Family Welfare. 6 Economic Survey, 2015-16, Ministry of Finance, http://indiabudget.nic.in/budget2016-2017/es2014-15/echaptervol1.pdf. 7 Economic Survey, 2016-17, Ministry of Finance, http://indiabudget.nic.in/es2016-17/echapter.pdf. 8 Economic Survey, 2019-20, Ministry of Finance, https://www.indiabudget.gov.in/economicsurvey/doc/vol2chapter/e chap10_vol2.pdf. 9 Union Budget Speech 2018-19, https://www.indiabudget.gov.in/budget2018-2019/ub2018- 19/bs/bs.pdf; Finance Act, 2018, https://egazette.nic.in/writereaddata/2018/184302.pdf. 10 Receipt Budget 2022-23, Ministry of Finance, February 2022, https://www.indiabudget.gov.in/doc/rec/allrec.pdf. 11 Union Budget Speech 2020-21, https://www.indiabudget.gov.in/budget2020- 21/doc/Budget_Speech.pdf; Finance Act 2020, https://egazette.nic.in/WriteReadData/2020/218938.pdf. 12 15th Finance Commission, http://finance.cg.gov.in/15%20Finance%20Commission/Report/XV FC-Complete_Report-E.pdf. 13 Chapter VIII: Public Health Care System, Planning Commission of India, http://planningcommission.nic.in/aboutus/committee/strgrp/stgp_fm lywel/sgfw_ch8.pdf. 14 Rural Health Statistics 2018, https://nrhmmis.nic.in/Pages/RHS2018.aspx?RootFolder=%2FRURAL%20HE ALTH%20STATISTICS%2F%28A%29%20RHS%20- %202018&FolderCTID=0x01200057278FD1EC909F429B03E86C 7A7C3F31&View=%7B09DDD7F4-80D0-42E3-8969- 2307C0D97DDB%7D. 15 Budget Speech, Union Budget 2017-18, https://www.indiabudget.gov.in/budget2017-2018/ub2017- 18/bs/bs.pdf. 16 Rural Health Statistics 2019-20, Ministry of Health and Family Welfare, https://hmis.nhp.gov.in/downloadfile?filepath=publications/Rural- Health-Statistics/RHS%202019-20.pdf. 17 About HWC, Ayushman Bharat - Health and Wellness Centres, Ministry of Health and Family Welfare, https://abhwc.nhp.gov.in/#about. 18 Consolidate Report for the Week as on Date - 05-02-2022, Ayushman Bharat - Health and Wellness Centre, last accessed on February 2, 2022, https://abhwc.nhp.gov.in/home/Consolidated_Weekly_Report?state=0. 19 "Report no. 126: Demands for Grants 2021-22 (Demand No. 44) of the Department of Health and Family Welfare", Standing Committee on Health and Family Welfare, March 8, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/142/126_2021_7_15.pdf. 20 'Ayushman Bharat: Costs and Finances of the Prime Minister Jan Arogya Yojana', Institute of Economic Growth, Study Report for the 15th Finance Commission, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/Stu dyReports/Ayushman%20Bharat%20Costs%20and%20Finances.pd f. 21 Report No. 123: The Outbreak of Pandemic Covid-19 and its Management, Department-Related Parliamentary Standing Committee on Health and Family Welfare, Rajya Sabha, November 21, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/142/123_2020_11_15.pdf. 22 Hospital beds (per 1,000 people), Work Bank Database, last accessed on February 4, 2021, https://data.worldbank.org/indicator/SH.MED.BEDS.ZS. 23 "PM Ayushman Bharat Health Infrastructure Mission", Press Information Bureau, Ministry of Health and Family Welfare, October 26, 2021. 24 Executive Summary on Report- Health in India, NSS 75th round, Ministry of Statistics and Programme Implementation, https://mospi.gov.in/documents/213904/416362//Summary%20Anal ysis_Report_586_Health1600785338349.pdf/21af34ac-6c38-b39fa82b-0152eb2ff1a8. 25 Health and Family Welfare Statistics 2019-20, Ministry of Health and Family Welfare, https://main.mohfw.gov.in/sites/default/files/HealthandFamilyWelf arestatisticsinIndia201920.pdf. 26 National Health Accounts Estimates for India 2017-18, Ministry of Health and Family Welfare, https://nhsrcindia.org/sites/default/files/2021- 11/National%20Health%20Accounts-%202017-18.pdf. 27 National Health Profile 2020, Ministry of Health and Family Welfare, https://www.cbhidghs.nic.in/showfile.php?lid=1155. 28 "Ayushman Bharat –Pradhan Mantri Jan AarogyaYojana (AB- PMJAY) to be launched by Prime Minister Shri Narendra Modi in Ranchi, Jharkahnd on September 23, 2018", Press Information Bureau, Ministry of Health and Family Welfare, September 22, 2018, https://pib.gov.in/Pressreleaseshare.aspx?PRID=1546948. 29 Report no. 118: Demands for Grants 2020-21 (Demand No. 42) of the Department of Health and Family Welfare", Standing Committee on Health and Family Welfare, March 3, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/121/118_2021_12_14.pdf. 30 "Report no. 106: Demands for Grants 2018-19 (Demand No. 42) of the Department of Health and Family Welfare", Standing Committee on Health and Family Welfare, March 8, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/100/106_2019_7_10.pdf. 31 Report No. 112, Standing Committee on Health and Family Welfare, December 28, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/113/112_2019_7_16.pdf. 32 Unstarred Question No. 2299, Lok Sabha Questions, Ministry of Health and Family Welfare, December 10, 2021, http://loksabhaph.nic.in/Questions/QResult15.aspx?qref=30726&ls no=17. 33 The National Medical Commission Act, 2019, https://egazette.nic.in/WriteReadData/2019/210357.pdf. 34 The National Commission for Allied and Healthcare Professions Act, 2021, https://egazette.nic.in/WriteReadData/2021/226213.pdf. 35 About Scheme, Pradhan Mantri Swasthya Suraksha Yojana, Ministry of Health and Family Welfare, http://pmssymohfw.nic.in/index1.php?lang=1&level=1&sublinkid=81&lid=127. 36 Report No. 10, Performance Audit on Pradhan Mantri Swasthya Suraksha Yojana, August 7, 2018, https://cag.gov.in/content/reportno10-2018-performance-audit-pradhan-mantri-swasthya-surakshayojana-ministry-health. 37 "Report no. 99: Demands for Grants 2017-18 (Demand No. 42) of the Department of Health and Family Welfare", Standing Committee on Health and Family Welfare, March 20, 2017, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Com mittee%20on%20Health%20and%20Family%20Welfare/99.pdf 38 National Family Health Survey-5, Press Information Bureau, Ministry of Health and Family Welfare, December 15, 2020, http://rchiips.org/nfhs/factsheet_NFHS-5.shtml. 39 Report No. 119 - Demand for Grants of the Department of Health Research, Standing Committee on Health and Family Welfare, March 3, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/121/119_2020_3_15.pdf. 40 Report No. 127 - Demand for Grants of the Department of Health Research, Standing Committee on Health and Family Welfare, March 8, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/142/127_2021_7_11.pdf. 41 "Report no. 100: Demands for Grants 2017-18 (Demand No.43) of the Department of Health Research", Standing Committee on Health and Family Welfare, March 20, 2017, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Com mittee%20on%20Health%20and%20Family%20Welfare/100.pdf. 42 Report No. 107, Demand for Grants 2018-19 (Demand No. 43) of the Department of Health Research, Standing Committee on Health and Family Welfare, March 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/100/107_2018_6_16.pdf, 43 "Pradhan Mantri Ayushman Bharat Health Infrastructure Mission", Press Information Bureau, Ministry of Health and Family Welfare, November 30, 2021. 44 "Prime Minister of India launches countrywide Ayushman Bharat Digital Mission", Press Information Bureau, Ministry of Health and Family Welfare, September 27, 2021. 45 Consultation Paper on Unified Health Interface, Ministry of Health and Family Welfare, July 23, 2021. 46 "Government Reforms and Enablers, Major announcements and policy reforms under Aatma Nirbhar Bharat Abhiyan", MyGov, May 17, 2020, https://blog.mygov.in/wpcontent/uploads/2020/05/Aatma-Nirbhar-Bharat-Presentation-Part- 5.pdf. 47 Total Operational (initiated independent testing) Laboratories reporting to ICMR, February 3, 2022, Indian Council of Medical Research, Ministry of Health and Family Welfare, https://www.icmr.gov.in/pdf/covid/labs/archive/COVID_Testing_L abs_03022022.pdf. 48 ICMR website, Accessed on November 17, 2021, https://www.icmr.gov.in/index.html. 49 Unstarred Question No. 2659, Rajya Sabha Questions, December 21, 2021, https://pqars.nic.in/annex/255/AU2659.pdf. 50 Unstarred Question No. 2661, Rajya Sabha Questions, December 21, 2021, https://pqars.nic.in/annex/255/AU2661.pdf. 51 "Report No. 229: Management of COVID-19 Pandemic and Related Issues", Standing Committee on Home Affairs, Rajya Sabha, December 21, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/15/143/229_2020_12_18.pdf. 52 "Press Statement by the Drugs Controller General of India (DCGI) on Restricted Emergency approval of COVID-19 virus vaccine", Press Information Bureau, Ministry of Health and Family Welfare, January 3, 2021. 53 "The National Regulator grants Permission for Restricted Use in Emergency Situations to Sputnik-V vaccine", Press Information Bureau, Ministry of Health and Family Welfare, April 13, 2021. 54 Twitter, Ministry of Health and Family Welfare, March 24, 2021, last accessed on March 31, 2021, https://twitter.com/MoHFW_INDIA/status/1374639742499708930. 55 "Status of COVID-19 Vaccines within WHO EUL/PQ evaluation process", World Health Organisation, last accessed December 1, 2021, https://extranet.who.int/pqweb/sites/default/files/documents/Status_ COVID_VAX_11Nov2021.pdf. 59 DBT-BIRAC supported ZyCoV-D developed by Zydus Cadila Receives Emergency Use Authorization", Press Information Bureau, Ministry of Science and Technology, August 20, 2021. 60 Twitter handle of the Minister of Health and Family Welfare, Government of India, December 28, 2021, https://twitter.com/mansukhmandviya/status/147569994654457037 2. 61 "Cumulative Coverage Report of COVID-19 Vaccination", Ministry of Health and Family Welfare, July 24, 2021, https://www.mohfw.gov.in/pdf/CummulativeCovidVaccinationRep ort23july2021.pdf. 62 National Expert Group on Vaccine Administration for COVID-19 deliberates on strategy to ensure COVID-19 vaccines' availability and its delivery mechanism, Ministry of Health and Family Welfare, Press Information Bureau, August 12, 2021. 63 COVID-19 Vaccines: Operational Guidelines, Ministry of Health and Family Welfare, December 28, 2020, https://main.mohfw.gov.in/sites/default/files/COVID19VaccineOG 111Chapter16.pdf. 64 "54,72,000 doses of vaccine received till 4 PM today, SII to provide 1.1 lakh vaccines at Rs 200/dose, BBIL to provide 55 lakh vaccines at Rs 206/dose: Health Secretary", Press Information Bureau, Ministry of Health and Family Welfare, January 12, 2021. 65 "Covid Vaccination Beneficiaries", Ministry of Health and Family Welfare, Press Information Bureau, March 19, 2021. 66 "Vaccine availability to witness exponential rise in the coming months: Dr. Harsh Vardhan", Press Information Bureau, Ministry of Health and Family Welfare, May 21, 2021. 67 "Government of India to provide free vaccine to all Indian citizens above 18 years of age", Press Information Bureau, Ministry of Health and Family Welfare, June 7, 2021. 68 Letter No. 2079203/2021/Immunisation, Ministry of Health and Family Welfare, June 8, 2021, https://nhm.assam.gov.in/sites/default/files/swf_utility_folder/depar tments/nhm_lipl_in_oid_6/portlet/level_2/ensure_compliance_of_m aximum_price_per_doses_for_covid-19_vaccaine.pdf. 69 COVID-19 Vaccines Are Free to the Public, Centers for Disease Control and Prevention, November 3, 2021, https://www.cdc.gov/coronavirus/2019-ncov/vaccines/no-cost.html. 70 FAQs - Vaccine Knowledge Project, accessed on December 7, 2021, https://vk.ovg.ox.ac.uk/vk/COVID19-FAQs#Q9. 71 Report No. 17, Review of Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), Standing Committee on Chemicals and Fertilizers, March 2021, http://164.100.47.193/lsscommittee/Chemicals%20&%20Fertilizers /17_Chemicals_And_Fertilizers_17.pdf. 72 Unstarred Question No. 2682, Rajya Sabha Questions, December 21, 2021, https://pqars.nic.in/annex/255/AU2682.pdf. 73 Report No. 123: The Outbreak of Pandemic Covid-19 and its Management, Department-Related Parliamentary Standing Committee on Health and Family Welfare, Rajya Sabha, November 21, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/Re portFile/14/142/123_2020_11_15.pdf 74 "Covishield price for states slashed from Rs 400 to Rs 300 per dose: Adar Poonawalla", Economic Times, April 28, 2021, https://economictimes.indiatimes.com/industry/healthcare/biotech/p harmaceuticals/covishield-price-for-states-slashed-from-rs-400-tors-300-per-dose-adarpoonawalla/articleshow/82293116.cms?from=mdr. 75 "Govt to procure 66 crore more doses of Covishield, Covaxin at revised rates", The Hindu, July 17, 2021, https://www.thehindu.com/news/national/govt-to-procure-66-croremore-doses-of-covishield-covaxin-at-revisedrates/article35378303.ece. ## Annexure % Change between 2021-22 2021-22 RE and 2022-23 Major Heads 2020-21 Actuals BE 2021-22 RE 2022-23 BE BE Department of Health and Family Welfare 77,569 71,269 82,921 83,000 0.1% Department of Health Research 3,125 2,663 3,080 3,201 3.9% Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) 6,840 7,000 7,400 10,000 35.1% National AIDS and STD Control Programme 2,815 2,900 2,350 2,623 11.6% Family Welfare Schemes 462 387 306 484 58.2% National Health Mission 37,080 36,577 34,447 37,000 7.4% National Rural Health Mission 30,329 30,100 27,850 National Urban Health Mission 950 1,000 500 22,317 Flexible Pool for RCH and Health System Strengthening, National Health programme and National Urban Health Mission Infrastructure Maintenance 6,343 Strengthening national Programme Management of the NRHM 200 Tertiary Care Programs 301 501 431 501 16.1% Strengthening of State Drug Regulatory System 115 175 65 100 53.8% Human Resources for Health and Medical Education 5,386 4,800 5,600 7,500 33.9% Autonomous Bodies (includes AIIMS, ICMR) 9,177 10,924 10,916 12,220 11.9% Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PMJAY) 3,200 6,400 3,100 6,400 41% Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) 1,040 5,846 462.1% Medical Treatment of CGHS Pensioners (PORB) 2,794 2,300 2,750 2,645 -3.8% Statutory and Regulatory bodies 226 316 314 335 6.9% Infrastructure Development for Health Research 148 177 0 9% Rashtriya Swasthya Bima Yojana (RSBY) 0 1 1 45 4400% Others 6,011 7,127 6,654 8,377 26% COVID-19 Emergency Response and Health System Preparedness Package 11,804 1,165 India COVID-19 Emergency Response and Health System Preparedness Package (Phase-II) 14,567 PM Garib Kalyan Package - Insurance Scheme for Health Care Workers fighting COVID-19 814 226 -72.2% COVID-19 vaccination for healthcare workers and frontline workers 137 Total 80,694 73,932 86,001 86,201 0.2% Sources: Demand Numbers 46 and 47, Demand for Grants, Ministry of Health and Family Welfare, Union Budget, 2022-23; PRS. ## State-Wise Numbers On The Health Sector | | Infant | Life | |-------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------| | Population | Crude | Expectancy | | Under 5 | | | | mortality | | | | Maternal | | | | Mortality | | | | (Million) | Birth Rate | | | Underweight | | | | children (%) | | | | Total | | | | Fertility | | | | Rate, | rate, | | | 2011 | 2017 | | | Mortality | | | | Rate (per | | | | 1000 live | 2015-16 | | | 2019-21 | 2010-15 | | | Ratio | | | | 2016-18 | | | | Births) 2020 | | | | at Birth | | | | (Years) | | | | 2014-18 | | | | State | | | | Number | Number | | | | | | | of | % Children | of | | Death | | | | between | | | | below 5 | | | | 0-5 | | | | Number of | | | | infants who | | | | die before | | | | | years of age | | | maternal | | | | deaths, | | | | years, | | | | children | | | | born to a | | | | woman in | who are | per | | reaching one, | | | | per 1,000 live | | | | Number of | | | | live births | | | | per 1,000 | | | | in a | | | | population. | her | underweight | | per 1,000 | | | | live births | births | | | How long a | | | | new-born | | | | can expect | | | | to live, on | | | | existing | | | | death rate | | | | lifetime | | | | 1,00,000 | | | | live births | | | | Andhra Pradesh | 49 | 16 | | Assam | 31 | 21 | | Bihar | 104 | 26 | | Chhattisgarh | 26 | 23 | | Gujarat | 60 | 20 | | Haryana | 25 | 21 | | Jharkhand | 33 | 23 | | Karnataka | 61 | 17 | | Kerala | 33 | 14 | | Madhya Pradesh | 73 | 25 | | Maharashtra | 112 | 16 | | Odisha | 42 | 18 | | Punjab | 28 | 15 | | Rajasthan | 69 | 24 | | Tamil Nadu | 72 | 15 | | Telangana | 35 | 17 | | Uttar Pradesh | 200 | 26 | | West Bengal | 91 | 15 | | Arunachal Pradesh | 1 | 18 | | Delhi | 17 | 15 | | Goa | 1 | 13 | | Himachal Pradesh | 7 | 16 | | Jammu & Kashmir | 13 | 15 | | Manipur | 3 | 15 | | Meghalaya | 3 | 23 | | Mizoram | 1 | 15 | | Nagaland | 2 | 14 | | Sikkim | 1 | 16 | | Tripura | 4 | 13 | | Uttarakhand | 10 | 17 | | Andaman & Nicobar | | | | Islands | | | | 0 | 11 | 1.3 | | Chandigarh | 1 | 14 | | Dadra & Nagar Haveli | 0 | 24 | | Daman & Diu | 0 | 20 | | Lakshadweep | 0 | 15 | | Puducherry | 1 | 13 | | All India | 1,211 | 20 | | Sources: Census Data 2011; Sample Registration System 2019; Health and Family Welfare Statistics 2017; Special Bulletin on maternal | | | | Mortality in India 2016-18; National Family Health Survey-5 (2019-21); PRS. | | | | | | | ## Demand For Grants 2022-23 Analysis Jal Shakti The Ministry of Jal Shakti is responsible for the development, maintenance, and efficient use of water resources in the country and coordination of drinking water and sanitation programs in rural areas. The Ministry was created in 2019 by integrating the Ministries of: (i) Water Resources, River Development, and Ganga Rejuvenation, and (ii) Drinking Water and Sanitation. The Ministry of Jal Shakti consists of two departments with the same names as those of merged ministries. This note provides an overview of the budget allocation towards the two departments and some broader issues in the sector. ## Allocations In Union Budget 2022-23 In 2022-23, the Ministry of Jal Shakti has been allocated Rs 86,189 crore, which is a 24.8% increase over the revised estimates of 2021-22 (at Rs 69,046 crore).1 This increase is mainly on account of increased allocation towards the Jal Jeevan Mission (Rs 60,000 crore in 2022-23 compared to Rs 45,011 in 2021-22 RE).2 The Department of Drinking Water and Sanitation implements the Jal Jeevan Mission scheme. The total allocation towards this Department in 2022-23 is Rs 67,221 crore (78% of the total allocation towards the Ministry). The Department of Water Resources, River Development, and Ganga Rejuvenation has been allocated Rs 18,968 crore (Table 1).3 | 2021-22 | 2022-23 | |--------------------|-----------------| | % Change | | | (RE 21-22 to | Department | | 2020-21 | | | Actuals | RE | | BE 22-23) | | | Drinking Water and | | | Sanitation | | | 7,232 18,009 | 18,968 | | Water Resources | 15,967 51,037 | | Total | 23,199 | Note: BE is budget estimate. RE is the Revised Estimate. Sources: Demands for Grants 2022-23, Jal Shakti; PRS. ## Policy Proposals In Union Budget Speech 2022-23: - The coverage of Har Ghar, Nal Se Jal under Jal Jeevan Mission (JJM) will increase by 3.8 crore households in 2022-23. Rs 60,000 crore will be allocated towards this mission for this year. - Implementation of the Ken-Betwa Link Project, at an estimated cost of Rs 44,605 crore will be taken up. The project will be aimed at providing irrigation benefits to 9.08 lakh hectare of farmers' lands, drinking water supply for 62 lakh people, 103 MW of Hydro, and 27 MW of solar power. ## Department Of Drinking Water And Sanitation The Department of Drinking Water and Sanitation administers programs for safe drinking water and sanitation in rural areas. In 2022-23, the Department has been allocated Rs 67,221 crore, accounting for 78% of the Ministry's allocation. This is an increase of 32% over the revised estimates of 2021-22. In 2021-22, the allocation to the Department is estimated to be 15% lower than the budget estimates. The Department's allocations are towards two major rural welfare programmes: drinking water and sanitation. From 2011-12 to 2014-15, the Department's expenditure was focused on drinking water programmes (see Figure 1). With the introduction of the Swachh Bharat Mission, between 2015-19, the focus of expenditure was on rural sanitation. However, since 2019-20, the expenditure focus has shifted back towards drinking water. Note: Values for 2021-22 are revised estimates and 2022-23 are budget estimates. Sources: Union Budgets 2011-12 to 2022-23; PRS. Between 2012-13 and 2020-21, the expenditure by the Department had a marginal increase at a compounded annual growth rate of 3%. In the last two years, the Department has seen a large increase in expenditure, mainly towards Jal Jeevan Mission. Figure below shows the trends in expenditure by the Department in the last decade. Further, with the focus on a scheme to provide for tapped water connection in rural areas, the expenditure of the Department increased by 220% in 2021-22. Note: Values for 2021-22 are revised estimates and 2022-23 are budget estimates. Allocations before 2019-20 were towards the erstwhile Ministry of Drinking Water and Sanitation. Sources: Union Budgets 2014-15 to 2022-23; PRS. Utilisation of Funds: Since 2011-12, the actual expenditure by the Department of Drinking Water and Sanitation has been lower than the budgeted expenditure except during 2015-18 (as shown in Figure 3). Notably, the actual expenditure in 2015- 16 was 77% higher than the budgeted expenditure for the year with the launch of Swachh Bharat Mission-Gramin (SBM-(G)). This may be due to a lack of adequate budgeting and efficient implementation of the scheme. The Standing Committee on Water Resources (2021) took note of under-utilisation of funds and recommended the Department to ensure strict monitoring of the release of funds.5 In response, the Department stated that a Public Financial Management System (PFMS) is being on-boarded to examine central fund expenditure under JJM and phase two of SBM-(G).4 The Ministry also took note of high variability in fund utilisation among states due to schemes being demand-driven.5 Note: The expenditure figure for 2021-22 is revised estimate. Sources: Union Budgets 2011-12 to 2022-23; PRS. ## Schemes Under The Department Of Drinking Water And Sanitation The Department is responsible for implementing two major schemes: (i) the Jal Jeevan Mission (JJM), and (ii) the Swachh Bharat Mission-Gramin (SBM-G). JJM aims to provide a functional household tap connection to every rural household, (an estimated 18.93 crore households).6 In 2022- 23, JJM has been allocated Rs 60,000 crore (33% increase over 2021-22). This is 89% of the department's allocation for 2022-23. SBM-G aims to improve rural sanitation. In 2022-23, SBM-G has been allocated Rs 7,192 crore (20% annual increase over 2021-2022 revised estimates). This is 11% of the department's budget allocation for 2022-23. % Scheme 2020-21 Actuals 2021-22 Revised 2022-23 Budgeted Change (RE 2021-22 to BE 2022-23) JJM 10,998 45,011 60,000 33% SBM-G 4,945 6,000 7,192 20% Others 24 26 29 12% Total 15,967 51,037 67,221 32% Note: BE is budget estimate. RE is the revised estimate. Sources: Demands for Grants 2022-23, Department of Drinking Water and Sanitation; PRS. ## Jal Jeevan Mission The Jal Jeevan Mission was launched in 2019 with the aim to provide Functional Household Tap Connection (FHTC) to every rural household by 2024.2 It subsumed the National Rural Drinking Water Programme launched in 2009. The total estimated cost of JJM is Rs 3.6 lakh crore over five years (2019-24).2 In 2022-23, JJM has been allocated Rs 60,000 crore, which is a 33% increase over the revised estimate expenditure in 2021-22. After a reduction in expenditure on schemes related to drinking water coverage from 2015-16 to 2018-19, the expenditure on such schemes increased from 2019-20 onwards. There was a big jump in the last two years due to the launch of Jal Jeevan Mission (Figure 4). Note: Value for 2021-22 is the revised estimate and 2022-23 is the budget estimate. Sources: Union Budgets 2012-13 to 2022-23; PRS. Target versus achievements: Before JJM, the coverage of the National Rural Drinking Water Programme (NRDWP) was monitored in terms of habitations having provision of minimum 40 Litres Per Capita Per Day (LPCD) of potable drinking water sources at a reasonable distance. JJM (which subsumed NRDWP in 2019) aims to provide functional household tap connections to every rural household at a minimum service level of 55 LPCD.2 Table 3details the timeline of physical targets to be achieved under JJM. Estimated funds required Year FHTCs planned (in crore) (in Rs crore) Total FHTCs planned (in %) 2019-20 4.03 36,000 21 2020-21 2.49 60,000 34 2021-22 3.83 1,00,000 54 2022-23 3.84 84,000 74 2023-24 3.06 80,000 90 1.93 - 100 Dec 31, 2024 Total 19.18 3,60,000 Sources: The Standing Committee on Drinking Water and Jal Jeevan Mission was announced on August 15, 2019. As of that day, 3.23 crore (17% connections out of 18.93 crore rural households) households were reported to have tap water.7,8 As of February 2022, 8.99 crore households (47%) households were reported to have tap water connections.9 Figure 5 provides details on the yearly progress of the scheme. However, there is a wide disparity in tap water coverage across states (Figure). As of February 2022, only seven states have a coverage of 90% and more since the start of the program depicting a wide state wise disparity. However, the Standing Committee on Drinking Water and Sanitation (2020-21) noted certain weaknesses in the implementation of the scheme including: (i) lack of participatory approach, (ii) inadequate financial resources, (iii) non-availability of technical human resources, and (iv) poor operation and maintenance of completed schemes.10 It recommended that effective strategies should be developed to monitor accomplished work. In March 2021, the Committee noted that the problem of unspent balances is more prominent under JJM than SBM- (G). The state-wise disparity in unspent balances is also prominent, specifically with states like West Bengal, Uttar Pradesh, and Rajasthan (see Table 17 in the Annexure).11 ## Swachh Bharat Mission - Gramin In 2014, the Swachh Bharat Mission (Gramin) was launched by restructuring the Nirmal Bharat Abhiyan.12 The Mission aimed to achieve universal sanitation coverage, eliminate open defecation, and improve cleanliness in rural India by October 2, 2019.13 Figure shows the trends in budget allocation and actual expenditure on rural sanitation in the past 10 years. The allocation for this year is Rs 7,192 crore. Except during 2015-18, the expenditure of the scheme was lower than the budgeted amount. The increased spending from 2015-16 to 2017-18 accounts for the launch of SBM-G and hence, renewed focus at improving rural sanitation. Note that the allocation towards the scheme has been the same since 2019-20 (Rs 9,994 crore). This year marks a decrease in this allocation (at Rs 7,192 crore). In 2019-20, the unspent balance on SBM-G from all states was cumulatively estimated to be Rs 10,475 crore.3 Table 5 in the Annexure provides a detailed state-wise analysis on unspent balances for SBM-G. In 2021, the Department stated that the under-utilisation has been due to the pattern of fund usage by the States. The Department also observed that funds available with the states at the end of a financial year are utilised by the states during the subsequent financial year, leading to accumulation of unspent balances.3 ## Key Features Of Sbm-G: Construction of Individual Household Latrines (IHHLs): The cost provision for constructing a household toilet was increased from Rs 10,000 to Rs 12,000 in September 2014 when the Nirmal Bharat Abhiyan was restructured into SBM-G.14 This cost for constructing toilets is shared between the centre and the state in the ratio of 60:40. Table 5 gives the number of household toilets constructed since the inception of the scheme. As per the Department, 100% of the rural households had access to IHHL in 2019-20.15 Figure illustrates the total coverage of household toilets since the inception of the SBM programme. Note: 2021-22 refers to data as of February 2022. Sources: Management Information System Reports of SBM, Ministry of Jal Shakti; PRS. The Economic Survey (2020-21) noted that sanitation access improved for all states between 2012 and 2018. However, inter-state differences in access to sanitation are still large, especially in rural areas. For example, access to sanitation is below 75% in states such as Odisha, Jharkhand, Uttar Pradesh, and West Bengal.3 The Standing Committee on Rural Development (2018-19) raised questions over the construction quality of toilets and observed that the government is including nonfunctional toilets while measuring access to toilets. This was leading to inflated data.16 From the data collected in 2019-21 for the National Family Health Survey, it was found that only 65% of the population in rural Indian households use improved sanitation facilities. This is an increase from 37% in 2015-16 (see Figure 9).17 Improved sanitation facilities refers to various types of flush/pit latrines toilets that are not shared with other households. Sources: National Family Health Survey 4 and 5; PRS Open Defecation Free (ODF) villages: Under SBM-G, a village is declared as ODF when: (i) there are no visible faeces in the village, and (ii) every household as well as public institution uses safe technology options for faecal disposal.18 After a village declares itself as ODF, state governments are required to verify the ODF status of such a village. Such verification must include indicators such as: (i) access to a toilet facility and its usage, and (ii) safe disposal of faecal matter through septic tanks. The guidelines for ODF state that since it is not a one-time process, at least two verifications must be carried out.19 The first verification must be carried out within three months of ODF declaration. The second verification must be carried out around six months after the first verification. As per the Ministry of Jal Shakti, a total of 6,02,750 villages across 711 districts and 35 states and union territories have been declared as ODF as of February 2022.20 Of these, 6,02,304 villages (99.5%) have been verified by state governments as ODF under the first level of verification.20 Close to five lakh villages (83%) have been verified as ODF under the second level of verification.21 State-wise details on the number of villages declared and verified ODF can be found in the Annexure. However, questions have been raised on the ODF status of villages. The 15th Finance Commission noted that the practice of open defecation is still prevalent, despite access to toilets. It highlighted that there is a need to sustain behavioural change of people for using toilets.22 The 15th Finance Commission recommended that an independent survey be instituted to estimate the prevalence of open defecation in the country. The Standing Committee on Rural Development raised a similar concern in 2018, noting that "even a village with 100% household toilets cannot be declared open defecation-free (ODF) till all the inhabitants start using them". In February 2020, the Department of Drinking Water and Sanitation launched Phase II of SBM- Gramin with focus on ODF Plus. It will be implemented from 2020-21 to 2024-25 with an outlay of Rs 1,40,881 crore. ODF Plus includes sustaining the ODF status, and solid and liquid waste management. Provisions for release of funds have been changed under this phase. The funds will be released in four portions - two portions in each of the two instalments. The second portion of each instalment will be released only after utilisation of 80% of the available funds. This has been done to avoid accumulation of unspent balances.3 Department of Water Resources, River Development, and Ganga Rejuvenation The Department of Water Resources, River Development, and Ganga Rejuvenation is responsible for: (i) planning and coordination of water resources in the country, (ii) monitoring of irrigation and flood control projects, (iii) supporting state level activities for ground water development, (iv) specific focus on Ganga rejuvenation related activities, and (iv) reduction of pollution and rejuvenation of rivers.23 In 2022-23, the Department has been allocated Rs 18,968 crore, accounting for 22% of the Ministry's allocation. This is a 5% increase over the revised estimate of 2021-22. Note that, in 2021-22, the revised estimate is 100% higher than the budget estimates (from Rs 9,023 crore to Rs 18,009 crore). The was due to allocations for: (i) Accelerated Irrigation Benefit programme, which was earlier funded through loans from NABARD, and (ii) interlinking Ken-Betwa rivers. Note: Values for 2021-22 and 2022-23 are revised estimates and budget estimates respectively. Sources: Union Budgets 2015-16 to 2022-23; PRS. ## Schemes Under Department Of Water Resources, River Development, And Ganga Rejuvenation In 2022-23, 58% of the Department's expenditure is estimated to be on the Pradhan Mantri Krishi Sinchai Yojna. This is followed by the Namami Gange (15%), Water Resources Management (9%), and Interlinking of Rivers (7%). Interlinking of Rivers comprises the allocation towards the Ken- Betwa Link Project, which was approved by Union Cabinet in December 2021.24 The project aims to provide: (i) irrigation benefits to 9.08 lakh hectare of farmers' lands, (ii) drinking water supply for 62 lakh people, and (iii) 103 MW of Hydro and 27 MW of solar power. Total outlay on the project is estimated to be Rs 44,605 crore. It is estimated to be completed in eight years.25 The project has been allocated Rs 4,300 crore at the revised stage in 2021-22. In 2022-23, the total allocation towards the scheme is Rs 1,400 crore. ## Resources (In Rs Crore) Budgeted Major Head Actuals (20-21) Revised (21-22) (22-23) PM Krishi Sinchai Yojna 4,376 9,489 10,952 Namami Gange 500 1400 2800 Water Resources Management 345 632 1,790 Interlinking of Rivers - 4,300 1,400 Namami Gange 500 1400 2800 Central Water Commission 353 376 411 Central Ground Water Board 233 272 282 Others 444 427 528 Total 7,232 18,009 18,968 Note: BE is budget estimate. RE is the revised estimate. Others include central sector projects such as river basin management, and major irrigation projects. Sources: Demands for Grants 2022-23, Department of Water Resources, River Development, and Ganga Rejuvenation; PRS. ## Pradhan Mantri Krishi Sinchai Yojna The Economic Survey (2016-17) highlighted that 52% of the total net sown area in India is unirrigated and depends on rainfall for cultivation.26 It noted that when rainfall is significantly less than usual, the unirrigated areas face higher adverse effects than the irrigated areas. Therefore, it recommended that irrigation coverage in the country needs to be increased.26 The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) was launched in 2015-16.27 The scheme seeks to: (i) expand coverage of irrigation, (ii) improve water use efficiency on farms, and (iii) introduce sustainable water conservation practices.28 The Ministry of Jal Shakti implements the following components of the scheme: (i) PMKSY - Har Khet Ko Pani, (ii) Flood Management, and (iii) Borders Area Programme.27 The scheme has two other components which are implemented by other ministries: (i) Per Drop More Crop by the Ministry of Agriculture and Farmers' Welfare, and Watershed Management Component under the Ministry of Rural Development.29 Figure 6 shows the expenditure on the scheme from 2016-17 to 2022-23 under the demands of the Department. Its share in the Department's expenditure is estimated to increase from 35% in 2016-17 to 58% in 2022-23. The Standing Committee on Water Resources (2021-22) pointed out to the Department that almost 40% of the total allocation of the Department in 2021-22 had been kept for repayment of loans and other liabilities under PMKSY.30 It noted that this increased committed liability was leaving decreased amounts for various other schemes under the Department. Note: Estimate for 2021-22 are revised estimates and 2022-23 are budget estimates. Sources: Union Budgets 2016-17 to 2022-23; PRS. Har Khet ko Pani: This scheme's objectives include: (i) creation of new water sources, (ii) restoration and repair of traditional water bodies, (iii) command area development, and (iv) strengthening of distribution network from irrigation sources to the farm.31,32 Some components of Har Khet ko Pani are: - Accelerated Irrigation Benefit Programme (AIBP): Under this scheme, financial assistance is being provided for faster completion of irrigation projects. As of February 2022, 46 projects (43%) out of the 106 projects selected under the scheme have been completed.33 In February 2022, the Ministry noted that no new projects have been included under PMKSY- AIBP since 2018.21 Further, 23 projects (20%) projects are facing constraints such as land acquisition, legal, and contractual issues.32 - Command Area Development and Water Management Programme: The objective of the program is to enhance utilisation of irrigation potential created. This is achieved through activities such as construction of field channels, land levelling, and reclamation of waterlogged area.34 As of March 2021, there are 88 projects under the programme, of which only 18 (21%) have achieved more than 50% physical progress.35 ## Issues To Consider Flood Management The National Water Policy (2012) noted that climate change has deepened incidences of water related disasters such as floods, increased erosion, and increased frequency of droughts.36 The central government supports states by providing financial assistance for undertaking flood management works in critical areas through the Flood Management and Border Areas Programme. From 2017-18 to 2019-20, central assistance of Rs 2,022 crore has been released under the scheme.37 Under flood management component of PMKSY scheme, as of March 2020, 14 projects of the 83 sanctioned projects had been completed.38 Major issues faced while implementing the scheme include acquisition of land for the project, legal problems, non-release of state share, and inadequate budget allocation.39 The Standing Committee on Water Resources (2020-21) noted the delay in completion of projects and recommended that the Department resolve the underlying factors for such delay.38 Further, in August 2021, the Standing Committee on Water Resources recommended establishing a National Integrated Flood Management Group under the Ministry of Jal Shakti as an overarching body responsible for flood management.40 The group may include concerned ministers of state governments and meet at least once a year. It should be responsible for: (i) formulating strategies on prevention and mitigation of flooding, and (ii) supervising management of floods, including aspects controlled by states or local governments and which are under international linkages. The Committee noted that central government's share in funding of flood management programmes has reduced