46 Bills will lapse with the dissolution of the 16th Lok Sabha The Budget Session of Parliament ended on February 13, 2019. This was the last session of the 16th Lok Sabha. The Personal Laws (Amendment) Bill, 2018 was passed by Parliament during the session. Five Bills were introduced in Rajya Sabha. These include the Constitution (One-Hundred and Twenty Fifth Amendment) Bill, 2019, the Registration of Marriage of Non-Resident Indian Bill, 2019, and the International Financial Services Centres Authority Bill, 2019.

With the end of this session, 46 Bills will lapse and 33 Bills, introduced and pending in the Rajya Sabha, will carry forward to the next Lok Sabha. For a full list, see here.

Interim Union Budget 2019-20 presented The Union Finance Minister, Mr. Piyush Goyal, presented the Interim Union Budget for 2019-20.[1] Key highlights include:

The government proposes to spend Rs 27,84,200 crore in 2019-20, which is 13.3% above the revised estimate of 2018-19. The receipts (other than net borrowings) are expected to increase by 14.1% to Rs 20,80,201 crore, owing to higher estimated revenue from GST and income tax. The nominal GDP growth rate for 2019-20 is estimated at 11.5%. Fiscal deficit and revenue deficit are targeted at 3.4% of GDP and 2.2% of GDP respectively, same as the revised estimates for 2018-19.

Key policy proposals in the budget speech include: Agriculture: PM-KISAN scheme will be launched under which Rs 6,000 per year will be directly transferred to farmers with cultivable land up to two hectares. This amount will be paid in three instalments. The scheme will start from December 2018. Rs 20,000 crore has been allocated in 2018-19 and Rs 75,000 crore in 2019-20.

Under the Kisan Credit Card scheme, 2% interest subvention and 3% incentive for prompt repayment, which are available to agriculture, will be extended to animal husbandry and fisheries. Earlier, farmers affected by natural calamities were provided interest subvention of 2% for one year. This will be extended to every year of the loan. Further, a 3% incentive will be provided for timely repayment of the loan.

Labour: The Pradhan Mantri Shram-Yogi Maandhan scheme will be launched to provide social security coverage to workers in the unorganised sector with a monthly income of up to Rs 15,000. A monthly pension of Rs 3,000 will be provided from the age of 60 years. The monthly contribution of the worker will be matched by the central government.

The major tax changes announced are: Rates: The surcharge on income tax has been raised from 3% to 4%. Deductions: For salaried individuals, standard tax deduction has been increased from Rs 40,000 to Rs 50,000. Individuals earning an annual income of up to five lakh rupees will not have to pay any tax.

Tax deducted at source: Exemption from TDS on rent has been increased from Rs 1.8 lakh to Rs. 2.4 lakh per year. The threshold for TDS on interest on bank and post office deposits has been increased from Rs 10,000 to Rs 40,000. Housing: Currently, there is no presumptive rent on one self-occupied house. Interest on housing loan is deductible for one house. On sale of a house, capital gains deduction is available if the gains are invested in buying a house. For all these, the limit has been extended to two houses (capital gains benefit limited to two crore rupees).

GDP grows at 6.6% in the third quarter of 2018-19 The Gross Domestic Product (GDP) (at constant prices) of the country grew at 6.6% in the third quarter of 2018-19, over the corresponding period a year ago.[2] This was lower than the 7% growth in the second quarter of 2018-19. The quarterly trend is shown in Figure 1.

The release also provided the second advance estimates of the GDP growth in 2018-19. It is estimated that GDP will grow at 7% in 2018-19. This is estimated to be lower than the 7.2% growth in 2017-18. GDP growth across economic sectors is measured in terms of Gross Value Added (GVA). The growth rate of combined GVA by all sectors decreased from 7.3% in the third quarter of 2017-18 to 6.3% in the third quarter of 2018-19. The growth rate of GVA decreased for all sectors, except electricity and construction. It increased from 7.5% to 8.2% for electricity, and from 8% to 9.6% for construction. Details on sectoral GVA growth are in Table 1.

Repo and reverse repo rate reduced to 6.25% and 6% respectively The Monetary Policy Committee (MPC) released its sixth Bi-Monthly Monetary Policy Statement of 2018-19.[3] The policy repo rate (the rate at which the Reserve Bank of India (RBI) lends money to banks) was reduced from 6.5% to 6.25% by a majority vote of the members. Two of the six members voted to keep the rate unchanged.3 Other decisions of the MPC include:

The reverse repo rate (the rate at which the RBI borrows money from banks) was reduced from 6.25% to 6%. The marginal standing facility rate (the rate at which banks can borrow additional money) and the bank rate (the rate at which the RBI buys or rediscounts bills of exchange) were reduced from 6.75% to 6.5%. Industrial production grew by 3.6% in the third quarter of 2018-19

The Index of Industrial Production (IIP) grew by 3,6% in the third quarter (Oct-Dec) of 2018-19, as compared to the same period in 2017-18.[4] Electricity production saw the highest increase of 6.8% in this quarter, followed by an increase of 3.4% in manufacturing and 2.8% in mining.4 Figure 1 shows the change in industrial production in the third quarter of 2018-19, and the average for the quarter.

Union Cabinet approves promulgation of five Ordinances The Union Cabinet has approved the promulgation of five Ordinances.[5],[6],[7],[8],[9] These Ordinances are not available in the public domain. Details of these Ordinances as per a press release, are:

Aadhaar and Other Laws (Amendment) Ordinance, 2019: The Ordinance seeks to, among other provisions, allow for voluntary use of the Aadhaar number by authentication or offline verification, with the consent of the Aadhaar number holder. Further, it would give an option to children who are Aadhaar number holders to cancel their Aadhaar number on reaching eighteen years of age. As per the press release, the amendments are the same as those contained in the Bill passed by the Lok Sabha on January 4, 2019.

