Policy & Politic

Telephonic message which does not clearly specify the offence, cannot be treated as an FIR: SC

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Without mincing any words and without leaving any space for confusion of any kind, the Supreme Court has most recently on March 23, 2021 in a latest, learned, laudable and leading judgment titled Netaji Achyut Shinde (Patil) Vs. State of Maharashtra in Criminal Appeal No. 121 of 2019 With Criminal Appeal No(s). 328 of 2021 observed unambiguously that a telephonic message which does not clearly specify the offence cannot be treated as an FIR. In this case, the murder accused viz Samadhan Shinde, Netaji Achyut Shinde and Balasaheb Kalyanrao Shinde were convicted by the High Court. The Trial Court had acquitted Netaji and Balasaheb and convicted Samadhan. The High Court confirmed the conviction of Samadhan and reversed acquittal of others. While upholding the High Court judgment, the Apex Court Bench observed that the physical presence of the accused at the site of the actual commission of the crime and the deposition of independent witnesses about their role, clearly establishes that it was for the purpose of facilitating the offence, the commission of which was the aim of the joint criminal venture.

To start with, the ball is set rolling in para 1 of this brief, brilliant and balanced judgment authored by Justice S Ravindra Bhat for himself, Justice L Nageswara Rao and Justice Hemant Gupta wherein it is put forth that, “The appellants, in these two appeals, impugn a common judgment of the Aurangabad Bench of the Bombay High Court convicting them of committing the offence punishable under Section 302 read with Section 34 of the Indian Penal Code. One appellant (all of them hereafter referred to by name), the second accused Samadhan Shinde, was convicted by the trial court, while the other two were acquitted. These acquittals were reversed by the impugned judgment which convicted all the accused (first accused Netaji Achyut Shinde (Patil), second accused Samadhan Shinde, and third accused Balasaheb Kalyanrao Shinde (Patil), [hereafter referred to as A-1, A-2 and A-3 or by their names as Netaji, Samadhan and Balasaheb].”

To put things in perspective, the Bench then lays bare in para 2 that, “A first information report (FIR 80/2011) was registered at Kallam police station, alleging the commission of offences punishable under Section 302 read with Section 34 IPC, i.e., the murderous attack on one Suhas, the deceased. The statements of eyewitnesses as well as the dying declaration by the deceased Suhas were relied on in the charge sheet which was subsequently filed, implicating the accused. The learned Additional Sessions Judge, Osmanabad (hereafter “the trial court”) framed charges against the accused for the offences alleged against them. All accused pleaded not guilty and claimed trial. The prosecution examined 21 witnesses in support of the charges. The defence of the accused was denial, and that they were falsely implicated due to political enmity and property dispute. The trial court, on consideration of the evidence led by the prosecution, convicted A-2 Samadhan; it however, found the evidence against A-1 Netaji Shinde and A-3 Balasaheb Shinde to be doubtful and acquitted them.”

What next unfolds is then stated in para 3 that, “The High Court granted the state leave to appeal; A-2 Samadhan too appealed against his conviction and sentence. The High Court by the impugned judgment reversed the acquittal of A1 and A3 and affirmed the conviction of A-2 Samadhan. All three are therefore in appeal.”