from 75% to 50% for general states and from 90% to 70% for special category states. The Committee recommended increasing central government's funding share in flood management schemes and providing adequate budgetary support for it.40 ## Conservation And Rejuvenation Of Rivers The National Water Policy (2012) highlights that water is a scarce natural resource for food security and sustainable development.41 In the Union Budget of 2019-20, clean rivers had been recognised as one of the ten vision points for the decade. The Expert committee on restructuring the CWC and CGWB (July 2016) notes that rivers and ground water in India have been polluted by untreated effluents and sewage.42 Further, overextraction of groundwater in the immediate vicinity of a river and destruction of catchment areas, have negatively impacted river flows in India.43 The Ministry of Jal Shakti implements the Namami Gange Mission with the objective of rejuvenation of river Ganga and its tributaries through municipal sewage and industrial effluents treatment, river surface cleaning, and rural sanitation.44 As of February 2022, 183 (55%) of the 334 projects sanctioned under the Mission have been completed.45 The scheme was launched in 2014 with a proposed budget outlay of Rs 20,000 crore for the period 2015-2020.46 During the period 2015-16 to 2020- 21, only Rs 4,016 crore (20% of the allocation at the budget stage) has been spent under the programme. In 2022-23, the scheme has been allocated Rs 2,800 crore, which is 50% more than the revised estimate of 2021-22. Table 7 shows the trends in budget allocation and actual expenditure on Namami Gange from 2015-16. Note that the utilisation under the scheme has remained less than 65% since the scheme started except in 2021-22. Namami Gange (in Rs crore) Year Budgeted Actuals % of Budgeted 2015-16 - 100 - 2016-17 - 1,675 - 2017-18 2,300 700 30% 2018-19 2,300 688 30% 2019-20 750 353 47% 2020-21 800 500 62% 2021-22 600 1,400 233% Note: The 'actuals' figure for 2021-22 is the revised estimate. Sources: Union Budgets 2015-16 to 2022-23; PRS. As of 2017, National Mission for Clean Ganga had not finalised the long-term action plans even after more than 6.5 years of signing of agreement with the consortium of Indian Institutes of Technology.47 As a result, National Mission for Clean Ganga does not have a river basin management plan after more than eight years of National Ganga River Basin Authority notification. The Standing Committee on Water Resources (2020-21) noted that the implementation of the programme does not meet the targets.38 Some key bottlenecks affecting the implementation of projects include: (i) delay in tendering process, (ii) non-availability of land for sewage treatment plants leading to delay in execution of projects, and (iii) under-utilisation of sewage treatment plants' capacities due to inadequate house sewer connections in cities, among others.48 Further, in response to the Committee's observations, the Ministry of Jal Shakti responded (in February 2021) that the COVID-19 pandemic and consequent lockdown had slowed the progress of the projects due to unavailability of labour.49 ## Inter-Linking Of Rivers Inter-linking of rivers through inter-basin transfer of water was first considered in 1980 by the National Perspective Plan (NPP). Inter-linking of rivers is referred to as the development of water resources through the transfer of water from water surplus basins to water-deficit basins.50 Under the NPP, the National Water Development Agency (NWDA) identified 30 links for rivers (16 under the peninsula region and 14 under the Himalayan projects). The Inter Linking of Rivers (ILR) programme under NPP has been allocated Rs 4,300 crore at the revised stage in 2021-22 despite no allocation to in the initial budget. For 2022-23, Rs 1,400 crore have been allocated to the project on account of the implementation of the Ken-Betwa Link Project. The Ken-Betwa Link Project (KBLP) was declared as a National Project in the 2009. It entails 60:40 funding divide from the union government and state Governments (Madhya Pradesh and Uttar Pradesh).51 The project will be implemented this year at an estimated outlay of Rs 44,605 crore. In the Union Budget speech 2022-23, it was declared that draft detailed project reports (DPRs) of five river links have also been finalized. These river links are: (i) Damanganga-Pinjal, (ii) Par- Tapi- Narmada, (ii) Godavari-Krishna, (iii) Krishna-Pennar, and (iv) Pennar-Cauvery.52 At the time of preparation of DPR of the individual river link projects, detailed Environmental Impact Assessment (EIA) studies are carried out.53 EIA study includes impacts on land environment, water resources, terrestrial ecology, impact on air quality, and impact on local services (such as water supply, community forests, and impact on business opportunities). Once the beneficiary states of the river-linking reach a consensus on the findings from the DPR, the central government will provide assistance for implementation of the five-river links. In the environmental assessment for the Ken-Betwa Link Project, it was pointed out that the construction of the dam across the Ken River will submerge 9,000 hectares of land.54 Out of this, forest land accounts for 5,258 hectare (58% of the land) and the rest belongs to agricultural lands, settlements, scrubs and water bodies. Ten villages are also likely to be submerged. Note that, the area of Panna National Park (tiger reserve) accounts for about 79% of total forest area under submergence.54 As per the EIA, during the implementation of the Ken-Betwa project, the air quality in the surrounding area of the dam will also be significantly impacted due to diesel combustion in various equipment, and release of Sulphur pollutants in the air.54 The project also proposes that construction material (such as sand, gravel and stones) will be excavated from the river bed. This may lead to rise in the turbidity levels of the river, and hence, significantly decrease the river quality.54 Further, a total of 3,800 workers will be emigrated for the project. The scarcity of water in the houses and the absence of sanitary facilities in labour camps could be responsible for increased prevalence of gastero-enteritis and other waterborne diseases.54 ## Ground Water Depletion Currently, ground water resources accounts for over 60 percent of the total area irrigated in the country. About 85% of the rural drinking water supply is also met from ground water sources.55 As of 2021, while the national level usage of ground water resources was at 63%, there were eight States/UTs where this value was higher than the target of 70%.56 However, of 534 districts in 22 States/UTs, 202 districts had stage of extraction ranging from 71% to 385%. However, note that ground water development is not uniform across states in India. It has exceeded 100% in some states such as Delhi (120%), Haryana (137%), Rajasthan (140%), and Punjab (166%).57 This implies that the annual ground water utilisation in these states is higher than the net annual ground water availability. The status of ground water development ratio across states is provided in the Annexure. The Planning Commission in its 12th Five-Year Plan had noted that India is fast moving towards a ground water crisis and nearly 60% of all districts in the country have issues related to either availability of ground water, or quality of ground water, or both.58 The ground water management and regulation scheme was launched in 2008 with the aim to regulate and control the development of ground water resources of the country.59 Further, the Atal Bhujal Yojana was launched in April 2020 for sustainable management of ground water resources through a strong ground water database and community participation in the sector.60 In April 2021, the Central Ground Water Board (CGWB) under the Ministry also released the Master Plan For Artificial Recharge To Groundwater In India - 2020.61 The plan identifies state-wise areas for artificial recharge, structures available and their estimated cost. It recommends alternatives to harness the run off from rain. Over the years, ground water usage has increased in areas where the resource was readily available due to its near universal availability, dependability, and low capital cost. Agriculture sector is the major consumer of ground water resources with about 89% of the total annual ground water extraction being used for irrigation (remaining 11% for domestic and industrial use).62 Government incentives such as credit for irrigation and subsidies for electricity supply have further increased the dependency of agriculture on ground water.63 The NITI Aayog (2019) highlighted that in regions with declining water tables, policies that limit MSPs and subsidies for water-intensive crops (such as sugarcane, wheat, and rice), can significantly reduce water demand from the agriculture sector.64 Further, providing better price support for crops such as pulses and oilseeds (which require less water) would incentivise the production of these crops.65 The 15th Finance Commission noted that under the Jal Jeevan Mission, 63% of rural habitations are being provided piped water supply from ground water sources.66 It highlighted that this will become unsustainable, given the highly depleted water table in the country. The Commission recommended the following to reduce the dependence on ground water: (i) fixing price on water on graded basis, where higher consumption entails higher charges, (ii) greater reliance on surface water for schemes such as Jal Jeevan Mission, (iii) incentivising creation of rainwater harvesting structures (including stricter implementation of laws), and (iv) reuse of greywater (that is, clean waste water from households' appliances).66 ## Ground Water Contamination Ground water contamination is the presence of certain pollutants in ground water that are in excess of the limits prescribed for drinking water.67 The Central Ground Water Board (CGWB) in 2018 noted that concentration of contaminants such as fluoride, arsenic, nitrate, and iron in ground water beyond the permissible limits can lead to environmental issues and health problems. In December 2021, the Minisitry of Jal-Shakti also noted that CGWB is conducting regular studies on the occurrence of arsenic in ground water beyond permissible limits for human consumption in isolated pockets in various states/UTs including West Bengal, Bihar, Uttar Pradesh, and Chhattisgarh.68 Table 8 shows the number of states and districts affected by select geogenic contaminants as of 2020. Geogenic contaminants Number of affected states/UTs Number of affected districts Arsenic (> 0.01 mg/l) 21 152 Fluoride (> 1.5 mg/l) 23 370 Nitrate (> 45 mg/l) 23 423 Iron (> 1mg/l) 27 341 Source: Unstarred Question 1944, Lok Sabha, Ministry of Jal Shakti, September 22, 2020; PRS. As of February 2020, 3% (51,952) of the total habitations (17,24,423) in India were affected by contamination of ground water.66 The 15th Finance Commission noted that the number of water quality-affected habitations (due to contamination such as Fluoride, Arsenic, Iron, Salinity, and Nitrate) may rise as deeper drilling for drinking water sources may lead to chemical contamination of ground water.66 ## 1 Demand for Grants (full), Union Budget 2022-23, https://www.indiabudget.gov.in/budget2021- 22/doc/eb/alldg.pdf. 2 Background on Jal Jeevan Mission, Ministry of Jal Shakti, https://jalshakti-ddws.gov.in/sites/default/files/JJM_note.pdf. 3 "Healthcare takes centre stage, finally!", Chapter 5, Volume I, Economic Survey (2020-21), February 1, 2021, https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapte r/echap05_vol1.pdf. 4 Action Taken Report on Standing Committee on Demand for Grants (2020-21), Department of Drinking Water and Sanitation, Ministry of Jal Shakti, March 8, 2021 http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_14.pdf. 5 Action Taken Report on Standing Committee on Demand for Grants (2020-21), Department of Drinking Water and Sanitation, Ministry of Jal Shakti, March 8, 2021 http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_14.pdf. 6 Annual Report 2017-18, Ministry of Drinking Water and Sanitation, https://jalshaktiddws.gov.in/sites/default/files/Annual_Report_2017- 18_English.pdf. 7 Report no, 11, Standing Committee on Demand for Grants (2021-22), Department of Drinking Water and Sanitation, Ministry of Jal Shakti, March 8, 2021, http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_11.pdf. 8 Since launch of Jal Jeevan Mission, over 4 Crore rural homes provided with tap water connections, Press Information Bureau, Ministry of Jal Shakti, March 29, 2021. 9 Dashboard, Jal Jeevan Mission, last accessed on February 11, 2022, https://ejalshakti.gov.in/jjmreport/JJMIndia.aspx. 10 Standing Committee on Demand for Grants (2020-21), Department of Drinking Water and Sanitation, Ministry of Jal Shakti, March 5, 2020, http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_4.pdf. 11Action Taken Report on Standing Committee on Demand for Grants (2020-21), Department of Drinking Water and Sanitation, Ministry of Jal Shakti, March 8, 2021, The National Water Quality Sub-Mission was launched in March 2017 to provide safe drinking water to 27,544 arsenic/fluoride affected rural habitations in the country, over a span of four years.39 The Standing Committee on Water Resources (2019-20) observed that out of these habitations, 11,884 habitations (43%) have been covered under the scheme. 4,100 habitations (15%) have seen an improvement in quality on retesting or have been covered under a state plan.39 In December 2021, the Ministry noted that water is a state subject and hence, initiatives on water quality is primarily states' responsibility.69 They also listed various steps that have been taken by the central government for providing contamination free water, such as, giving 10% weightage to the population residing in habitations affected by chemical contaminants including arsenic and fluoride while allocating the funds to states/ UTs in a financial year for JJM.69 Further, CGWB has constructed arsenic safe exploratory wells in West Bengal, Bihar and Uttar Pradesh by using cement sealing technique. 510 such wells were constructed as of December 2021, including 40 in Bihar, 185 in West Bengal and 285 in Uttar Pradesh and handed over to the states for use.69 http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_11.pdf. 12 Review of Sanitation Programme in Rural Areas, 8th Report, Committee on Estimates 2014-15, Lok Sabha, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_8.p df. 13 About SBM, Swachh Bharat Mission-Gramin, http://swachhbharatmission.gov.in/SBMCMS/about-us.htm. 14 Review of Sanitation Programme in Rural Areas, Committee on Estimates 2014-15, Lok Sabha, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_8.p df. 15 Swachh Bharat Mission- Gramin, Ministry of Jal Shakti, last accessed on February 11, 2022, http://sbm.gov.in/sbmdashboard/IHHL.aspx. 16 Report no. 54, Ministry of Panchayti Raj: 'Demands for Grants (2018-19)', Lok Sabha, December 31, 2018, https://eparlib.nic.in/bitstream/123456789/783412/1/16_Rural_ Development_54.pdf. 17 National Family Health Survey-5, http://rchiips.org/nfhs/NFHS-5_FCTS/India.pdf. 18 Open Defecation Free (ODF) Sustainability Guidelines, Ministry of Drinking Water and Sanitation, http://swachhbharatmission.gov.in/sbmcms/writereaddata/image s/pdf/guidelines/Guidelines-ODF-sustainability.pdf. 19 Swachh Bharat Mission- Gramin Guidelines, Ministry of Jal Shakti, last accessed on February 4, 2022, https://jalshaktiddws.gov.in/sites/default/files/SBM%28G%29_Guidelines.pdf 20 Swachh Bharat Mission- Gramin Dashboard, last accessed on February 4, 2022, https://sbm.gov.in/sbmdashboard/ODF.aspx. 21 Status of Declared and Verified villages, Swachh Bharat Mission- Gramin Dashboard, Ministry of Jal Shakti, last accessed on February 4, 2022, https://sbm.gov.in/sbmReport/Report/Physical/SBM_VillageOD FMarkStatus.aspx. 22 Finance Commission Report (2021-26), Volume III, February 1, 2021, file:///C:/Users/Prs/Downloads/XVFC%20Complete_Report.pdf . 23 Functions, Department of Water Resources, River Development and Ganga Rejuvenation, http://mowr.gov.in/about-us/functions. 24 Ken-Betwa Interlinking of Rivers Project, Cabinet, Press Information Bureau, December 8, 2021, https://pib.gov.in/PressReleasePage.aspx?PRID=1779306. 25 Cabinet approves Ken-Betwa Interlinking of Rivers Project, Cabinet, Press Information Bureau, December 8, 2021, https://pib.gov.in/PressReleasePage.aspx?PRID=1779306. 26 Climate, Climate Change and Agriculture, Economic Survey 2016-17, https://mofapp.nic.in/economicsurvey/economicsurvey/pdf/082- 101_Chapter_06_ENGLISH_Vol_01_2017-18.pdf. 27 Lok Sabha Unstarred Question No.2045, Ministry of Jal Shakti, July 4, 2019, http://164.100.24.220/loksabhaquestions/annex/171/AU2054.pd f. 28 Website, Pradhan Mantri Krishi Sinchayi Yojna, last accessed on February 4, 2022, https://pmksy.gov.in/. 29 Rajya Sabha Unstarred Question No.570, Ministry of Jal Shakti, January 7, 2022, https://pqars.nic.in/annex/256/AU570.pdf. 30 Report no. 13, Standing Committee on Water Resources: 'Demand for Grants (2021-22), Department of Water Resources, River Development and Ganga Rejuvenation, Lok Sabha, December 2021, http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_13.pdf. 31 Demand no. 61, Department of Water Resources, River Development and Ganga Rejuvenation, Union Budget 2022-23, https://www.indiabudget.gov.in/budget2021- 22/doc/eb/alldg.pdf. 32 "Implementation of PMKSY", Press Information Bureau, Ministry of Agriculture and Farmer Welfare, May 2016, https://pib.gov.in/newsite/PrintRelease.aspx?relid=145004. 33 Dashboard, Pradhan Mantri Krishi Sinchayi Yojna - Accelerated Irrigation Benefit Programme, Ministry of Jal Shakti, last accessed on January 5, 2022, http://pmksymowr.nic.in/aibp/. 34 Salient features, Pradhan Mantri Krishi Sinchayi Yojna, Ministry of Jal Shakti, http://mowr.gov.in/programmes/salientfeatures. 35 Dashboard, Common Area Development Programme, Ministry of Jal Shakti, last accessed on January 5, 2022, http://cadwm.gov.in/cadwm-dashboard/. 36 National Water Policy (2012), Ministry of Water Resources, http://mowr.gov.in/sites/default/files/NWP2012Eng6495132651 _1.pdf. 37 Lok Sabha Unstarred Question No.2052, Ministry of Jal Shakti, September 22, 2020, http://164.100.24.220/loksabhaquestions/annex/174/AU2052.pd f. 38 Standing Committee on Demand for Grant (2020-21), Department of Water Resources, River Development and Ganga Rejuvenation, March 5, 2020, http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_3.pdf. 39 "Standing Committee on Water Resources (2019-20)", Ministry of Jal Shakti - Department of Drinking Water and Sanitation, Demand for Grants (2019-20), http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_2.pdf. http://wrmin.nic.in/writereaddata/Report_on_Restructuring_CW C_CGWB.pdf. 43 Draft National Water Framework Bill, 2016, Ministry of Water Resources, River Development and Ganga Rejuvenation, http://wrmin.nic.in/writereaddata/Water_Framework_May_2016 .pdf. 44 Lok Sabha Unstarred Question No.2837, Ministry of Jal Shakti, December 5, 2019, http://164.100.24.220/loksabhaquestions/annex/172/AU2837.pd f. 45 Targets and Achievements, National Mission for Clean Ganga, last accessed on February 4, 2022, https://gisnmcg.mowr.gov.in/pmt/nmcgpmtmain.aspx. 46 Sustainable development and climate change, Volume 2, Economic Survey 2018-19. https://www.indiabudget.gov.in/economicsurvey/doc/vol2chapte r/echap05_vol2.pdf. 47 Report of the Comptroller and Auditor General of India on Rejuvenation of River Ganga (Namami Gange), 2017, https://cag.gov.in/cag_old/sites/default/files/audit_report_files/R eport_No.39_of_2017_- _Performance_Audit_on_Ministry_of_Water_Resources%2C_R iver_Development_%26_Ganga_Rejuvenation_Union_Governm ent.pdf. 48 "20th Standing Committee on Water Resources (2017-18)", Ministry of Water Resources, River Development and Ganga Rejuvenation, Demand for Grants (2018-19), http://164.100.47.193/lsscommittee/Water%20Resources/16_W ater_Resources_20.pdf. 49 "Action Taken by the Government on the Observations / Recommendations contained in the Third Report on Demands for Grants (2020-21)", Ministry of Water Resources, River Development and Ganga Rejuvenation, February 9, 2021, http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_8.pdf. 50 Inter-Linking of River Projects, Press Information bureau, Ministry of Jal Shakti, March 18, 2021. 51 Interlinking of Rivers, Ministry of Jal Shakti, last accessed on Feb 17, 2022, http://jalshakti-dowr.gov.in/schemes-projectsprogrammes/schemes/interlinking-rivers. 52 Union Budget Speech 2022-23, https://www.indiabudget.gov.in/doc/budget_speech.pdf. 53 Inter-Linking of River Projects, Press Information bureau, Ministry of Jal Shakti, March 8, 2018. 54Environmental Impact Assessment Report Of Lower Orr Dam, Madhya Pradesh, Under Ken Betwa Link Project (Phase-- ii), Ministry of Water Resources, December 2015, http://environmentclearance.nic.in/DownloadPfdFile.aspx?FileN ame=V4P8QpTgpJGENRKb7p35npDS3e0Q26npOcXECS6j8c HuGkm9b0lIbsLBtDOhW7rK&FilePath=93ZZBm8LWEXfg+ HAlQix2fE2t8z/pgnoBhDlYdZCxzUeqEISsDpNmaozay3MPM 7v. 55 Central Ground Water Board, last accessed on February 12, 2022, http://cgwb.gov.in/AQM/NAQUIM.html. 56 CAG's Audit Report on Ground Water Management and Regulation, December 21, 2021, https://cag.gov.in/uploads/PressRelease/PR-PRESS-RELEASE- English-09-of-2021-061c2ce8e9f6333-49727766.pdf. 57 Water and Related Statistics, October 2019, Central Water Commission, http://www.indiaenvironmentportal.org.in/files/file/water-andrelated-statistics-2019.pdf. 58 12th Five Year Plan, Planning Commission, 2013 http://planningcommission.gov.in/plans/planrel/fiveyr/12th/pdf/ 12fyp_vol1.pdf. 59 Lok Sabha Unstarred Question No.737, Ministry of Jal Shakti, November 21, 2019, http://164.100.24.220/loksabhaquestions/annex/172/AU737.pdf. 60 Lok Sabha Unstarred Question No. 1914, Ministry of Jal Shakti, answered on September 22, 2020, http://164.100.24.220/loksabhaquestions/annex/174/AU1914.pd f. 61 Master Plan For Artificial Recharge To Groundwater In India - 2020, Ministry of Jal Shakti, April 2021, http://cgwb.gov.in/Whatisnew/2021-06-30-Final- Approved%20Master%20Plan%202020-00002.pdf. 62 Ground water year book, 2019-20, http://cgwb.gov.in/Ground- Water/GW%20YEAR%20BOOK%202019- 20%20ALL%20INDIA%20FINAL%20752021%20(1).pdf. 63 Report of the Export Group on Ground Water Management and Ownership, Planning Commission, September 2007, http://planningcommission.nic.in/reports/genrep/rep_grndwat.pd f. 64 Composite Water Management Index 2019, NITI Aayog, August 2019, https://niti.gov.in/sites/default/files/2019- 08/CWMI-2.0-latest.pdf. 65 Report of the High-Level Committee on Reorienting the Role and Restructuring of Food Corporation of India, January 2015, http://www.fci.gov.in/app/webroot/upload/News/Report%20of% 66 Finance Commission Report (2021-26), Volume III, February 1, 2021, file:///C:/Users/Prs/Downloads/XVFC%20Complete_Report.pdf . 67 Lok Sabha Unstarred Question No. 2157, Ministry of Water Resource, River Development and Ganga Rejuvenation, answered on March 10, 2015, http://164.100.47.132/LssNew/psearch/QResult16.aspx?qref=14 305. 68 Lok Sabha Unstarred Question No. 912, Ministry of Jal Shakti, answered on December 2, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU912.pdf. 69 Standing Committee on Demand for Grants (2021-22), Department of Drinking Water and Sanitation, Ministry of Jal Shakti, December 7, 2021, http://164.100.47.193/lsscommittee/Water%20Resources/17_W ater_Resources_13.pdf. State/UT Unspent Balances under SBM-G Unspent Balances under JJM 2018-19 2019-20 2018-19 2019-20 Andhra Pradesh 987 1,035 26 277 Arunachal Pradesh 15 40 6 58 Assam 639 542 359 452 Bihar 1,105 1,202 313 257 Chhattisgarh 406 377 32 58 Goa 2 2 - - Gujarat 399 476 - 6 Haryana 127 161 10 91 Himachal Pradesh 87 72 - 8 Jharkhand 506 551 76 268 Karnataka 601 561 27 80 Kerala 53 183 3 41 Madhya Pradesh 508 310 1 246 Maharashtra 906 574 248 285 Manipur 40 19 - 63 Meghalaya 72 36 1 17 Mizoram 21 8 0 31 Nagaland 1 17 - 35 Odisha 505 1,253 1 91 Punjab 164 243 103 257 Rajasthan 841 714 314 995 Sikkim 7 3 1 12 Tamil Nadu 465 231 1 264 Telangana 278 243 4 31 Tripura 62 63 49 136 Uttar Pradesh 1,187 758 58 932 Uttarakhand 100 132 6 67 West Bengal 530 544 761 1,147 Total 10,684 10,475 2,436 6,432 Sources: Standing Committee on Demand for Grants (2020-21), Department of Drinking Water and Sanitation, Ministry of Jal Shakti; PRS. Total Verified Total declared Total Verified State Total Villages ODF (1st level) % Verified 2nd level (2nd level) Andaman and Nicobar Islands 192 192 192 192 100% Andhra Pradesh 18,841 18,841 18,841 18,819 100% Arunachal Pradesh 5,389 5,389 5,389 5,389 100% Assam 25,503 25,503 25,503 15,245 60% Bihar 38,691 38,691 37,317 - - Chandigarh 13 13 13 - - Chhattisgarh 18,769 18,769 18,769 18,769 100% Dadar and Nagar Haveli and Daman and Diu 95 95 95 95 100% Goa 365 365 18 - - Gujarat 18,261 18,261 18,261 18,261 100% Haryana 6,908 6,908 6,908 6,908 100% | Himachal Pradesh | 15,921 | 15,921 | 15,921 | 10,326 | 65% | |---------------------|-----------|-----------|-----------|-----------|--------| | Jammu and Kashmir | 7,263 | 7,263 | 7,195 | - | - | | Jharkhand | 29,564 | 29,564 | 29,333 | 164 | 1% | | Karnataka | 27,044 | 27,044 | 26,900 | - | - | | Kerala | 2,027 | 2,027 | 2,027 | 2,027 | 100% | | Ladakh | 302 | 302 | 302 | 5 | 2% | | Lakshadweep | 9 | 9 | 9 | - | - | | Madhya Pradesh | 50,228 | 50,228 | 50,228 | 3 | 0% | | Maharashtra | 40,533 | 40,511 | 40,505 | - | - | | Manipur | 2,556 | 2,556 | 2,556 | - | - | | Meghalaya | 6,028 | 6,028 | 6,028 | 2,101 | 35% | | Mizoram | 696 | 696 | 696 | 537 | 77% | | Nagaland | 1,451 | 1,451 | 1,142 | - | - | | Odisha | 46,785 | 46,785 | 46,785 | - | - | | Puducherry | 265 | 265 | 265 | 265 | 100% | | Punjab | 13,726 | 13,726 | 13,700 | 13,700 | 100% | | Rajasthan | 42,860 | 42,860 | 42,860 | - | - | | Sikkim | 403 | 403 | 403 | 382 | 95% | | Tamil Nadu | 12,525 | 12,524 | 12,524 | - | - | | Telangana | 14,200 | 14,200 | 14,149 | 6,822 | 48% | | Tripura | 1,178 | 1,178 | 646 | 142 | 12% | | Uttar Pradesh | 97,640 | 97,640 | 97,623 | 23,213 | 24% | | Uttarakhand | 15,473 | 15,473 | 15,473 | 14,340 | 93% | | West Bengal | 41,461 | 41,461 | 41,377 | 22,362 | 54% | | Total | 6,03,165 | 6,03,142 | 5,99,953 | 1,79,945 | 30% | Sources: Management Information System Reports of SBM; PRS. | State | | |--------------------------|------| | Ground water development | | | resources (%) | | | Andhra Pradesh | 44 | | Arunachal Pradesh | 0 | | Assam | 11 | | Bihar | 46 | | Chhattisgarh | 44 | | Delhi | 120 | | Goa | 34 | | Gujarat | 64 | | Haryana | 137 | | Himachal Pradesh | 86 | | Jammu & Kashmir | 29 | | Jharkhand | 28 | | Karnataka | 70 | | Kerala | 51 | | Madhya Pradesh | 55 | | Maharashtra | 55 | | Manipur | 1 | | Meghalaya | 2 | | Mizoram | 4 | | Nagaland | 1 | | Odisha | 42 | | Puducherry | 74 | | Punjab | 166 | | Rajasthan | 140 | | Sikkim | 0 | | Tamil Nadu | 81 | | Telangana | 65 | | Tripura | 8 | | Uttar Pradesh | 70 | | Uttarakhand | 57 | | West Bengal | 45 | | Total | 63 | Note: Total includes union territories; data as of 2017. Sources: Dynamic Ground Water Resources of India, 2017, Central Ground Water Board; PRS. ## Demand For Grants 2022-23 Analysis Housing And Urban Affairs The Ministry of Housing and Urban Affairs formulates policies, coordinates activities of various agencies (at the state and municipal level), and monitors programmes in the area of urban development. It also provides states and urban local bodies (ULBs) with financial assistance through various centrally supported schemes. In 2017, the Ministry of Housing and Poverty Alleviation, and the Ministry of Urban Development were combined to form the Ministry of Housing and Urban Affairs. Over the past few years, while the allocation towards the Ministry has increased and several new schemes and programmes have been implemented, urban areas continue to face issues with lack of adequate housing, poor infrastructure, and poor service delivery. Some of the key reasons behind such problems are the inadequate financial and technical capacity of cities to meet the challenges of urbanisation which result in poor service delivery and poor implementation of schemes. This note looks at the expenditure incurred by the Ministry, the status of the various schemes implemented by it, and the issues faced with investment required for urban planning. ## Budget Speech Highlights 2022-23 1 - A High-Level Committee of urban planners, urban economists, and institutions will be formed to make recommendations on urban sector policies, capacity building, planning, implementation, and governance. - For developing India specific knowledge in urban planning and design, and to deliver certified training in these areas, up to five existing academic institutions in different regions will be designated as centres of excellence. Each of these centres will be provided with endowment funds of Rs 250 crore. - States will be provided with support for urban capacity building. Modernisation of byelaws, town planning schemes, and Transit Oriented Development will be implemented. - Innovative ways of financing and faster implementation of metro systems of appropriate type at scale will be encouraged. Design of metro systems will be re-oriented and standardised for Indian conditions and needs. Multimodal connectivity between mass urban transport and railway stations will be facilitated on a priority basis. - Use of public transport will be promoted in urban areas, complemented by clean technology and governance solutions, special mobility zones with zero fossil-fuel policy, and electric vehicles. ## Overview Of Finances 2 The total expenditure on the Ministry of Housing and Urban Affairs for 2022-23 is estimated at Rs 76,549 crore. This is an increase of 4% over the revised estimates for 2021-22. In 2022-23, the revenue expenditure of the Ministry is estimated at Rs 49,208 crore (64% of the total expenditure) and the capital expenditure is estimated at Rs 27,341 crore (36% of the total budget). Note that since 2014-15, the Ministry's revenue expenditure has been higher than the capital expenditure. Housing and Urban Affairs (in Rs crore) 2022-23 % Change (RE 21- 2020-21 Actuals 2021- 22 RE BE 22 to BE 22-23) Revenue 36,397 47,894 49,208 3% Capital 10,304 25,957 27,341 5% Total 46,701 73,851 76,549 4% Note: BE - Budget Estimate; RE - Revised Estimate. Source: Demand No. 60, Ministry of Housing and Urban Affairs, Union Budget 2022-23; PRS. ## Expenditure Across Schemes The Ministry implements several centrally sponsored schemes, and a few central sector schemes. These include: (i) Pradhan Mantri Awas Yojana - Urban (PMAY-U), (ii) Atal Mission for Rejuvenation and Urban Transformation (AMRUT), (iii) 100 Smart Cities Mission, (iv) Swachh Bharat Mission - Urban (SBM-U), and (v) Deendayal Antyodaya Yojana-National Urban Livelihood Mission (DAY-NULM). The Ministry also develops and manages metro rail projects across the country. Note: MRTS__ Mass Rapid Transit System. Source: Demand No. 60, Ministry of Housing and Urban Affairs, Union Budget 2022-23; PRS. Of the expenditure allocated to the Ministry in 2022-23, the highest allocation is towards PMAY- U at 37 % of the total Ministry's budget followed by allocation to Metro projects. | 2021-22 | 2020-21 | |------------|------------| | Actuals | RE | | 2022- | | | 23 BE | | | % Change | | | (RE 2021- | | | 22 to BE | | | 2022-23) | | | PMAY - | | | Urban | 20,991 | | MRTS | | | and Metro | 8,998 | | AMRUT | | | 6,448 | 7,300 | | Smart | | | Cities | 3,305 | | SBM - | | | Urban | 995 | | DAY- | | | NULM | 817 | | SVANIDHI | 114 | | Others | 4,908 | | Total | 46,701 | Note: BE - Budget Estimate, RE - Revised Estimate, PMAY- Pradhan Mantri Awas Yojana, MRTS- Mass Rapid Transit System, AMRUT- Atal Mission for Rejuvenation and Urban Transformation, SBM- Swachh Bharat Mission, DAY NLUM- Deendayal Antyodaya Yojana-National Urban Livelihoods Mission, SVAnidhi- PM Street Vendor's AtmaNirbhar Nidhi. Source: Demand No. 60, Ministry of Housing and Urban Affairs, Union Budget 2022-23; PRS. ## Issues To Consider Cities need significant additional investment The pace of urbanisation is increasing in the country. As per the 2011 census, around 31% of the country's population resided in urban areas.3 By 2031, around 600 million (43%) people are expected to live in urban areas, an increase of over 200 million in 20 years.3 Urbanisation is the process of growth of cities (either through a natural increase in population, or migration, or physical expansion). Benefits of urbanisation include: (i) production of goods at a larger scale at lower input costs, (ii) knowledge spill-over between firms and individuals, and (iii) access to a large labour pool.4 However, urbanisation also has adverse consequences such as: (i) traffic congestion, (ii) environmental degradation, (iii) deterioration in civic services, and (iv) air and water pollution. Urbanisation puts incremental pressure on the existing infrastructure in urban areas.4 Therefore, policy responses to address urbanisation require comprehensive development of the socio-economic environment, effective delivery of public services, and provision of affordable housing and transport services for the poor.4 These entail large capital investment for such infrastructure projects which would require additional support from central and state governments in the form of capital grants. With the current rate of urbanisation, the High- Powered Expert Committee (HPEC) for Estimating the Investment Requirements for Urban Infrastructure Services (2011) had estimated a requirement of Rs 39 lakh crore (at 2009-10) prices for the period 2012-2031. As per their framework, the investment in urban infrastructure should increase from 0.7% of GDP in 2011-12 to 1.1% of GDP by 2031-32. In 2021-22, total expenditure on urban development by states and centre is estimated to be 0.7% of GDP.5,6 During 2012-13 and 2022-23, the expenditure of the Ministry has increased at an average annual rate of 23%. Note: For the years 2012-13 till 2015-16, the figures are a combination of the erstwhile Ministry of Housing and Urban Poverty Alleviation, and the Ministry of Urban Development. Values for 2021-22 and 2022-23 are revised and budget estimates respectively. All other figures are actuals. Source: Ministry of Housing and Urban Poverty Alleviation, and the Ministry of Urban Development budgets 2011-12 to 2015- 16. Ministry of Housing and Urban Affairs budget documents 2015-16 to 2022-23; PRS. The Standing Committee on Urban Development, (2021) noted that the budgetary allocations to the Ministry were lower than the Ministry's demand during 2018-21.7 This has been observed in earlier budget allocations also. For instance, in 2017-18, while the erstwhile Ministry of Urban Development projected an expenditure of Rs 68,410 crore, it was allocated Rs 34,212 crore in that year's budget.8 The Committee recommended that with implementation of schemes picking momentum, the budgetary allocation should be increased for better implementation.7 This would also supplement efforts of state governments to develop and maintain urban infrastructure. The Ministry of Finance (2017) noted that only budgetary outlays will not be enough to cater the growing demands on local governments for improving their infrastructure.9 Urban infrastructure projects tend to be capital intensive and not only require upfront capital investment but also annually recurring operations and maintenance expenditures. Alternate sources of financing are required to meet the funding gap. The flagship schemes of the Ministry (such as Smart Cities Mission, Swachh Bharat Mission) seek to meet their financing requirements through a mix of sources such as borrowings, municipal bond financing, and public-private partnerships. The Standing Committee on Urban Development (2020) noted that as of March 2020, municipal bonds worth Rs 3,390 crore had been issued in eight cities including Ahmedabad and Pune for the implementation of AMRUT scheme.10 The Standing Committee on Urban Development (2021) observed that there has been underutilisation of funds by the Ministry.11 From 2012-13 to 2020- 21, barring 2016-17, there has been an underutilisation of funds (see Figure 3). In 2016- 17, the actual expenditure on metro projects, AMRUT, and Smart Cities Mission were higher than the budget estimates. The Committee recommended the Ministry to avoid such underutilisation of funds.11 Note: For the years 2012-13 till 2015-16, the figures are a combination of the erstwhile Ministry of Housing and Urban Poverty Alleviation, and the Ministry of Urban Development. Values for 2021-22 are revised estimates. All other figures are actuals. Source: Union Budget 2012-13 to 2022-23; PRS. ## Service Delivery In Urban Areas Continues To Be Poor The HPEC (2011) had noted that the state of service delivery in Indian cities and towns is inadequate compared to desirable levels.4 Irregular water supply, poor sanitation, inadequate waste management, and degraded transport infrastructure are some of the issues persistent in urban India. Factors contributing to poor service delivery include: (i) fragmented and overlapping institutional responsibility, (ii) lack of autonomy of urban local bodies, (iii) poor maintenance of public infrastructure, and (iv) inadequate investment in urban infrastructure.4 The HPEC recommended that in order to achieve an inclusive economic growth there is a need to shift focus of policy from creating physical infrastructure to delivering services.4 Without this, additional capital investments in urban infrastructure will not result in improvements in service delivery. India fares poorly in comparison to other countries on its parameters of service delivery. See Table for a comparison of India (rural and urban) on service delivery parameters with other countries According to the 76th National Sample Survey (July-December 2018) about 14% households in urban areas did not have both bathroom and latrine within household premises and 2% of the household members in urban areas never used latrine.12 19% households in urban areas did not have drinking water facilities within household premises. The Jal Jeevan Mission (Urban) was announced in the 2021-22 budget speech.13 The Mission aimed to provide functional taps in 4,378 statutory towns. However, no financial allocation has been made towards the Mission in either 2021- 22 or 2022-23 budget. | | India | Brazil | Russia | China | USA | |-----------------|----------|-----------|-----------|----------|--------| | Quality of | | | | | | | roads | | | | | | | 51 | 112 | 104 | 42 | 11 | | | Electrification | | | | | | | rate | | | | | | | 105 | 73 | 1 | 1 | 1 | | | 106 | 57 | 54 | 75 | 1 | | | Exposure to | | | | | | | unsafe | | | | | | | drinking water | | | | | | | Reliability of | | | | | | | water supply | | | | | | | 74 | 78 | 53 | 68 | 27 | | | Infrastructure | 63 | 81 | 51 | 29 | 9 | Source: Global Competitiveness Report (2018), World Economic Forum; PRS. In December 2021 the central government and the Asian Development Bank (ADB) signed a 350 million dollar policy-based loan to improve access to urban services and promote performance based central fiscal transfers to urban local bodies.14 ## Indian Cities May Not Be Suitable For Metro But Metro Projects Continue Receiving High Allocation Investment in metro rail projects in cities forms one of the biggest expenditures made by the Ministry on urban transport. Some of the major metro projects include Chennai, Delhi, Bangalore, and Mumbai metros. Investments in these projects are made in various forms including grants, equity investments, debt, and pass-through assistance (grants given to the government which can be awarded to other organisations) for externally aided projects. Allocation towards metro projects includes the National Capital Region Transport Corporation of Delhi (the implementing agency for the Regional Rapid Transit System in the National Capital Region i.e., Delhi Metro) has been allocated Rs 4,710 crore (20% of the total expenditure of metro projects) in 2022-23 budgetary allocation to build three corridors. This plans to connect three nearby towns, Meerut, Alwar, and Panipat to Delhi through fast trains (average time taken to travel 100km is one hour). Table 4: Allocation towards metro projects (in Rs crore) Year Budgeted Actuals % Utilised 2014-15 8,026 5,998 75% 2015-16 8,260 9,300 113% 2016-17 10,000 15,327 153% 2017-18 18,000 13,978 78% 2018-19 15,000 14,470 96% 2019-20 19,152 18,908 99% 2020-21 20,000 8,997 45% 2021-22 23,500 23,480 100% 2022-23 23,875 - - Note: Actuals for 2021-22 indicate Revised Estimates. Source: Ministry of Housing and Urban Affairs Budget documents 2014-15 to 2022-23; PRS. Short travel distance in Indian cities; metro may not be the ideal option for commute: Indian cities have developed in a way that allow neighborhoods to provide for residences, workplaces, and social and educational facilities.15 This results in minimising trip lengths leading to less dependency on motorised urban transport. The average trip length in medium and small Indian cities is less than 5 km making non-motorised transport the preferred mode of commute.15 Metro rail systems are efficient when the average trip distance is greater than 12 km.15 The National Transport Development Policy Committee (NTDPC) (2014) report observed that high speed mass transit systems such as metro rail do not always reduce door-to-door travel time. Door-to-door travel time is seen as the most relevant indicator for users.15 Underground or elevated transport systems do not save time as compared to cars or two-wheelers, when trip distances are short, because time is lost in walking from ground level to the platform level. The NTDPC recommended that the decision to implement metro rail projects should also consider the high-cost factor. Rail-based metro systems should be considered after examining the opportunity cost of investing in expensive fixed infrastructure. NTDPC recommended that metro rail projects should initially be limited to cities with population more than five million. These cities should be able to cover all costs through user charges or fiscal costs. Further it recommended that Indian cities should focus on improving their existing bus systems, adding bus rapid transit systems, and improving non-motorised transport. However, over the past few years, metro projects have expanded from the larger metropolises such as Delhi and Mumbai to other relatively smaller cities such as Kochi, Lucknow, Bhopal, Jaipur and Indore. As of March 2021, 708 km of metro lines are operational in 18 cities and 1,016 km of metro line and regional rapid transport is under construction in 27 cities.11 Note that currently the Delhi Metro network is 391 km.16 The Ministry also continues to allocate a significant portion of its budget towards metro projects. In 2022-23, the second highest (31%) allocation of the Ministry's budget has been towards metro rail projects. ## Low Ridership And Inefficient Operational Performance Of Dmrc The Report of the CAG on "Implementation of Phase-III Delhi Mass Rapid Transit System by DMRC" (2021) noted that the total ridership DMRC network in 2019-20 was projected to be 53 lakh.17 However, the actual ridership in 2019-20 was 28 lakh (52% of the projection). For phase III (from initially sanctioned four corridors) the ridership was projected to be 21 lakh in 2019-20. However, the actual ridership was 4 lakh (19% of the projection). The Report noted a consistent increase in the operating cost ratio from 49% in 2011-12 to 81% in 2019-20, indicating inefficient operational performance of DMRC. High allocation towards metro results in lack of funds for other schemes: In 2022-23, the capital expenditure on metro projects is estimated to be 87% of the Ministry's total capital expenditure. The Standing Committee on Urban Development (2019) had noted that high allocation towards metro projects leads to inadequate funds for other schemes such as PMAY-U and AMRUT.18 It recommended that state/UT governments must be consulted to find ways to reduce the huge outlay on metro works to ensure adequate funding is available for other schemes. The Standing Committee (2019) observed that standardisation of certain services such as civil works, and electric systems has helped reduce the cost of metro by 20-30%.18 The Standing Committee (2020) recommended to reduce the cost by: (i) using newer technologies like Metrolite system (suitable for cities with less ridership), and (ii) encouraging the manufacturing of metro components under the Make in India initiative.10 ## Housing Targets Not Met; Scheme Has Focused On Middle Income Groups Instead Of Lowincome Groups In 2012, the urban housing shortage was estimated at 1.9 crore units.19 In 2015-16 the Ministry estimated that this shortage is expected to increase to two crore by 2022.20 PMAY-U is an affordable housing scheme which seeks to achieve the 'housing for all' target by 2022.21 The scheme comprises four components: (i) in-situ rehabilitation of existing slum dwellers (using the existing land under slums to provide houses to slum dwellers) through private participation, (ii) credit linked subsidy scheme (CLSS) for Economically Weaker Sections (EWS), Lower Income Groups (LIG), and middle-income group (MIG), (iii) affordable housing in partnership, and (iv) subsidy for beneficiary-led individual house construction. Allocation: In 2022-23 the scheme has been allocated Rs 28,000 crore. This is an 4% increase over the revised estimates in 2021-22. In 2020-21, revised estimates increased by 163% in comparison to budgeted allocation for the year. This can be attributed to the Affordable Rental Housing Complexes (ARHC) scheme implemented under the Aatmanirbhar Bharat Scheme. The ARHC scheme seeks to convert government-owned projects and housing stock (projects available with the central government) to affordable housing through public-private partnerships and encourage development on private land by giving special incentives including streamlining of permits and credit. Funding towards the scheme comes from the Central Road and Infrastructure Fund (comprises a cess imposed along with excise duty on petrol and diesel). In 2022-23, from the total allocation for PMAY-U, 82% is allocated for central assistance to states/UTs and 16% for interest payments against loan raised through extra budgetary resources. In 2022-23, allocation to central assistance has increased by 128% over the revised stage of 2021-22. CLSS for economically weaker sections/low-income groups has been decreased by 100% in 2022-23 allocation in comparison to revised estimate for 2021-22. 2020-21 Actuals 2021- 22 RE 2022- 23 BE % Change (RE 2021- 22 to BE 2022-23) 4,148 4,459 4,460 0.02% Interest Payment for EBR loans 10,002 10098 23,038 128% Central assistance to states/ UTs 3,750 12000 0.01 -100% CLSS-I for EWS/LIG CLSS-II for MIG 3,000 0.01 0 -100% Others 91 443 502 13% Total 20,991 27,000 28,000 4% Targets not completed: PMAY-U seeks to achieve housing for all by 2022. The Standing Committee on Urban Development (2021) noted that after five years of the scheme, only 38% of sanctioned houses have been completed.11 The Committee observed that with this pace of the project, the government may not be able to complete the target by 2022. Further, it noted that only eight states have taken up projects under the in-situ slum redevelopment (ISSR) component. The Committee recommended: (i) formulating a specific time frame for completion of targets and to make up for the time lost due to COVID-19, (ii) encouraging states to take up projects under the ISSR component.11 Note that as of February, 2022, out of the 54 lakh (47% of sanctioned) houses constructed under PMAY-U, about 6 lakh houses are yet to occupied by residents.22,23 | Component | Sanctioned | Completed | |--------------|---------------|--------------| | BLC | 71 | 26 | | AHP | 21 | 6 | | ISSR | 5 | 5 | | CLSS | 17* | 17* | Note: *Beneficiaries, BLC- Beneficiary-led Individual House Construction, AHP- Affordable Rental Housing Complexes, ISSR- In-situ Slum Redevelopment, CLSS- Credit Linked Subsidy Scheme. Source: PMAY (U) Dashboard; PRS, last accessed on February 10, 2022; PRS. Beneficiaries under CLSS: Under CLSS, interest subsidy up to Rs 2.6 lakh is given to beneficiaries from EWS, LIG, and MIG on home loans from housing finance companies (HFCs), and banks. Nearly 95% of housing shortage occurs for households in the EWS and LIG sections.24 However, the Standing Committee on Urban Development (2021) observed that in several states including Uttar Pradesh, Andhra Pradesh, and Jharkhand, most of the beneficiaries belong to middle income groups.11 It was estimated that about 56% of housing shortage falls in the EWS, 40% in the LIG category, and the rest 4% in the middle- and higher-income groups.25 However, the Ministry stated that EWS beneficiaries are not being neglected as they are also included under other components (AHP, BLC, and ISSR) of PMAY-U. The Committee noted that the scheme should not overshadow the core target group of EWS/LIG category.11 It recommended: (i) identifying reasons for low number of beneficiaries from EWS/LIG and addressing the issues, (ii) central nodal agency to work with banks and HFCs for faster sanction of loans to people from EWS/LIG category.11 The Economic Survey (2021-22) noted that the scheme for MIG was originally up to March, 2019 but was extended till March, 2021.26 It was expected that this would stimulate demand for steel, cement, transport, and other construction materials. Lending by housing finance companies (HFCs): Both HFCs, and public sector banks offer low-cost funding for housing. Further, HFCs also provide interest subsidies to beneficiaries under the CLSS component of PMAY-U. However, banks and financing companies face constraints such as inability to access long term funds.30 The Union Cabinet had approved the creation of a National Urban Housing Fund (NUHF) worth Rs 60,000 crore in February 2018.27 The NUHF aims to raise funds till 2022 to ensure a sustained flow of central release under PMAY-U to enable construction of houses. In 2020, Housing and Urban Development Corporation (HUDCO) received Rs 60,000 crore as central assistance under PMAY-U from NUHF.28 HUDCO is one of the central nodal agencies under PMAY-U, responsible for transferring subsidies through lending institutions to CLSS beneficiaries.29 Rental housing: Rental housing helps in plugging the gaps in the housing market by addressing some of the housing demand across income groups. As per the 2011 census, 27.5% of urban residents lived in rented houses. According to the Report of the Group of Secretaries (2017), a rental housing scheme could further complement PMAY-U in achieving the housing target.30 The Ministry proposed a Draft National Urban Housing Policy in October 2015.31 It seeks to promote the sustainable development of house ownership with a view to ensuring an equitable supply of rental housing at affordable prices. The Policy noted that the housing shortage in urban areas will not be solved by home ownership and suggested promoting rental housing. The Ministry also released the Model Tenancy Acts in 2020 which provides for the regulation and speedy adjudication of matters related to rental housing, and seeks to repeal the existing state rent control laws.32,33 Note that the Model Tenancy Act, 2021 was approved by the Union Cabinet in June, 2021.34 Construction of toilets improved but access to proper sanitation remains an issue The Swachh Bharat Mission - Urban (SBM-U) seeks to: (i) make all urban areas open defecation free (ODF), and (ii) achieve 100% scientific management of municipal solid waste (MSW). The Standing Committee on Urban Development (2021) noted that the progress for achieving 100% waste management has been inadequate. In 2020- 21, progress for source segregation (wards) and waste processing was 78% and 68% of the target against 75% and 65% achieved in 2019-20.11 Further, processing of municipal solid waste has increased from 18 % in 2014 to 70 % in 2021.35 Note that the target of constructing 59 lakh individual household latrines and 5 lakh community and public toilets has been achieved under SBM-U.36 SBM-U aims to ensure that: (i) all statutory towns be certified as ODF+, and (ii) statutory towns with less than one lakh residents be certified as ODF++. A town is certified as ODF+ when no cases of open defecation are recorded and all public toilets are maintained and function. A town certified as ODF++ is one where all sewage is safely managed and treated with no dumping of untreated sewage in water bodies or open areas. Under SBM-U, 95 % of cities have been declared ODF. However, according to National Family Health Survey - 5 (2019-21) 81.5% urban households use an improved sanitation facility (includes flush to piped water system, pit latrine with slab).37 Note that SBM-U 2.0 was launched in October, 2021.38 It seeks to focus on source segregation of solid waste at source, scientific processing of waste, and improving dumpsites for solid waste management. ## 2022) | % | | Number | |---------------------|----------|-----------| | of Cities | Achieved | | | Total Cities | 4,586 | - | | ODF declared cities | 4,371 | 95 | | ODF verified cities | 4,316 | 94 | | Certified ODF + | 3,339 | 73 | | Certified ODF ++ | 961 | 21 | Source: Swachh Bharat Mission- Urban Dashboard; PRS ## Atal Mission For Rejuvenation And Urban Transformation (Amrut) AMRUT is a Centrally Sponsored Scheme which seeks to provide basic services (water supply, sewerage, urban transport, etc.) in cities, especially to the poorer households.39 Components of the Mission include: (i) improving water supply systems, (ii) augmentation of existing sewerage systems, (iii) construction and improvement of drainage systems, (iv) improving urban transport through pedestrian facilities and public transport systems, and (v) capacity building of ULBs. The scheme had a financial outlay of Rs 50,000 crore for five years (2015-20), which was later extended till 2022. In 2022-23, the AMRUT Mission has been allocated Rs 7,300 crore. The government had proposed that the outlay of Rs 50,000 crore be spent by 2020. However, from 2015-16 to 2021-22, the Ministry has allocated Rs 48,199 crore (96% of the proposed amount), and spent Rs 38,824 crore (78% of the proposed amount). expenditure (Rs crore) | Year | Budget | Actuals | Utilised | |---------|-----------|------------|-------------| | 2015-16 | 3,919 | 2,702 | 69% | | 2016-17 | 4,080 | 4,864 | 119% | | 2017-18 | 5,000 | 4,936 | 99% | | 2018-19 | 6,000 | 6,183 | 103% | | 2019-20 | 7,300 | 6,391 | 88% | | 2020-21 | 7,300 | 6,448 | 88% | | 2021-22 | 7,300 | 7,300 | 100% | | 2022-23 | 7,300 | - | - | | Total | 48,199 | 38,824 | 81% | Note: Figures for 2021-22 Actuals are Revised Estimate. Source: Ministry of Housing and Urban Affairs Demand for Grants for the years 2015-16 to 2022-23; PRS. Poor implementation: AMRUT focuses on development of basic infrastructure such as water supply, and sewerage and septage management in selected cities. The Standing Committee on Urban Development (2020) noted that implementation and performance under the scheme has been below target.40 For instance, 92% of funds under AMRUT were allocated for water supply and sewerage. However, as of July 2021, against the target of 139 lakh, only 107 lakh connections (77% of the target) have been installed. Of the target of 145 lakh sewerage connections, only 79 lakh (54% of the target) had been provided.41 The Standing Committee on Urban Development (2021) recommended that the new tap connections should be installed with a meter to ensure accountability and curtail wastage of water.11 Inadequate capacity of ULBs affecting progress of AMRUT: The Standing Committee on Urban Development (2021) observed that most ULBs are not able to meet the expectations of the Mission by generating their share of contribution.11 In some cases, state governments have raised funds from external sources on behalf of ULBs. Therefore, the Committee recommended that ULBs may impose charges for services provided to citizens.11 Note that AMRUT 2.0 was launched in October, 2021.38 It seeks to provide (i) 100% coverage of water supply to all households in 4,700 ULBs, and (ii) 100% sewerage connections in 500 AMRUT cities. ## Smart Cities Mission The Smart Cities Mission seeks to promote 100 smart cities that provide core infrastructure (such as water and electricity supply, sanitation, and public transport). In 2022-23, the Mission has been allocated Rs 6,800 crore, which is a 3% increase over the revised estimates of 2021-22. The Standing Committee on Urban Development (2021) noted that the amount allocated to the Smart Cities Mission has been less than the proposed amount (See Table 9).11 The Committee recommended that the Mission should be allocated more funds at the revised stage in 2021-22 and at budget estimates in the upcoming years. Note that there has been an increase of 102% in allocation at the 2021-22 revised stage over the budget stage. However, on the other hand, the Ministry has not been able to spend the entire amount allocated at the budget stage. In 2019-20 and 2020-21, the Ministry was able to spend about half of the amount allocated at the budget stage, possibly indicating lack of implementation capacity. | Year | Proposed | Budgeted | |---------|-------------|-----------------| | 2017-18 | | | | 13,648 | | | | 4,000 | | | | 2018-19 | | | | 9,810 | | | | 6,169 | | | | 2019-20 | | | | 13,971 | | | | 6,450 | | | | 2020-21 | | | | 13,543 | | | | 6,450 | | | | 2021-22 | 10,000 | 6,450 | Table 10: Allocation towards Smart Cities Mission (in Rs crore) Year Budget Actuals Utilised 2015-16 2,020 1,484 73% 2016-17 3,215 4,412 137% 2017-18 4,000 4,526 113% 2018-19 6,169 5,902 96% 2019-20 6,450 3,135 49% 2020-21 6,450 3,305 51% 2021-22 6,450 6,600* 102% 2022-23 6,800 - - Total 41,554 29,364 71% *Revised estimates. Source: Budget documents 2015-16 to 2022-23; PRS. Timely completion of projects: The Standing Committee on Urban Development (2021) noted the slow pace of project completion.11 It observed that most of the projects are under construction stage. The Committee recommended the Ministry to ensure the timely completion of projects to avoid cost overruns.11 (as of January 23, 2022) Project status No. of projects % of projects % of cost Cost (in Rs crore) Total Proposed 5,151 - 2,05,018 - Tendered 6,656 127% 1,88,048 91% Work orders issued 6,074 117% 1,62,074 79% Completed 3,371 65% 58,248 28% Source: Smart Cities Dashboard, Ministry of Housing and Urban Affairs, last accessed February 5, 2022; PRS. Irregularities in implementation and poor monitoring of projects: The Standing Committee on Urban Development (2021) observed several irregularities in implementation of Smart Cities works which include: (i) frequent dropping of projects after finalising proposals, (ii) redoing of the same work again, and (iii) project costs being higher than market rate.11 Further, the Committee observed that the Geospatial Management Information System (real time monitoring system) has not been able to adequately monitor projects. The Committee recommended the Ministry to conduct on ground verification of projects by teams consisting of: (i) mission director, (ii) state representative, (iii) member of parliament, and (iv) member of legislative assembly.11 Financially backward states lagging behind: Each smart city has a Special Purpose Vehicle (SPV), responsible for the implementation of the Mission at the city level. The central government and state government provide funds to SPV. The Standing Committee on Urban Development (2021) observed that certain financially backward states are not able to provide their share of funds to the SPV which is affecting the progress of the Mission. For instance, in 2020-21, states were able to release only 70% of their share to SPV. Therefore, the Committee recommended the Ministry to explore the possibility of reducing the amount of contribution by certain backward states to ensure that project implementation is not affected.11 ## Pm Street Vendor'S Atmanirbhar Nidhi (Pm Svanidhi PM SVANidhi was launched in June 2020 to provide collateral free working capital loans of up to Rs 10,000 to street vendors.42 Vendors availing loan under the scheme are eligible for an interest subsidy of 7%. Further, the scheme also promotes digital transactions by vendors through a cash back facility. The subsidy is available till March 2022. The Standing Committee on Labour (2021) took note of the impact of COVID-19 on the livelihoods of street vendors.43 It recommended to explore the feasibility of converting the loan credit amount into a direct cash grant as livelihood support. The scheme has been allocated Rs 150 crore in 2022-23. There has been a decline of 50% in the allocation for PM SVANidhi over the revised stage of 2021-22. The Standing Committee on Housing and Urban Affairs (2021) observed that many street vendors have not been covered under the scheme, and many are still recovering from the effects of COVID-19 on their businesses.44 It recommended extending the scheme by at least another year. Low rate of sanction and disbursal of loans: The Standing Committee on Housing and Urban Affairs (2021) noted that ten states have sanction rates and disbursal rates (out of total loan applications received) less than 50%. Certain banks also have sanction rates less than 50%.44 Further, while the scheme guidelines require loans to be disbursed within 30 days, 31 states/UTs take longer to disburse loans. The Committee also noted that some lending institutions seek a CIBIL score (a three-digit numeric summary of credit history, rating, and report) before granting loans to vendors, which typically vendors may not have. It recommended: (i) providing timelines to states/UTs to improve their sanction and disbursal rate, (ii) investigating bank-specific reasons for low sanction rates, (iii) addressing delays in the loan disbursement process, and (iv) removing the requirement of seeking minimum CIBIL score for sanctioning loans under the scheme.44 Lack of private bank participation: The Standing Committee on Housing and Urban Affairs (2021) noted that there is a gap between the participation of private and public sector banks.44 As of February 2021, the share of private banks in the total loan applications was 4%. The Committee recommended increasing the participation of private banks under PM SVANidhi. Vendors not digitally active: The interest subsidy and cashback on digital transactions (credited to the vendor's account) are two primary components of the scheme. Under the Scheme, vendors who carry out their transactions digitally, will be given monthly cash backs as an incentive for adopting digital transactions. The Standing Committee on Housing and Urban Affairs (2021) noted that as of September 24, 2021, out of the total sanctioned applications (27 lakh), 21 lakh street vendors have been digitally on-boarded (given a QR code and debit card for facilitating digital transactions) under the Scheme. Of these, only 7.2 lakh street vendors are actively carrying out their business through digital transactions.44 The Committee recommended roping in ULBs to collaborate with third party digital payment aggregators to help onboard more street vendors and keep them digitally active.44 ## Ulbs Lack Technical Capacity; Affecting Progress Of Major Schemes While ULBs have been implementing various schemes, their performance in implementing Smart Cities Mission and AMRUT has been inadequate. One of the key reasons which affects the completion of urban infrastructure projects is lack of trained and competent manpower.11 Due to inadequate financial and technical capacity, ULBs are not able to implement major schemes like Smart City Mission and AMRUT.11 Therefore, the Committee recommended that suitable changes should be made to address this concern. The HPEC (2011) had observed that municipal administration has suffered due to (i) presence of untrained and unskilled manpower, and (ii) shortage of qualified technical staff and managerial supervisors.4 It recommended improving the technical capacity of ULBs. This can be achieved by providing technical assistance to state governments, and ULBs in planning, financing, monitoring, and operation of urban programs.11 ## Financial Capacity Of Cities Is Poor The schemes being implemented by the Ministry seek to decentralise the planning process to the city and state level, by giving them more decisionmaking powers. However, ULBs in India are amongst the weakest in the world both in terms of capacity to raise resources and financial autonomy.4 Municipal revenue in India accounts for only one percent of the GDP (2017-18).45 ULB's own revenue as per cent of GDP rose between 2010-11 (0.49%) and 2012-13 (0.53) but has declined thereafter. In 2017-18, own revenue stood at 0.43 per cent of GDP, the lowest in the last eight years. Municipal tax revenue forms a major yet declining share of own revenue. 46 The Constitution (74th Amendment) Act, 1992 had devolved certain functions relating to urban development to ULBs, including the power to collect certain taxes. These functions include urban planning, planning for economic and social development, and urban poverty alleviation. However, most states have not devolved enough taxation powers to local bodies. Note that many local taxes that were levied by ULBs have now been subsumed under GST.46 These local taxes include octroi tax, local body tax, entry tax, and advertisement tax. Further, local governments collect only a small fraction of their potential tax revenue.4 While the central and state governments provide the ULBs with funds, these devolved funds are largely tied in nature, to either specific sectors or schemes. This constrains the spending flexibility of ULBs. PPPs have been an important instrument to finance and develop infrastructure projects. However, projects in many sectors such as water-supply and urban transportation require support from ULBs in the form of additional financial resources. The Ministry of Finance observed that an inability to service such funding requirements constrains project implementation.47 In such cases where ULBs require financial resources, they can access capital markets through issuance of municipal bonds. Municipal bonds are marketable debt instruments issued by ULBs, the funds raised may be used for capital projects, refinancing of existing loans, and meeting working capital requirements. The Securities and Exchange Board of India regulations (2015) regarding municipal bonds provide that, to issue such bonds, municipalities must: (i) not have negative net worth in any of the three preceding financial years, and (ii) not have defaulted in any loan repayments in the last one year.48 Therefore, a city's performance in the bond market depends on its fiscal performance. To improve the finances of the ULBs, the HPEC recommended that state governments share a prespecified percentage of their revenues from all taxes on goods and services with ULBs.4 It had recommended mandating this constitutionally. Further, ULBs should be provided with formulabased transfers, and grants-in-aid.4 The ULBs could raise their own revenue by tapping into landbased financing sources, and improving non-tax revenues (such as water and sewerage charges, and parking fee).4 The 15th Finance Commission (2021) recommended that Rs 1.2 lakh crore be allocated to urban local bodies as grants for the period 2021-26.49 ## Larger Aspects Of Cities Ignored By Master Plans For Cities Master plans are statutory instruments to guide and regulate the development of cities and are critical for managing urbanization as well as spatial sustainability. NITI Aayog (2021) noted that 65% of the 7,933 urban settlements do not have any master plan.50 This leads to piecemeal interventions, haphazard constructions, urban sprawl, and environmental pollution, which can further aggravate issues such as traffic congestion, and flooding. It also noted that various shortcomings in the approaches of city planning and bottlenecks in plan implementation also need to be resolved. The HPEC (2011) had observed that larger aspects of planning at the metropolitan, regional, and national levels have received very little attention.4 Master Plans typically view cities in isolation from the larger region in which they are located.4 for instance, Master Plans tend to ignore the needs of low-income groups by not focusing on spatial planning (such as housing and transportation for the poor) for the urban poor.4 Further, Master Plans tend to treat transportation as a secondary issue. The procedures for the preparation and implementation of the Master Plans have tended to be rigid, time-consuming, and weak on the costing and financing of the future requirements of infrastructure.4 While cities are fast growing and dynamic entities, Master Plans have remained largely static.4 Despite investments and introduction of new schemes, lack of proper Master Plans in cities can lead to inadequate performance with respect to achieving the set targets. The Standing Committee on Urban Development (2021) inquired about the status of a master plan for holistic urban development.11 The Committee noted that formulation of a master plan is a state subject and the Ministry's role is defining the framework and broad guidelines. There should be master plans at three levels: (i) state, (ii) zonal, and (iii) city. The Committee recommended a plan of 30 years should be set involving convergence of schemes like Smart City Mission. AMRUT, and Swachh Bharat Mission.11 Further, it recommended that as the land in metro cities (Delhi, Mumbai) is owned by multiple authorities, extensive stakeholder consultation should be conducted while formulating the plan. The National Urban Policy (2020) outlines an integrated and coherent approach for managing Indian cities. It seeks to formulate localised solutions for various states/UTs.24 The Policy recognises state governments as the primary stakeholder responsible for urban development and offers assistance to states to prepare their own state urban policies.24 Town category Under preparation Total towns in category Approved Master Plans 4041 1566 359 Statutory Towns 3892 650 268 Census Towns 7933 2216 627 Total cities and towns Source: Reforms in Urban Planning Capacity India, NITI Aayog, 2020; PRS. 1 Budget Speech, 2022-23, February 1, 2022, https://www.indiabudget.gov.in/doc/budget_speech.pdf. 2 Notes on Demands for Grants, 2022-2023, Demand No. 60, Ministry of Housing and Urban Affairs, https://www.indiabudget.gov.in/doc/eb/sbe60.pdf. 3 Challenge of Urbanisation, Approach to the 12th five-year plan, Planning Commission, October 2011, http://planningcommission.gov.in/plans/planrel/12appdrft/appra och_12plan.pdf. 4 "Report on Indian Infrastructure and Services", High Powered Expert Committee for estimating the investment requirement for urban infrastructure services, March 2011, http://icrier.org/pdf/FinalReport-hpec.pdf. 5 Annual Financial Statement of the central government, 2022- 23, Government of India, https://www.indiabudget.gov.in/doc/AFS/allafs.pdf. 6 State Finances: A Study of Budgets 2021-22, Reserve Bank of India, November 30, 2021, https://rbi.org.in/Scripts/AnnualPublications.aspx?head=State% 20Finances%20:%20A%20Study%20of%20Budgets. 7 Report No. 4: Action Taken by the Government on the Recommendations Contained in the Second Report (Seventeenth Lok Sabha) of the Standing Committee on Urban Development on Demands for Grants (2020-2021), Standing Committee on Urban Development, February 4, 2021, http://164.100.47.193/lsscommittee/Housing%20and%20Urban %20Affairs/17_Urban_Development_4.pdf. 8 Report No.15, Standing Committee on Urban development, March 2017, http://164.100.47.193/lsscommittee/Urban%20Development/16_ Urban_Development_15.pdf. 9 "Guidance on use of Municipal Bond Financing for Infrastructure projects", Department of Economic Affairs, Ministry of Finance, September 2017, https://www.pppinindia.gov.in/documents/20181/33749/Guidan ce+on+use+of+Municipal+Bonds+for+PPP+projects.pdf/037cb 143-8305-4c57-8f3c-32e5a329297f. 10 Report No.2: Ministry of Housing and Urban Affairs, Demand for Grants (2020-21), Standing Committee on Urban Development, March 3, 2020, http://164.100.47.193/lsscommittee/Housing%20and%20Urban %20Affairs/17_Urban_Development_2.pdf. 11 Report No. 5: Demand for Grants (2021-22) for the Ministry of Housing and Urban Affairs, Standing Committee on Urban Development, March 8, 2021, http://164.100.47.193/lsscommittee/Housing%20and%20Urban %20Affairs/17_Urban_Development_5.pdf. 12 "NSS report no.584: Drinking Water, Sanitation, Hygiene and Housing condition in India, NSS 76th round (July –December 2018)", Press Information Bureau, November 23, 2019. 13 "Jal Jeevan Mission (URBAN) to Provide Universal Coverage of Water Supply", Ministry of Housing and Urban Affairs, February 2, 2021. 14 "India, ADB sign $350 million loan for sustainable urban services in India", Ministry of Finance, Press Information Bureau, December 20, 2021. 15 "Chapter 5: Urban Transport", National Transport Development Committee, 2014, http://www.aitd.net.in/NTDPC/voulme3_p2/urban_v3_p2.pdf. 16 "Present Network", Delhi Metro Rail Corporation LTD., last accessed on February 10, 2022, http://www.delhimetrorail.com/projectpresent.aspx. Implementation of Phase-III Delhi Mass Rapid Transit System https://cag.gov.in/uploads/download_audit_report/2021/Report %20No.%2011%20of%202021_DMRC_English- 061a88483a1f130.47012068.pdf. http://164.100.47.193/lsscommittee/Housing%20and%20Urban %20Affairs/17_Urban_Development_1.pdf. 19 Report of the Technical Group on Urban Housing Shortage (TG-12) (2012-17), Ministry of Housing and Urban Poverty Alleviation, September 22, 2012, http://nbo.nic.in/pdf/urbanhousing-shortage.pdf. 20 Report No. 6: Demands for Grants (2015-16) of Ministry of Housing and Urban Poverty Alleviation", Standing Committee on Urban Development, April 27, 2015. 21 Unstarred Question No.1439, Ministry of Housing and Urban Affairs, Lok Sabha, February 12, 2019, http://164.100.24.220/loksabhaquestions/annex/17/AU1439.pdf. 22 "PMAY-Urban-Progress", Pradhan Mantri Awas Yojana- Urban, website, last accessed on February 10, 2022, https://pmay-urban.gov.in/. 23 Starred Question No. 34, Ministry of Housing and Urban Affairs, Lok Sabha, February 3, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AS34.pdf. 24 National Urban Policy Framework, Ministry of Housing and Urban Affairs, https://iica.nic.in/images/Articles/NUPF_Final_Oct%202020.pd f. 25 Report No. 6: Demands for Grants (2015-16) of Ministry of Housing and Urban Poverty Alleviation, Standing Committee on Urban Development, April 27, 2015. 26 Economic Survey (2021-22), Ministry of Finance, January 31, 2022, https://www.indiabudget.gov.in/economicsurvey/. 27 "Cabinet approves creation of national Urban Housing Fund", Press Information Bureau, Ministry of Housing and Urban Affairs, February 22, 2018, http://pib.nic.in/newsite/PrintRelease.aspx?relid=176687. 28 Release of Central Assistance under Housing for All (Urban) Pradhan Mantri Awas Yojna from National Urban Housing Fund (NUHF), Ministry of Housing and Urban Affairs, March 13, 2020, https://mohua.gov.in/upload/uploadfiles/files/HUDCO_EWS_LI G_600000000_compressed.pdf. 29 PMAY (URBAN), Ministry of Housing and Urban Affairs, https://pmay-urban.gov.in/about. 30 Report of the Group of Secretaries, Group 4- Health, Sanitation and Urban Development, January 2017, https://smartnet.niua.org/sites/default/files/resources/report_of_s ectoral_group_of_secretaries_on_health_sanitation_urban_devel opment.pdf. 31 Draft National Urban Housing Policy, Ministry of Housing and Urban Affairs website, October, 2015, http://mohua.gov.in/upload/uploadfiles/files/National_Urban_Re ntal_Housing_Policy_Draft_2015.pdf. 32 The Model Tenancy Act, 2019, Ministry of Housing and Urban Affairs, July 10, 2019, http://mohua.gov.in/upload/whatsnew/5d25fb70671ebdraft%20 Model%20Tenancy%20Act,%202019.pdf. 33 Background Note on Model Tenancy Act, Ministry of Housing and Urban Affairs, 2020, http://mohua.gov.in/upload/uploadfiles/files/1%20Background% 20Note%20on%20MTA%20(English).pdf. 34 The Model Tenancy Act, 2021, https://mohua.gov.in/upload/uploadfiles/files/Model-Tenancy- Act-English-02_06_2021.pdf. 35 Unstarred Question No. 1846, Ministry of Housing and Urban Affairs, Lok Sabha, December 9, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU1846.pd f. 36 Swachh Bharat Mission Urban, Dashboard, Ministry of Housing and Urban Affairs, last accessed on February 8, 2022, http://swachhbharaturban.gov.in/Home.aspx. 37 India Fact-Sheet, National Family Health Survey-5, 2019-21, Ministry of Health and Family Welfare, http://rchiips.org/nfhs/NFHS-5_FCTS/India.pdf. 38 "Prime Minister launches Schemes for transforming Urban Areas- AMRUT 2.0 and Swachh Bharat Mission-Urban 2.0", Press Information Bureau, October 1, 2021. 