Homeopathy Central Council (Amendment) Ordinance, 2019: The Homeopathy Central Council Act, 1973, was amended in 2018 to provide for supersession and reconstitution of the Central Council within one year. In the interim period, the central government was to constitute a Board of Governors. The Ordinance seeks to extend the period of reconstitution of the Central Council from one year to two years. This wold extend the tenure of the Board of Governors by one year, with effect from May 2019.

New Delhi International Arbitration Centre Ordinance, 2019: The Ordinance seeks to establish the New Delhi International Arbitration Centre (NDIAC), to create an independent and autonomous regime for institutionalised arbitration. Special Economic Zones (Amendment) Ordinance, 2019: The Ordinance, among other provisions, seeks to amend the Special Economic Zones Act, 2005, to allow trusts to set up a unit in Special Economic Zones.

The Jammu and Kashmir Reservation (Amendment) Ordinance, 2019: The Ordinance seeks to amend the Jammu and Kashmir Reservation Act, 2004. The Act provides three per cent reservation in state government jobs for people living within 6 km of the Line of Control in Jammu and Kashmir. The Ordinance seeks to extend this reservation to persons residing in areas adjoining the International Border as well.

The Union Cabinet also approved the Constitution (Application to Jammu and Kashmir) Amendment Order, 2019 to amend the Constitution (Application to Jammu and Kashmir) Order, 1954.[10] The Order makes various provisions of the Constitution of India applicable to Jammu and Kashmir. The 103rd Constitutional Amendment Act provides for ten percent reservation for economically weaker sections in educational institutions and public employment. The Amendment Order seeks to extend this reservation to Jammu and Kashmir. Further, benefits in promotions to Scheduled Castes and Scheduled Tribes under the Constitution will also be made applicable to the state of Jammu and Kashmir.

The International Financial Services Centres Authority Bill, 2019 introduced in Rajya Sabha The International Financial Services Centres Authority Bill, 2019 was introduced in Rajya Sabha.[11] The Bill provides for the establishment of an authority to develop and regulate the financial services market in the International Financial Services Centres set up in Special Economic Zones in India. Note that, the Bill has been referred to the Standing Committee on Finance for examination. The Committee is expected to submit its report within two months. Key features of the Bill include:

Constitution of the International Financial Services Centres Authority: The Bill provides for the establishment of the International Financial Services Centres Authority. The Authority will consist of nine members, including representation from RBI, SEBI, IRDA, PFRDA, and the Ministry of Finance. Functions of the Authority: The Authority will regulate financial products, financial services, and financial institutions in IFSCs.

Further, it will exercise all powers relating to regulation of financial products, services, and institutions in IFSCs, which were previously exercised by the respective regulators. All processes and procedures to be followed by the Authority in respect of such regulation (such as, procedures for investigation of offences) will be identical to the provisions for these processes under the respective laws of the regulators.

Gayatri Mann ([email protected]) The Banning of Unregulated Deposit Schemes Ordinance, 2019 was promulgated.[12] Previously, a similar Bill was passed by Lok Sabha. However, it will lapse with the dissolution of the 16th Lok Sabha. The Ordinance provides for a mechanism to ban unregulated deposit schemes and protect the interests of depositors. It also seeks to amend three laws, i.e., the Reserve Bank of India Act, 1934, the Securities and Exchange Board of India Act, 1992 and the Multi-State Co-operative Societies Act, 2002. Key features of the Bill include:

Unregulated deposit scheme: The Ordinance defines a deposit as an amount of money received through an advance, a loan, or in any other form, with a promise to be returned with or without interest. Such deposit may be returned either in cash or as a service, and the time of return may or may not be specified. Further, the Ordinance defines certain amounts which shall not be included in the definition of deposits such as amounts received in the form of loans from relatives and contributions towards capital by partners in any partnership firm.

The Ordinance lists nine regulators including RBI and SEBI, which oversee and regulate various deposit-taking schemes. All deposit-taking schemes are required to be registered with the relevant regulator. A deposit-taking scheme is unregulated if it is taken for a business purpose and is not registered with the regulators that are listed in the Ordinance.

Offences and penalties: The Ordinance defines three types of offences, and penalties related to them. These offences are: (i) running (advertising, promoting, operating or accepting money for) unregulated deposit schemes, (ii) fraudulently defaulting on regulated deposit schemes, and (iii) wrongfully inducing depositors to invest in unregulated deposit schemes by willingly falsifying facts. For example, accepting unregulated deposits will be punishable with imprisonment between two and seven years, along with a fine ranging from three to 10 lakh rupees.

The Standing Committee on Finance (Chair: Dr. M. Veerappa Moily) submitted its report on ‘Strengthening of the Credit Rating Framework in the country’.[13] A credit rating agency is a body corporate which is engaged in the business of rating of securities offered through public or rights issue. Key observations and recommendations of the Committee include:

Regulatory framework: The Committee noted that credit rating agencies in India have progressed from rating simple debt products to complex debt structures, covering a wide range of products and services like securities, bank loans, commercial papers, and fixed deposits. In India, the SEBI primarily regulates credit rating agencies and their functioning. However, certain other regulatory agencies, such as the RBI, IRDA, and PFRDA also regulate certain aspects of credit rating agencies under their sectoral jurisdiction.