While elaborating on the chain of events, the Bench then enunciates in para 4 that, “The prosecution alleged that on 5.7.2011, at about 5.30 PM at Shivaji Chowk, in front of one Raviraj Beer Bar at Kallam, district Osmanabad, all the accused appellants further to their common intention assaulted the deceased, Suhas and inflicted serious injuries with a sword as well as by fist blows and kicks. At about 7.15 PM, Suhas succumbed to his injuries, at the S.R.T.S. Medical College and Hospital, Ambajogai. Based on a complaint lodged by P.W.1 Ramhari Shinde, the FIR was registered at 11.45 PM at Kallam police station. The FIR alleged the involvement of the four individuals- i.e. the three appellants/accused persons, and one Anant Balasaheb Shinde; he could not however be charged and tried, as he absconded. The FIR was registered upon the complaint lodged at 11.45 PM hours of Ramhari Ganpatrao Shinde, resident of village Kothala, Kallam stating that he was a social worker. The complainant, PW-1 Ramhari Shinde’s brother, Prakash had two sons; (the deceased Suhas and one Vikas). Ramhari Shinde was Taluka President of the Nationalist Congress Party for Kallam, Chairman of Kallam Taluka Market Committee, and Sarpanch of his village; the deceased was taluka Vice President of the Youth Nationalist Congress party. He admitted that there was a police post near the Shivaji statue at Kallam. He was informed about the incident by PW-2, Balasaheb Kshirsagar. PW-2 deposed that he was in front of Padmasinh Patil Complex, which is in Shivaji Square. When the deceased was getting down from his motorcycle in front of Raviraj Beer Bar, the accused and absconding accused went there on a motor cycle, with a sword in hand. He gave sword blows on the face, neck and hand of the deceased and the other accused gave fist blows and kicks to the deceased. PW-2 stated that the deceased fell down. As he was crossing the road to reach the spot where Suhas was, he heard the accused saying that they would kill Suhas. Suhas got up and ran towards Sonar Galli. On the way, the absconding accused Anant warned bystanders not to intervene, or he would stab them. All accused followed the deceased Suhas, as he entered Kothavale Jewellers. PW-2 stated that Satish Tekale and Pradip Mete were present and when they asked the accused what they were doing, one of the accused asked to bring a motorcycle. Upon this, one of them brought a motorcycle (No.MH- 25/W-1744 which had the photograph of Anant Chonde on the front). All four accused left on that motorcycle. PW-2 then telephoned PW-1 Ramhari Shinde, and· informed about the incident; thereafter he went to Kothavale Jewellers, where Suhas was lying with injuries. Pradip Mete and Satish Tekale took the deceased to the government hospital; the doctor asked them to take the injured to Ambajogai for further treatment. Accordingly, Ramhari, Vikas Barkul, Prashant Lomate and Satish Tekale took Suhas in the ambulance. At about 7.45 p.m., PW-2 learnt about the death of the deceased. During cross examination, PW-2 admitted that Ramhari (PW-1) was his maternal uncle. He stated that he did not inform the police immediately, though the police station was nearby. He further stated that 50-100 persons had gathered at the place of the incident. PW-3 Balkrishna Gangadhar Bhawar admitted to being the President of the Indian Nationalist Congress party for Kallam district and that he did not report the incident to the police, despite witnessing the incident. PW-4, similarly, corroborated the testimony of PW-2 and PW-3.”

Of course, the Bench then states in para 5 that, “The prosecution relied on the testimonies of P.W.2 Balasaheb Kshirsagar, P.W.3 Balkrishna Bhawar, P.W.4 Shivraj Ritapure and P.W.18 Ravindra Mohanlal Oza as eye witnesses to the incident. The other main eyewitnesses were the doctor PW-12, who conducted the post-mortem report. PW-19 and PW-20 were police officers who deposed during the trial. Besides their statements, exhibits such as blood-stained clothes worn by the accused, and material objects i.e. weapons, blood stained soil, etc were produced.”

Pertinently enough, the Bench then observes in para 6 that, “The trial court treated the first information received at 17:45 hours on 05.07.2011 as the first information, and discarded the FIR recorded later during the night, at 11:30 PM. It rejected the accused’s argument that the eyewitnesses were all partisan and therefore, unreliable. Yet, based predominantly on the medical evidence, which it read as negating any role of the accused Netaji (A-1) and Balasaheb (A-3),the trial court acquitted them of the charges levelled. It further held that in the absence of any injury of the kind attributed to these accused (who are also appellants before this court), no finding of their culpability, to warrant a conviction, could be returned. As far as A-2, Samadhan is concerned, the trial court held him guilty, on account of his participation with the absconding accused, i.e. Anant, with whom he went away on a motorcycle, driven by him (i.e. Samadhan).”