39 Mission Statement and Guidelines, Atal Mission for Rejuvenation and Urban Transformation, Ministry of Urban Development, June 2015, http://amrut.gov.in/writereaddata/AMRUT%20Guidelines%20.p df. 40 Report No. 4: Action Taken by the Government On the Recommendations contained in the Second Report (Seventeenth Lok Sabha) Of the Standing Committee on Urban Development on Demands For Grants (2020-2021), Standing Committee on Urban Development, February 4, 2021, http://164.100.47.193/lsscommittee/Housing%20and%20Urban %20Affairs/17_Urban_Development_4.pdf. 41 Unstarred Question No. 1760, Ministry of Housing and Urban Affairs, Lok Sabha, July 29, 2021, http://164.100.24.220/loksabhaquestions/annex/176/AU1760.pd f. 42 "Scheme Guidelines", PM SVANidhi, Ministry of Housing and Urban Affairs, last accessed on February 7, 2022, https://pmsvanidhi.mohua.gov.in/Home/Schemes. 43 Report No. 25: Impact of COVID-19 on Rising Unemployment and Loss of Jobs/Livelihoods in Organised and Unorganised Sectors, Standing Committee on Labour, August 3, 2021, http://164.100.47.193/lsscommittee/Labour,%20Textiles%20and %20Skill%20Development/17_Labour_25.pdf. 44 Report No. 10: PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), Ministry of Housing and Urban Affairs, Standing Committee on Housing and Urban Affairs, December 13, 2021, http://164.100.47.193/lsscommittee/Housing%20and%20Urban %20Affairs/17_Housing_and_Urban_Affairs_10.pdf. 45 State of Municipal Finances, Fifteenth Finance Commission, March, 2019, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/ StudyReports/State%20of%20Municipal%20Finances%20in%2 0India.pdf. 46 State of Municipal Finances in India, Indian Council for Research on International Economic Relations, March 2019, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/ StudyReports/State%20of%20Municipal%20Finances%20in%2 0India.pdf. 47 "Guidance on use of Municipal Bond Financing for Infrastructure projects", Department of Economic Affairs, Ministry of Finance, September 2017, https://www.pppinindia.gov.in/documents/20181/33749/Guidan ce+on+use+of+Municipal+Bonds+for+PPP+projects.pdf/037cb 143-8305-4c57-8f3c-32e5a329297f. 48 Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015, Securities and Exchange Board of India, July 15, 2015, http://www.sebi.gov.in/sebi_data/attachdocs/1436964571 729.pdf. 49 Report for 2021-26, 15th Finance Commission, February, 2021, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/ Reports/XVFC%20Complete_Report.pdf. 50 Reforms in Urban Planning Capacity India Final Report, NITI Aayog, September 2021, https://www.niti.gov.in/sites/default/files/2021- 09/UrbanPlanningCapacity-in-India-16092021.pdf. ## Demand For Grants 2022-23 Analysis Science And Technology The Ministry of Science and Technology has three departments: (i) Department of Science and Technology (DST), (ii) Department of Scientific and Industrial Research (DSIR), and (iii) Department of Biotechnology (DBT). DST is responsible for promoting new areas of science and technology, coordinating, and integrating areas of science and technology having cross-sectoral linkages. It formulates and implements policies for the promotion of science, technology, research, and innovation in the country. DSIR is responsible for promotion, development, and transfer of indigenous technology. The Council for Scientific and Industrial Research (CSIR) is an autonomous body under DSIR which undertakes research and development in diverse areas. DBT is entrusted with the promotion and development of biotechnology. India's expenditure on Research and Development (R&D) activities remains low in comparison to developed countries. Further, R&D sector in India faces other issues such as: (i) lack of researchers, (ii) inadequate private investment, (iii) delays in approval of patents, and (iv) absence of an integrated approach towards R&D. In this note we examine the expenditure by the three Departments and discuss the key issues in the sector. Overview of Finances1,2,3 ## Expenditure In 2022-23, the Ministry of Science and Technology has been allocated Rs 14,217 crore. This comprises: (i) Rs 6,000 crore to DST (42% of the total), (ii) Rs 5,636 crore to DSIR (40%), and (iii) Rs 2,581 crore to DBT (18%). This is an increase of 5% over the revised estimate of 2021-22. Allocation to DST and DSIR in 2022-23 has increased by 15% and 6% over the previous year, respectively. Allocation to DBT has decreased by 13%. Almost all the expenditure under the Ministry is revenue expenditure (99.3% on average). In 2021-22, expenditure by DST and DBT is estimated to be 14% and 15% lower than the budget estimates, respectively. In 2022-23, DSIR has been allocated 5,636 crore, out of which 99% of the allocation is towards the Council of Scientific and Industrial Research (CSIR). In 2022-23, DBT has been allocated Rs 2,581 crore. Out of which 51% is towards Biotechnology Research and Development, and 32% towards Assistance to Autonomous Institutions. See Tables 4, 5 and 6 in the annexure for major allocation heads under DST, DSIR, and DBT respectively. Dept 2020-21 Actuals 2021- 22 RE 2022- 23 BE % Change (21-22 RE to 22-23 BE) DST 4,894 5,240 6,000 15% 1,375 1,488 1,500 1% -Autonomous Bodies 893 984 1,128 15% -Institutional and Human Capacity Building DSIR 4,199 5,298 5,636 6% -CSIR 4,202 5,234 5,563 6% DBT 2,259 2,961 2,581 -13% 1,287 1,494 1,315 -12% -Biotechnology Research and Development Total 11,351 13,499 14,217 5% Note: BE: Budget Estimates; RE: Revised Estimates. 2020-21 Actuals of CSIR was more than DSIR due to recoveries in other heads being netted off for DSIR expenditure. Source: Union Budget 2022-23; PRS. ## Growth In Expenditure The growth in the expenditure of the Ministry has been variable during the last decade (Figure 1 and 2). The year-on-year growth in expenditure was relatively higher during the 2015-18 period. During the 2018-21 period, the growth has slowed down. In 2018-19, the expenditure by the Ministry was only 3% higher than the previous year. In 2018-19, actual expenditure by DSIR registered a negative growth as compared to the previous year (-2%). In 2020-21, all three departments witnessed a decline in expenditure as compared to the previous year: (i) -9% for DST, (ii) -14% for DSIR, and (iii) -4% for DBT. During the 2018-23 period, the compounded annual growth rate in expenditure is: (i) 5% for DST, (ii) 6% for DSIR, and (iii) 2% for DBT. The expenditure in 2021-22 is estimated to be 19% higher over the low base of 2020-21 (COVID year). Note: Expenditure for 2021-22 is as per revised estimates. Source: Union Budget of various years; PRS. Regarding the expenditure of DST, the Standing Committee on Science and Technology (2020) had observed that there is a need for enhancement in the medium-term expenditure framework (MTEF) allocation to the DST.4 MTEF provides a three-year rolling target for the expenditure of a department.5 The Committee recommended that DST should pursue the Ministry of Finance for revision of the MTEF to a higher base level. This will help DST in carrying out its new initiatives and future plans.4 Note: Expenditure for 2021-22 is as per revised estimates. Source: Union Budget of various years; PRS. Underutilisation of funds During the 2016-20 period (four years), on average, DST spent 4% less than the budget estimates (Figure 3). The corresponding figures for DSIR and DBT are 1% and 2% respectively. In 2020-21 actual expenditure is lower than the budget estimates for all three departments: (i) -22% for DST and DISR each, and (ii) -19% for DBT. The Standing Committee on Science and Technology (2021) observed that budget allocation for DST and DSIR was reduced at the 2020-21 revised stage due to COVID-19.6,7 ## Underutilisation Of Funds For Industrial Research And Development DSIR utilises funds under Industrial Research and Development head towards: (i) Promoting Innovations in Individuals, Startups & MSMEs (PRISM), (ii) Patent Acquisition and Collaborative Research & Technology Development (PACE), (iii) Building Industrial R&D and Common Research Facilities (BIRD) and (iv) Access to Knowledge for Technology Development & Dissemination (A2K plus) programmes of the Department. The actual expenditure under this head has been lower than the budget estimates in all years between 2016-17 and 2019-20 (50% on average). Source: Union Budget of various years; PRS. ## Issues For Consideration India'S Expenditure On Research And Development On A Decline Investment in science is measured in terms of gross expenditure in research and development (GERD).8 It includes expenditure on research and development by business enterprises, higher education institutions, governments, and private non-profit organisations. GERD as a percentage of GDP has been declining since 2009-10 (Figure 5). GERD in 2018-19 was estimated to be 0.65% of GDP (latest year till which estimates are available).9 Science and Technology; PRS. India's GERD (2018) was substantially lower than countries such as Germany, USA, China, and Brazil (Figure 6). However, India's GERD is higher than the average for lower-middle-income group countries. The Science, Technology, and Innovation Policy, 2013 (administered by the Ministry of Science and Technology) had observed that increasing GERD to 2% of GDP has been a national goal for quite some time.10 The Policy had observed that the target for GERD could be achieved by 2018- 19 if the private sector at least matches the expenditure level of the public sector.10 The Standing Committee on Science and Technology (2021) recommended the DST to enhance the GERD as a % of GDP by promoting private sector investment in R&D.6 Note: Data for lower middle-income countries is from 2017. Source: World Bank; PRS. Public sector investment on R&D on a decline; lowest since 2004-05 The Science, Technology, and Innovation Policy, 2013 had observed that the public sector has led the expenditure on R&D in the country.10 This includes expenditure by: (i) all central government ministries, (ii) public sector units, (iii) state governments, and (iv) higher education institutes. Expenditure by the public sector has also been declining since 2008-09 (Figure 7). Expenditure by the public sector towards R&D is estimated to be 0.41% of GDP in 2018-19, the lowest since 2004-05. Public sector corporations spend a lesser portion of their sales turnover on R&D as compared to private sector companies (Figure 8). In 2017-18, private sector companies spent 1.48% of their sales turnover on R&D. The corresponding percentage for the public sector industries was 0.29%. Note: Data for public sector refers to 103 industrial R&D units. Data for private sector refers to 2,007 industrial R&D units excluding scientific and industrial research organisations. The public sector contributed 48% of the total sales turnover of the considered units in 2017-18. Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. ## Need To Increase Investment In R&D By State Governments The Economic Survey (2017-18) observed that the government expenditure on R&D is undertaken almost entirely by the central government. There is a need for greater state government spending (Figure 9Figure).8 Note: Central sector includes expenditure by central ministries and central public sector units. State sector includes spending by the state ministries/organisations and state agricultural universities. Examples of Higher Education Institutes are IITs and Indian Institute of Science, Bangalore. Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. The annual growth rate of R&D expenditure of states in 2017-18 over 2009-10 was 8.2%.11 In 2017-18, the share of state sector in national R&D expenditure was 6%. A few states accounted for a major share of the total state-sector R&D expenditure. More than 55% of the total R&D expenditure of the states was accounted by seven states- Gujarat, Tamil Nadu, Punjab, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, and Assam (Table 9 in annexure shows state-wise share of R&D expenditure).11 Further, state-wise distribution of number of patent applications filed by Indians during 2017-18 shows that more than 75% applications were from seven states- Maharashtra, Tamil Nadu, Karnataka, Delhi, Telangana, Uttar Pradesh, and Gujarat.11 ## Share Of Private Sector Investment Low In National Expenditure On R&D It is observed that in countries where R&D investment is about 2% or more of their GDP, major contribution (>50%) comes from the private sector.8 The Economic Survey (2017-18) had observed that in countries such as the USA, China, Germany, and Japan, the share of the private sector in the overall spending in research and development is significantly higher.8 In India, the contribution of private sector is 37% and the rest 63% of national R&D expenditure comes from the government (Figure 10). The Economic Survey (2017-18) Survey took note of an analysis by a private organisation (Forbes, 2017).8 According to this analysis, India had 26 firms in the list of top 2,500 global R&D spenders as compared to 301 Chinese companies. 19 of these 26 firms were in three sectors: (i) pharmaceuticals, (ii) automobiles, and (iii) software. India had no firms in five of the top ten R&D sectors as opposed to China, which has a presence in each one of the top five sectors. The Science, Technology, and Innovation Policy, 2013 Policy had stressed that the expenditure on R&D by the private sector needs to go up.10 It had observed that an increase in private investment is necessary for translating R&D outputs into commercial outcomes. However, the expenditure on R&D by the private sector has decreased from 0.27% of GDP in 2012-13 to 0.24% of GDP in 2018-19 (Figure 11). NITI Aayog (2018) noted that low investment by the private sector in R&D is a key challenge in the development of the innovation ecosystem in the country.12 Note that the Draft Science, Technology, and Innovation Policy, 2020 seeks to double the GERD and the private sector contribution to GERD in five years.13 Since October 2019, companies have been allowed to use corporate social responsibility funds (CSR) for contributions towards research.14 They can spend CSR funds as contributions to public-funded incubators, research organisations and universities engaged in research in science, technology, engineering, and medicine. Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. Low number of researchers per million people India's researchers per million people have increased from 157 in 2011 to 253 in 2018.15 However, it remains significantly low when compared to other countries (See Figure 12). Note: Data for USA and Middle-income countries is from 2017 and 2015 respectively. Source: World Bank; PRS. Note that India's gross enrolment ratio (GER) in higher education itself is low as compared to these countries. In 2018-19, India's GER in higher education was 26.3%.16 In comparison, the GER in higher education in countries such as USA, China, and Germany was 88%, 49%, and 70%, respectively.17 The National Education Policy 2020 recommends increasing GER in higher education to 50% by 2035.18 The Economic Survey (2017-18) observed that considerable improvement in mathematics and cognitive skills is required at the primary and secondary education level to enable the R&D ecosystem in the country.8 The National Education Policy 2020 also aims to improve foundational literacy and numeracy and cognitive capacities of students.18 ## Low Number Of Female Researchers The Ministry of Science and Technology observed that women in India face several challenges in moving up the academic and administrative ladder due to systemic barriers and structural factors.19 The share of female researchers in India has increased from 14% in 2015 to 19% in 2018.15 However, it is less than other countries such as Sri Lanka (47% in 2017), European Union (34% in 2017), and Switzerland (35% in 2017).15 A Report by UNESCO (2015) noted the lack of women's participation in research globally.20 Further, it stated that women actively pursue bachelor's and master's degree but their participation drops at the PhD level. High proportion of women in tertiary education is, thus, not translated to a greater participation in research.20 The share of female researchers in engineering and technology in India also remains low. In 2018, share of female researchers in engineering and technology was 14%.15 Initiatives to promote gender equity in the field of research include: (i) Women Scientists Scheme (2002-03) that seeks to give financial incentives (fellowships, and grants) to women in the age group 27-57 years who wish to pursue research in various fields, and (ii) Gender Advancement for Transforming Institutions (2020), that aims to mentor institutions in order to make them more inclusive and sensitive towards women, and to promote gender equity in science, technology, engineering and mathematics (STEM) domains.19,21 ## Inadequate Incentives For Researchers UNESCO (2021) observed that university graduates in India from STEM represent a little over one in four graduates.15 Science graduates also make up a greater share of the total than graduates in engineering and technology.15 UNESCO (2021) observed that, although India has a low researcher density, there is little evidence to show that demand for STEM graduates has increased, as investment in R&D has not kept pace with the rise in GDP.15 NITI Aayog (2018) had observed that the link between research, higher education, and the industry is weak and nascent in India.12 It further observed that so far, the education system has not focussed on cultivating scientific temperament at an early age. Even in the later stages, the lack of career opportunities in basic sciences leads to the diversion of potential researchers to other rewarding sectors. It had recommended that once the Higher Education Commission is set up, the Commission may consider giving credits for innovation and startups.12 The Commission should also consider setting up online entrepreneurial development courses in colleges and universities.12 The Higher Education Commission is proposed to replace the existing regulatory institutions for higher education.12 The Economic Survey (2017-18) also noted that more than one lakh people with PhDs, who were born in India, live and work outside India.8 In USA alone, the number of immigrant scientists and engineers from India increased from five lakh in 2003 to 9.5 lakh in 2013.8 It noted that government programs such as Ramanujan Fellowship Scheme, INSPIRE Faculty Scheme, and Ramalingaswami Re-Entry Fellowships provide opportunities to Indian researchers residing in foreign countries to work in Indian universities. However, the number of people returning has been modest (243 during 2007-12 and 649 during 2012-17).8 The Survey recommended enhancing the scope of these schemes to also provide additional support for good research instead of just financial incentive. The additional support should include: (i) laboratory resources, and (ii) ability to hire post-docs.8 ## Exploring Upcoming Areas Of R&D The Draft Science and Tech Policy (2020) noted that India is largely dependent on the import of technologies in the priority sectors (such as agriculture, health, energy, and environment).13 The Policy outlined the need to achieve self-reliance and address local problems, through science, technology, and innovation.13 Further, it observed that there is a need to focus on: (i) indigenous development of technology, (ii) providing sustainable solutions through technology, and (iii) promoting the development of disruptive technologies (such as blockchain, and artificial intelligence).13 NITI (2021) Aayog recommended undertaking steps to promote R&D in emerging fields such as artificial intelligence artificial intelligence, automation, and cybersecurity.28 The National Strategy for Artificial Intelligence, NITI Aayog (2018) noted the need to promote R&D in artificial intelligence technologies to improve health care, education, agriculture, and to enable smart cities infrastructure, and smart mobility.22 | Sector | % Share | |--------------------------------------|----------------------------------------| | Health | 19% | | Defence | 17% | | Agriculture, forestry, and fishing | 13% | | Industrial production and technology | 10% | | Exploration of Space | 9% | | 9% | Transport, telecommunication and other | | infrastructure | | | Energy | 7% | | General advancement of knowledge | 7% | | Others | 11% | Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. Some recent measures to incentivise R&D across sectors include: - In December 2021, the Union Cabinet several programmes to promote R&D and manufacturing in semiconductor and electronic display industry in India.23 The Ministry of Electronics and Information Technology will take steps to modernise and commercialise the Semi-Conductor Laboratory, an autonomous body engaged in R&D in areas of microelectronics. - Ministry of Electronics and Information Technology released the National Strategy on Blockchain (2021) which seeks to promote advanced research in indigenous blockchain technology.24 It identified the lack of availability skilled manpower as a challenge for the development of blockchain. - The National Mission on Transformative Mobility and Battery Storage, approved in March, 2019, seeks to promote R&D in production of electric vehicles and batteries.25 - In 2021, a production linked scheme for promoting telecom and networking products manufacturing in India.26 Under the scheme, there is a component to provide capital expenditure on R&D and product development. The total outlay of the Scheme is Rs 12,195 crore (2021-22 to 2025-26). - In the 2022-23 budget speech, there were two announcements for promoting R&D- (i) government contribution and support for R&D in upcoming fields such as artificial intelligence, drones, green energy, and space economy, and (ii) introduction of a PPP scheme for delivery of digital and high-tech services to farmers with involvement of public sector research alongside other stakeholders.27 NITI Aayog (2021) noted that R&D should be geared towards providing solutions to national problems such as climate change, inadequate potable clean water, and affordable healthcare.28 The use of R&D outputs for providing end-to-end solutions requires strong linkage of the R&D sector with central and state governments. NITI Aayog recommended: (i) formulating an oversight and monitoring mechanism may be formed to oversee R&D programmes, and (ii) constituting six sector task forces on R&D mission on water, agriculture health, energy, climate change, and national security. Share in global scientific publications increased but target set in the 2013 Policy likely to be missed The Economic Survey (2017-18) noted that looking at scientific publications can help in assessing the productivity and quality of research.8 The Science, Technology, and Innovation Policy 2013 observed that India's share in the global scientific publications had increased from 1.8% in 2001 to 3.5% in 2011.8 The Policy had set a target of doubling the global share in the scientific publications by 2020.8By 2016, India increased its share in the global scientific publication to 4.1% (latest data available).9 The compounded annual growth rate (CAGR) for scientific publications during the 2011-2016 period for India has been 6.4% as against the CAGR of 3.7% for the world.9 If the publication output were to grow at the same rate, India's share in 2020 will be about 4.5%. This will be lower than the target set by the 2013 Policy for 2020 (7% share in the global scientific publications). Note: Data is as per the Science Citation Index (SCI) Database. Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. The Economic Survey (2017-18) observed that in addition to increasing publications, India needs to improve in terms of high-quality research output (measured as highly cited articles).8 It noted that India lags considerably on this parameter when compared to other large countries such as USA and China.8 ## Low Number Of Patents In India; Delays In Patent Approval There has been gradual increase in the filing and granting of patents in India. The number of patents filed in India has gone up from 39,400 in 2010-11 to 58,502 in 2020-21 and the patents granted in India has gone up from 7,509 to 28,391 during the same time period.30 India's ranking in Global Innovation Index has also improved, from 81 in 2015-16 to 46 in 2021.30 However, the number of patents granted in India is low when compared to other countries like China, USA, Japan, and Korea.30 One of the key reasons for relatively low patents in India is the low expenditure R&D.30 The Standing Committee on Commerce noted that India grants a low number of patents (as compared to China and the USA), which can be attributed to low spending on research and development (0.7% of the GDP in 2020).29 It recommended: (i) allocating funds to each government Department for research, (ii) providing incentives to private companies for undertaking research, and (iii) directing large industries to give CSR funds for research.29 The Economic Survey (2021-22) observed that the procedural delays and complexity of the process is another cause for low patents in India. 30 The average pendency for final decision in acquiring patents in India is 42 months as of 2020. This is much higher than other countries (See Figure 15). Note that average pendency for final decision in acquiring patents has reduced in India from 64 months in 2017 to 42 months in 2020.30 Source: Economic Survey (2021-22); PRS. Delay in India's patent application is also due to the low number of patent examiners in India.30 The number of patent examiners in India in 2020 were 615 as opposed to 13,704 in China, 8,132 in United States and 1,666 in Japan (Figure 16). Source: World Intellectual Property Indicators, 2021; PRS. Resident share in patent applications needs to increase The Economic Survey (2017-18) had observed that patents reflect a country's standing in technology.8 During the 2007-18 period, the patent applications filed in India grew at a CAGR of 3%.8 As can be seen in Figure, a larger number of patent applications in India are filed by non-residents (64% in 2019) as compared to countries such as China (11%) and USA (54%).31 However, the share of residents in patent applications has been steadily increasing (Figure 18).9 The Economic Survey (2021-22) noted that the number of patents application are increasingly coming from Indian residents rather than MNCs.30 The share of Indian residents in total applications has increased from 20 per cent in 2010-11 to around 30% in 2016-17 and 40% 2020-21. The Economic Survey (2020-21) had observed that resident share in the patent applications needs to rise further for India to become an innovation nation.31 The Standing Committee on Commerce noted that only 36% (2019-20) of patents filed in India are filed by domestic entities.29 It attributed this to lack of awareness of Intellectual Property Right (IPR), and recommended the Department for Promotion of Industry and Internal Trade (DPIIT) to increase awareness among small businesses, artisans, and establishments in remote areas with participation of non-governmental organisations.29 Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. Role of universities in R&D needs to increase The Economic Survey (2017-18) observed that in several countries, universities play a critical role in both creating the talent pool for research as well as generating high-quality research output.8 However, publicly funded research in India is concentrated in specialised research institutes under different government departments.8 This leaves universities to largely play a teaching role. Hence, universities play a relatively small role in research activities. The Survey recommended linking national laboratories to universities for improvement in the knowledge ecosystem. The National Education Policy (2020) proposed to establish a National Research Foundation (NRF) to enable a culture of research through universities.32 NRF seeks to promote R&D through suitable incentives at the state universities and other public institutions where research capacity is limited. ## Foreign Direct Investment In R&D Remains Low The Office of the Principal Scientific Advisor noted that Foreign Direct Investment (FDI) is one of the key factors for enhancing R&D exports.33 India's share in global R&D exports was about 2.8% in 2019.33 R&D exports include: (i) licensing of intellectual property, (ii) technology embodied in exported intermediate goods, (iii) technology transfer through FDI, and (iv) outflow of technical services. India has a trade surplus in R&D services.33 During 2011-20, India's R&D exports grew at a CAGR of 26.6%, the highest growth among the top 10 exporting countries in R&D.33 However, R&D accounts for only a tiny share of FDI inflows into India (0.25% in 2018-19).34 Further, it is mostly concentrated in four sectors - Information and Communication Technology, Natural Sciences and Engineering, Pharmaceuticals, and Clinical Research (more than 80%).34 The Economic Advisory Council to the Prime Minister suggested a goal of increasing yearly FDI inflow into R&D to USD 300 million by 2022.35 However, FDI in R&D has been on a decline since 2015-16 (Table 3).34 Table 3: FDI equity inflow (in USD million) Year R&D Total % Share 2015-16 235 40,001 0.59% 2016-17 84 43,478 0.19% 2017-18 107 44,857 0.24% 2018-19 110 44,366 0.25% 2019-20 67 49,977 0.13% Source: Note titled "FDI into R&D: Current Status and Way Forward" by the Office of the Principal Scientific Advisor; PRS. ## Adoption Of Technologies Developed By Publicfunded Research Organisations Is Low NITI Aayog (2018) had observed that the rate of transfer of technology developed by public-funded institutions such as the Council of Scientific and Industrial Research (CSIR) is relatively low.12 It highlighted poor marketing skills and information dissemination as key reasons for this.12 It suggested the following measures to enhance technology commercialisation by public-funded institutions: - Value addition centres may be set up in these institutions for: (i) upscaling technologies and improving technology readiness level, (ii) coordinating with investors to incubate entrepreneurs, (ii) enabling commercialisation and marketing, and (iii) providing technology support during production. - A National Technology Data Bank should be created by the DST which will act as the central database for technologies that are ready for deployment or under development. - Public funded research institutions should focus on the development and deployment of socially relevant technologies in areas such as clean drinking water, sanitation, energy, healthcare, and organic farming. These technologies have a large potential for commercialisation. The Standing Committee on Science and Technology (2021) observed that the research done in industrial sciences by National Laboratories under CSIR is credible.7 However, it noted that there is still a gap between the requirements of the industries and the research output of the National Laboratories. The Committee recommended that avenues for translation of technology and commercialisation of research should be further augmented. CSIR should work towards bridging the gap between the needs of industries and research provided by the laboratories. ## Tax Incentives For R&D To The Private Sector Have Been Reduced India used to allow a weighted tax deduction of 200% of expenditure towards in-house research and development to corporations.31 This was reduced to 150% from April 2018. This is going to be reduced further to 100% from April 2021. The Standing Committee on Science and Technology (2020) was informed that withdrawal of tax incentive on R&D as well as exemptions on funds spent in acquiring patents by the private sector, has negatively affected the R&D investment in the private sector.4 The Committee observed that the tax incentive had stimulated R&D spending by the private sector. ## Public Procurement Does Not Encourage New And Innovative Technologies NITI Aayog (2018) had observed that public procurement is biased in favour of experienced and established products and technologies.12 This discourages new and innovative technologies offered by startups.12 It recommended that: - international competitive bidding should be resorted to only when Indian manufacturers are unable to supply products or services of comparable international quality; - to adopt innovative technologies, experts or scientific practitioners should be mandatorily included on committees related to public procurement; and - Indian startups should be given preference in the technical evaluation for public procurement. Following incentives are available to startups recognised by the Department for Promotion of Industry and Internal Trade: (i) relaxation in prior turnover and prior experience requirements, subject to meeting of quality and technical specifications (notified in March 2016), (ii) relaxation in bid security deposit requirements (notified in July 2017).36,37,38 Startups can also get the opportunity to work on trial orders with the government.36 The recognised startups are allowed to offer their products and services for procurement on government's e-marketplace platform.39 This is aimed at helping startups to introduce unique innovations to government and public sector unit buyers.39 3 Demand No. 91, Department of Biotechnology, Ministry of Science and Technology, https://www.indiabudget.gov.in/doc/eb/sbe91.pdf. 4 Report No 329: Demand for Grants (2020-2021) of the Department of Science and Technology, Standing Committee on Science and Technology, Environment, Forests, and Climate Change, March 6, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/19/126/329_2020_12_15.pdf. 5 Medium-term Expenditure Framework Statement laid before parliament, August 2018, https://dea.gov.in/sites/default/files/MTEF%20Statement%20%28e nglish%29%202018.pdf. 6 Report No. 344: Demand for Grants (2021-22) of the Department of Science and Technology, Standing Committee on Science and Technology, Environment, Forests and Climate Change, March 8, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/19/147/344_2021_7_12.pdf. 7 Report No. 343: Demands for Grants (2021-2022) of the Department Of Scientific and Industrial Research, Standing Committee On Science and Technology, Environment, Forests and Climate Change, March 8, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/19/147/343_2021_7_12.pdf. 8 Chapter 8: Transforming Science and Technology in India, Volume I, Economic Survey 2017-18, https://www.thehinducentre.com/resources/article10057766.ece. 9 S&T Indicators Tables, 2019-20, Research and Development Statistics 2019-20, Department of Science and Technology, March 2020, https://dst.gov.in/document/reports/st-indicators-tables- 2019-20. 10 The Science, Technology, and Innovation Policy 2013, Ministry of Science and Technology, http://dst.gov.in/sites/default/files/STI%20Policy%202013- English.pdf. 11 Research and Development Statistics, 2019-20, Ministry of Science & Technology, December 2020, https://dst.gov.in/sites/default/files/Research%20and%20Deveopm ent%20Statistics%202019-20_0.pdf. 12 "Strategy for New India @75", NITI Aayog, November 2018, https://www.niti.gov.in/sites/default/files/2019- 01/Strategy_for_New_India_2.pdf. 13 Draft 5th Science, Technology, and Innovation Policy, Department of Science & Technology, December 2020, https://dst.gov.in/sites/default/files/STIP_Doc_1.4_Dec2020.pdf. 14 G.S.R. 776 (E), Ministry of Corporate Affairs, October 11, 2019, http://egazette.nic.in/WriteReadData/2019/213151.pdf. 15 UNESCO Science Report 2021, UNESCO, https://www.unesco.org/reports/science/2021/en/download-report. 16 All India Survey on Higher Education, 2018-19, Ministry of Human Resource Development, https://www.education.gov.in/sites/upload_files/mhrd/files/statistic s-new/AISHE%20Final%20Report%202018-19.pdf. 17 "National Monitoring: Gross enrolment ratio by level of education", Website of UNSECO Institute for Statistics as accessed on February 11, 2021, http://data.uis.unesco.org/. 18 National Education Policy 2020, Ministry of Human Resource Development, Ministry of Human Resource Development, December 2019, https://www.education.gov.in/sites/upload_files/mhrd/files/NEP_F inal_English_0.pdf. 19 "Women Scientists Programs", Department of Science and Technology, Ministry of Science and Technology, as accessed on February 10, 2022, https://dst.gov.in/scientificprogrammes/scientific-engineering-research/women-scientistsprograms. 20 UNESCO Science Report 2015, UNESCO, 2015, https://en.unesco.org/sites/default/files/usr15_is_the_gender_gap_ narrowing_in_science_and_engineering.pdf. 21 "DST's programmes provide support for women from all walks & stages of life to boost their career in STEM fields" Ministry of Science & Technology, Press Information Bureau, March 7, 2021. 22 Approach Document for India Part 1 - Principles for Responsible AI, NITI Aayog, February, 2021, https://www.niti.gov.in/sites/default/files/2021-02/Responsible-AI- 22022021.pdf. 23 "Cabinet approves Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India", Press Information Bureau, December 15, 2021. 24 National Strategy on Blockchain, Ministry of Electronics and Information Technology, December, 2021, https://static.psa.gov.in/psaprod/psa_custom_files/National_BCT_Strategy%202021.pdf. 25 "National Mission on Transformative Mobility and Battery Storage approved by Cabinet", Press Information Bureau, Press Information Bureau, March, 2019. 26 "Production Linked Incentive (PLI) Scheme for Promoting Telecom and Networking Products Manufacturing in India", Ministry of Communications, Press Information Bureau, October 14, 2021. 27 Budget Speech, 2022-23, February 1, 2022, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf. 28 Reforms and Action Points to Strengthen Science, Technology and Innovation Ecosystem in India, NITI Aayog, August, 2021, https://www.niti.gov.in/sites/default/files/2021- 09/PublishedReformsinST.pdf. 29 Report No. 161: Review of the Intellectual Property Rights Regime in India, Standing Committee on Commerce, July 23, 2021, https://www.niti.gov.in/sites/default/files/2021- 02/Responsible-AI-22022021.pdf. https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/R eportFile/13/141/161_2021_7_15.pdf. 30 Chapter 9: Services, Economic Survey, 2021-22, https://www.indiabudget.gov.in/economicsurvey/. 