The SEBI (Credit Rating Agencies) Regulations, 1999 provide for a disclosure-based regulatory regime, where the agencies are required to disclose their rating criteria, methodology, default recognition policy, and guidelines on dealing with conflict of interest. The Committee noted that SEBI is among the few regulators globally to mandate public disclosure of rating criteria and methodology by the agencies.

Change in regulations: The Committee noted that rating of an instrument or entity is being increasingly relied upon by capital markets, bankers and investors and constitutes a key input for financial decision-making. In the Indian context, the credibility of credit rating has come into question in the crisis involving the Infrastructure Leasing and Financial Services Limited (IL&FS), a major infrastructure development and finance company of systemic importance, with a debt obligation of Rs 91,000 crore.

The credit rating agencies ignored the rising debt levels at IL&FS, and continued rating it AAA, indicating the highest level of creditworthiness. In this regard, the Committee recommended that the regulators should review their regulations and suitably modify them to ensure greater objectivity, transparency and credibility in the whole credit rating framework.

The Committee also recommended that the Ministry of Finance should seek a factual report from the concerned regulators regarding the enforcement of the regulations. In particular, the Ministry should assess the action taken by the regulators against the credit rating agencies who had been giving stable ratings to IL&FS prior to the default crisis.

Suyash Tiwari ([email protected]) The Ministry of Finance has extended the term of the task force set up to draft a new direct tax law by a period of three months.[14] The task force was constituted in November 2017 to review the Income Tax Act, 1961 and draft a new direct tax law keeping in view: (i) direct tax system prevalent in various countries, (ii) international best practices, (iii) economic needs of India, and (iv) any other connected matters.

The task force was required to submit its report by February 28, 2019. This has now been extended to May 31, 2019. CBIC constitutes three working groups to recommend measures to facilitate trade, promote exports and improve compliance Suyash Tiwari ([email protected])

The Central Board of Indirect Taxes and Customs has constituted three working groups to recommend measures for facilitating trade, promoting exports, and improving compliance.[15]

The working groups will focus on: (i) improving the legislative structure of customs tariff, updating it to suit the emerging and future needs of the economy and the industry, and creating a comprehensive export tariff structure to enhance export competitiveness, (ii) promoting and facilitating exports with emphasis on boosting exports through e-commerce, addressing the trade facilitation barriers in export markets, and improving the quality of logistics services for exporters, and (iii) enhancing compliance and plugging loopholes for improving revenue collection on customs and curbing frauds related to refunds of integrated GST. The working groups will submit their reports within a period of two months.

The Union Cabinet approved the proposal for abolition of institutions of income tax ombudsman and indirect tax ombudsman.[16] The institutions of tax ombudsman were created to deal with public grievances related to settlement of complaints on income tax and indirect tax matters. The Ombudsman was independent of the jurisdiction of the tax departments.

The decision to abolish them was taken due to preference of alternative complaint redressal mechanisms by the public, and low effectiveness of the institutions of ombudsman as compared to these parallel channels of grievance redressal.

The Union Cabinet approved the laying down of an institutional framework for monetisation of: (i) identified non-core assets of the Central Public Sector Enterprises (CPSEs) under strategic disinvestment, and (ii) assets relating to immovable enemy property under the custody of the Custodian of Enemy Property for India, Ministry of Home Affairs.[17] The institutional framework can also be used to monetise other CPSEs, PSUs, government organisations, and loss making/sick CPSEs.

The exact model for monetisation of any asset, and the model contact documents will be approved by the competent authority based on the recommendations of technical consultants, respective Ministries, CPSEs, and NITI Aayog, among others. The independent External Monitor set up for strategic disinvestment will also oversee the process of asset monetisation. The approved framework will be reviewed after two years, to make any necessary changes.

The central government launched the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.[18],[19],[20] Under the scheme, small and marginal landholder farmer families, i.e. families with total cultivable holding of up to two hectares, will be provided income support of Rs 6,000 per year. The scheme seeks to supplement their financial needs in procuring inputs for appropriate crop health and yields.

The amount is payable in three equal instalments, every four months, through direct benefit transfer to bank accounts. The first instalment is being provided for the four-month period from December 2018 to March 2019.

Eligibility: Farmer families collectively owning cultivable land of up to two hectares (as per land records of the concerned state or union territory) are eligible for the scheme. However, this excludes certain beneficiaries of higher economic status, including those which are: (i) institutional land holders, (ii) families with one or more members as government employees, and (iii) families with one or more members as income tax payers.

Identification of beneficiaries: States were required to identify beneficiaries by February 1, 2019 based on their land records. Post this date, no change is allowed in the list of beneficiaries for a period of five years. Changes are permitted only in the case of: (i) transfer of ownership of land through succession, and (ii) inconsistencies in the land records. The list of eligible beneficiaries would be published at the village level to ensure transparency.

Aadhaar number is mandatory for the release of the second instalment (for the April to July 2019 period).[21] From third instalment (August 2019) onwards, Aadhaar seeding, i.e. biometric authentication, will be compulsory. However, Aadhaar is not mandatory for beneficiaries from Assam, Jammu and Kashmir, and Meghalaya.

Monitoring and grievance redressal: Grievance redressal monitoring committees are required to be set up at the state and district levels by the state government. Eligible beneficiaries whose names are not included in the list can approach the district level grievance redressal monitoring committee in their districts.

The scheme also provides for a Project Monitoring Unit at the central level with other monitoring and review mechanisms at the national, state, and district levels.