Going forward, the Bench then specifies in para 7 that, “An appeal was preferred by Samadhan, and the state (which was given leave to appeal by the High Court), against the findings of the trial court, absolving Netaji and Balasaheb. At the High Court, these findings of acquittal were reversed; they were convicted of the offences charged, on an overall appreciation of the prosecution evidence. It was held that the trial court completely overlooked the depositions of eyewitnesses and gave no reasons why their statements were to be cast aside, and that it erred in giving overall primacy to medical evidence. The testimonies of eyewitnesses, some of whom had no connection with the deceased, as well as the recoveries made pursuant to the accused’s statements, during investigation, had been ignored. On an overall appreciation and analysis of the evidence, therefore, A-1 and A-3 were convicted; A-2 Samadhan’s conviction was affirmed.”

While striking the right chord and the right note, the Bench after listening to both sides then enunciates in para 21 that, “The first issue which this court considers is whether the appellants are correct, in arguing that the initial intimation received by the police on telephone (at 5.45 P.M.) on the day of the incident, constituted an FIR. According to counsel, the information about the attack was sufficient, and the entry made in the police register was sufficient to be treated as an FIR. It was submitted that the subsequent statement (registered late in the night at 11.45 P.M.) of the complainant, had to be treated as a statement under Section 161 of the Cr.PC. A cryptic phone call without complete information or containing part-information about the commission of a cognizable offence cannot always be treated as an FIR. This proposition has been accepted by this Court in T.T. Antony v. State of Kerala 5(2001) 6 SCC 181 and Damodar v. State of Rajasthan 6 (2004) 12 SCC 336. A mere message or a telephonic message which does not clearly specify the offence, cannot be treated as an FIR.” The last line of this para is very significant and forms the bedrock of this notable judgment also!

As it turned out, the Bench then points out in para 23 that, “Exhibit 85 – extract of the police station diary, Item 39 has been extracted above). That entry at 17.45 hours merely states that Ravi Harkar and Vishwajeet Thombre informed telephonically that two persons arrived on a motorcycle and assaulted one individual at the corner of municipal council complex. This intimation per se is incomplete. The subsequent entries relevant for this purpose are numbers 42 at 18.45 hrs (enclosing the recording receipt of MLC from the Rural Civil Hospital Kallam) that one Suhas had been seriously injured and shifted to Ambajogai for further treatment. Enquiry was handed over to HC Bansode. The next entry talks of arranging bandobast at Kothala. Entry 50 recorded the departure of striking force of PSI Karle which left for Kothala. The last relevant entry is at 23.45 hrs, which is the complaint that ultimately got converted into the FIR, recorded by PW-1. This lists out the details of the accused and the incident.”

As we see, the Bench then points out in para 24 that, “It is quite evident from the record, therefore, that the intimation given by two individuals – Ravi Harkar and Vishwajeet Thombre merely set out the bare facts of an attack; the information was incomplete; neither the name of the victim nor the names of the alleged attackers nor even the precise location where the incident occurred were mentioned. Applying the tests indicated by the judgments of this Court (referred to previously), this court is of the opinion that the High Court, in the appeal before it, correctly inferred that the first information recorded at 17.45 hrs could not be treated as an FIR. In these circumstances, the details of the event which occurred, the nature of the attack, the place of the attack, the names and identities of the accused were set out fully when PW-1 recorded the statement at 23.45 hrs – that constitutes the FIR.”

More pertinently, the Bench then makes it a point to mention in para 25 that, “This court is also of the opinion that there is no merit in the arguments that the police sought to improve the initial version and somehow roped in the accused falsely. In this regard, the reliance placed upon Entry 39 at Ex. 85 which talks of two assaults (in the initial telephonic intimation) is unfounded. Quite often, depending upon how and what people see and perceive about an incident, when they narrate it subsequently, the rendition might not be accurate in describing the sequence or even the facts completely. Much would depend on the relative distances and the angles where those individuals might have been placed or located, relative to the incident or event. Therefore, the inclusion or omission of more than two accused cannot be a matter of grave suspicion. It may be in the given case, an aspect to be kept in mind when other circumstances pointing to false implication might well exist. Per se, however, it cannot be said that the omission to mention four assailants falsifies the prosecution story.”