31 Chapter 8: Innovation: Trending Up but needs thrust, especially from the Private Sector, Volume I, Economic Survey 2020-21, https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/ echap08_vol1.pdf. 32 National Education Policy, 2020, Ministry of Human Resource Development, https://www.education.gov.in/sites/upload_files/mhrd/files/NEP_F inal_English_0.pdf. 33 Note on R&D Exports, Office of the Principal Scientific Advisor to the Government of India, December 10, 2020, https://www.psa.gov.in/psaprod/publication/R%26D%20Exports.pdf. 34 Note on FDI into R&D, Office of the Principal Scientific Advisor to the Government of India, November 10, 2020, https://www.psa.gov.in/psaprod/publication/FDI%20in%20R%26D.pdf. 35 "R&D Expenditure Ecosystem: Current Status and Way Forward", Economic Advisory Council to the Prime Minister of India, July 2019, https://www.psa.gov.in/psa-prod/publication/RD- book-for-WEB.pdf. 36 "Procurement by Government", Website of Startup India as accessed on February 14, 2021, https://www.startupindia.gov.in/content/sih/en/public_procurement .html. 37 Policy Circular No 1(2)(1)/2016-MA, Ministry of Micro, Small, and Medium Enterprises, March 2016, https://www.startupindia.gov.in/content/dam/investindia/Templates/public/notification/Relaxed_Norms_of_Public_Pr ocurement_for_Startups/1.%20Relaxed_Norms_of_Public_Procur ement_for_Startups.pdf. 38 No.F.20/2/2014-PPD(Pt.), Department of Expenditure, Ministry of Finance, July 25, 2017, https://www.startupindia.gov.in/content/dam/investindia/Templates/public/notification/Relaxed_Norms_of_Public_Pr ocurement_for_Startups/2.%20Notification_EMDExemption.pdf. 39 "Easing Public Procurement", Website of Startup India as accessed on February 14, 2021, ## Annexure Table 4: Major Allocation Heads-Dst (In Rs Crore) | Particular | 2020-21 Actuals | 2021-22 BE | 2021-22 RE | 2022-23 BE | % Change from | |-------------------------------------------|--------------------|---------------|---------------|---------------|----------------------------------------| | 2021-22 RE to | | | | | | | 2022-23 BE | | | | | | | Autonomous Bodies | 1,375 | 1,488 | 1,488 | 1,500 | 1% | | Institutional and Human Capacity Building | 893 | 1,100 | 984 | 1,128 | 15% | | 630 | 952 | 701 | 813 | 16% | Innovation, Technology Development and | | Deployment | | | | | | | Statutory and Regulatory Bodies | 751 | 950 | 975 | 903 | -7% | | 741 | 900 | 900 | 803 | -11% | -Science and Engineering Research | | Board | | | | | | | -Technology Development Board | 10 | 50 | 75 | 100 | 33% | | Research and Development | 396 | 594 | 457 | 604 | 32% | | Survey of India | 423 | 531 | 472 | 524 | 11% | | National Mission on ICPS | 270 | 270 | - | 350 | - | Note: SERB: Science and Engineering Research Board; TDB: Technology Development Board; ICPS: Interdisciplinary Cyber Physical Systems. RE: Revised Estimates; BE: Budget Estimates. Autonomous bodies include 25 research institutes. Source: Expenditure Budget; PRS. Table 5: Major Allocation Heads-DSIR (in Rs crore) Particular 2020-21 Actuals 2021-22 BE 2021-22 RE 2022-23 BE % Change from 2021- 22 RE to 2022-23 Total-CSIR 4,202 5,144 5,234 5,563 6% a. National Laboratories 3,802 4,669 4,759 5,103 7% 400 475 475 460 -3% b. Capacity Building and Human Resource Development 13 21 21 29 38% Industrial Research and Development 9 14 11 10 -9% Assistance to PSEs for Other Scientific Research Schemes Note: RE: Revised Estimates; BE: Budget Estimates. Source: Expenditure Budget; PRS. | Particular | 2020-21 Actuals | 2021-22 BE | 2021-22 RE | 2022-23 BE % Change from 2021-22 | |---------------------------------------|--------------------|---------------|---------------|-------------------------------------| | RE to 2022-23 BE | | | | | | 1,287 | 1,660 | 1,494 | 1,315 | -12% | | Development | | | | | | 341 | 960 | 710 | 365 | -49% | | Development | | | | | | Assistance to Autonomous Institutions | 577 | 807 | 697 | 830 | | 28 | 40 | 25 | 35 | 40% | | Assistance Council | | | | | Note: RE: Revised Estimates; BE: Budget Estimates. Autonomous institutions include 16 R&D institutions. Source: Expenditure Budget; PRS. Indicator 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22* Ongoing Projects 2,212 1,955 1,893 2,165 2,460 2,405 2,081 2,143 Projects Sanctioned 656 415 552 831 847 594 259 161 Ongoing International Collaborative Projects 42 66 79 101 139 96 69 82 Scientists Supported (PI/CoPI) 4,801 4,493 4,569 5,121 5,553 4,521 2,364 - Research Personnel (JRF+SRF+RA) 5,766 6,076 6,180 6,195 6,221 6,312 - - CTEP-Proposals Sanctioned Conferences - - 161 92 83 96 8 16 Travels - - 522 421 314 317 303 15 Exhibitions - - 9 8 9 17 16 3 Popular Lectures - - 6 13 10 28 2 9 Technologies Generated 117 90 136 75 82 119 - - Publications 2,482 2,494 2,654 1,904 3,478 3,758 - - Patents Filed 186 160 181 102 93 76 - - Note: *as of February 13, 2022. PI: Principal Investigator; CoPI: Co-Principal Investigator; JRF: Junior Research Fellowship; SRF: Senior Research Fellow; RA: Research Assistant. CTEP: Conference, Travel, Exhibition, and Popular Lectures. Source: Dashboard of the Department of Biotechnology as accessed on February 13, 2022; PRS. | Indicator | 2018-19 | 2019-20 | 2020-21 | |----------------------------------------|------------|------------|-------------| | Human Capacity Building | | | | | Fellowships provided | 1,16,854 | 92,869 | 2,528 | | 2,323 | | | | | Number of people trained | 20,381 | 2,805 | 77,972 | | 33,995 | | | | | Number of conferences | 640 | 389 | 531 | | 521 | | | | | Research and Development | | | | | New R&D Projects | 3,658 | 691 | 1,014 | | 53,410 | | | | | Ongoing Projects | 7,982 | 10,479 | 4,004 | | 2,906 | | | | | Institutional Capacity Building | | | | | New R&D Infra | 251 | 102 | 325 | | 352 | | | | | Innovation and Startups | | | | | Number of Innovations | 468 | 658 | 797 | | 937 | | | | | Startups | 898 | 791 | 815 | | 549 | | | | | International Cooperation | | | | | International Collaborative Visits | 3,302 | 774 | 1 | | 6 | | | | | Ongoing Projects | 478 | 2,931 | 2,554 | | 1,702 | | | | | Fellowships | 66 | 144 | 147 | | 262 | | | | | Number of Manpower Trained | 1,221 | 569 | 283 | | 336 | | | | | Science and Engineering Research Board | | | | | Number of Ongoing Projects | 6,033 | 26,664 | 30,532 | | 23,156 | | | | | Number of New R&D Projects | 2,492 | 2,076 | 1,641 | | 748 | | | | | Human Resource Development | 2,912 | 2,049 | 658 | | 118 | | | | | Development Activities | 2,212 | 1,868 | 0 | | 135 | | | | | Autonomous Institutions | | | | | Number of Publications | 2,336 | 2,624 | 3,702 | | 3,164 | | | | | Number of PhDs Produced | 221 | 296 | 217 | | 183 | | | | | Number of Manpower Trained | 1,896 | 5,452 | 4,120 | | 5,975 | | | | | Number of Patents Granted | 38 | 98 | 138 | | 107 | | | | Source: Dashboard of the Department of Science and Technology as accessed on February 10, 2022; PRS. | State | % Share | |------------------|------------| | Gujarat | 10.9 | | Tamil Nadu | 9.5 | | Punjab | 7.6 | | Andhra Pradesh | 7.5 | | Madhya Pradesh | 6.7 | | Uttar Pradesh | 6.5 | | Assam | 6.3 | | Haryana | 5.2 | | Karnataka | 5.1 | | Jammu & Kashmir | 4 | | Uttarakhand | 3.9 | | West Bengal | 3.8 | | Telangana | 3.8 | | Chhattisgarh | 3.6 | | Maharashtra | 3.1 | | Rajasthan | 2.7 | | Kerala | 2.2 | | Himachal Pradesh | 2.2 | | Odisha | 2.1 | | Manipur | 1.4 | | Jharkhand | 1.3 | | Bihar | 0.7 | | Meghalaya | | Source: Research and Development Statistics 2019-20; Ministry of Science and Technology; PRS. ## Demand For Grants 2022-23 Analysis Petroleum And Natural Gas The Ministry of Petroleum and Natural Gas is concerned with exploration and production of oil and natural gas, refining, distribution and marketing, import and export, and conservation of petroleum products. ## Overview Of Finances The Ministry has been allocated Rs 8,940 crore for 2022-23, a 1% increase over the revised estimates of 2021-22. Petroleum and Natural Gas (in Rs crore) | % | Major | |-----------|----------| | Heads | | | Actual | | | 2020-21 | | | Revised | | | 2021-22 | | | Budget | | | 2022-23 | change | | LPG | | | subsidy | | | 35,195 | 6,517 | | Kerosene | | | subsidy | | | 3,259 | - | | SPR | 2,428 | | 971 | 1,537 | | Pipeline | | | and | | | seismic | | | programme | | | Others | 337 | | Total | 42,190 | Note: SPR = Strategic Petroleum Reserves. Others include PM JI-VAN yojana, among others. Sources: Union Budget Documents 2022-23; PRS. Historically, the Ministry's expenditure trend has followed the trend in global crude oil prices. Since 2011-12, the highest expenditure was in the year 2012-13 when the price of crude oil was more than $100 per barrel. Sources: Petroleum Planning and Analysis Cell; Union Budget 2022-23; PRS. Rise in crude oil prices has in the past, led to rise in under-recoveries as the government did not want the retail prices to rise sharply. Under-recovery refers to the difference in the cost of producing petroleum products, and the price at which they are delivered to consumers. It indicates the loss incurred by oil marketing companies while supplying these petroleum products. The central government compensates these oil marketing companies (OMCs) by sharing some of this incurred loss through a burden sharing mechanism. Oil bonds were issued by the government to compensate oil marketing companies to offset losses that they suffer to shield consumers from rising crude oil prices. These bonds were issued to OMCs in lieu of cash at a time when the central government used to administer or fix petrol and diesel prices. Petrol and diesel prices were fixed by the government to cushion consumers from price shocks of costly international crude oil. The total value of the current outstanding oil bonds is Rs 92,200 crore. These bonds will be maturing between 2023-26.1 the price of global crude oil. Sources: Petroleum Planning and Analysis Cell; PRS. There has been a declining trend in underrecoveries since 2015-16. Since 2014, prices of petrol and diesel have been made market determined.2 The Public Sector OMCs take appropriate decisions on pricing of petrol and diesel, in line with international product prices and other market conditions. There have been no under recoveries in Petrol since 2011-12, and in Diesel since 2015-16. Similarly, since 2016-17, there have been no under recoveries in domestic LPG.3 In 2017, OMCs decided to start daily revision in the retail selling price of Petrol and Diesel in the entire country to make the retail selling prices more reflective of the current market conditions.4 India's dependence on imports for consumption of petroleum products has increased over the years. For instance, in 1998-99, net imports were 69% of the total consumption, which increased to around 95% in 2021-22 (till December 2022).5 Because of a large share of imports in the domestic consumption, any change in the global price of crude oil has a significant impact on the domestic prices of petroleum products. Sources: Petroleum Planning and Analysis Cell; PRS. Tax, Cess and Surcharge: As crude oil prices declined in 2020, the government increased the excise duties on petrol and diesel. Much of the increase was in the form of cess and surcharge. At present, the majority of the excise duty levied on petrol (95%) and diesel (92%) is in the form of cess and surcharge, due to which it is entirely under the centre's share. This implies that over 90% of the tax collected would be earmarked for specific use (such as for building roads and infrastructure), and would not be shared with states under the 15th Finance Commission formula. In the table below, we show the break-up of excise duty and the percentage share of each component out of the total excise duty.6 Excise Duty (Rs per litre) Petrol Diesel Apr 2017 Nov 2021 Apr 2017 Nov 2021 Tax 9.48 1.4 11.33 1.8 Cess 12 26.5 6 20 Total 21.48 27.9 17.33 21.8 Cess as % of Total Duty 56% 95% 35% 92% Sources: Petroleum Planning and Analysis Cell; PRS. ## Lpg Subsidy The Ministry provides subsidies on LPG cylinders to LPG consumers. Prior to 2013, this subsidy was provided in the form of subsidised cylinders. Following the launch of the PAHAL scheme in 2013, this subsidy is directly credited to the bank accounts of the beneficiary.7 In 2022-23, the Ministry is estimated to spend Rs 5,813 crore on LPG subsidy, which is 11% lesser than the revised estimates of 2021-22. It constitutes 65% of the total allocation to the ministry. The remaining allocation under the LPG subsidy is for: (i) implementation of the Assam Gas Cracker project (for production of ethylene), and (ii) subsidy to oil companies for supply of LPG to the North East. ## Direct Benefit Transfer - Pahal PAHAL scheme was launched in 2013 (54 districts in the first phase) and launched in the rest of the country in 2015.8 Under the scheme, a consumer (with annual income up to ten lakh rupees) can avail Direct Benefit Transfer (DBT) cash-subsidy for an LPG cylinder. The beneficiaries buy LPG cylinders at market rate and subsequently receive subsidies directly in their bank accounts. The Price of LPG and the extent of subsidy change every month. In 2021-22, the average price of a non-subsidised LPG was Rs 843.6 between April 2021 and October 2021, while the subsidy has been zero from May 2020 onwards.9 Sources: Indian Oil Corporation Limited; PRS. In 2022-23, Rs 4,000 crore has been allocated to DBT-PAHAL. In 2021-22, the budget allocation for DBT-PAHAL was Rs 12,480 crore while the revised estimate is Rs 3,400 crore (decline of 73%). Note that expenditure on subsidy is dependent on the difference between the subsidised and nonsubsidised price for LPG. The non-subsidised price is in turn dependent on the price of crude oil, which increased in 2021, after a fall in 2020 due to the impact of COVID-19 induced lockdowns. The Minister of State for the Ministry of Petroleum and Natural Gas, in February 2022, stated that LPG prices are based on Saudi Contract Price (CP). Saudi CP is the benchmark for international prices of LPG. It has risen by approximately 258% from April 2020 to November 2021.10 The year-wise cash transfer under PAHAL has gone down from Rs 9,384 crore in 2014-15 to Rs 2,560 crore in 2021-22. The number of beneficiaries in the same time-frame have increased from 14.85 crore to 17.67 crore.11 The overall coverage of LPG has increased from 61.9% in 2016 to 102.2% in November 2021.12 LPG coverage is defined as the ratio of active consumers to total households. As per the central government, implementation of PAHAL scheme has resulted in an estimated savings of Rs 72,910 crore (up to March 2021).11 4.11 crore duplicate/fake/non-existent or inactive LPG connections have been eliminated under the scheme.11 Further, there are 1.79 crore nonsubsidised LPG consumers, including 1.08 crore people who gave up their subsidy under 'Give It Up' scheme.11 The Comptroller and Auditor General (CAG) report on 'Implementation of PAHAL Scheme' (2016) noted that while the scheme appears to have addressed the concern regarding diversion of subsidised LPG cylinders to commercial consumers, the risk of diversion of nonsubsidised domestic LPG to commercial consumers still remains as there is a significant difference in the cost of non-subsidised domestic LPG and commercial LPG.13 ## Pradhan Mantri Ujjwala Yojana (Pmuy) The Ministry also provides LPG connections to poor households under the Pradhan Mantri Ujjwala Yojana (PMUY). The PMUY scheme was launched in May 2016 to provide LPG connections to households with a support of Rs 1,600 per connection.14 The scheme initially had a target to provide connections to five crore households, which was later revised to eight crore households by 2020.15 In 2018, the ambit of the scheme was also expanded to cover all SC/ST households, beneficiaries of Pradhan Mantri Awas Yojana (Gramin), forest dwellers, backward classes, in addition to households identified under the Socio Economic and Caste Census (SECC).15 The scheme met its target of providing LPG connections to eight crore households in September 2019.16 As of January 28, 2022, a total of 8.9 crore PMUY connections have been released. Of these, 99 lakh connections have been released under the revised scheme. The maximum connections were released in Uttar Pradesh, followed by West Bengal and Bihar.17 The amount allocated for the scheme has declined from Rs 9,235 crore in 2020-21 to Rs 800 crore in 2022-23 (budgeted estimate). A report by the Petroleum Planning & Analysis Cell (2016) pointed out the key barriers for not applying for LPG connection are: (i) high initial cost, including security deposit/price of gas stove (86%), (ii) high recurring cost of the cylinder (83%), and (iii) easy availability of firewood.18 Refill of cylinders: The CAG submitted a performance audit report on the PMUY scheme in December 2019.19 The Report raised concerns related to lack of sustained usage of cylinders released under the scheme. 75% of consumers opted for one refill under the scheme and 57% opted for three or more refills (from date of getting the connection till December 2018). The CAG performance audit report noted that the average annual refill rate for PMUY beneficiaries is low compared to the refill rate for non-PMUY beneficiaries (Figure 6). The Standing Committee on Petroleum and Natural Gas (2020) also highlighted the disparity in the average refill of cylinders for regular LPG consumers and the average refill of cylinders by PMUY beneficiaries.16 The Ministry noted certain efforts by oil marketing companies to improve refill consumption such as: (i) increase in LPG distributors to improve last mile connectivity, and (ii) facility to swap 14.2 kg (standard) cylinder refill with a 5 kg refill.16 Sources: CAG Performance Audit, December 2019; Standing Committee on Petroleum and Natural Gas (2020); PRS. Between April to October 2021, 84% of PMUY beneficiaries, who had got LPG connections under PMUY-I, got their connections refilled. Further, the average annual refill consumption for PMUY was 4.39 during 2020-21.20 The report by the Petroleum Planning & Analysis Cell (2016) also identified easy availability of firewood in the vicinity of forests as another primary barrier to adoption of LPG. The top five states where over 40% of the households procure firewood for free are Gujarat, Madhya Pradesh, Jharkhand, Uttar Pradesh and Nagaland.18 Pradhan Mantri Garib Kalyan Yojana: In 2020-21, the Ministry had estimated spending Rs 1,118 crore on PMUY at the budget stage. This amount was to clear past dues of the government to oil marketing companies implementing the PMUY scheme.16 However, in March 2020, the Finance Minister announced the provision of up to three free LPG refills for eight crore poor families under the Pradhan Mantri Garib Kalyan Yojana. 21 The cost of free refills availed between April to August 2020 was Rs 9,670 crore for 13 crore refills.22 In 2020-21, the Ministry actually spent Rs 9,235 crore on PMUY. Ujjwala 2.0: Note that in the 2021-22 Budget speech, the Finance Minister had announced that the PMUY scheme will be expanded to cover an additional one crore beneficiaries. Subsequently, Ujjwala 2.0 was launched in August 2021.23 Under the revised scheme, beneficiaries are given deposit free connections along with free first refill and stove.24 In January 2022, the scheme was further extended to release additional 60 lakh LPG connections on existing modalities.24 ## Rural Households Continue Using Firewood As Source Of Energy For Cooking According to the National Sample Survey (2018- 19), around 44% of the rural households in the country used firewood as the primary source of energy for cooking (see figure below).25 In urban areas, most of the households (87%) used LPG for cooking. As per NFHS-5 (2019-21), 58.6% households use clean fuel for cooking in India.26 ## Kerosene Subsidy The Ministry provides subsidised kerosene through the Public Distribution System (PDS). In the last two Budgets, the Ministry has not allocated any funds for the kerosene subsidy. In 2020-21, the Ministry spent Rs 3,259 crore on the kerosene subsidy. Over the last few years, the Ministry's expenditure on providing subsidy for kerosene has been reduced from Rs 7,339 crore in 2015-16, to an estimated zero in 2022-23. In 2018, the Ministry stated that with the increase in LPG coverage and electrification in villages, the allocation for kerosene had been rationalised.27 The Standing Committee on Petroleum and Natural Gas (2017) had recommended that the Ministry should reduce the expenditure on this subsidy and work towards the eventual withdrawal of the subsidy.28 It noted that an increase in the coverage of LPG beneficiaries is necessary to reduce their dependence on kerosene. The Standing Committee on Petroleum and Natural Gas (2020) observed that an increase in the coverage of LPG beneficiaries is necessary to reduce dependence on kerosene.16 This will result in the usage of cleaner fuel, and promote the health of users. However, large segments of the population are still dependent upon kerosene and only ten states have become kerosene free.29 Sources: Petroleum Planning and Analysis Cell; PRS. ## Dependence On Imports Has Been Increasing India's import of crude oil has increased from 1,71,729 Thousand Metric Tons (TMT) in 2011-12 to 1,96,461 TMT in 2020-21, at an average annual growth rate of 2%.3 Crude oil is refined in oil refineries to transform oil into useful petroleum products such as high speed diesel, LPG and kerosene. These petroleum products are used as raw materials in various sectors and industries such as transport (fuel) and petrochemicals. Further, they may also be used in factories to operate machinery or fuel generator sets. India exports petroleum products to countries such as Singapore, the Netherlands, and the United Arab Emirates. 30 In 2020-21, India's total export of petroleum products was 56,769 TMT.3 Further, India's production of crude oil and condensate has fallen from 38,082 TMT in 2011-12 to 30,494 TMT in 2020-21, an annual average decline of 2%.3 Production as a percentage of imports of crude oil declined from 22% to 16% during this period. The Ministry attributed the decline to the natural ageing of oil fields. 31 Table 3 shows the total import of crude oil and petroleum products, consumption of petroleum products in the country and India's exports of petroleum products for the last 10 years. India's net import (total imports - exports) as a fraction of consumption has risen from 86% in 2011-12 to 95% in 2020-21. Crude Year Oil Petroleum products Petroleum products imports Petroleum products import export consumption 2011-12 1,71,729 15,849 60,837 1,48,132 2012-13 1,84,795 16,354 63,408 1,57,057 2013-14 1,89,238 16,697 67,864 1,58,407 2014-15 1,89,435 21,301 63,932 1,65,520 2015-16 2,02,850 29,456 60,539 1,84,674 2016-17 2,13,932 36,287 65,513 1,94,597 2017-18 2,20,433 35,461 66,833 2,06,166 2018-19 2,26,498 33,348 61,096 2,13,216 2019-20 2,26,955 43,788 65,685 2,14,127 2020-21 1,96,461 43,248 56,769 1,94,295 2021-22* 1,56,509 30,384 46,194 1,48,320 Note: *Data for 2021-22 is till December 2021. Sources: Petroleum Planning and Analysis Cell; PRS. The Standing Committee on Petroleum and Natural Gas (2019) noted that the Middle East accounts for more than two-thirds of India's crude oil imports, and urged the government to continue its crude oil import diversification efforts. 32 ## Strategic Petroleum Reserves Strategic Petroleum Reserves (SPRs) are underground caverns to store crude oil. SPRs are essential to the energy security of the country which serves as a cushion during any supply disruptions in global crude oil.33 In 2022-23, Rs 811 crore has been allocated towards SPR, an average increase of 117% over 2021-22 revised estimates, but lower than the spending of Rs 2,428 crore, in 2020-21. In July 2021, phase 2 of the SPR programme was approved for establishing two additional commercial-cum-strategic facilities with a total storage capacity of 6.5 MMT underground storages at Chandikhol (4 MMT) and Padur (2.5 MMT).34 ## Increase In Share Of Natural Gas In Energy Mix Total imports of natural gas as a percentage of consumption (production plus import) has risen from 28% in 2011-12 to 54% in 2020-21.3 Figure 9 shows the total production and imports of natural gas, and the share of imports in the total. ## Gas (In Mmscm) Notes: MMSCM = Million Metric Standard Cubic Meters. Data for 2021-22 is till December 2021. Sources: Petroleum Planning and Analysis Cell; PRS. Between 2011-12 and 2020-21, import of natural gas increased from 17,997 MMSCM (Million Metric Standard Cubic Meters) to 33,031 MMSCM, at an average rate of 8%. Whereas the production of natural gas has fallen from 46,453 MMSCM to 27,784 MMSCM. In 2015, the Ministry had targeted a reduction in import in the energy sector (oil, gas, and petroleum products) from 77% to 67% by 2021-22.35 The Standing Committee on Petroleum and Natural Gas (2018) had noted that the Ministry has not undertaken any concrete action and not developed a clear strategy with stipulated timelines to achieve this target.36 The Report of the Roadmap for Reduction in Import Dependency in the Hydrocarbon Sector by 2030 (2014) had called for an increase in the share of natural gas in the energy consumption mix from 10% to at least 20% to 25% by 2025. 37 A necessary precondition to achieve this is to increase the gas pipeline infrastructure. In 2012, India had 13,000 km of natural gas transmission pipeline. As of September 2021, the total authorised length of natural gas pipelines is 33,548 km of which 15,004 km is under construction.38 Natural gas pipeline is a mode of bulk transportation and is a natural monopoly since it is impractical to have multiple pipelines in the same route. Common carrier arrangements allow the pipeline to be utilised by any entity on a nondiscriminatory basis which leads to competition in the natural gas market. This is currently regulated by the Petroleum and Natural Gas Regulatory Board.39 IGGL: The Indradhanush Gas Grid Limited (IGGL) is a joint venture of five central public sector enterprises to develop and operate a natural gas pipeline grid in the North-East region.40 The total length of the pipeline would be 1,656 kilometer and it will be developed in the eight north-eastern states - Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. In 2022-23, the project has been allocated Rs 1,798 crore, 112% more than revised estimate in 2021-22 (Rs 850 crore). ## Promotion Of Alternate Fuels PM JI-VAN: The strategy of import reduction includes increasing production of domestic petroleum and natural gas, and promoting alternate fuels.16 The Pradhan Mantri Jaiv Indhan-Vatavaran Anukul Fasal Awashesh Nivaran (PM JI-VAN) Yojana was launched in 2019 to provide financial support for setting up bio-ethanol projects using biomass and other renewable feedstock.41 The scheme has been allocated Rs 314 crore for 2022- 23, which is a 66% increase over the revised estimates of 2021-22. Note that in 2020-21, the government did not spend any part of the budgeted allocation of Rs 53 crore on the scheme, due to COVID-19 related reasons. PM JI-VAN aims to provide viability gap funding to provide initial thrust to create second generation (2G) ethanol capacity in the country and attract investment in this sector.42 2G ethanol utilises surplus biomass and agricultural waste to produce bioethanol while first generation ethanol utilises sugarcane juice and molasses, byproducts in the production of sugar, as raw material. Under the scheme, financial support will be provided to 12 Integrated Bio-ethanol Projects using lignocellulosic biomass and other renewable feedstock, along with support to ten demo projects for 2G technology. The total financial outlay is Rs 1,970 crore for the period 2018-19 to 2023-24. Four 2G bio-ethanol plants have been supported with Rs 150 crore financial assistance as of December 2021.43 The Standing Committee (2020) observed that this scheme could help reduce import dependence by substituting fossil fuels with bio-fuels.16 The Standing Committee (2021) recommended the Ministry to properly utilise the budgetary allocation for the scheme. 42 Ethanol blended petrol: The government has been promoting the usage of biofuels with the twin objective of reducing the country's import bill and contributing to lower carbon emissions. In this regard, the National Policy on Bio-Fuels, 2018 was formulated to increase biofuel usage in the energy and transportation sectors. The Policy envisaged an indicative target of 20% blending of ethanol in petrol by 2030 and 5% blending of biodiesel in diesel by 2030.44 The Standing Committee (2021) recommended the Ministry to advance the target of 20% blending of ethanol in petrol from 2030 to 2025.45 Subsequently, in June 2021, the target was revised to achieve 20% blending of ethanol by 2025.46 Further, the Ministry released a notification stating that OMCs shall sell ethanol blended petrol with a percentage of ethanol up to 20% as per BIS Specifications in the whole of India and Union Territories. This will come into effect from April 1, 2023.46 The Committee also observed that majority of the ethanol produced for blending is coming from the sugar sector. Sugarcane is a water-intensive crop with adverse effects on the environment and thus not sustainable in the long run for producing ethanol. The Committee observed that more than 60% of the ethanol in the world is produced using maize, whereas India primarily uses sugarcane. It recommended the government to study the policies followed in countries using other feedstocks and suitably adopt them. Further, it recommended the government to diversify the feedstocks used for producing ethanol to include maize and other food grains and motivate farmers to increase their production accordingly. The government has set a target of 5% blending of bio-diesel with diesel for 2030.46 Presently, the blending level is less than 0.1%, with 10.56 crore litre of bio-diesel supply in 2019-20. The Committee observed that bio-diesel blending has not kept pace with ethanol blending. It noted that bio-diesel has not been accorded due importance, even though diesel is the most consumed fuel, used mostly in commercial and public transport vehicles. Further, it noted that higher biodiesel blending will have a greater impact in reducing crude oil imports. When suggesting a roadmap for ethanol blending in India, the NITI Aayog suggested that an annual roadmap be prepared for the: (i) production and supply of ethanol till 2025-26, and (ii) systems for country wide marketing of ethanol.47 To enable roll out across India, ethanol may be supplied from surplus to deficit states based on the requirements. This will ensure uniform availability of ethanol blends in the country. Further, a single window system may be formulated by Department for Promotion of Industry and Internal Trade to facilitate speedy clearances for new projects and expansion of current projects for ethanol production. In December 2021, the Ministry lowered the Goods and Services Tax (GST) rate to 5% from 18% on ethanol meant for blending under the Ethanol Blended Petrol Programme.48 ## 1 Lok Sabha Unstarred Question No. 300, Ministry of Petroleum and Natural Gas, February 3, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AU300.pdf. 2 Prices of Petrol/Diesel, Ministry of Petroleum and Natural Gas, Press Information Bureau, September 19, 2020. 3 Petroleum, Planning and Analysis Cell, https://www.ppac.gov.in/. 4 Daily Revisions in Retail selling prices of petrol and diesel across the country, Press Information Bureau, June 8, 2017. 5 "Export/ Import", Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, February 2022, Petroleum: Petroleum Planning & Analysis Cell (ppac.gov.in). 6 Central Excise and Customs Tariff table, Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, February 2022, Petroleum: Petroleum Planning & Analysis Cell (ppac.gov.in). 7 About the Scheme, PAHAL - Direct Benefits Transfer for LPG, Ministry of Petroleum and Natural Gas, http://petroleum.nic.in/dbt/whatisdbtl.html. 8 PAHAL-Direct Benefits Transfer for LPG(DBTL) Consumers Scheme, Ministry of Petroleum and Natural Gas, http://petroleum.nic.in/dbt/whatisdbtl.html. 9 Price of non-subsidized LPG, Indian Oil Corporation Limited, https://iocl.com/indane-14Kg-nonsubsid-previous-price. 10 Lok Sabha Unstarred Question No. 373, Ministry of Petroleum and Natural Gas, February 3, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AU373.pdf. 11 Direct Benefit Transfer, Government of India, https://dbtbharat.gov.in. 12 Lok Sabha Unstarred Question No. 703, Ministry of Petroleum and Natural Gas, Lok Sabha, answered on December 2, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU703.pdf. 13 CAG Report on Implementation of PAHAL (DBTL) Scheme, Report No. 25 of 2016, Ministry of Petroleum and Natural Gas, https://cag.gov.in/sites/default/files/audit_report_files/Union_Co mmercial_Compliance_Full_Report_25_2016_English.pdf. 14 About PMUY, Pradhan Mantri Ujjwala Yojana, Ministry of Petroleum and Natural Gas, https://www.pmujjwalayojana.com. 15 'Cabinet approves enhancement of target under Pradhan Mantri Ujjwala Yojana', Press Information Bureau, Cabinet Committee on Economic Affairs, February 7, 2018. 16 2nd Report of the Standing Committee on Petroleum and Natural Gas on the Demands for Grants (2020-21), March 2020, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/17_Petroleum_And_Natural_Gas_2.pdf. 17 Pradhan Mantri Ujjwala Yojana 2.0 website, Ministry of Petroleum and Natural Gas, https://www.pmuy.gov.in/index.aspx. 18 Assessment report: Primary survey on household cooking fuel usage and willingness to convert to LPG, Petroleum Planning & Analysis Cell, Ministry of Petroleum and Natural Gas, June 2016, http://ppac.org.in/WriteReadData/Reports/20171031044934251 2219PrimarySurveyReportPPAC.pdf. 19 Report of the Comptroller and Auditor General of India on Pradhan Mantri Ujjwala Yojana, Performance Audit, No. 14 of 2019, Ministry of Petroleum and Natural Gas, December 11, 2019, https://cag.gov.in/sites/default/files/audit_report_files/Report_N o_14_of_2019_Performance_Audit_of_Pradhan_Mantri_Ujjwal a_Yojana_Ministry_of_Petroleum_and_Natural_Gas_0.pdf. 20 Lok Sabha Unstarred Question No. 1911, Ministry of Petroleum and Natural Gas, December 9, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU1911.pd f. 21 "Finance Minister announces Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus", Press Information Bureau, Ministry of Finance, March 26, 2020. 22 Unstarred Question No. 459, Rajya Sabha, Ministry of Petroleum and Natural Gas, Answered on September 16, 2020, https://pqars.nic.in/annex/252/AU459.pdf. 23 PM to launch Ujjwala 2.0 on 10th August, Prime Minister's Office, Press Information Bureau, August 8, 2021. 24 Lok Sabha Unstarred Question No. 414, Ministry of Petroleum and Natural Gas, February 3, 2022, http://164.100.24.220/loksabhaquestions/annex/178/AU414.pdf. 25 Drinking Water, Sanitation, Hygiene and Housing Condition, 2018-19, NSS 76th Round, July 2018-December 2018, Ministry of Statistics and Programme Implementation, https://www.mospi.gov.in/documents/213904/301563//Report_5 84_final_01609135120775.pdf/4ed4d92a-19d9-0df1-548d- 0f75bc0fc665. 26 National Family Health Survey - 5, Ministry of Health and Family Welfare, 2019-21, http://rchiips.org/nfhs/NFHS- 5_FCTS/India.pdf. 27 Unstarred Question No. 2295, Lok Sabha, Ministry of Petroleum and Natural Gas, Answered on January 1, 2018, http://164.100.47.190/loksabhaquestions/annex/13/AU2295.pdf 28 18th Report of the Standing Committee on Petroleum and Natural Gas on the Demands for Grants of the Ministry of Petroleum and Natural Gas (2017-18), March 2017, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/16_Petroleum_And_Natural_Gas_18.pdf. 29 29 Lok Sabha Unstarred Question No. 2530, Ministry of Petroleum and Natural Gas, March 17, 2021, https://pqars.nic.in/annex/253/AU2530.pdf. 30 Export Import Data Bank, Ministry of Commerce and Industry. 31 Unstarred Question No. 1140, Lok Sabha, Ministry of Petroleum and Natural Gas, Answered on February 8, 2021, http://164.100.24.220/loksabhaquestions/annex/175/AU1140.pd f. 32 1st Report of the Standing Committee on Petroleum and Natural Gas on the Demands for Grants (2019-20), December 2019, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/17_Petroleum_And_Natural_Gas_1.pdf. 33 About ISPRL, Indian Strategic Petroleum Reserves Limited, http://www.isprlindia.com/aboutus.asp. 34 Two more commercial cum strategic facilities of 6.5 MMT storage capacity to be established under phase 2 of the SPR programme, Ministry of Petroleum and Natural Gas, Press Information Bureau, July 26, 2021. 35 Unstarred Question No. 2524, Lok Sabha, Ministry of Petroleum and Natural Gas, Answered on August 1, 2016, http://164.100.24.220/loksabhaquestions/annex/9/AU2524.pdf. 36 25th Report of the Standing Committee on Petroleum and Natural Gas, August 2018, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/16_Petroleum_And_Natural_Gas_25.pdf. 37 Report of the Roadmap for Reduction in Import Dependency in the Hydrocarbon Sector by 2030, Ministry of Petroleum and Natural Gas, September 2014, https://www.pngrb.gov.in/OurRegulation/NGP-GSR273.html. 38 Natural Gas Pipelines Network in India- As on 30.09.2021, Petroleum and Natural Gas Regulatory Board of India. 39 Petroleum and Natural Gas Regulatory Board (Guiding Principles for Declaring or Authorizing Natural Gas Pipeline as Common Carrier or Contract Carrier) Regulations, 2009, Petroleum and Natural Gas Regulatory Board of India, April 21, 2009, https://www.pngrb.gov.in/OurRegulation/NGP- GSR273.html. 40 Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid, Cabinet Committee on Economic Affairs, Press Information Bureau, January 8, 2020. 41 'Cabinet approves Pradhan Mantri JI-VAN Yojana', Press Information Bureau, Cabinet Committee on Economic Affairs, February 28, 2019. 