Funding: The scheme will be funded by the central government, and is estimated to incur an expenditure of Rs 75,000 crore per year. The same amount has been allocated to the scheme in 2019-20. Rs 20,000 crore has been allocated in 2018-19 for providing the first instalment.

Second advance estimates of production of major crops for 2018-19 released The Ministry of Agriculture and Farmers Welfare released the second advance estimates of production of major foodgrains and commercial crops for the year 2018-19.[22] Table 3 gives a comparison of the second advance estimates of production for 2018-19 with the fourth advance estimates of production for 2017-18 (the latest available production data for 2017-18). Following are some of the highlights:

Foodgrain production in 2018-19 is estimated to decrease by 1.2% as compared to the fourth advance estimates for 2017-18. The decrease is due to a 9.4% decline in the production of coarse cereals. The production of cereals and pulses is estimated to decrease by 0.8% and 4.8%, respectively.

Rice production in 2018-19 is estimated to increase by 2.4% as compared to the fourth advance estimates for 2017-18. Wheat production is estimated to decrease by 0.6%.

The production of oilseeds is estimated to increase by 0.6% as compared to 2017-18. While groundnut production is estimated to decrease by 23.9%, the production of soyabean is estimated to increase by 24.5%. Production of cotton is estimated to fall by 13.8%, while production of sugarcane is estimated to increase by 1% to 380.8 million tonnes in 2018-19.

The Cabinet Committee on Economic Affairs (CCEA) approved the provision of loans to sugar mills for clearing dues of sugarcane farmers.[23] Loans of about Rs 7,900 crore to Rs 10,540 crore have been approved for the 2018-19 sugar season (October 2018 to September 2019). Interest subvention of 7% to 10% will be provided by the central government on these loans for a period of one year. This interest subvention is estimated to cost between Rs 553 crore and Rs 1,054 crore.

These loans will be provided to mills which have already cleared at least 25% of their outstanding dues to farmers in the 2018-19 sugar season. Banks will be required to obtain the list of farmers, their corresponding dues, and bank account details, from the sugar mills. The funds will be directly transferred to the accounts of the farmers on behalf of the sugar mills. Subsequent balance, if any, will be provided to the mills.

Minimum Support Price of sugar and raw jute increased for the year 2019-20 Sugar: The Department of Food and Public Distribution increased the Minimum Support Price (MSP) of sugar from Rs 29 per kg to Rs 31 per kg for the year 2019-20.[24] This implies that white sugar or refined sugar will not be sold below the MSP of Rs 31 per kg in the domestic market.

The MSP has been increased in order to provide more liquidity to sugar mills so that they are able to pay the dues owed to sugarcane farmers.[25] These dues amounted to Rs 20,167 crore as on February 13, 2019.

Raw jute: The Cabinet Committee on Economic Affairs approved an increase in the MSP of raw jute for the 2019-20 season.[26] The MSP for Fair Average Quality of raw jute has been increased from Rs 3,700 per quintal to Rs 3,950 per quintal.

The Cabinet Committee on Economic Affairs (CCEA) approved the creation of an Agri-Market Infrastructure Fund of Rs 2,000 crore.[27] This Fund has been approved for development and up-gradation of infrastructure in 10,000 gramin agricultural markets and 585 regulated wholesale markets. This corpus fund will be created with the assistance of NABARD.

The Fund will be used to provide subsidised loans to states and union territories against their proposals for development of infrastructure in gramin agricultural markets and regulated wholesale markets. The Fund may also be used to provide assistance to states and union territories for innovative integrated market infrastructure projects. The National Rural Employment Guarantee scheme and other government schemes will be used to strengthen the physical and basic infrastructure in gramin agricultural markets.

RBI increases the limit for collateral free agricultural loans to Rs 1.6 lakh The Reserve Bank of India (RBI) increased the limit for collateral free agricultural loans from the existing level of one lakh rupees to Rs 1.6 lakh.[28] Earlier, banks were mandated to extend collateral free agricultural loans up to one lakh rupees. This limit was fixed by the RBI in 2010. It has revised the limit to Rs 1.6 lakh on account of inflation and increase in agricultural input costs over the years.

Draft National Inland Fisheries and Aquaculture Policy released The Ministry of Agriculture and Farmers Welfare has released the draft National Inland Fisheries and Aquaculture Policy.[29] Aquaculture (or aquafarming) refers to the farming of fish, algae and other aquatic organisms, and aquatic plants. Key features of the draft policy include:

Objectives: The objectives include: (i) utilising and managing inland fisheries and aquaculture resources in an optimal and sustainable manner, (ii) increasing fish production, productivity, and fishermen’s income, (iii) creating employment through trade of globally competitive fish and fish-based value added products, and (iv) ensuring food and nutritional security.

Inland fisheries: The policy measures recommended for inland fisheries include: (i) conserving indigenous resources, and restoring natural ecosystem of rivers, (ii) transferring management of fisheries in manmade reservoirs to the state fisheries departments for scientific enhancement and efficient governance, (iii) conserving and restoring ecosystem in natural wetlands, and (iv) bringing policies, law, and conservation programmes for development of fisheries in the Himalayan and north-eastern states.

Aquaculture: Measures recommended for development of aquaculture include: (i) developing state and area-specific action plans, (ii) redefining land use categories to include fisheries and aquaculture as components of agriculture, (iii) developing separate programmes for small farmers, (iv) simplifying requirements for registration and leasing of farms, and (v) developing the required regulatory frameworks.

