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On behalf of Citizens Whistle Blower Forum (CWBF), former chairman of the Law Commission of India Justice A.P. Shah wrote a letter to the PM to stop the dilution of laws like Companies Act, 2013, RBI act, Income Tax Act and Representation of People’s Act. In his letter he wrote that the following proposed amendments will increase economic offences.
Companies Act
The letter highlighted the cases of Vijay Mallaya, Nirav Modi, Mehul Choksi and Fortis Healthcare, which clearly indicates that the scams are a result of manipulation of accounts and violation of provisions of the Companies Act. It highlighted that the Ministry of Corporate Affairs, through its notification has formulated a committee to recommend changes in the punishment given under the act. The committee is directed to recommend that whether the compoundable offences given in the Act be termed merely as civil offences, also to convert non-compoundable offences into compoundable offences. According to Justice Shah due to increase of economic offences stricter deterrent were the need of an hour, ironically the government is diluting the present deterrents.
He pointed out that appointment of political nominees on PSU Boards is a major drawback, as the politicians does not possess the requires skills and capabilities. Further if these PSUs are found doing malfeasance, the responsibility will evidently be on PMO and Ministry of Corporate Affairs.
Electoral bonds, Amendments to Representation of Peoples Act, 1951, FCRA, RBI Act and the Income Tax Act.
The letter mentions that the amendments in the following acts will make the whole electoral process less transparent. Through this unchecked and unknown funding to political parties will be increased. According to the amendments in the RBI Act and Income Tax Act, the political parties is given the liberty to not present the name of the donors contributing through electoral bonds in its annual contribution reports. Therefore through such amendments the companies activities of immoral transfer of fund to political parties through electoral bonds will increase.
Lokpal and lokayuktas Act
In 2013 the following act was passed, which mentioned that the public servants and their families need to declare their income periodically. In 2016 it was diluted and the families of politicians were excluded from the ambit. The sole purpose of the Act is hindered by this exemption.
Suggestions
Ministry of Corporate Affairs should put on hold the proposed decriminalisation of the Companies Act and instead make laws in interest of the larger public interest.
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