42 5th Report on Demand for Grants (2021-22), Ministry of Petroleum and Natural Gas, March 10, 2021, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/17_Petroleum_And_Natural_Gas_5.pdf. 43 Lok Sabha Unstarred Question No. 3004, Ministry of Petroleum and Natural Gas, December 16, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU3004.pd f. 44 National Policy on Biofuels 2018, http://164.100.94.214/sites/default/files/uploads/biofuel_policy_ 0.pdf. 45 6th Report on Review of Progress in Production of Non- Conventional Fuels with Specific Reference to Bio-Fuels, Standing Committee on Petroleum and Natural Gas, March 10, 2021, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/17_Petroleum_And_Natural_Gas_6.pdf. 46 9th Report, Standing Committee on Petroleum and Natural Gas, December 22, 2021, http://164.100.47.193/lsscommittee/Petroleum%20&%20Natura l%20Gas/17_Petroleum_And_Natural_Gas_9.pdf. 47 Roadmap for Ethanol Blending in India 2020-2025, Niti Aayog, June 2021, https://www.niti.gov.in/sites/default/files/2021- 06/EthanolBlendingInIndia_compressed.pdf. 48 Lok Sabha Unstarred Question No. 3178, Ministry of Petroleum and Natural Gas, December 16, 2021, http://164.100.24.220/loksabhaquestions/annex/177/AU3178.pd f. ## Demand For Grants 2022-23 Analysis Environment, Forests And Climate Change The Ministry of Environment, Forests and Climate Change is responsible for the planning, promotion, co-ordination of, and overseeing the implementation of India's environmental and forestry policies and programmes. This note presents the budgetary allocations to the Ministry for 2022-23, and analyses various issues related to the sector. In November 2021, the 26th United Nations Climate Change Conference (COP26) was held in Glasgow, Scotland where leaders and representatives from 197 countries met to decide on the actions to be taken to address climate change. At the conference, the Prime Minister of India announced certain targets for India.1 These include achieving net zero emissions by 2070, and increasing the share of renewable energy in India's energy mix to 50% by 2030. The Economic Survey 2021-22 observed that there is a greater thrust on climate action following these announcements.2 It stated that climate finance will remain critical to successful climate action by developing countries including India.2 ## Budget Speech 2022-23 Highlights3 Key highlights in the budget regarding environment include: - Sovereign Green Bonds will be issued for mobilising resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy. - A battery swapping policy will be formulated to promote the electric vehicles sector. To achieve the goal of 280 GW of installed solar power by 2030, an additional allocation of Rs 19,500 crore will be made for Production Linked Incentive scheme for manufacturing of high-efficiency solar modules. - 5-7% biomass pellets will be co-fired in thermal power plants to reduce carbon emissions. Further, four pilot projects for coal gasification and conversion of coal into chemicals will be set-up to evolve technical and financial viability. ## Allocation In Union Budget 2022-23 In 2022-23, the Ministry of Environment, Forests and Climate Change has been allocated Rs 3,030 crore, which is a 20% increase over the revised estimates in 2021-22. The allocation to the Ministry is 0.1% of the total estimated expenditure of the union government for 2022-23. 2022-23 (in Rs crore) Percentage Actuals 20-21 BE 21-22 RE 21-22 BE 22-23 change (Revised 21-22 to BE 22-23) Total 1,967 2,870 2,520 3,030 20% Note: BE is budget estimate and RE is revised estimate. Sources: Demands for Grants 2022-23; PRS. In 2022- 23, 31% of the Ministry's allocation (Rs 930 crore) is estimated to be on centrally sponsored schemes on environment, forests and wildlife such as National Mission for Green India and Integrated Development of Wildlife Habitats. 10% of the allocation of the Ministry is towards autonomous bodies and about 15% is towards pollution control. Table 2 represents the budgetary allocation for major heads under the Ministry. | 2021-22 | 2022-23 | |--------------------------|------------| | Heads | | | 2020-21 | | | Actuals | RE | | % change | | | (21-22 RE | | | to22-23 BE) | | | Environment, Forestry | | | and Wildlife | | | 552 | 670 | | Control of Pollution | 267 | | Autonomous Bodies | 290 | | National Coastal Mission | 68 | | Statutory and Regulatory | | | Bodies | | | 125 | 161 | | National Authority | 89 | | 76 | 108 | | Decision support System | | | for Environmental | | | Awareness, Policy, | | | Planning and Outcome | | | Evaluation | | | 40 | | | Environmental | | | Knowledge and Capacity | | | Building (such as Eco- | | | Task Force) | | | Climate Change Action | | | Plan | | | 20 | 30 | | National Adaption Fund | 43 | | Others | 457 | | Total | | | 2,056 | 2,782 | | Funded from budget | | | 1,967 | 2,520 | | 89 | 262 | | Funded from | | | Compensatory | | | Afforestation Fund | | Note: Others include, Pollution abatement, among others Sources: Union Budget 2022-23; PRS. ## Overview Of The Financial Allocation Between 2010-11 and 2022-23, the expenditure of the Ministry has seen an annual average growth of 2%. Between 2010-11 and 2021-22, on average, the actual expenditure of the Ministry has been less than the budget estimates for the year. However, the Standing Committee on Science and Technology, Environment, Forests, and Climate Change (2020) had noted that the utilisation of funds by the Ministry in 2017-18 and 2018-19 is satisfactory.4 The Standing Committee (2021) also highlighted that the utilisation of allocated amount by the Ministry during the last three financial years has been satisfactory.5 Note: Values for 2021-22 and 2022-23 are Revised Estimates and Budget Estimates respectively. Sources: Union Budgets 2010-11 to 2022-23; PRS. allocated to the Ministry between 2010-11 and Ministry (in Rs crore) | Year | BE | Actuals | |-------------|-------|------------| | Over/Under | | | | Utilisation | | | | 2010-11 | 2,351 | 2,372 | | 2011-12 | 2,492 | 1,982 | | -20% | | | | 2012-13 | 2,629 | 1,753 | | -33% | | | | 2013-14 | 2,630 | 1,890 | | -28% | | | | 2014-15 | 2,256 | 1,599 | | -29% | | | | 2015-16 | 1,682 | 1,521 | | -10% | | | | 2016-17 | 2,250 | 2,278 | | 1% | | | | 2017-18 | 2,675 | 2,627 | | -2% | | | | 2018-19 | 2,675 | 2,586 | | -3% | | | | 2019-20 | 2,955 | 2,538 | | -14% | | | | 2020-21 | 3,100 | 1,967 | | -37% | | | | 2021-22 | 2,870 | 2,520* | | -12% | | | Note: BE - Budget Estimate; *Revised Estimate; (+) indicates over-utilisation; (-) indicates under-utilisation. Sources: Union Budgets from 2010-11 to 2022-23; PRS. In 2021-22, the Ministry was allocated Rs 2,870 crore, which decreased to Rs 2,520 crore (-12%) at the revised estimates stage. This includes reduction in funds towards: (i) Environment, Forestry and Wildlife (reduced by Rs 94 crore), (ii) Establishment Expenditure of the Centre (reduced by Rs 70 crore), and (iii) Control of Pollution (reduced by Rs 193 crore), among others. This may be due to the impact of the COVID-19 pandemic, and a change in spending priorities of the government over the year. Key issues for consideration Climate Change Climate change refers to a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere.6 Studies indicate that the amount of greenhouse gases including carbon dioxide, methane, and nitrous oxide in the atmosphere have increased rapidly over the last few centuries as a result of human activities.7,8 The increased concentration of greenhouse gases in the atmosphere has led to a rise in global temperatures leading to other changes in global climate, such as erratic rains, floods, and cyclones.7,8 According to the Intergovernmental Panel on Climate Change (IPCC), the average global temperature is estimated to have increased by 0.85°Celsius (°C) between 1880 and 2012.8 At the end of the 21st century, the increase in global temperature is likely to exceed 1.5°C as compared to pre-industrial levels (1850 to 1900).8 However, in August 2021, the IPCC estimated that a 1.5°C increase may happen much earlier, by 2040.9 This could lead to a reduction of the snow cover, increase in heat waves, extreme precipitation, intensification of tropical cyclones and increase in sea levels. Over the years, several international efforts have been made for global co-operation to address issues of climate change. In 1992, the United Nations Framework Convention on Climate Change (UNFCCC), an international framework for cooperation was established to stabilise greenhouse gas concentrations in the atmosphere.10 The European Union (EU) has dedicated a modernisation fund to support 10 lower-income EU Member States in their transition to climate neutrality.11 Further, EU has also proposed that at least 25% of its expenditure will contribute to climate action during 2021-27.12 The United States of America (USA) has called for the preparation of a Climate Finance Plan, to focus on international climate finance. USA intends to double its annual public climate finance to developing countries by 2024.13 After India's announcement of additional targets at COP26, experts have estimated that India will require over Rs 700 lakh crore to meet its goal of net zero emissions by 2070.14 Of this, investment of over Rs 600 lakh crore will be required to shift to renewable energy sources.14 This financing would require significant actions across all the concerned ministries. ## Significant Investment Needed To Finance Adaptation And Mitigation Measures For Climate Change The Economic Survey (2020-21) observed that India is relying on domestic resources to implement adaptation and mitigation action for climate change.15 It noted that the financing considerations will remain critical as the country had increased its targets substantially. Preliminary estimates provided by the NDC indicate that India's climate change actions till 2030 will require financial resource of USD 2.5 trillion (at 2014-15 prices). It recommended a clearer assessment of the financial requirement for implementing the NDC for appropriate allocation of resources. Further, the possible sources for meeting these requirements should also be devised. The Survey noted that availability of adequate financial resources for implementing the NDC goals is a major challenge.15 It recommended that additional financial resources and technological support to the developing countries (as was committed by the developed countries under the Paris Agreement) should be implemented. The Glasgow Conference Pact noted that developed countries failed to meet their commitment of providing USD 100 billion (over Rs 7.5 lakh crore) per year by 2020 to developing nations to tackle climate change. It urged developed nations to provide the 100 billion dollars through 2025.16 Currently, 100% Foreign Direct Investment (FDI) is permitted in the renewable energy sector.17 Between April 2000 and June 2021, the cumulative FDI equity inflow in the renewable energy sector was USD 10,279.81 million. This was 1.88% of the total equity inflow received in all sectors during this period. The Ministry is estimated to spend Rs 30 crore on the Climate Change Action Plan and Rs 60 crore on the National Adaptation Fund. This is equal to the revised estimates of 2021-22. ## National Action Plan On Climate Change Needs Additional Funding And Redesigning The National Action Plan on Climate Change (NAPCP) was launched in June 2008 to deal with issues related to climate change.18 The NAPCP has eight missions: (i) the National Solar Mission, (ii) the National Mission on Enhanced Energy Efficiency, (iii) the National Water Mission, (iv) the National Mission for Green India, (v) National Mission on Sustainable Habitat, (vi) National Mission for Sustainable Agriculture, (vii) National Mission for Sustaining the Himalayan Ecosystem, and (viii) National Mission on Strategic Knowledge for Climate Change. NITI Aayog in its report on Strategy for New India (2018) recommended that all eight national missions under the NAPCP should be revised in light of new scientific information and technological advances.19 Further, new national missions on wind energy, waste-to-energy, and coastal areas should be developed. In addition, NITI Aayog in its report recommended the following to maintain a clean, green, and healthy environment: - Changes to regulatory framework: Stringent civil penalties should be introduced to strengthen enforcement of environment-related Acts. Further, Rules related to waste management should be revised and strictly implemented. These include: (i) Plastic Waste (Management and Handling) Rules, (ii) Bio- Medical Waste (Management and Handling) Rules, (iii) E-Waste (Management) Rules, and (iv) Hazardous and Construction & Demolition Waste Management Rules. - Funds: National Adaptation Fund for Climate Change and other global funds for strengthening resilience against climate change in sectors such as agriculture, forestry, and infrastructure should be utilised. Further, scientific and analytical capacity for climate change related assessments should be strengthened. In 2015, the Paris Agreement was adopted by the Conference of Parties with the consensus of 197 parties to the convention (including India).20 The Paris Agreement aims to reduce greenhouse gas emissions globally and limit the increase in the global average temperature to a level between 1.5oC to 2oC above pre-industrial levels. India submitted its Nationally Determined Contributions to the United Nations Framework Convention on Climate Change. It included various targets to be achieved by 2030 such as increasing forest and tree cover by creating additional carbon storage and absorption capacity for 2.5-3 billion tonnes of carbon dioxide and achieving 40% of installed electric power capacity from non-fuel-based energy sources (such as solar, wind, hydropower) with help of transfer of technology and low-cost international finance. Note that India's current share of non-fossil sources based installed capacity of electricity generation is more than 40%.21 In December 2020, the Ministry of Environment, Forest and Climate Change constituted a high-level inter-ministerial Apex Committee for Implementation of Paris agreement.22 The Committee will be the national regulatory authority for carbon markets in India. Its functions include: (i) developing policies and programmes to make India's domestic climate change compliant to international obligations, (ii) coordinating communications of nationally determined contributions, and (iii) defining responsibilities of concerned ministries for achieving India's nationally determined contribution goals. ## India Contributes To 7% Of World Emissions, But This May Increase With Growing Industrialisation And Urbanisation Among all greenhouse gases released due to human activities, CO2 is the largest contributor to global warming.23 Sources releasing CO2 into the atmosphere include: (i) combustion of fossil fuels (such as thermal power generation), (ii) forest burning (for the purposes of land clearance), and (iii) industrial activities. Combustion of fossil fuels is likely to be the dominant contributor of CO2 in the atmosphere. The IPCC (2005) observed that power and industrial sectors together dominate the global CO2 emissions.23 As of March 25, 2021, power generation from coal, oil, and gas contributed to 40% of global CO2 emissions.24 By 2050, these sectors are expected to contribute to about 50% of the total global CO2 emissions. In 2019, the total CO2 emissions across the world were 33,622 million tonnes. Table 4 compares India's CO2 emissions from fuel combustion to that in other countries. CO2 emissions from fuel Country combustion % of world emissions Per capita emissions (tonnes CO2) (million tonnes) China 9,877 29% 7.1 US 4,745 14% 14.4 EU 2,994 9% 5.8 India 2,310 7% 1.7 Russia 1,640 5% 11.4 Japan 1,056 3% 8.4 UK 342 1% 5.1 World 33,622 4.4 Note: EU is European Union; US is United States if America. Sources: International Energy Agency; PRS. In 2019, China was the largest contributor to the world's CO2 emissions (29%), while the USA had the highest per capita emissions.25 India is well below the average global emissions per capita. However, with growing urbanisation and industrialisation, India's CO2 emissions will increase significantly unless proper measures are taken now to ensure that any future growth is in a manner that does not indiscriminately increase our emissions. At the 2021 Glasgow Conference, India announced additional targets to be achieved by 2030.1 These include: (i) increasing non-fossil energy capacity to 500 gigawatt (GW), (ii) meeting 50% of energy requirements through renewable energy, (iii) reducing total projected carbon emissions by one billion tonnes, and (iv) reducing the carbon intensity of the economy by less than 45%. ## Investing In Thermal Power Generation And Subsidising Polluting Fuels Could Undo The Impact Of Climate Change Mitigation Transition to renewable energy sources (solar, wind, hydro) is one of the ways to reduce CO2 emissions.23 The share of renewable energy in global electricity increased from 27% in 2019 to 29% in 2020. 26 According to estimates by the International Energy Agency (2021), the global renewable energy electricity generation will increase by more than 8% in 2021, the fastest oneyear growth since the 1970s. China will account for almost 50% of this increase, followed by USA, European Union, and India.24 The Glasgow Conference Pact urged all countries to reduce greenhouse gas emissions including CO2 by 45% (relative to 2010 level) by 2030 to limit global warming.16 However, the Standing Committee on Energy (2020-21) has noted that despite the significant increase in renewable energy capacity and more addition planned in the coming years, coal will remain the main source of power in this decade.27 It noted that there may be a 30% increase in the installed thermal power generation capacity by 2029-30. Further, thermal power plants are currently running at about half of their capacity.27 However, their capacity utilisation may be increased in the future, leading to an increase in coal requirement. Over the past few years, generation capacity of coal and renewable energy has increased at an annual rate of 4% and 24%, respectively (see Figure 2). Thus, it given the potential demand of coal in the future, it is unclear how the transition to renewable energy will be feasible based on the committed timeline and targets. The 15th Finance Commission observed India's dependence on thermal energy and the consequent effect on emission levels.28 It noted that about 60% of the country's installed capacity is thermal based (coal based thermal power accounting for the largest share). Further, it noted that while the share of renewables in total power generation has increased from 6% in 2014-15 to 10% in 2018-19, substantial investment is required in renewable energy. It recommended that a comprehensive energy policy should be framed. It also noted that the prices of coal, natural gas, and kerosene in India are below environmentally efficient levels (which can partly be due to subsidies given for LPG and kerosene to select consumers). It recommended bringing the prices of these fuels closer to environmentally efficient levels, while providing targeted assistance to potentially affected vulnerable households. The projected changes in climate change pose a major threat for India in particular, given that the national economy is closely tied to climate sensitive sectors such as agriculture and forestry.29 ## Environment Impact Assessment And Clearance Process Has Several Issues Environment Impact Assessment is a planning tool to integrate environmental concerns into the developmental process from the initial stage of planning.30 The Ministry of Environment, Forests and Climate Change has made Environmental Clearance (EC) for certain development projects mandatory such as certain building, construction, and area development projects.30 The Comptroller and Auditor General of India (CAG) (2016) had noted certain issues with the environmental clearance process. Its observations and recommendations include:30 - Delay in process: The CAG noted a delay in the process of EC (including grant of Terms of Reference, public consultation, and grant of EC by the Ministry). For example, (i) out of 216 projects examined, the Terms of Reference was granted within the prescribed time limit (60 days) to only 14% of the projects, and (ii) the EC was granted within the prescribed time limit (105 days) in only 11% of the cases. It recommended the Ministry to increase transparency in the grant of EC, streamline the processes, and adhere to the timelines given under the EIA Notification. - Compliance to Conditions of Environment Clearance: The CAG noted non-compliance in the 216 sampled projects (ranging from 4% to 56%), in respect of 13 general Environmental Clearance conditions. It recommended the Ministry to grant fresh EC only after verifying the compliance to the earlier EC conditions. Further, it recommended the Ministry to mandate certain other conditions for an EC, including installation of monitoring stations and frequency of monitoring of various environment parameters for air, surface water, ground water, and noise pollution. ## Air Pollution National Clean Air Programme (NCAP): The Ministry of Environment, Forest and Climate Change launched the NCAP in January 2019. It receives funding under the budget head Control of Pollution. The programme sets a national level target of 20% to 30% reduction of PM2.5 and PM10 concentration levels by 2024, with 2017 as base for concentration levels.31 The NCAP is implemented in 132 cities, of which 124 cities have been identified based on non-conformity with national ambient air quality standards for five consecutive years. This includes 34 million plus cities / urban agglomerations identified by the 15th Finance Commission. NCAP aims to: (i) prepare comprehensive mitigation actions for prevention, control and abatement of air pollution, and (ii) augment the air quality monitoring network and strengthen awareness activities. ## Financing For Reducing Air Pollution In 2022-23, Control of Pollution has been allocated Rs 460 crore, a 18% increase over the revised estimates of 2021-22. In 2020-21, the allocation for Control of Pollution was reduced by 17% (from Rs 470 crore to Rs 390 crore) at the revised estimates stage. The Standing Committee on Science and Technology, Environment, Forests, and Climate Change (2020) noted that the NCAP is a programme of utmost importance in the presentday context and controlling air pollution must be given the topmost priority.4 It recommended that the Ministry must be provided the requisite allocation as sought by it with respect to Control of Pollution at the revised stage. The Standing Committee (2021) noted Control of Pollution scheme is implemented through various central and state government agencies. It recommended central mechanism for coordination of such agencies. The Committee also recommended that the grant made available by recommendation of 15th Finance Commission for installation of systems to monitor air quality must be prioritised by the Ministry in the smaller cities and towns that are often neglected, and suffer from a lack of quality data on air pollution.5 The Standing Committee on Science and Technology, Environment, Forests, and Climate Change (2020) noted that the Finance Minister, in her budget speech (2020-21), announced Rs 4,400 crores for clean air for large cities having population above one million. The Ministry stated that the fund is being made available to the Ministry of Housing and Urban Affairs (MoHUA).4 However, no allocation has been made for this in MoHUA's demand for grants in 2020.32 The Ministry of Environment, Forests, and Climate Change has identified 102 non-attainment cities for utilising this fund under the NCAP. These are cities which do not meet the National Ambient Air Quality Standards (NAAQS) for a period of five years.33 The Economic Survey (2021-22) stated that the number of cities within the prescribed NAAQS increased from 18 in 2019-20 to 27 in 2020-21. However, an increasing trend in PM10 concentration has been observed in 36 cities in 2020.2 The Committee (2020) noted that there are 46 cities (with population more than one million), which may be kept out of the non-attainment category.4 This will help the Ministry of Environment, Forests, and Climate Change to reduce the shortfall of funds for the schemes of pollution control. The 15th Finance Commission recommended the Ministry of Housing and Urban Affairs be made the nodal ministry for grants to cities with population more than one million to take steps to check air pollution.28 The Ministry of Environment, Forests and Climate Change may be given a separate grant for installation of systems to monitor air quality.28 The WHO provides intervention measures for combating outdoor and indoor air pollution.34 It suggests interventions across seven different areas, namely transport, housing, cities, waste management, industries, agriculture, and power generation. Some of these intervention measures include: (i) implementing stricter vehicle emissions and efficiency standards, (ii) creating green spaces that help remove pollutant matter, (ii) improving urban waste management, such as capturing of methane gas from waste sites, (iii) replacing traditional household fuel with lower-emission cook stoves or cleaner fuels, and (iv) adopting clean technologies that reduce industrial emissions. NITI Aayog in its report on Strategy for New India (2018) noted certain challenges to reduce the problem of air pollution, including:19 (i) convincing farmers to discontinue the practice of burning crop residue by providing alternative methods, (ii) lack of awareness of the ill effects of pollution, thereby making it difficult to bring about behavioural change in people, and (iii) ineffective implementation of 'polluters should pay for the pollution' principle (costs of pollution be borne by those who cause it). It recommended the following: - Funds: A "Clean Air Impact Fund" should be created to provide viability gap funding for long-term projects aimed at reducing air pollution (such as bio-power or bio-ethanol projects). - Reward and monitoring at the local level: A reward scheme for village panchayats with zero burning may be instituted, and a mechanism to monitor farm fires should be devised. - Industry Emissions: Emission and effluent standards for industries should be revised and effectively implemented. Further, a task force should be set up to study and implement measures to control pollution from brick kilns. WHO also suggests addressing air pollution by monitoring, reporting and spreading awareness about its health impacts. It suggests improving the health sector's capacity to address the adverse health effects from air pollution through training, guidelines, and national action plans.35 Among the risk factors of diseases in India, air pollution ranks the second highest (after malnutrition), accounting for 10% of the disease burden, and thus, is one of the leading causes for premature death and disabilities.36 According to estimates published by the India Disease Burden Initiative, in 2017, 12.4 lakh deaths, i.e., 12.5% of the deaths in India, were attributable to air pollution.37 ## Act To Set Up A Commission For Air Quality Management In Ncr Due to the rising levels of pollution in NCR and the powers of the EPCA being limited to Delhi, the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021 was passed in Parliament on August 5, 2021.38 The Act constitutes the Commission for better co-ordination, research, identification, and resolution of problems related to air quality in NCR and adjoining areas. Adjoining areas have been defined as areas in Haryana, Punjab, Rajasthan, and Uttar Pradesh, adjoining the National Capital Territory of Delhi and NCR, where any source of pollution may cause adverse impact on air quality in the NCR. The Act provides for penalties for contravention of provisions of the Act. While these penalties do not apply to farmers causing air pollution by stubble burning, the Commission may impose an environment compensation on such farmers causing pollution by stubble burning. In August, 2021 the Commission issued directions to Uttar Pradesh, Haryana, and Rajasthan for shifting of industries operating in NCR to cleaner fuels.39 The Supreme Court noted that these directions were partly compiled by industries. Industries not having cleaner fuels will be allowed to function for up to eight hours during weekdays and will remain closed on weekends.40 Further the Commission has also constituted an enforcement task force to take punitive and preventive measures against authorities not complying with the directions of the Commission. ## Forestry In India, forests are considered as a part of the natural and cultural heritage. They provide variety of ecosystem services including: (i) absorption of greenhouse gases, (ii) prevention of soil erosion, and (ii) habitat to wildlife. One of the critical challenges faced by forests in the country is degradation of forest cover.41 ## Land Forests Forest Area refers to area recorded as forest in government records and is also called "recorded forest area". As per the India State of Forest Report 2021, India was the 10th largest country by forest area in 2020. The top five countries were: (i) Russia, (ii) Brazil, (iii) Canada, (iv) United States of America, and (v) China. In India, forests cover 24% of its geographical area, which accounts for 2% of the world's total forest area.2 The report noted that India has significantly increased its forest area over the past decade. It ranks third globally in average annual net gain in forest area between 2010 to 2020 (behind China and Australia). India has added around 0.38% of the 2010 forest area every year between 2010 to 2020. Forest cover comprises all lands, more than one hectare in area, with a tree canopy density of more than 10 per cent, irrespective of ownership and legal status. Such lands may not necessarily be a recorded forest area, and also include orchards, bamboo and palm plantations. India's total forest cover was 7,13,789 square kilometres in 2021, a 3.14% increase over the forest cover in 2011. The Economic Survey 2021-22 observed that going forward, there is a need to further improve forest and tree cover. It stated that social forestry could play a significant role in this regard.2 ## Green India Mission Green India Mission (erstwhile National Afforestation Programme) was launched in February 2014. Its objectives include: (i) increasing forest cover by up to 5 million hectare and improving quality of forest cover on additional 5 million hectare of land, (ii) enhancing eco-system services such as capturing and storing atmospheric carbon to reduce global warming, and (iii) increasing forest-based livelihood income of about 3 million households.42 NITI Aayog, in its report on Strategy for New India (2018), identified increasing the forest cover to 33.3% of the geographical area between 2021-23 as one of the key objectives for a clean, and healthy environment in India. Between 2017 and 2019, the forest cover across India increased by 0.6% (0.4 million hectares).43 As of 2019, total forest cover in India accounts for 22% of the total geographical area (71 million hectare out of 329 million hectare).44 The states with comparatively higher forest cover as share of their geographical area include: (i) Lakshadweep (90%), (ii) Mizoram (85%), (iii) Andaman and Nicobar Islands (82%), (iv) Meghalaya (76%), and (v) Manipur (75%), among others. Note that, the 14th Finance Commission assigned 7.5% weightage to "forest cover" in its calculation of states' share in the central taxes.45 The 15th Finance Commission (2020) replaced this by the a weightage of 10% to "forest and ecology".46 This was done to reward states for the ecological services from the forest cover, and to compensate them for constraints arising from the dense forests in the state.46 NITI Aayog recommended promoting afforestation through peoples' participation and the involvement of the private sector, with priority to restoration of degraded forests.19 Further, it recommended that the public land along railway tracks, highways, and canals should be used for tree plantation. The Standing Committee on Science and Technology, Environment, Forests, and Climate Change (2018) had noted that despite the overall increase in the forest cover in India, some of the North-Eastern states observed a decline in the forest cover in 2017.42 These states include Manipur, Arunachal Pradesh, and Mizoram. The Standing Committee on Science & Technology, Environment & Forests on the 'Status of Forests in India' (2019) also expressed concerns about the decline in the forest cover in the North- Eastern States, which constitute 65.34% of their geographical area in comparison to the national forest cover of 21.54%.41 It recommended that the concerned state governments and the Ministry of Environment, Forests and Climate Change must take all necessary steps to ensure that the decline in forest cover in these states is stopped at the earliest.41 In addition, the Committee noted that no action plan has been prepared by the Ministry for controlling illegal cutting of trees in forests. It recommended the Ministry to take cognizance of the illegal felling of trees in different parts of the country and prepare an action plan for tackling this menace, in coordination with state governments.41 Financing afforestation: In 2022-23, the Green India Mission has been allocated Rs 362 crore (an increase of 42% over the revised estimates in 2019- 20). The Standing Committee on Science & Technology, Environment & Forests on the 'Status of Forests in India' (2019) had noted that the budget allocation to National Afforestation Programme has been insufficient. This has affected the achievement of the annual targeted area of afforestation during the last few years. The Committee recommended the Ministry to ensure adequate allocation to the National Afforestation Programme to achieve the targets under the Programme. The Standing Committee on Science and Technology, Environment, Forests, and Climate Change (2020) noted that the Green India Mission is an important programme.4 However, there has been under-utilisation of funds in the Mission. In 2021-22, up to the revised stage, 88% of the funds allocated to the Mission has been utilised. Evaluation: The Standing Committee on Science & Technology, Environment & Forests on the 'Status of Forests in India' (2019) noted that the mid-term evaluation study on National Afforestation Programme conducted by the Indian Council of Forestry Research and Education (ICFRE) in 2008 had highlighted the successful implementation of the programme.41 However, the Committee observed that more than ten years have passed since the previous ICFRE evaluation and recommended the Ministry to undertake a new study. This will help in assessing the actual impact of the Green India Mission on the forest cover and formulate strategies accordingly.41 The Committee also recommended the Ministry to take necessary action for determining the availability of total land for afforestation in the country. This will help state governments in formulating strategies for taking up the afforestation activities at their level. ## Compensatory Afforestation Management And Planning Authority (Campa) Funds The CAMPA funds were established under Compensatory Afforestation Fund Act, 2016 in August 2016.47 The Act requires an entity, diverting a forest land towards non-forest purposes November 1, 2021. 2 Economic Survey 2021-22, Ministry of Finance, https://www.indiabudget.gov.in/economicsurvey/. 3 Budget Speech 2022-23, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf. 4 Report No. 331, Standing Committee on Science and Technology, Environment, Forests, and Climate Change, March 6, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/19/126/331_2020_12_16.pdf. 5 Report No. 346, Standing Committee on Science and Technology, Environment, Forests, and Climate Change, March 8, 2021, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/19/147/346_2021_7_12.pdf. 6 Article 1, United Nations Framework Convention on Climate Change, 1992. 7 IPCC Fourth Assessment Report: Climate Change 2007, Intergovernmental Panel on Climate Change, 2007, http://www.ipcc.ch/publications_and_data/ar4/wg1/en/contents. html. 8 Climate Change 2013: The Physical Science Basis, Fifth Assessment Report, Intergovernmental Panel on Climate Change, 2013, http://www.ipcc.ch/pdf/assessmentreport/ar5/wg1/WG1AR5_SPM_FINAL.pdf. 9 Summary for Policymakers on Climate Change 2021 - The Physical Science Basis, Intergovernmental Panel on Climate Change, August 7, 2021, https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR 6_WGI_SPM.pdf. 2021, https://unfccc.int/about-us/about-the-secretariat. https://ec.europa.eu/clima/eu-action/funding-climateaction/modernisation-fund_en. (such as mining), to pay for planting forest over an equal area of non-forest land or over twice the area of the degraded forest land. The purposes for utilisation of the fund include: (i) artificial plantations, (ii) wildlife and forest protection, and (iii) forest related infrastructure development. The Standing Committee on Science and Technology, Environment, Forests, and Climate Change (2020) noted that the CAMPA fund has a huge corpus of Rs 54,394 crore. The funds have accumulated due to deforestation. However, the current guidelines on the utilisation of fund restrict its utilisation for other schemes with similar objectives (such as Green India Mission) under the Ministry.4 The Committee recommended the Ministry to explore possibilities of utilisation of fund for schemes with objectives like those defined for utilisation of CAMPA fund. It specified that amendment to CAMPA Act and rules should be also considered for enabling utilisation of the fund for schemes with similar objectives.4 room/statements-releases/2021/04/22/executive-summary-u-sinternational-climate-finance-plan/. 14 Investment Sizing India's 2070 Net-Zero Target, Council on Energy, Environment and Water, https://cef.ceew.in/solutionsfactory/publications/investment-sizing-india-s-2070-net-zerotarget. 15 Sustainable Development and 06 Climate Change, Chapter 6, Economic Survey (2020-21), https://www.indiabudget.gov.in/economicsurvey/doc/vol2chapte r/echap06_vol2.pdf. 16 "Decision -/CP.26", Glasgow Climate Pact, United Nations Framework Convention on Climate Change, https://unfccc.int/sites/default/files/resource/cop26_auv_2f_cove r_decision.pdf. 17 Renewable Energy, FDI Policy, Make in India, https://www.makeinindia.com/sector/renewableenergy#:~:text=FDI%20up%20to%20100%25%20is,prior%20G overnment%20approval%20is%20required.&text=The%20cumu lative%20FDI%20equity%20inflow,April%202000%20to%20Ju ne%202021. 18 "Thirtieth Report: Performance of the National Action Plan on Climate Change", Estimates Committee, Lok Sabha, December 13, 2018, http://164.100.47.193/lsscommittee/Estimates/16_Estimates_30. pdf. 19 Strategy for New India @ 75, NITI Aayog, November, 2018, https://niti.gov.in/sites/default/files/2019- 01/Strategy_for_New_India_0.pdf. 20 Paris Agreement, 2015, United Nations Framework Convention on Climate Change, http://unfccc.int/resource/docs/2015/cop21/eng/l09r01.pdf; Paris Climate Change Conference, United Nations Framework Convention on Climate Change, November 2015, http://unfccc.int/meetings/paris_nov_2015/meeting/8926.php. 21 "India has achieved its NDC target with total non-fossil based installed energy capacity of 157.32 GW which is 40.1% of the total installed electricity capacity ", Press Information Bureau, Ministry of New and Renewable Energy, December 28, 2021. 22 Government constitutes High-level Ministerial Committee for implementation of Paris Agreement, Press Information Bureau, Ministry of Environment, Forest and Climate Change, December 2, 2020. 23 Carbon Dioxide Capture and Storage, Intergovernmental Panel on Climate Change, 2005, https://www.ipcc.ch/site/assets/uploads/2018/03/srccs_wholerep ort-1.pdf. 24 Global energy-related CO2 emissions by sector, International Energy Agency, March 25, 2021, https://www.iea.org/data-andstatistics/charts/global-energy-related-co2-emissions-by-sector. 25 Data and Statistics, International Energy Agency, as accessed on November 28, 2021. https://www.iea.org/data-andstatistics/databrowser?country=WORLD&fuel=CO2%20emissions&indicator =TotCO2. 26 Global Energy Review 2021, International Energy Agency, https://www.iea.org/reports/global-energy-review- 2021/renewables. 27 Report No. 18 - Development of Coal Blocks Allocated to Power Sector Companies, Standing Committee on Energy, August 5, 2021, http://164.100.47.193/lsscommittee/Energy/17_Energy_18.pdf. 28 The Report of the 15th Finance Commission (2021-26), Volume III, The Union, October 2020, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/ Reports/XVFC-Vol%20III-Union.pdf. 29 National Action Plan on Climate Change, Prime Minister's Council on Climate Change, June 2008, http://www.moef.nic.in/sites/default/files/Pg01-52_2.pdf. 30 Report of the Comptroller and Auditor General of India on Environmental Clearance and Post Clearance Monitoring, 2016, https://cag.gov.in/uploads/download_audit_report/2016/Union_ Government_Report_39_of_2016_PA.pdf. 31 "Government launches National Clean Air Programme (NCAP)", Press Information Bureau, Ministry of Environment, Forests and Climate Change, January 10, 2019. 32 Demand No. 57, Ministry of Housing and Urban Affairs, Union Budget 2020-21, https://www.indiabudget.gov.in/budget2020- 21/doc/eb/sbe57.pdf. 33 Unstarred Question No. 1181, Ministry of Environment, Forests and Climate Change, June 28, 2019, Lok Sabha. 34 Interventions and tools, ambient air pollution, World Health Organisation, https://www.who.int/airpollution/ambient/interventions/en/. 35 Policy and progress, ambient air pollution, World Health Organisation, https://www.who.int/airpollution/ambient/policygovernance/en/. 36 India: Health of the Nation's States, The India State-Level Disease Burden Initiative, Indian Council of Medical Research, Public Health Foundation of India, and Institute for Health Metrics and Evaluation, November 2017, https://phfi.org/wpcontent/uploads/2018/05/2017-India-State-Level-Disease- Burden-Initiative-Full-Report.pdf. 37 The impact of air pollution on deaths, disease burden, and life expectancy across the states of India: The Global Burden of Disease Study 2017, Lancet Planet Health 2018, December 2018, https://www.thelancet.com/action/showPdf?pii=S2542- 5196%2818%2930261-4. 38 The Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021, https://egazette.nic.in/WriteReadData/2021/228982.pdf. 39 Aditya Dubey (Minor) vs Union of India and Ors., Supreme Court Writ Petition (Civil) No. 1135/2020 of 2021, November 29, 2021, 20994_2020_31_301_31722_Order_29-Nov-2021.pdf (sci.gov.in). 40 Aditya Dubey (Minor) vs Union of India and Ors., Supreme Court Writ Petition (Civil) No. 1135/2020 of 2021, December 3, 2021, 20994_2020_31_301_31928_Order_03-Dec-2021.pdf (sci.gov.in). 41 Report No. 324 - Status of Forests in India, Standing Committee on Science and Technology, Environment, Forests, and Climate Change, February 12, 2019, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/19/108/324_2019_9_12.pdf. 42 Report No. 313, Standing Committee on Science and Technology, Environment, Forests, and Climate Change, March 13, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/19/103/313_2019_1_14.pdf. 43 India State of Forest Report, 2019, Forest Survey of India, Ministry of Environment, Forests and Climate Change, December 30, 2019, http://www.fsi.nic.in/forest-report-2019. 44 Chapter 2 - Forest Cover, India State of Forest Report 2019, Ministry of Environment, Forests, and Climate Change, https://fsi.nic.in/isfr19/vol1/cover-page.pdf. 45 14th finance commission: Report of 14th Finance Commission, https://fincomindia.nic.in/writereaddata/html_en_files/oldcommi ssion_html/fincom14/others/14thFCReport.pdf. 46 15th finance commission: Volume I - Main Report, 15th Finance Commission, October 2020, https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/ Reports/XVFC%20VOL%20I%20Main%20Report.pdf. 47 The Compensatory Afforestation Fund Act, 2016, https://legislative.gov.in/sites/default/files/A2016-38_1.pdf. PRS Legislative Research Institute for Policy Research Studies 3rd Floor, Gandharva Mahavidyalaya, 212, Deen Dayal Upadhyaya Marg, New Delhi - 110002 Tel: (011) 2323 4801 www.prsindia.org