Other policy measures include: (i) making registration of all aquaculture inputs compulsory, (ii) regulating exotic species, (iii) improving disease surveillance, (iv) diversifying species, (v) developing post-harvest and marketing infrastructure, and (vi) strengthening fisheries cooperatives.

Comments on the draft policy are invited till March 13, 2019. Rashtriya Kamdhenu Aayog constituted for conservation and development of cows The Ministry of Agriculture and Farmers Welfare has constituted an apex advisory body, Rashtriya Kamdhenu Aayog for the conservation, protection, and development of cows and their progeny.[30] Other objectives of the Aayog include: (i) proper implementation of laws with respect to prohibition of slaughter and cruelty to cows, and (ii) providing direction to cattle development programmes and schemes.

The Aayog will develop a policy framework and formulate guidelines with the aim of achieving: (i) sustainable development and upgradation of genetic resources of cows, (ii) enhanced dairy production and productivity, and (iii) protection and promotion of the interest of stakeholders in the dairy industry, among others.

The Department for Promotion of Industry and Internal Trade released the ‘Draft National e-Commerce Policy: India’s Data for India’s Development’ for consultation.[31] The policy addresses six broad issues of the e-commerce ecosystem such as: (i) data, (ii) infrastructure development, (iii) e-commerce marketplaces, (iv) regulatory issues, (v) stimulating the domestic digital economy, and (vi) export promotion through e-commerce. Key features of the e-commerce policy include:

Data: Creating a legal and technological framework for imposing restrictions on cross-border data flow from specified sources, including data generated by users in India on e-commerce platforms, social media, and search engines. Further, the policy lays down certain conditions for businesses regarding collection or processing of sensitive data locally and storing it abroad.

These are: (i) all data stored abroad shall not be made available to business entities outside India, even with the customer's consent; (ii) such data should also not be made available to a third party, and (iii) such data should not be shared with a foreign government, without the prior permission of Indian authorities.

Foreign direct investment: The policy aims at demarcating what constitutes a marketplace model and what comprises an inventory-based model of sale and distribution. It aims at inviting and encouraging foreign investment in the ‘marketplace’ model alone. This implies that an e-commerce platform, in which foreign investment has been made, cannot exercise ownership or control over the inventory sold on its platform.

Custom duties: On taxation-related issues in the sector, the draft policy said the current practice of not imposing custom duties on electronic transmissions must be reviewed.

Export promotion: The policy states that there is a need to incentivise exports and reduce administrative requirements and costs for outbound shipments. Further, it states that the existing limit of Rs 25,000, above which products are exported through cargo mode should be increased. This would make Indian e-commerce exports attractive even for high-value shipments through courier mode.

The Department is seeking comments on the draft policy till March 9, 2019.

The Personal Laws (Amendment) Bill, 2018 was passed by Parliament.[32] It seeks to amend five Acts. These are: (i) the Divorce Act, 1869, (ii) the Dissolution of Muslim Marriage Act, 1939, (iii) the Special Marriage Act, 1954, (iv) the Hindu Marriage Act, 1955, and (v) the Hindu Adoptions and Maintenance Act, 1956.

These Acts contain provisions related to marriage, divorce, and separation of Hindu and Muslim couples. Each of these Acts prescribe leprosy as a ground for seeking divorce or separation from the spouse. The Bill seeks to remove this as a ground for divorce or separation. The Registration of Marriage of Non-Resident Indian Bill, 2019 introduced in Rajya Sabha

Vinayak Krishnan ([email protected]) The Registration of Marriage of Non-Resident Indian Bill, 2019 was introduced in Rajya Sabha.[33] The Bill has been referred to the Standing Committee on External Affairs, which is expected to submit its report in two months. Key features of the Bill include:

Registration of marriages: The Bill states that every Non-Resident Indian (NRI) who marries a citizen of India in India must get his marriage registered in India within thirty days. Further, every NRI who marries an Indian citizen or another NRI outside India, must get his marriage registered with the Marriage Officer, within thirty days. The Marriage Officer is appointed from among the diplomatic officers in a foreign country.

Impounding of passport: In case an NRI marries an Indian citizen or another NRI, and fails to register the marriage within thirty days, the passport authority may impound or revoke the passport of the NRI. Issue of summons and warrants: The Bill provides that in case a court cannot serve summons on an individual, it may issue summons by uploading it on a designated website of the Ministry of External Affairs. If the person summoned does not appear before the court, it may issue and upload a warrant for arrest on the website.

Further, in the case the person fails to appear before the court as specified in the warrant, the court may pronounce him as a proclaimed offender and upload a declaration to that effect on the website. If the accused does not appear after the proclamation has been uploaded, the court may issue a written statement that the such a proclamation has been uploaded. This statement will be conclusive evidence that the warrant has been issued.

The Muslim Women (Protection of Rights on Marriage) Second Ordinance, 2019 was promulgated on February 21, 2019. [34] Note that two similar Ordinances had been promulgated in September 2018 and January 2019.[35],[36] A similar Bill was also passed by Lok Sabha in December 2018 and the government had approved amendments to be moved in Rajya Sabha. All the three Ordinances incorporate these amendments. This Ordinance is effective from the date of the first Ordinance, i.e. September 19, 2018. Key features of the Ordinance include:

The Ordinance makes all declaration of talaq, including in written or electronic form, to be void (i.e. not enforceable in law) and illegal. It defines talaq as talaq-e-biddat or any other similar form of talaq pronounced by a Muslim man resulting in instant and irrevocable divorce. Talaq-e-biddat refers to the practice under Muslim personal laws where pronouncement of the word ‘talaq’ thrice in one sitting by a Muslim man to his wife results in an instant and irrevocable divorce.

Offence and penalty: The Ordinance makes declaration of talaq a cognizable offence, attracting up to three years’ imprisonment with a fine. (A cognizable offence is one for which a police officer may arrest an accused person without warrant.)

The offence will be cognizable only if information relating to the offence is given by: (i) the married woman (against whom talaq is declared), or (ii) any person related to her by blood or marriage. The Ordinance provides that the Magistrate may grant bail to the accused. The bail may be granted only after hearing the woman (against whom talaq has been pronounced), and if the Magistrate is satisfied that there are reasonable grounds for granting bail.

The offence may be compounded by the Magistrate upon the request of the woman (against whom talaq has been declared). Compounding refers to the procedure where the two sides agree to stop legal proceedings, and settle the dispute. The terms and conditions of the compounding of the offence will be determined by the Magistrate.

Allowance: A Muslim woman against whom talaq has been declared, is entitled to seek subsistence allowance from her husband for herself and for her dependent children. The amount of the allowance will be determined by the Magistrate.

Custody: A Muslim woman against whom talaq has been declared, is entitled to seek custody of her minor children. The manner of custody will be determined by the Magistrate.

The President of India notified a new circuit bench of the Calcutta High Court at Jalpaiguri (in West Bengal).[37] The bench will comprise of judges of the Calcutta High Court, as decided by the Chief Justice of the High Court. The bench will exercise jurisdiction over cases arising in the districts of Darjeeling, Kalimpong, Jalpaiguri, and Cooch Behar in West Bengal.

Defence Vinayak Krishnan ([email protected]) CAG submits report on Capital Acquisition in the Indian Air Force The Comptroller and Auditor General (CAG) released a performance audit of capital acquisition in the Indian Air Force.[38] The audit examined 11 contracts of capital acquisition signed between 2012-13 and 2017-18, with a total value of approximately Rs 95,000 crore including that of Rafale aircraft. However, all the commercial and price data related to this agreement have been redacted in the report. Key observations and recommendations of the CAG include:

Planning and tendering process: The process of acquisition of air assets starts with the formulation of user requirements known as the Air Staff Qualitative Requirements (ASQR). CAG observed that the formulation of ASQR is the most crucial stage in the defence acquisition process as it determines the quality, price, and competition. The CAG had recommended in 2007 that ASQRs should be stated in terms of functional parameters, which are measurable. However, it noted that instead of using functional parameters, the Indian Air Force (IAF) made the ASQRs exhaustive and included technical details. This led to situations where none of the vendors was able to meet the ASQRs. In this context, the CAG repeated its recommendation that ASQRs should be stated in terms of functional parameters.

Solicitation of Offers: Offers are solicited from various vendors by issuing a Request for Proposal (RFP). Vendors respond to the RFP by making technical and commercial bids. CAG noted that there was limited competition during this process. The number of vendors who responded to the RFP were less than those invited to bid. This was because of various reasons including narrowly defined ASQRs. CAG recommended that the Defence Ministry should explore open competitive tendering in case of non-strategic items (such as basic trainer aircraft, and weather radar).

Organisational issues: The CAG noted that delays in acquisition were essentially due to a complex and multi-level approval process. From the initiation of the case to the signing of the contract, each procurement case goes through 11 stages. The CAG stated that the current acquisition system is unlikely to support the operational preparedness of the IAF and recommended that the Defence Ministry may undertake reform of the entire acquisition process.

The Standing Committee on Defence (Chairperson: Mr. Kalraj Mishra) submitted its report on ‘Provision of all-weather connectivity under Border Roads Organisation (BRO) and other agencies up to International borders as well as the strategic areas including approach roads- An appraisal’.[39] Key observations and recommendations of the Committee include:

Underperformance of BRO: The Committee observed that since 2007-08, the targets set for various construction works by BRO could not be achieved. However, despite the failure to achieve these targets, higher targets were set in subsequent years which led to further underperformance. The failure to achieve targets was attributed to various issues faced by BRO such as difficult terrain, limited working period, and lack of raw material.

Indo-China Border Roads (ICBRs): The Committee noted that the government had identified 73 roads of length 3,812 km, for development along the Indo-China border. Of these, 61 have been entrusted to the BRO. The initial date for completion of these roads was 2012. Out of the 61 roads, 28 roads have been completed and the remaining are in various stages of completion. The completion schedule has been extended to 2022. The Committee recommended that BRO should explore the possibility of completing all roads by 2020, instead of 2022.

Lack of equipment: The Committee observed that the availability of construction equipment with the BRO was less than the authorised numbers in 2016-17. Equipment such as stone crushers and tippers were 40% and 50% less than the authorised numbers, respectively. Further, the Committee noted that BRO was using indigenous equipment as they operate in remote locations where use of sophisticated equipment is not feasible. It recommended that deploying of sophisticated construction equipment may be explored to ensure quicker completion of construction projects.

The Constitution (One Hundred and Twenty-Fifth Amendment) Bill, 2019 was introduced in Rajya Sabha.[40] The Bill amends provisions related to the Finance Commission and the Sixth Schedule of the Constitution. The Sixth Schedule relates to the administration of tribal areas in the states of Assam, Meghalaya, Tripura and Mizoram. The Bill has been referred to the Standing Committee on Home Affairs and the Committee is expected to submit its report in two months. Key features of the Bill include:

Village and Municipal Councils: The Sixth Schedule states that tribal areas in certain regions of these four states will be ‘autonomous districts’, each administered by a District Council. Further, the Governor may divide an autonomous district into autonomous regions, each administered by a Regional Council.