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budget_reports
## Demand For Grants 2018-19 Analysis Housing And Urban Affairs The Ministry of Housing an d Urban Affairs plays a central role in formulating policies and coordinating the activities of various agencies (including state governments, and urban local bodies) involved in urban planning. The Ministry of Housing and Poverty Alleviation and Ministry of Urban Development were combined in 2017 to form the Ministry of Housing and Urban Affairs. This note looks at the expenditure incurred by the Ministry, the status of the various schemes implemented, and the issues faced with investment required for urban planning. ## Overview Of Finances The total allocated expenditure for the Ministry of Housing and Urban Affairs for 2018-19 is Rs 41,765 crore, 2% higher than the revised estimate of 2017-18.1 Note: For the years 2009-10 till 2017-18, the figures are a combination of the erstwhile Ministry of Housing and Urban Poverty Alleviation, and Ministry of Urban Development. Values for 2017-18 are revised estimates. Sources: Budget documents 2009-10 to 2018-19; PRS. The period from 2009-10 till 2017-18 has seen a trend of increase in actual expenditure. The period saw a Compounded Annual Growth Rate (CAGR) of 25%. CAGR is the annual growth rate over a certain period of time. This may be due to an increased focus on infrastructure provision in urban areas. The period from 2014-15 till 2017-18 has seen higher increases in expenditure. The highest increase in expenditure was seen in 2014-15 (91%), over the previous year. In 2016-17, there was an 83% rise in expenditure over the previous year. The figure below shows the trend in utilisation of funds between 2009-10 and 2017-18. Tel: (011) 43434035-36, 23234801-02  www.prsindia.org Note: For the years 2009-10 till 2017-18, the figures are a combination of the erstwhile Ministry of Housing and Urban Poverty Alleviation, and Ministry of Urban Development. Values for 2017-18 are revised estimates. Sources: Budget documents 2009-10 to 2018-19; PRS. While the actual expenditure of the Ministry has been increasing over the years, for the period between 2011-12 and 2015-16, it was lower than the budget estimates. Although 2014-15 saw the highest increase in expenditure, it also saw the largest negative deviation from the budget estimate. The actual expenditure in 2014-15 was 32% lower than the budget estimate. The Standing Committee on Urban Development, 2017, noted that the budgetary allocations were lower than the Ministry demand.2 Although there was a 36% increase in the budget estimate for 2017-18 over the budget estimate for 2016-17, it was short of what the Ministry had projected. (The erstwhile Ministry of Urban Development had an allocation of Rs 34,212 crore as compared to the projected Rs 68,410 crore).2 | Revised | Budgeted | % | |------------|-------------|--------| | | | | | Actual | | | | 16-17 | 17-18 | 18-19 | | Metro | 15,327 | 18,000 | | PMAY | | | | (Urban) | | | | 4,881 | 6,043 | 6,505 | | AMRUT | 4,864 | 4,999 | | Smart | | | | Cities | | | | 4,412 | 4,000 | 6,169 | | SBM | | | | (Urban) | | | | 2,135 | 2,300 | 2,500 | Sources: Union Budget documents 2018-19; PRS. Of the expenditure allocated to the Ministry in 2018-19, the highest allocation is towards metro projects at 36% of the total (Rs 15,000 crore). This is followed by allocations towards key schemes under the Ministry, i.e., Pradhan Mantri Awas Yojana (PMAY)- Urban (16%; Rs 6,505 crore), Smart Cities Mission (15%; Rs 6,169 crore), AMRUT (14%; Rs 6,000 crore), and Swachh Bharat Mission- Urban (6%; Rs 2,500 crore). Of the major schemes/projects, allocation towards Metro projects in 2018-19 has seen a 17% decrease over the revised estimates of 2017-18, and allocation towards Smart Cities has seen a 54% increase over the revised estimates. Year Budgeted Actuals % utilised Sources: Ministry of Housing and Urban Affairs budget documents; PRS. Revenue and Capital expenditure Table 2 shows the overall shift in revenue and capital expenditure of the Ministry. ## Housing And Urban Affairs ( Rs Crore) BE 2017- 18* RE 2017- 18* BE 2018- 19 % change (BE 2018-19/ RE 2017-18) Revenue 21,285 21,332 25,350 19% Capital 19,333 19,422 16,415 -15% Total 40,618 40,754 41,765 2% Notes: BE - Budget Estimate; RE - Revised Estimate. *Combines BE and RE of erstwhile Ministry of Housing and Poverty Alleviation, and Ministry of Urban Development. Sources: Ministry of Housing and Urban Affairs budget documents; PRS. Of the total expenditure, 39% is allocated for capital expenditure, and 61% for revenue expenditure. As compared to the revised estimates of 2017-18, revenue expenditure has increased by 19%, while capital expenditure has decreased by 15%. The reduction in capital expenditure can be attributed to a reduction in the allocation towards Metro projects. The capital expenditure on metro projects forms 91% of the total capital expenditure. Major schemes and allocations: 2018-19 Metro Projects The Ministry of Housing and Urban Affairs is responsible for urban transport which includes metro projects. The budgetary allocation towards metro projects in 2018-19 is Rs 15,000 crore. This is a 17% decrease over the revised estimates of 2017-18. The table below shows the trends in allocations and expenditure towards metro projects. ## Crore) | 2014-15 | 8,026 | 5,998 | 75% | |------------|----------|----------|--------| | 2015-16 | 8,260 | 9,300 | 113% | | 2016-17 | 10,000 | 15,327 | 153% | | 2017-18 | 18,000 | 18,000* | 100% | *Revised estimates. Sources: Budget documents 2015-16 to 2018-19; PRS. The allocation towards metro projects has been increasing from the period 2014-15 till 2017-18. The allocation in 2018-19 was decreased by 17% over the revised estimates of 2017-18. As the allocations have been increasing, the actual expenditures have over shot the budget estimates. In 2016-17, the actual expenditure was 153% of the budget estimate. In 2017-18 the revised estimate is the same as the budget estimate. There are currently 13 ongoing metro rail projects that have been set up as a 50:50 joint venture between the central government and respective state governments.3 The total sanctioned costs of these projects amount to Rs 1,76,105 crore, of which the share of the central government is Rs 30,903 crore.3 As of August 2017, a total length of 370 km are operational in eight cities, and a total length of 537 km are work in progress in 13 cities (including these eight cities).4 Of the total expenditure on metro projects, majority of it (Rs 14,924 crore) is on capital expenditure. The capital expenditure on metro projects forms 91% of the total capital expenditure of the Ministry of Housing and Urban Affairs. The Standing Committee on Urban Development (2017) noted that a high allocation towards metro projects leads to inadequate funds for other projects.2 The Committee recognises the importance of metro projects for the improvement of urban transport, and has recommended financing projects through other options such as international cooperation. The Union Cabinet approved the Metro Rail Policy in August 2017.4 The policy makes a Public Private Partnership (PPP) component mandatory for a project to be eligible for central assistance. In addition, states have three options via which they can avail central assistance. These options are- (i) PPP with central assistance under the viability gap funding scheme of the Ministry of Finance, (ii) grant by government under which a lump sum central assistance will amount to 10% of the project cost, and (iii) 50:50 equity sharing model between state and central governments. Pradhan Mantri Awas Yojana (PMAY)- Urban PMAY- Urban is a housing scheme being implemented from 2015 to 2022. The scheme comprises four components: (i) in situ rehabilitation of existing slum dwellers through private participation, (ii) credit linked subsidy scheme (CLSS) for economically weaker section (EWS), lower income group (LIG), and middle income group (MIG), (iii) affordable housing in partnership, and (iv) subsidy for beneficiary led individual house construction. The Ministry provides central assistance to urban local bodies for the implementation of the scheme through respective state governments. The budgetary allocation towards the scheme for 2018-18 is Rs 6,505 crore. This is an 8% increase over the revised estimates for 2017-18. The increase in budgetary allocation in 2018-19 can be attributed to the increase in allocations for the LIG and MIG components of the CLSS. Table 4: Allocation towards PMAY ( Rs crore) Year Budgeted Actuals % utilised 2015-16 4,175 1,487 36% 2016-17 5,075 4,881 96% 2017-18 6,043 6,043* 100% 2018-19 6,505 *Revised estimates. Sources: Budget documents 2015-16 to 2018-19; PRS. In 2016-17, a 228% increase was observed in the actual expenditure over 2015-16. Correspondingly, a 258% rise was seen in the number of houses constructed in 2016-17. Table 5 shows the year on year increase in the number of houses constructed under the scheme. Although the actual expenditure has seen an increase, it has been short of the budget estimates. In 2015-16, 36% of the budget estimate was utilised, and in 2016-17, 96% of the budget estimate was utilised. Year on Year Year No. of houses increase completed 2014-15 2,506 2015-16 18,706 646% 2016-17 66,985 258% 2017-18* 2,07,794 210% *Data for 2017-18 updated till January 2, 2018. Sources: Lok Sabha Unstarred Question no. 2528; PRS. Under the scheme, as on January 2, 2018, of the total 32,00,431 houses sanctioned for construction, 9% (2,95,991) houses have been completed.5 The government aims to achieve its 'housing for all target' by 2022. As per the 2011 census, 27.5% of urban residents lived in rented houses. According to the Report of the Group of Secretaries, January 2017, a rental housing scheme would further complement PMAY- Urban in achieving the housing for all target.6 Lending by housing finance companies- Both housing finance companies (HFCs), and public sector banks offer low cost funding for housing. HFCs have an 80% share in the implementation of CLSS component of PMAY-Urban.6 However, they face constraints such as inability to access long term funds. The Union Cabinet has approved the creation of a National Urban Housing Fund (NUHF) worth Rs 60,000 crore.7 This fund will be under the Building Materials and Technology Promotion Council, an autonomous body set up in 1990 under the Ministry of Housing and Urban Affairs. The council undertakes research to facilitate large scale application of new building material technologies.8 The NUHF aims to raise funds in the next four years to ensure a sustained flow of central release under Pradhan Mantri Awas Yojana (PMAY)- Urban, enabling construction of houses. Urban Rejuvenation Mission: AMRUT and Smart Cities Mission The AMRUT mission was launched in June 2015.9 The purpose of the mission is to provide basic services (these services include water supply, sewerage, and urban transport) in cities, especially to the poorer households. The pace of urbanisation is increasing in the country. The table below captures the rise in the number of towns. | | 2001 | 2011 | % increase | |-----------------|---------|---------|---------------| | Statutory Towns | 3,799 | 4,041 | 6% | | Census Towns | 1,362 | 3,894 | 186% | Sources: Ministry of Housing and Urban Affairs; PRS. The growth in urbanisation has seen a 186% rise in the number of census towns (towns that do not have a notified urban local body). The absence of notified urban local bodies (ULBs) leads to unplanned growth of slums, lack of basic drinking water or sewerage facilities, and no tax collection as applicable to municipalities. In the context of the rapid rise in unplanned urbanization, the reforms under AMRUT intend to improve service delivery, and make municipal functioning more accountable. The budget estimate for 2018-19 is Rs 6,000 crore, 20% more than the revised estimates of 2017-18. AMRUT is a Centrally Sponsored Scheme with a financial outlay of Rs 50,000 crore for five years (2015-20). Capacity building and implementation of reforms are key components of the mission. The following table compares the actual expenditure against the proposed allocation as given in a cabinet note, indicated by the Standing Committee on Urban Development, 2017.2 expenditure ( Rs crore) | Year | Proposed allocation | Budgeted | Actuals | |---------|------------------------|-------------|------------| | 2015-16 | 5,000 | 3,919 | 2,702 | | 2016-17 | 15,000 | 4,080 | 4,864 | | 2017-18 | 15,000 | 5,000 | 4,999* | | 2018-19 | 9,000 | 6,000 | - | | 2019-20 | 6,000 | - | - | | Total | 50,000 | 18,999 | 12,565 | *Revised Estimate. Sources: Standing Committee on Urban Development, 2017; Budget documents; PRS. As per the Cabinet note, the Ministry seeks to spend Rs 50,000 crore on AMRUT by 2019-20. As per the government's proposal, the Ministry should have spent Rs 35,000 crore (70% of the total) by 2017-18. So far, looking at the actual expenditure, the Ministry has spent Rs 12,565 crore (25.1% of the proposed total). The government has to achieve 74.9% of the total target in 2018-19, and 2019-20. The allocation towards the scheme has been increasing over the period from 2015-16 till 2018- 19. In 2015-16, the expenditure was 69% of the budget estimate, while in 2016-17, the actual expenditure over shot the budget estimate (119% of budget estimate). The Smart Cities Mission aims to develop cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment, and apply 'smart' solutions. So far, 99 cities have been selected under the Mission.10 These were selected via the Smart City challenge. The cities were evaluated based on their Smart City Proposals, which consists of an area based development strategy, and a pan city development strategy. The mission will be operated as a Centrally Sponsored Scheme The budget estimate for 2018-19 is Rs 6,619 crore, an increase of 54% over the revised estimates of 2017-18. ## Mission ( Rs Crore) | Year | Budgeted | Actuals | % utilised | |---------|-------------|------------|---------------| | 2015-16 | 2,020 | 1,484 | 73% | | 2016-17 | 3,215 | 4,412 | 137% | | 2017-18 | 4,000 | 4,000* | 100% | | 2018-19 | 6,169 | | | *Revised estimates. Sources: Budget documents 2015-16 to 2018-19; PRS. In 2016-17, the actual expenditure increased by 197% over the actual expenditure in 2015-16. Correspondingly, 2016-17 saw overspending against the budget estimate (137% of budget estimate). In 2017-18, the actual expenditure is estimated to be lower than in 2016-17, and equal to the budget estimate. A total investment of Rs 2,01,981 crore is proposed by the 99 cities under their smart city plans.11 The central and state governments will meet only part of the project costs. The central government will provide financial assistance of up to Rs. 48,000 crore over five years, that is, an average of Rs. 100 crore per city per year. The states and ULBs will have to contribute an equal amount, and generate the additional amount as required. Other sources of financing include, PPP's, borrowings, and innovative mechanisms such as municipal bonds. So far, of the cities that were selected in round one of the competition (January 2016), 49% of the projects are in the detailed project report preparation phase. Almost all cities selected in round two have set up a special purpose vehicle (SPV). Cities recently selected in round three and four are in the process of establishing Special Purpose Vehicles (SPV).12 Swachh Bharat Mission (SBM)- Urban Swachh Bharat Mission (SBM), launched in October 2014, aims to eliminate open defecation and achieve 100% scientific management of municipal solid waste in all 4,041 statutory towns by October 2, 2019.13,14 The budget estimate for 2018-19 is Rs 2,500 crore. This is a 9% increase over the revised estimates of 2017-18. The table below shows the allocations towards SBM- Urban. Table 9: Allocation towards SBM Urban ( Rs crore) | Year | Budgeted | Actuals | % utilised | |---------|-------------|------------|---------------| | 2014-15 | 1,690* | 859 | 51% | | 2015-16 | 1,000* | 766 | 77% | | 2016-17 | 2,300 | 2,135 | 93% | | 2017-18 | 2,300 | 2,300 | 100% | *Revised estimates. Sources: Budget documents 2015-16 to 2018-19; PRS. In 2016-17, the actual expenditure was 179% higher over the actual expenditure of 2015-16. Since 2014-15, the Ministry has underutilised the funds allocated towards the scheme. However, the utilisation of funds has improved each year. In 2017-18, the actual expenditure is estimated to equal the budget estimate. The total estimated cost of implementation of SBM- Urban is Rs 62,009 crore. Of this, the share of the central government is Rs 14,623 crore, and states' assistance will amount to Rs 4,874 crore. The remainder is to be financed via various sources such as the private sector, Swachh Bharat Kosh, market borrowing, and external assistance. Achievements: The table below shows the number of toilets constructed as of November 2017, as compared to the targets set for October 2019. Target Achievement % achieved Community and Public toilets 5,08,000 2,43,152 48% | 66,42,000 | |--------------| | Individual | | Household | | toilets | Sources: Ministry of Housing and Urban Affairs; PRS. As of November 2017, 22% of the total municipal solid waste generated daily, is processed.15 Awareness: The Swachhta Status Report, 2016 showed that as per information collected in 2012, people may not use toilets in spite of having access to them.16 During 2012, 0.2% households in urban areas had access to toilets but were not using them. The reasons for not using them include, not clean/ insufficient water, malfunctioning of the toilets, and personal preference. In the Standing Committee, Urban Development, Report on Demands for grants 2017-18, the Ministry noted that it has shifted emphasis from construction of toilets to behavioural change.2 15% of the total central allocation is earmarked for the Information, Education, and Communication (IEC) and Public Awareness component of the scheme. Of the total central release as on January 2, 2018, 12% of the release accounts for this component.17 Other issues to consider Additional investment: In the current landscape of rising unplanned urbanisation, the High Powered Expert Committee (HPEC) (2011) for Estimating the Investment Requirements for Urban Infrastructure Services had estimated Rs 39 lakh crore (at 2009-10) prices for the period from 2012- 2031.18 As per their framework, the investment in urban infrastructure should increase from 0.7% of GDP in 2011-12 to 1.1% of GDP by 2031-32. The pace of urbanisation is increasing in the country. As per the 2011 census, around 31% of the country's population resided in urban areas.19 By 2031, around 600 million (43%) people will live in urban areas, an increase of over 200 million in 20 years. Given the pace of urbanisation, large capital investments are needed for infrastructure projects which includes support from central and state governments in the form of capital grants. The budgetary outlays alone are not enough to the service the growing demands on local governments.20 Alternate sources of financing are required to meet the funding gap.20 The flagship schemes of the Ministry (such as Smart Cities Mission, Swachh Bharat Mission) seek to meet their financing requirements through a mix of sources such as borrowings, municipal bond financing, and PPPs. Financial capacity of ULBs: The Constitution (74th Amendment) Act, 1992 devolved certain matters relating to urban development to urban local bodies, including the power to collect certain taxes. Some of the functions assigned to urban local bodies include urban planning, planning for economic and social development, and urban poverty alleviation. The new schemes under the Ministry, seek to decentralize the planning process to the city and state level, by giving them more decision making powers. So, while earlier, majority of the funding came from the central and state governments, now, a significant share of the funding needs to be raised by the cities themselves. There is an imbalance between the functions and finances of urban local bodies.21 The ULBs in India are amongst the weakest in the world both in terms of capacity to raise a resources and financial autonomy. The share of own revenue for ULBs has been declining from 63% in 2002-03, 53% in 2007- 8, and 44% in 2015-16.22,23 Several states have not devolved enough taxation powers to local bodies. Further, local governments collect only a small fraction of their potential tax revenue. These devolved funds are largely tied in nature, to either specific sectors or schemes. This constrains the spending flexibility of ULBs. PPP's have been an important instrument to finance and develop infrastructure projects. However, projects in many sectors require support from ULBs in the form of additional financial resources. Inability to service such funding requirements constrains project implementation.20 In such cases, ULBs can access capital markets through issuance of municipal bonds. Municipal bonds are marketable debt instruments issued by ULBs, the funds raised may be used for capital projects, refinancing of existing loans, and meeting working capital requirements. The Securities and Exchange Board of India regulations (2015) regarding municipal bonds provide that, to issue such bonds, municipalities must: (i) not have negative net worth in any of the three preceding financial years, and (ii) not have defaulted in any loan repayments in the last one year.24 Therefore, a city's performance in the bond market depends on its fiscal performance. To strengthen alternate sources of financing, the Department of Economic Affairs, Ministry of Finance has initiated a pilot program for readiness assessment and model development for Municipal bond financing in select urban local bodies.20 5 Lok Sabha Unstarred Question No.2528, Ministry of Housing and Urban Affairs, January 2, 2018, http://164.100.47.190/loksabhaquestions/annex/13/AU2528.pdf. 6 Report of the Group of Secretaries, Group 4- Health, Sanitation and Urban Development, January 2017, https://smartnet.niua.org/sites/default/files/resources/report_of_s ectoral_group_of_secretaries_on_health_sanitation_urban_devel opment.pdf. 7 "Cabinet approves creation of national Urban Housing Fund", Press Information Bureau, Ministry of Housing and Urban Affairs, February 22, 2018, http://pib.nic.in/newsite/PrintRelease.aspx?relid=176687. 8 Building Materials and Technology Promotion Council, Ministry of Housing and Urban Affairs, http://www.bmtpc.org/topics.aspx?type=sub&mid=19. 9 Mission Statement and Guidelines, Atal Mission for Rejuvenation and Urban Transformation, Ministry of Urban Development, June 2015, http://amrut.gov.in/writereaddata/AMRUT%20Guidelines%20.p df. 10 "Silvassa Tops the List of Winner Cities- Erode, Diu, Biharsharif, Itanagar and Kavaratti Selected in Round 4 of Smart Cities- Bareilly, Moradabad and Saharanpur in UP also selected- 99 Smart Cities selected so Far", Press Information Bureau, Ministry of Housing and Urban Affairs, January 19, 2018, http://pib.nic.in/newsite/PrintRelease.aspx?relid=175750. 11Smart Cities, Ministry of Housing and Urban Affairs, http://www.mohua.gov.in/cms/smart-cities.php. Last accessed on February 8, 2018. 12Unstarred Question no. 490, Ministry of Housing and Urban Affairs, Lok Sabha, February 6, 2018, http://164.100.47.190/loksabhaquestions/annex/14/AU490.pdf. 13 "Swachh Bharat Mission needs to become a Jan Andolan with participataion from every stakeholder: Hardeep Puri 1,789 Cities have been declared ODF conference on PPP model for waste to energy projects", Ministry of Housing and Urban Affairs, Press Information Bureau, November 30, 2017, http://pib.nic.in/newsite/PrintRelease.aspx?relid=173995. 14 "PM launches Swachh Bharat Abhiyaan", Prime Minister's Office, Press Information Bureau, October 2, 2014, http://pib.nic.in/newsite/PrintRelease.aspx?relid=110247. 15 Swachh Bharat Urban, Ministry of Housing and Urban Affairs, last accessed on January 25, 2018, http://swachhbharaturban.gov.in/writereaddata/Statewise_status _of_implementation.pdf. 16Swachhta Status Report, National Sample Survey Office, 2016, https://smartnet.niua.org/sites/default/files/resources/swachhta_s tatus_report_2016_17apr17.pdf. 17 Unstarred Question no. 211, Ministry of Housing and Urban Affairs, Lok Sabha, January 2, 2018, http://164.100.47.190/loksabhaquestions/annex/13/AS211.pdf. 18 "Report on Indian Infrastructure and Services", High Powered Expert Committee for estimating the investment requirement for urban infrastructure services, March 2011, http://icrier.org/pdf/FinalReport-hpec.pdf. 19 Challenge of Urbanisation, Approach to the 12th five year plan, Planning Commission, October 2011, http://planningcommission.gov.in/plans/planrel/12appdrft/appra och_12plan.pdf. 20 "Guidance on use of Municipal Bond Financing for Infrastructure projects", Department of Economic Affairs, Ministry of Finance, September 2017, https://www.pppinindia.gov.in/documents/20181/33749/Guidan ce+on+use+of+Municipal+Bonds+for+PPP+projects.pdf/037cb 143-8305-4c57-8f3c-32e5a329297f. 21 "Report of the sub-committee on financing urban infrastructure in the 12th Plan, Ministry of Urban Development, March 2012, http://mohua.gov.in/upload/uploadfiles/files/Report%20of%20th e%20Sub- Committee%20on%20Financing%20Urban%20Infrastructure% 20in%20the%2012th%20Plan%20_0.pdf. 22 Report of the Steering Committee on Urbanisation, Planning Commission, Government of India, November 2012, https://smartnet.niua.org/content/d5ce7e1d-04fd-45c4-af11- b9e6a25e4ea8. 23 Economic Survey 2017-18, Ministry of Finance, January 29, 2018. 24 Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015, Securities and Exchange Board of India, July 15, 2015, http://www.sebi.gov.in/sebi_data/attachdocs/1436964571 729.pdf. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it.
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## Demand For Grants 2019-20 Analysis Youth Affairs And Sports The Ministry of Youth Affairs and Sports has the mandate of developing sports facilities and encouraging sporting talent in India. The Ministry is responsible for creating infrastructure and capacity to enable international competitiveness. It has two departments: (i) the Department of Youth Affairs and (ii) the Department of Sports. The Department of Youth Affairs manages the National Service Scheme, Rashtriya Yuva Sashaktikaran Karyakram and Rajiv Gandhi National Institute of Youth Development. The Department of Sports manages the Sports Authority of India, Lakshmibai National Institute of Physical Education, and National Anti-Doping Agency. This note presents the trends in expenditure, and discusses some of the issues related to the Ministry of Youth Affairs and Sports. ## Overview Of Finances The Ministry of Youth Affairs and Sports has been allocated Rs 2,216 crore in 2019-20 (see Table 1). This is a 11% increase over the revised estimates of 2018-19 (Rs 2,002 crore). In 2018-19, the budget estimate for Department of Youth Affairs was Rs 621 crore, and the budget estimate for Department of Sports was Rs 1575 crore.2 The allocations for the major heads across the two departments are provided in Table 1. | RE 2018- | BE 2019- | % change | |---------------|------------|-------------| | Particulars | | | | Actual | | | | 2017-18 | 19 | 20 | | Khelo India | 349 | 551 | | 496 | 395 | 450 | | Sports | | | | Authority of | | | | India | | | | 278 | 245 | 245 | | Assistance to | | | | National | | | | Sports | | | | Federations | | | | 215 | 270 | 257 | | Nehru Yuva | | | | Kendra | | | | Sangathan | | | | 111 | 138 | 138 | | Rashtriya | | | | Yuva | | | | Sashaktikaran | | | | Karyakaram | | | | Others | 240 | 403 | | Total | 1,689 | 2,002 | | | | | Note: BE - Budget Estimate; RE - Revised Estimates. Others: National Sports Development Fund, and contribution to the World Anti-doping Agency. Sources: Expenditure Budget, Union Budget 2019-20, PRS. [email protected] 3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi - 110002 Tel: (011) 43434035-36, 23234801-02  www.prsindia.org  Under the Department of Sports, the Khelo India programme, National Sports Federations and the Sports Authority of India have the highest allocations. Together, 58% of the Ministry's allocations have gone to these heads. (see Figure 1).  Khelo India programme aims to: (i) identify and nurture sporting talent, (ii) encourage mass participation of youth in annual sports competitions, and (iii) create sports infrastructure.  National Sports Federations (NSFs) are autonomous bodies registered under Companies or Societies Acts. They promote and develop sports disciplines in the country, for which they are recognised by the concerned international federation. Currently, there are 56 NSFs in India.1  The Sports Authority of India (SAI) is the nodal agency at the national level to promote excellence in sports. Additionally, SAI provides support to NSFs for identification, training, and coaching of sportspersons, and setting up infrastructure.  Under the Department of Youth Affairs, the Nehru Yuva Kendra Sangathan and the Rashtriya Yuva Sashaktikaran Karyakaram received the highest allocation at Rs 257 crore and Rs 138 crore respectively in 2019-20. ## Issues With Financial Allocation In terms of budgetary allocations to the Ministry, the Standing Committee on Human Resource Development (2018-19) noted that the allocations have been lower than the projected demand, year after year.2 For example, in 2018-19, the projected demand for Department of Youth Affairs was Rs 873 crore. Against this demand, the allocated budget estimate was Rs 621 crore.2 Note: Revised estimates have been used for 2018-19 and budget estimates for 2019-20. Sources: Union Budgets, 2008-19; PRS. The utilisation of funds in terms of actual expenditure has been consistently high in the past four years. It was over 87% from 2016-19, even touching 100% in 2017-18 (see Table 2). However, in 2014-15, the utilisation was just over 60%. The actual allocations and the year on year percentage change in such allocations is given in Figure 2. the actual expenditure (2007-18) (in Rs crore) | Year | BE | Actuals | Utilisation | |---------|-------|------------|----------------| | 2007-08 | 780 | 857 | 110% | | 2008-09 | 1,112 | 1,593 | 143% | | 2009-10 | 3,073 | 3,670 | 119% | | 2010-11 | 3,565 | 2,841 | 80% | | 2011-12 | 1,121 | 970 | 87% | | 2012-13 | 1,152 | 871 | 76% | | 2013-14 | 1,219 | 1,123 | 92% | | 2014-15 | 1,769 | 1,121 | 63% | | 2015-16 | 1,541 | 1,423 | 92% | | 2016-17 | 1,592 | 1,574 | 99% | | 2017-18 | 1,943 | 1,689 | 87% | | 2018-19 | 2,196 | 2,002 | 91% | Note: B.E.: Budget Estimates; *Revised Estimate. Sources: Union Budgets, 2015-19; PRS. The Ministry of Finance has included sports infrastructure in the harmonised master list of infrastructure sub-sectors on September 9, 2016.3 This list consists of five core sectors: (i) transport, (ii) energy, (iii) water and sanitation, (iv) communication, and (v) social and commercial infrastructure. Sports has been included as a subsector under social and commercial infrastructure. This inclusion pertains to provision of sports stadia and infrastructure for academies involved in training and research in sporting activities. This status makes the sports sector eligible for obtaining long term financial support from banks and other financial institutions at par with other infrastructure projects. Such parity in financial support is expected to: (i) bolster investment in sports infrastructure, (ii) encourage private investment, (iii) promote health and fitness, and (iv) provide more employment opportunities. ## Restructuring Of The Department Of Youth Affairs The Department undertook a comprehensive exercise to restructure and consolidate all schemes operated by Department of Youth Affairs into three schemes: (i) National Service Scheme (NSS), (ii) Rashtriya Yuva Sashaktikaran Karyakram (RYSK) and (iii) Rajiv Gandhi National Institute of Youth Development (RGNIYD). Eight Schemes of the Department that were operating as standalone schemes, will now operate as components of a single cohesive programme under RYSK. The Standing Committee on Human Resource Development observed that this merger will achieve uniformity in the implementation of these schemes. 2 ## Khelo India As An Umbrella Programme Khelo India is an umbrella programme from 2016- 17 after the merger of Rajiv Gandhi Khel Abhiyan, Assistance for Creation of Urban Sports Infrastructure, and the National Sports Talent Search Scheme.4 All the three schemes focus on competitions, talent, and sports infrastructure. Further, the Union Cabinet approved the revamping of the Khelo India programme in September, 2017. The programme aims to: (i) identify and nurture sporting talent, (ii) encourage mass participation of youth in annual sports competitions, and (iii) creation of sports infrastructure. The programme is estimated to cost Rs 1,756 crore for the period 2017-18 to 2019-20.5 ## National Sports Development Fund (Nsdf) The National Sports Development Fund (NSDF) was established by the central government Rs 1,756 crore in 1998 to mobilise governmental and nongovernmental resources for the promotion of sports in the country. All the applications for financial assistance from NSDF are considered and decided by the Executive Committee of NSDF based on the past performance and future potential of the sportspersons in consultation with the SAI and NSFs. Over the past few years, an average of Rs 10-15 crore has been donated or provided by the government, to the NSDF. In 2014-15, this amount was significantly higher at approximately Rs 45 crore.6 Details of the financial contributions to the NSDF from the central government and nongovernment sources are provided in Table 3 below. crore) Non- Year Government contribution (Actuals) government contribution 2013-14 5 10 2014-15 3.7 10 2015-16 14.2 1.3 2016-17 5 11 Source: Unstarred question no. 1439, Ministry of Youth Affairs and Sports, Lok Sabha, March 9, 2017; Union Budgets; PRS. ## Issues For Consideration Certain key observations and recommendations regarding the Ministry by the Standing Committee on Human Resource Development include:2,7,8,  Speed of expenditure: The Committee observed that the speed of expenditure of the Department of Youth Affairs was slow and a large part of the allocation had been kept for the last quarter of the financial year. Against a projected demand of Rs 904 crore for the year 2017-18, it got Rs 550 crore at BE which was further reduced to Rs 544 crore at RE. The Committee found that the Department still had more than Rs 150 crore to spend. It therefore, recommended that the Department should take a cautious approach while making projections and allocation should be spent in a time bound manner.2  Lack of coordination: There is a lack of coordination between the NSFs and the SAI, as well as NSFs and State Sports Federations (SSFs).7 The Standing Committee also highlighted a need for increased cooperation of the Ministry with other ministries such as Human Resource Development, Women and Child Development, and Panchayati Raj for the development of sports.  