The Bill amends this to provide for Village and Municipal Councils in addition to the District and Regional Councils. Village Councils will be established for villages or groups of villages in rural areas, and Municipal Councils will be established in urban areas of each district. Further, the District Councils may make laws on various issues, including: (i) number of Village and Municipal Councils to be formed, and their composition, (ii) delimitation of constituencies for election to the Village and Municipal Councils, and (iii) powers and functions of these Councils.

Finance Commission: Under the Constitution, the functions of the Finance Commission include making recommendations to the President on: (i) distribution of taxes between the Union and states, and the (ii) provision of grants-in-aid to states. Additionally, the Bill empowers the Commission to make recommendations on measures to augment the Consolidated Fund of a state in order to provide resources to the District Councils, Village Councils, and Municipal Councils in tribal areas in the four states.

The Constitution (Scheduled Tribes) Order (Third Amendment) Bill, 2019 was introduced and passed by Rajya Sabha to amend the Constitution (Scheduled Tribes) Order, 1950, in respect of Arunachal Pradesh.[41] The Bill amends Part 18 of the Order which specifies the Scheduled Tribes in Arunachal Pradesh. It will lapse upon the dissolution of the Lok Sabha.

The Bill inserts five entries for granting Scheduled Tribe status to these communities. These are: (i) Galo, (ii) Mishmi-Kaman (Miju Mishmi), Idu (Mishmi), Taraon (Digaru, Mishmi), (iii) Monpa, Memba, Sartang, Sajolang (Miji) (iv) Nocte, Tangsa, Tutsa, Wancho, and (v) Tai Khamti.

The Bill removes reference to six tribes. These are: (i) Abor, (ii) Galong, (iii) Khampti, (iv) Mishmi (Idu, Taroon), (v) any Naga tribes, and and (vi) Momba.

The Cabinet Committee on Economic Affairs gave its approval for the continuation of eleven sub-schemes under the “Umbrella programme for development of Scheduled Tribes” from April 1, 2017 to March 31, 2020 at a cost of Rs 11,900 crore.[42] The sub-schemes include pre-matric and post-matric scholarships, hostels, vocational training, and aids to voluntary organisations working for the welfare of Scheduled Tribes.

Union Cabinet approves revision in the list of Scheduled Tribes in Chhattisgarh Roshni Sinha ([email protected]) The Union Cabinet gave its approval for certain amendments to the list of scheduled tribes in Chhatisgarh in the Constitution (Scheduled Castes and Scheduled Tribes) Order (Amendment) Bill, 2016.[43] The 2016 Bill seeks to amend the Constitution (Scheduled Castes) Order, 1950 and the Constitution (Scheduled Tribes) Order, 1950. The two Orders were issued by the President under the Constitution specifying the Scheduled Castes (SCs) and the Scheduled Tribes (STs) of all states. The 2016 Bill amended the list of STs in five states including Chhatisgarh.

For Chhatisgarh, the Bill seeks to clarify equivalent names of the following communities that are already mentioned in the list of STs: (i) Bhuinya, Bhuiyan, Bhuyan, (ii) Dhanwar, Dhanuhar, Dhanuwar, (iii) Nagesia, Nagasia, Kisan, and (iii) Sawar, Sawara, Saunra, Saonra. The proposed amendments to the 2016 Bill add ‘Binjhia’ to the list of STs in Chhattisgarh. Note that the 2016 Bill will lapse with the dissolution of the 16th Lok Sabha.

Ministry of Tribal Affairs launches various schemes Roshni Sinha ([email protected]) The Ministry of Tribal Affairs launched several schemes for the benefit of tribal communities.[44] These include: (i) Minimum Support Price for Minor Forest Produce, (ii) TRIFOOD project, and (iii) the “Friends of TRIBES” initiative.

Under the Schemes of Minimum Support Price and Value Addition, remunerative MSP will be increased from 30% to 40% for 50 commercially viable items to the tribals. Further, approximately 6000 Van Dan Vikas Kendras are proposed to be set up. Each Kendra will comprise 300 tribal gatherers. These Kendras are intended to provide employment to almost 45 lakh tribals.

The Ministry also launched the TRIFOOD Scheme. The Scheme is a joint initiative of the Ministry of Food Processing Industries, the Ministry of Tribal Affairs and the Tribal Cooperative Marketing Development Federation of India (TRIFED). Under the Scheme, a tertiary value addition center will be set up in Jagdalpur in Chhattisgarh and Raigad in Maharashtra at a cost of approximately Rs 11 crores.

The Ministry also launched the “Friends of Tribes” initiative. Under this initiative, TRIFED has tied up CSR (Corporate Social Responsibility) funds to promote tribal livelihoods. Under the Companies Act, 2013 companies above a certain specified net worth, turnover or profits are required to spend 2% of their average net profits in the last three financial years, towards activities under its CSR policy.

The Companies (Second Amendment) Ordinance, 2019 was promulgated on February 21, 2019.[45] It amends several provisions in the Companies Act, 2013 relating to penalties, among others. Note that two similar Ordinances had been promulgated in November 2018 and January 2019.[46],[47] A similar Bill was also passed by Lok Sabha in January 2019. This Ordinance is effective from the date of the first Ordinance, i.e. November 2, 2018.