Functioning of NSFs: The Committee observed that the composition of most NSFs is mostly dominated by non-sportspersons.7 The Committee recommended constituting an independent Election Commission and ensuring adequate representation sportspersons and other sports experts in the Committee. This would also address issues of misgovernance, mal-administration, among others. Further, there is no grievance redressal mechanism in most NSFs. The Committee recommended establishing a multi-layered mechanism for the same at the national and state levels.7 It also suggested assigning the role of final adjudicating authority to a sports tribunal. The NSFs are receiving inadequate funds from the government and therefore, trying to manage more funds from other sources. In this context, it has been recommended that if the government is not in a position to take care of all the funding requirements, private participation should be encouraged.7 Further, the Committee observed that there are still some erring NSFs which are not complying with the government's guidelines.  Fulfilling the mandate of schemes: The mandate of NSFs, and the major schemes being implemented by the Ministry, is broadly the same. The only departure is the fact that NSFs deal with specific sports disciplines. The Standing Committee stated that the NSFs and SSFs should be directly involved in all schemes in their respective capacities of their relevant sports discipline.7  Teacher training and vacancies: The Lakshmibai University of Physical Education is the national apex institution for physical education teachers training, national fitness plan and physical education school curriculum. With respect to this University, the Standing Committee noted the lapse of approved financial outlay and delay in execution of approved projects.2 It recommended that efforts should be made for improving the quality of academic level of the University and strengthening the training skills and administrative support to the students. The **National Sports University Act, 2018** was passed by Parliament in August 2018.9 The Act establishes a National Sports University located in Manipur. It will promote sports education in the areas of: (i) sports sciences, (ii) sports technology, (iii) sports management, and (iv) sports coaching. It will function as a national training centre for select sports disciplines. It may also establish campuses and study centres in other parts of the country. The University will be empowered to grant degrees, diplomas and certificates.  The Committee further observed that the major constraint in the achievement of desired result by Nehru Yuva Kendra Sangathan (NYKS) is shortage of staff. For example, 39% of the posts at NYKS are vacant.  Under the Sports Authority of India, the Committee found that the mode and pace of recruitment was not satisfactory. There was a shortage of coaches and more than 37% of posts were vacant. While filling posts, the Committee advised against contract based appointments.2  NSDF and Corporate Social Responsibility (CSR): There exists a confusion among the Public Sector Undertakings (PSUs) regarding NSDF and CSR.8 CSR comes under the Companies Act, 2013 while NSDF comes under the Charitable Endowments Act, 1890. Hence, contribution under CSR cannot be equated to endowments to NSDF. The Standing Committee recommended that the Department of Sports must educate the PSUs about this difference. Further, the Committee recommended setting up a Council of NSDF to manage the Fund. The Council would be represented by different stakeholders like sportspersons, administrators, amongst others. Additionally, it also recommended reaching out to all the possible donors who have the capacity to contribute. ## 1 "List of Recognised National Sports Federations for the year 2019", Ministry of Youth Affairs and Sports, https://yas.nic.in/sports/support-organisations-1. 2 "Report no.303: Demands for Grants 2018-19 (Demand No. 99) of the Ministry of Youth Affairs and Sports", Standing Committee on Human Resource Development, March 8, 2018, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ ReportFile/16/98/303_2018_6_17.pdf. 3 No. 13/6/2009- Notification, Ministry of Finance, the Gazette of India, September 9, 2016, http://egazette.nic.in/WriteReadData/2016/171686.pdf. 4 "Annual Report 2015-16", Ministry of Youth Affairs and Sports, http://yas.nic.in/sites/default/files/FY_English_Annual%20Repo rt_2015-16.pdf 5 "Cabinet approves Revamped Khelo India Programme", Press Information Bureau, Cabinet, September 20, 2017. 6 Unstarred Question No. 1570, Lok Sabha, December 2, 2014, http://164.100.47.194/Loksabha/Questions/QResult15.aspx?qref =11543&lsno=16. 7 "Report no.262: The Functioning of National Sports Federations", Standing Committee on Human Resource Development, February 20, 2014, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/262.pdf. The NSDF should not merely be confined to the public sector companies or banks but must also reach out to the corporate sector.  Collaboration with banks: The Standing Committee recommended that SAI should take pro-active steps to improve infrastructures/coaching facilities in rural areas.8 It recommended that banks should be involved for talent hunt at the grassroots. It also recommended that banks and financial institutes (including the private sector) should be encouraged to formulate a specific Sports Policy at their own level.  Youth hostel management: Encroachment of youth hostels by state government departments and their use for non-designated purposes was observed by the Committee. Further, it was noted that meetings of Hostel Management Committee were not held regularly, which adversely affected the smooth functioning of Youth Hostels. In this context, the Committee recommended that the Ministry must initiate appropriate measures to get all Youth Hostels free of unauthorised occupants. Further, all requisite steps should be taken by the Ministry to regularise the meetings of the Hostel Management Committee. 8 "Report no.281: Performance of National Sports Development Fund And Recruitment and Promotion of Sportspersons (Part- III)", Standing Committee on Human Resource Development, Rajya Sabha, August 9, 2016, http://164.100.47.5/newcommittee/reports/EnglishCommittees/C ommittee%20on%20HRD/281.pdf. 9 The National Sports University Bill, 2017, http://www.prsindia.org/uploads/media/Sports%20University%2 0Bill,%202017/National%20sports%20university%20bill,%202 017.pdf. DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS"). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it.
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## Demand For Grants 2020-21 Analysis Housing And Urban Affairs The Ministry of Housing and Urban Affairs formulates policies, coordinates activities of various agencies (at the state and municipal level), and monitors programmes in the area of urban development. It also provides states and urban local bodies (ULBs) with financial assistance through various centrally supported schemes. In 2017, the Ministry of Housing and Poverty Alleviation, and the Ministry of Urban Development were combined to form the Ministry of Housing and Urban Affairs. This note looks at the expenditure incurred by the Ministry, the status of the various schemes implemented, and the issues faced with investment required for urban planning. ## Overview Of Finances Allocation In Budget 2020-211 The total expenditure on the Ministry of Housing and Urban Affairs for 2020-21 is estimated at Rs 50,040 crore. This is 18% higher than the revised estimates for 2019-20. In 2020-21, while revenue expenditure of the Ministry is estimated at Rs 28,891 crore (58%), capital expenditure is estimated at Rs 21,149 crore (42%). Since 2014- 15, the Ministry's revenue expenditure has been higher than its capital expenditure. | 2019-20 | 2020-21 | |-------------|------------| | | | | 2018-19 | | | Actuals | RE | | % change | | | 2020-21 BE/ | | | 2019-20 RE | | | Revenue | 24,838 | | Capital | 15,773 | | Total | 40,062 | Notes: BE - Budget Estimate; RE - Revised Estimate. Sources: Notes on Demands for Grants, 2019-20, Ministry of Housing and Urban Affairs; PRS. ## Policy Proposals In The 2020-21 Budget2 In her budget speech, the Finance Minister made the following announcements regarding the housing and urban development sector:  Extension of tax exemption for affordable housing: Currently, an exemption is provided on profits or gains arising out of building affordable houses if the project was approved by March 31, 2020. Further, an additional tax deduction of up to Rs 1,50,000 is provided on interest paid on loans for self-occupied house owners if the loan was sanctioned by March 31, 2020. The deadline in both cases has been extended to March 31, 2021.  Concession to real estate sector: Currently, for transactions involving immovable property where the consideration is less than the circle rate by more than 5%, the difference is counted as income both in the hands of the purchaser and the seller. The Budget proposes to increase this limit to 10%.  New smart cities: Five new smart cities will be developed in collaboration with states through the PPP mode. ## Expenditure Trends Between 2009 and 2020, the expenditure of the Ministry has increased at an average annual rate of 20%. The maximum year-on-year increase (91%) was seen in 2014-15, followed by 2016-17 (83%). This increase could be attributed to the introduction of the new schemes - Smart Cities Mission and AMRUT in 2014-15, and Pradhan Mantri Awas Yojana in 2016-17. Note: For the years 2009-10 till 2018-19, the figures are a combination of the erstwhile Ministry of Housing and Urban Poverty Alleviation, and the Ministry of Urban Development. Values for 2019-20 and 2020-21 are revised and budget estimates respectively. Sources: Ministry of Housing and Urban Affairs budget documents 2009-10 to 2020-21; PRS. The Standing Committee on Urban Development, (2017) had noted that the budgetary allocations to the Ministry were lower than the Ministry's demand.3 Although there was a 36% increase in the budget estimate for 2018-19 over the budget estimate for 2016-17, it was short of what the Ministry had projected. Fox example, in 2017-18, while the erstwhile Ministry of Urban Development projected an expenditure of Rs 68,410 crore, it was allocated Rs 34,212 crore in that year's budget.3 The Standing Committee on Urban Development (2018) had also noted that with the schemes picking up momentum, the allocation towards them should be increased for better implementation. The Standing Committee on Urban Development (2019) noted that since 2017 this gap between the demand and the budgetary allocations has progressively reduced.4 This gap has been reduced through Extra Budgetary Resources (EBR). However, the actual expenditure by the Ministry has been consistently lower than the budget estimates (see Figure 2). Note: For the years 2009-10 till 2019-20, the figures are a combination of the erstwhile Ministry of Housing and Urban Poverty Alleviation, and Ministry of Urban Development. Values for 2019-20 are revised estimates. Sources: Ministry of Housing and Urban Affairs budget documents 2009-10 to 2020-21; PRS. ## Major Schemes And Issues The Ministry implements several centrally sponsored schemes, and few central sector schemes. These include: (i) Atal Mission for Rejuvenation and Urban Transformation (AMRUT), (ii) 100 Smart Cities Mission, (iii) Pradhan mantra Awas Yojana - Urban (PMAY-U), (iv) Swachh Bharat Mission - Urban (SBM-U), and (v) Deendayal Antyodaya Yojana-National Urban Livelihood Mission (DAY-NULM). The Ministry also develops and manages metro rail projects across the country. Of the expenditure allocated to the Ministry in 2020-21, the highest allocation is towards metro projects at 40% of the total budget. The allocation towards the key schemes is shown in Table 2 and Figure 3. Figure 3: Budgetary allocation for Ministry of | 2019-20 | 2020-21 | |---------------|------------| | | | | 2018-19 | | | Actual | RE | | % change | | | 2020-21 BE/ | | | 2019-20 RE | | | Metro | 14,470 | | PMAY | | | (Urban) | | | 6,135 | 6,853 | | AMRUT | 6,183 | | Smart Cities | 5,902 | | SBM (Urban) | 2,462 | | DAY-NULM | 498 | | 369 | 371 | | Projects in | | | North-Eastern | | | Region | | | Others | 4,594 | | Total | | | 40,612 | | | | | | 42,267 | | | | | | 50,040 | | | | | | 18% | | Notes: BE - Budget Estimate; RE - Revised Estimate. Sources: Notes on Demand for Grants 2020-21, Ministry of Housing and Urban Affairs; PRS. ## Metro Projects Fund allocation: The Ministry of Housing and Urban Affairs is responsible for urban transport which includes metro projects. Investments in these projects are made in various forms including grants, equity investments, debt, and pass-through assistance for externally aided projects. As of December 20, 2018, there are 27 ongoing metro rail that have been set up as a 50:50 joint venture between the central government and respective state governments. These have a total approximate completion cost of Rs 3,36,954 crore. 534 km of metro line are operational, while 677 km are under implementation.5 In 2020-21, Rs 20,000 crore has been allocated towards metro projects. This is a 6% increase over the revised estimates of 2019-20. Allocation towards metro projects includes allocation towards the National Capital Region Transport Corporation. The table below shows the trends in allocations and expenditure towards metro projects. ## Table 3: Allocation Towards Metro Projects (In Rs Crore) | Year | Budgeted | Actuals | % utilised | |---------|-------------|------------|---------------| | 2014-15 | 8,026 | 5,998 | 75% | | 2015-16 | 8,260 | 9,300 | 113% | | 2016-17 | 10,000 | 15,327 | 153% | | 2017-18 | 18,000 | 13,978 | 78% | | 2018-19 | 15,000 | 14,470 | 96% | | 2019-20 | 19,152 | 18,890 | 99% | | 2020-21 | 20,000 | | | *Revised estimates. Sources: Ministry of Housing and Urban Affairs Budget documents 2014-15 to 2020-21; PRS. In 2020-21, the capital expenditure on metro projects is estimated to be 93% of the Ministry's total capital expenditure. The Standing Committee on Urban Development (2017) noted that a high allocation towards metro projects leads to inadequate funds for other projects.3 It recommended financing metro projects through other options such as international cooperation. The Standing Committee on Urban Development (2019) had recommended that state/UT governments must be consulted to find ways to reduce the huge outlay on metro works to enable other schemes to receive adequate funding.4 The Committee also noted that the investment on metro projects has almost doubled from Rs 10,000 crore in 2016-17 to Rs 19,152 crore in 2019-20.4 However, it had also acknowledged that measures had been taken to bring down costs. These include offering consultancy services to metro projects in Dhaka and Istanbul, as well as exporting 'Make in India' products to projects in Brisbane and Johannesburg. It suggested adopting similar steps to reduce the dependency of metro projects on the union budget.4 Planning of metro systems: The National Transport Development Policy Committee (NTDPC) report had observed that high speed mass transit systems such as metro rail do not always reduce door-to-door travel time, which is the most relevant indicator for users.6 Underground or elevated transport systems do not save time as compared to cars/ two-wheelers, when trip distances are short, because time is lost in walking from ground level to the platform level. Metro rail systems are efficient only when the average trip distance is greater than 12 km. Indian cities, because of their mixed land use patterns and higher density development, have shorter trip lengths, and hence are better suited for non-motorized travel. The NTDPC had recommended that the decision to implement metro rail projects should also consider the high cost factor. Rail-based metro systems should be considered after examining the opportunity cost of investing in expensive fixed infrastructure. For example, Phase I of Delhi metro cost Rs 191 billion for 65 km, whereas the Golden Quadrilateral highway project connecting four major cities in India through highways cost Rs 300 billion for 5,846 km. Further, the Delhi metro, including its three phases, will cater to 15% of the total commuter trips within the city.6 The NTDPC had recommended that metro rail projects should initially be limited to cities with population more than five million. Further, the cities should be able to cover all costs through user charges or fiscal costs. The NTDPC had also recommended that Indian cities should focus on improving their existing bus systems, adding bus rapid transit (BRT) systems, and improving nonmotorised transport. Last mile connectivity: The Standing Committee on Urban Development (2019) highlighted the need to promote door to door connectivity of the Delhi Metro. It had suggested that cab aggregator services could employ auto rickshaws and cycle rickshaws to remedy this.4 ## Urban Rejuvenation Mission: Amrut And Smart Cities Mission The AMRUT Mission was launched in June 2015.7 The Mission seeks to provide basic services (such as water supply, sewerage, and urban transport) in cities, especially to the poorer households. It is a Centrally Sponsored Scheme with a total central assistance of Rs 50,000 crore for five years (2015-20). In 2020-21, the AMRUT Mission has been allocated Rs 7,300 crore. This is 14% more than the revised estimates of 2019-20. The Ministry seeks to spend Rs 50,000 crore on AMRUT by 2019-20. As per the government's proposal, the Ministry should have spent the entire amount by this year. However, so far the Ministry has allocated Rs 33,599 crore (67% of the proposed amount), and spent Rs 25,077 crore (50% of the proposed amount). The following table (Table 6) compares the actual expenditure against the proposed allocation towards AMRUT. ## Expenditure ( Rs Crore) Year Proposed Allocation Budget Actual % change (actuals/ budget) 2015-16 5,000 3,919 2,702 69% 2016-17 15,000 4,080 4,864 119% 2017-18 15,000 5,000 4,936 99% 2018-19 9,000 6,000 6,183 103% 2019-20 6,000 7,300 6,392* 88% 2020-21 - 7,300 Total 50,000 33,599 25,077 *Revised Estimate. Sources: Standing Committee on Urban Development (2017); Ministry of Housing and Urban Affairs Demand for Grants for the years 2015-16 to 2020-21; PRS. The Smart Cities Mission aims to develop cities that provide core infrastructure and apply 'smart' solutions to give its citizens a decent quality of life to its citizens, and a sustainable environment.8 100 cities have been selected under the Mission, which were selected based on a Smart City challenge. The cities were evaluated based on their Smart City Plans which consisted of a pan city development strategy and an area based development strategy. The mission is being operated as a Centrally Sponsored Scheme. The central government was to provide financial of up to Rs 48,000 crore over five years (2015-20), that is, an average of Rs. 100 crore per city per year.8 The states and ULBs will have to contribute an equal amount, and generate the additional amount as required through other sources such as borrowings, municipal bonds.8 The Smart Cities Mission has been allocated Rs 6,450 crore in 2020-21, which is 87% higher than the revised estimates of 2018-19. ## Mission (In Rs Crore) | Year | Budgeted | Actuals | % utilised | |---------|-------------|------------|---------------| | 2015-16 | 2,020 | 1,484 | 73% | | 2016-17 | 3,215 | 4,412 | 137% | | 2017-18 | 4,000 | 4,526 | 113% | | 2018-19 | 6,169 | 5,902 | 96% | | 2019-20 | 6,450 | 3,450* | 53% | | | | | | | 2020-21 | 6,450 | | | *Revised estimates. Sources: Budget documents 2015-16 to 2020-21; PRS. Till 2018, the actual allocation towards this scheme has been equal to or higher than the budget estimate, indicating over-spending. In 2019-20 the revised expenditure is almost half of the budgetary allocation. While the Ministry sought to allocate Rs 48,000 crore towards the scheme by 2019-20, so far Rs 21,150 crore has been allocated (44% of the planned expenditure). So far, all the 100 selected Smart cities have formed their Special Purpose Vehicles (SPVs) and appointed Project Management Consultants (PMCs).9 Table 4 provides the status of the smart city projects.10 November, 2019) Cost of projects Project status Number of projects (in Rs crore) Total Proposed 5,151 2,05,018 Tendered 4,178 1,49,512 Work orders issued 3,376 1,05,458 Completed 1,296 23,170 Sources: Lok Sabha questions; PRS. ## Pradhan Mantri Awas Yojana - Urban (Pmay-U) The housing shortage is expected to reach 200 lakh by 2022.11 It was estimated that about 56% of this shortage falls in the Economically Weaker Sections (EWS), 40% in the Lower Income Group (LIG) category, and the rest 4% in the middle and higher income groups. The Ministry estimates the demand for housing at around 100 lakh.12 PMAY-U is an affordable housing scheme being implemented from 2015 to 2022. It seeks to help the central government achieve its target of 'housing for all target' by 2022. So far 4,424 cities have been covered under PMAY-U.13 The scheme comprises four components: (i) in situ rehabilitation of existing slum dwellers (using the existing land under slums to provide houses to slum dwellers) through private participation, (ii) credit linked subsidy scheme (CLSS) for EWS, LIG, and middle income group (MIG), (iii) affordable housing in partnership, and (iv) subsidy for beneficiary-led individual house construction. The Ministry provides central assistance to ULBs for the implementation of the scheme through the respective state governments. Allocation: The budgetary allocation towards the scheme for 2020-21 is Rs 8,000 crore. This is a 17% increase over the revised estimates for 2019- 20. The funding towards the scheme comes from the Central Road and Infrastructure Fund. From the total allocation for PMAY-U in 2020-21, the maximum (63%) will go towards interest payment against loans raised through extra budgetary sources (EBR) for the scheme. The credit linked subsidy scheme component received 17% of the total allocation for PMAY-U, while 16% was allocated for central assistance to states. | 2019-20 | 2020-21 | |-----------------|------------| | | | | 2018-19 | | | Actual | RE | | % change | | | 2020-21 BE/ | | | 2019-20 RE | | | - | 3,000 | | Interest | | | Payment | | | against loan | | | raised through | | | EBR | | | 4,192 | 2,681 | | Central | | | assistance to | | | states/ UTs | | | CLSS-I for | | | EWS/LIG | | | 1,300 | 600 | | CLSS-II for MIG | 600 | | Others | | | 43 | 172 | | 74% | | | Total | 6,135 | Notes: BE - Budget Estimate; RE - Revised Estimate. Sources: Notes on Demand for Grants 2020-21, Ministry of Housing and Urban Affairs; PRS. House construction: Till December 27, 2019, 103 lakh houses have been approved.13 Of this, 31% houses have been constructed. Note that these numbers also include some houses sanctioned under the earlier scheme - Jawaharlal Nehru National Urban Renewal Mission. House construction Houses sanctioned 103.32 lakh Of which, under construction 61.55 lakh 60% of the approved houses Of which completed 32.16 lakh 31% of the approved houses Central assistance (in Rs crore) Central assistance sanctioned 1,60,000 Of which central assistance released 63,709 40% of the sanctioned assistance Note: The total houses approved includes some houses that were sanctioned under the earlier Jawaharlal Nehru National Urban Renewal Mission. Sources: PMAY-U MIS; PRS. With the target of the scheme at 100 lakh houses by 2022, and 32 lakh houses been constructed so far, it is unclear how the central government will construct the remaining houses (almost 69% of the target) in two years. The Standing Committee on Urban Development (2019) noted that the estimated demand for housing projects under PMAY-U was Rs 1,80,000 crore, as on October 28, 2019.4 The total central assistance sanctioned was Rs 1,42,000 crore, out of which Rs 57,896 crore had been released. It recommended the unhindered availability of funds be ensured to achieve the goal of 'Housing for All' by 2022. Rental housing: As per the 2011 census, 27.5% of urban residents lived in rented houses. According to the Report of the Group of Secretaries (2017), a rental housing scheme could further complement PMAY-U in achieving the housing target.14 The Ministry proposed a Draft National Urban Housing Policy in October 2015.15 It seeks to promote the sustainable development of house ownership with a view to ensuring an equitable supply of rental housing at affordable prices. The Ministry also released the Draft Model Tenancy Act, 2019 in July 2019 to provide for the regulation and speedy adjudication of matters related to rental housing, and repeal the existing state rent control laws.16 Lending by housing finance companies- Both housing finance companies (HFCs), and public sector banks offer low cost funding for housing. HFCs have an 80% share in the implementation of CLSS component of PMAY-U.14 However, they face constraints such as inability to access long term funds.14 The Union Cabinet had approved the creation of a National Urban Housing Fund (NUHF) worth Rs 60,000 crore in February 2018.17 The NUHF aims to raise funds in the next four years (till 2022) to ensure a sustained flow of central release under PMAY-U to enable construction of houses. As of July 17, 2019, Rs 28,000 crore has been released to States\UTs under the NUHF.18 ## Swachh Bharat Mission - Urban (Sbm-U) Swachh Bharat Mission (SBM), launched in October 2014, aims to eliminate open defecation and achieve 100% scientific management of municipal solid waste in all 4,041 statutory towns by October 2, 2019.19,20 In 2020-21, Rs 2,300 crore has been allocated towards the scheme. This is 77% higher than the revised estimates of 2019-20. In 2019-20, the expenditure is estimated to fall short of the budget estimate by 51%. The total estimated cost of implementation of SBM-U is Rs 62,009 crore. Of this, the share of the central government is Rs 14,623 crore, and states' assistance will amount to Rs 4,874 crore. The remainder is to be financed via various sources such as the private sector, Swachh Bharat Kosh, market borrowing, and external assistance. As on February 11 2020, the central government has released Rs 5,641 crore.21 Toilet construction: Table 8 shows the number of toilets constructed as on February 11, 2020, as compared to the targets set for October 2019.22 ## Table 9: Achievements Under Sbm- Urban (As On February 11, 2020) | | Target | Completed | |------------|-----------|--------------| | 66,42,222 | 61,31,239 | 92% | | Individual | | | | Household | | | | Latrines | | | | 5,07,589 | 5,79,819 | 114% | | Community | | | | and Public | | | | Toilets | | | Sources: Swachh Bharat Mission Urban - Dashboard; PRS. ## Other Issues To Consider Additional Investment Required The pace of urbanisation is increasing in the country. As per the 2011 census, around 31% of the country's population resided in urban areas.23 By 2031, around 600 million (43%) people is expected to live in urban areas, an increase of over 200 million in 20 years. Given the pace of urbanisation, large capital investments are needed for infrastructure projects which includes support from central and state governments in the form of capital grants. With the current rate of urbanisation, the High Powered Expert Committee (HPEC) for Estimating the Investment Requirements for Urban Infrastructure Services (2011) had estimated a requirement of Rs 39 lakh crore (at 2009-10) prices for the period from 2012-2031.24 As per their framework, the investment in urban infrastructure should increase from 0.7% of GDP in 2011-12 to 1.1% of GDP by 2031-32. In 2020-21, the estimated expenditure by the Ministry of Housing and Urban Affairs is 0.22% of the GDP. The Ministry of Finance had noted that budgetary outlays alone will not be enough to service the growing demands on local governments for improving their infrastructure.25 Alternate sources of financing are required to meet the funding gap.25 The flagship schemes of the Ministry (such as Smart Cities Mission, Swachh Bharat Mission) seek to meet their financing requirements through a mix of sources such as borrowings, municipal bond financing, and PPPs. The Standing Committee on Urban Development (2019) noted an urgent need for huge resource mobilisation in a phased by 2024 and afterwards by 2030. This was needed to ensure that Housing and Urban Affairs schemes have adequate funding, as well as to realise the goal of successfully strengthening the country's economy.4 ## Financial Capacity Of Cities The Constitution (74th Amendment) Act, 1992 devolved certain functions relating to urban development to ULBs, including the power to collect certain taxes. These function include urban planning, planning for economic and social development, and urban poverty alleviation. The new schemes under the Ministry, seek to decentralise the planning process to the city and state level, by giving them more decision making powers. This implies that a significant share of the funding needs to be raised by the cities themselves. However, there is an imbalance between the functions and finances of ULBs.26 The ULBs in India are amongst the weakest in the world both in terms of capacity to raise resources and financial autonomy.24 The share of own revenue for ULBs has declined from 63% in 2002-03 to 53% in 2007- 08, and to 44% in 2015-16.27,28 Several states have not devolved enough taxation powers to local bodies. Further, local governments collect only a small fraction of their potential tax revenue. While the central and state governments provide the ULBs with funds, these devolved funds are largely tied in nature, to either specific sectors or schemes. This constrains the spending flexibility of ULBs. Such a situation may pose problems when implementing the new schemes, where the ULBs have to raise a significant share of the revenue. For example, the Bhubaneswar Smart City Plan has a total project cost of Rs 4,537 crore (over five years), while the city's annual budget for 2014-15 was Rs 469 crore.29,30 PPPs have been an important instrument to finance and develop infrastructure projects. However, projects in many sectors require support from ULBs in the form of additional financial resources. Inability to service such funding requirements constrains project implementation.25 In such cases, ULBs can access capital markets through issuance of municipal bonds. Municipal bonds are marketable debt instruments issued by ULBs, the funds raised may be used for capital projects, refinancing of existing loans, and meeting working capital requirements. The Securities and Exchange Board of India regulations (2015) 1 Notes on Demands for Grants 2020-21, Demand no 57, Ministry of Housing and Urban Affairs, https://www.indiabudget.gov.in/doc/eb/sbe57.pdf. 2 Union Budget Speech 2020-21, February1, 2020, https://www.indiabudget.gov.in/doc/Budget_Speech.pdf. 3 15th report, Standing Committee on Urban development, March 2017, http://164.100.47.193/lsscommittee/Urban%20Development/16_ Urban_Development_15.pdf. 4 "1st Report of the Standing Committee on Urban Development (2019-20) on Demands for Grants (2019-20) of the Ministry of Housing and Urban Affairs, December 11, 2019, http://164.100.47.193/lsscommittee/Urban%20Development/17_ Urban_Development_1.pdf. regarding municipal bonds provide that, to issue such bonds, municipalities must: (i) not have negative net worth in any of the three preceding financial years, and (ii) not have defaulted in any loan repayments in the last one year.31 Therefore, a city's performance in the bond market depends on its fiscal performance. Some financing mechanisms, such as municipal bonds, have been around in India for the last two decades, but cities haven't been able to make much use of them. In order to improve the finances of the ULBs, the HPEC had recommended that state governments should share a pre-specified percentage of their revenues from all taxes on goods and services with ULBs, and this should be mandated constitutionally.24 Further, ULBs should be provided with formula-based transfers, and grantsin-aid.24 The ULBs could raise their own revenue by tapping into land-based financing sources, and improving non-tax revenues (such as water and sewerage charges, and parking fee).24 ## Technical Capacity Of The Ulbs Until recently, it has been observed in the urban sector that while the central government allocated funds, it did not play a role in the implementation of the projects. On the other hand, while ULBs and states implemented the projects, they did not raise the funds. The new schemes seek to empower ULBs to raise their own revenue. Both the national missions, AMRUT and Smart Cities, have a component for capacity building of ULBs. The HPEC had observed that municipal administration has suffered due to (i) presence of untrained and unskilled manpower, and (ii) shortage of qualified technical staff and managerial supervisors.24 It had recommended improving the technical capacity of ULBs. This can be achieved by providing technical assistance to state governments, and ULBs in planning, financing, monitoring, and operation of urban programmes. 7 Mission Statement and Guidelines, Atal Mission for Rejuvenation and Urban Transformation, Ministry of Urban Development, June 2015, http://amrut.gov.in/writereaddata/AMRUT%20Guidelines%20.p df. 8 Mission Statement & Guidelines, Smart Cities, Ministry of Urban Development, June 2015, http://smartcities.gov.in/upload/uploadfiles/files/SmartCityGuid elines(1).pdf. 9 Unstarred Question no. 1526, Ministry of Housing and Urban Affairs, Lok Sabha, February 12, 2019, http://164.100.24.220/loksabhaquestions/annex/17/AU1526.pdf. 10 Unstarred Question No. 1644, Ministry of Housing and Urban Affairs, Lok Sabha, November 11, 2019, http://loksabhaph.nic.in/Questions/QResult15.aspx?qref=8112& lsno=17. Housing and Urban Poverty Alleviation", Standing Committee on Urban Development, April 27, 2015. 12 Unstarred Question No.1439, Ministry of Housing and Urban Affairs, Lok Sabha, February 12, 2019, http://164.100.24.220/loksabhaquestions/annex/17/AU1439.pdf. 13 Pradhan Mantri Awas Yojana - Urban MIS, Ministry of Housing and Urban Affairs, last accessed on February 11, 2020, https://pmay-urban.gov.in/. 14 Report of the Group of Secretaries, Group 4- Health, Sanitation and Urban Development, January 2017, https://smartnet.niua.org/sites/default/files/resources/report_of_s ectoral_group_of_secretaries_on_health_sanitation_urban_devel opment.pdf. 15 Draft National Urban Housing Policy, Ministry of Housing and Urban Affairs website, October, 2015, http://mohua.gov.in/upload/uploadfiles/files/National_Urban_Re ntal_Housing_Policy_Draft_2015.pdf. 16 The Model Tenancy Act, 2019, Ministry of Housing and Urban Affairs, July 10, 2019, http://mohua.gov.in/upload/whatsnew/5d25fb70671ebdraft%20 Model%20Tenancy%20Act,%202019.pdf. 17 "Cabinet approves creation of national Urban Housing Fund", Press Information Bureau, Ministry of Housing and Urban Affairs, February 22, 2018, http://pib.nic.in/newsite/PrintRelease.aspx?relid=176687. 18 Starred Question No. 262, Ministry of Housing and Urban Affairs, Rajya Sabha, July 17, 2019, https://pqars.nic.in/annex/249/As262.pdf. 19 "1,789 Cities have been declared ODF conference on PPP model for waste to energy projects", Ministry of Housing and Urban Affairs, Press Information Bureau, November 30, 2017, http://pib.nic.in/newsite/PrintRelease.aspx?relid=173995. 20 "PM launches Swachh Bharat Abhiyaan", Prime Minister's Office, Press Information Bureau, October 2, 2014, http://pib.nic.in/newsite/PrintRelease.aspx?relid=110247. 21 Swachh Bharat Mission Urban - Financial Progress, Ministry of Housing and Urban Affairs, last accessed on February 11, 2020, http://swachhbharaturban.gov.in/writereaddata/financial_progres s.pdf?id=5mw5jzzbj3sabgx4. 22 Swachh Bharat Mission Urban - Dashboard, Ministry of Housing and Urban Affairs, last accessed on February 11, 2020, http://swachhbharaturban.gov.in/dashboard/?id=5mw5jzzbj3sab gx4. 23 Challenge of Urbanisation, Approach to the 12th five year plan, Planning Commission, October 2011, http://planningcommission.gov.in/plans/planrel/12appdrft/appra och_12plan.pdf. 24 "Report on Indian Infrastructure and Services", High Powered Expert Committee for estimating the investment requirement for urban infrastructure services, March 2011, http://icrier.org/pdf/FinalReport-hpec.pdf. 25 "Guidance on use of Municipal Bond Financing for Infrastructure projects", Department of Economic Affairs, Ministry of Finance, September 2017, https://www.pppinindia.gov.in/documents/20181/33749/Guidan ce+on+use+of+Municipal+Bonds+for+PPP+projects.pdf/037cb 143-8305-4c57-8f3c-32e5a329297f. 26 "Report of the sub-committee on financing urban infrastructure in the 12th Plan, Ministry of Urban Development, March 2012, http://mohua.gov.in/upload/uploadfiles/files/Report%20of%20th e%20Sub- Committee%20on%20Financing%20Urban%20Infrastructure% 20in%20the%2012th%20Plan%20_0.pdf. 27 Report of the Steering Committee on Urbanisation, Planning Commission, Government of India, November 2012, https://smartnet.niua.org/content/d5ce7e1d-04fd-45c4-af11- b9e6a25e4ea8. 28 Economic Survey 2018-19, Ministry of Finance, January 29, 2018. 29 "Smart City Proposal: The Bhubaneswar Experience", Bhubaneswar Municipal Corporation, February 2015, http://smartcities.gov.in/writereaddata/Bhubaneshwar_Winning Proposal.pdf. 30 Budget for 2015-16, Bhubaneswar Municipal Corporation, http://bmc.gov.in/Download/Budget2015-16.pdf. 31 Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015, Securities and Exchange Board of India, July 15, 2015, http://www.sebi.gov.in/sebi_data/attachdocs/1436964571 729.pdf. 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