Re-categorisation of certain Offences: The 2013 Act contains 81 compoundable offences punishable with fine or fine or imprisonment, or both. These offences are heard by courts. The Ordinance re-categorizes 16 of these offences as civil defaults, where adjudicating officers (appointed by central government) may levy penalties for default. These offences include: (i) issuance of shares at a discount, and, (ii) failure to file annual return.

Commencement of business: The Ordinance states that a company may not commence business, unless it (i) files a declaration within 180 days of incorporation, confirming that every subscriber to the Memorandum of the company has paid the value of shares and (ii) files a verification of its registered office address with the Registrar of Companies within 30 days of incorporation. If a company fails to comply with these provisions and is found not to be carrying out any business, its name may be removed from the Register of Companies.

Change in approving authority: Under the Act, change in period of financial year for a company associated with a foreign company, has to be approved by the National Company Law Tribunal. Similarly, any alteration in the incorporation document of a public company which has the effect of converting it to a private company, has to be approved by the Tribunal. Under the Ordinance, these powers have been transferred to the central government.

Compounding: Under the Act, a regional director can compound (settle) offences with penalty of up to five lakh rupees. The Ordinance increases the limit to Rs 25 lakh.

The Indian Medical Council (Amendment) Second Ordinance, 2019 was promulgated.[48] The Ordinance amends the Indian Medical Council Act, 1956 which sets up the Medical Council of India (MCI) which regulates medical education and practice. Note that, two similar Ordinance had been promulgated in September 2018 and January 2019. This Ordinance is effective from the date of the first Ordinance, i.e., September 26, 2018.

Supersession of the MCI: The 1956 Act provides for supersession of the MCI and its reconstitution within a period of three years. The Ordinance amends this provision to provide for the supersession of the MCI for a period of one year. In the interim period, the central government will constitute a Board of Governors, which will exercise the powers of the MCI.

The Act provides for the Board of Governors to consist of up to seven members including persons of eminence in medical education, appointed by the central government. The Ordinance amends this provision to increase the strength of the Board from seven members to 12 members.

Further, it allows for persons with proven administrative capacity and experience to be selected in the Board. The Ordinance provides for the Board of Governors to be assisted by a Secretary General appointed by the central government.

For more information on the Ordinance, see here. Cabinet approves setting up of new AIIMS in Haryana The Union Cabinet approved the establishment of a new All India Institute of Medical Sciences (AIIMS) in Manethi, Haryana.[49] The Cabinet has approved an expenditure of Rs 1,299 crore for setting up of the new AIIMS.

The new AIIMS will consist of: (i) a hospital with a capacity of 750 beds, (ii) trauma center facilities, (iii) a medical college with an intake of 100 MBBS students per year, (iv) a nursing college with an intake of 60 B.Sc. (Nursing) students per year, (v) 15 to 20 super-speciality departments, and (vi) an AYUSH department for providing treatment facilities in traditional system of medicine.

Cabinet approves financial support for tertiary healthcare programmes The Cabinet Committee on Economic Affairs approved the continuation of the Tertiary Care Programes for non-communicable diseases and e-Health upto 2021-22 with an outlay of Rs 2,551 crore. [50] The objective of the program is to provide support for creation of health facilities in the areas of: (i) cancer diagnosis and treatment, (ii) care for the elderly, (iii) prevention and management of trauma and burn injuries, (iv) drug dependence, (v) mental health, and (vi) visual impairment.

The University Grants Commission (Institutions Deemed to be Universities) Regulations, 2019 were released on February 20, 2019. [51] These regulations outline the processes through which institutes of academic excellence can be deemed to be universities. Key features include:

Eligibility Criteria: For an institution to be deemed a University, the institution must: (i) have been in existence for not less than 20 years, (ii) have a valid accreditation by National Assessment and Accreditation Council, and (iii) have a student-teacher ratio not less than 1:20, among other criteria. Additionally, an institution not maintained or financed by the government, must have a corpus fund of Rs 10 crore for an existing institution and Rs 25 crore for institutions conducting research in unique areas of knowledge. An institution fulfilling the eligibility criteria may apply online through the Commission’s web portal.

Monitoring: The UGC shall be responsible for monitoring the performance and academic outcomes of all deemed to be universities. The parameters for oversight will include: (i) graduate outcomes, (ii) linkage of students with society or industry, and (iii) training of students in essential professional skills.

Systems of Governance: In all institutions deemed to be universities, a Board of Management shall act as the highest governing body in all academic, administrative, and financial matters. The Board will include the Vice-Chancellor, two Deans of Faculties, and one representative of the Central government, among others.

Admission and Fees:As per the regulations, no institution deemed to be a university shall accept payments such as capitation fees, donations, or fees without receipts towards admission fees. Additionally, the institution must implement the policy on reservations in accordance with the Constitution of India and be open to all citizens, regardless of their religion, race, caste, sex, place of birth, or residence.

The Cabinet Committee on Economic Affairs approved the revision of certain norms under the Mid-Day Meal Scheme (MDMS) with an outlay of Rs 12,054 crore for 2019-20.[52] The MDMS targets children between the age of 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. Under the scheme, the average per meal cost borne by the central government is Rs 6.64 and Rs 9.59 for students of primary and upper primary classes, respectively. The revised norms of MDMS include:

Implementation of the scheme has been delegated to District Level Committees chaired by District Magistrates. Previously, the central or respective state governments were in charge of implementation.

The cooking cost for 2019-20 has been enhanced to Rs 4.35 and Rs 6.51 per child per school day for students of primary and upper primary classes, respectively.

The transportation rate has been revised from Rs 75 per quintal to the rate under the Public Distribution System (subject to maximum of Rs 150 per quintal).