It is worth noting that it is then envisaged in para 28 that, “It is evident from the record that PW-2, PW-3, PW-4, PW-6 & PW-18 were eye witnesses according to the prosecution. The deposition of PW-2 (closely related to PW-1) and that of PW-4 appears to have been doubted to some extent by the Trial Court. However, what is clear from the entire reading of the record – including the judgment of the trial court is that there is no doubt that PW-6, PW-2 and PW-18 had in fact witnessed the entire incident. PW-18, Ravindra Oza, owned Raviraj Beer Bar and was clear about the assault by a sword by the absconding accused. He also mentioned that the present appellants had assaulted Suhas with fist blows. PW-6, Satish Shahji Tekale was standing in front of a tea stall when Suhas burst in, running from Shivaji Chowk. He was bleeding and was chased by the appellants and Anant Shinde who were shouting loudly that Suhas ought to be caught and killed. PW-6 claimed that he and one Pradip Mete intervened and, in the meanwhile Suhas entered “Kothavale Jewellers”, after which all the accused left on a motorcycle. The deposition of PW-6 was corroborated by that of PW-18; the latter also deposed the number of the motorcycle (No.MH-25/W-1744) by which the accused went after the attack.”

What’s more, it is then noted in para 29 that, “PW-5 was the owner of the shop “Kothavale Jewellers” and though not a direct witness, immediately witnessed the events connected with the incident. He deposed as to Suhas entering the shop and asking him to save him. He also deposed that Suhas was severely bleeding and that some people had surrounded his shop and one was armed with a sword. He deposed that the absconding accused had also given him (Suhas) sword blows and further that he had been chased by them. PW-5 also deposed that Satish Tekale and Pradip Mete took Suhas to the hospital.”

It cannot be glossed over either that it is then pointed out in para 34 that, “Here, the physical presence of the accused (including Appellant Nos. 1 and 3) at the site of the actual commission of the crime and the deposition of independent witnesses about their role, clearly establishes that it was for the purpose of facilitating the offence, the commission of which was the aim of the joint criminal venture. The presence of these accused, to facilitate the execution of the common design amounts to actual participation in the criminal act. The evidence – i.e. the exhortation by these accused, their active role in attacking the deceased, chasing him and leaving the crime scene together, clinches that there was a consensus of the minds of persons participating in the criminal action to bring about a particular result. It was this aspect which the trial court glaringly overlooked, and instead, misdirected itself grossly in focusing upon the first intimation, treating it as the FIR, and therefore, proceeding to doubt the prosecution version. It found no lacunae in the testimonies of the eyewitnesses discussed above. However, proceeding on the thesis that the first intimation was the FIR, and that it did not describe the role of four persons, but only mentioned two, the trial court acquitted the two accused.”

Most pertinently, the Bench then holds in para 38 that, “This court, after considering the reasoning in the impugned judgment, is of the opinion that the High Court was quite correct in reversing the acquittal of the two appellants who are now before this court. The eyewitness testimonies which clearly implicated them in the crime, established their participation, and the depositions which showed that they played a part in achieving the common intention of carrying the murderous assault on the deceased, Suhas, was overlooked by the trial court for trivial and immaterial reasons. The appreciation of the evidence and all the circumstances appearing from the record, was clearly unreasonable and irrational. The High Court quite correctly reversed the acquittal, and recorded the conviction against all the appellants.”

As a corollary, the Bench then points out in para 39 that, “For the above reasons, there is no merit in the present appeals; they are dismissed without order on costs.”

In conclusion, the three-Judge Bench of Apex Court comprising of Justice S Ravindra Bhat, Justice L Nageswara Rao and Justice Hemant Gupta leaves no room of doubt whatsoever while deciding this latest judgment that telephonic message which does not clearly specify the offence cannot be treated as an FIR. The Apex Court Bench has thus rightly accorded the reasons also in this regard. So there is no reason why it must not be adhered to in totality as laid down by the three Judge Bench in this notable case so explicitly, elegantly and effectively.

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Union Budget: An analysis of the education sector

The Budget 2021 provides several steps for improving the human resource in the educational sector of India and also provides equal and excellence education to all. The National Education Policy 2020 announced recently has had good reception.

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Union Budget is a budget of one year prepared by the Finance Minister every year. It includes spending and expenditure on every sector. For instance, in our family, the mother plans budget for one month, how much we spend on food, entertainment and so on. Similarly, the Finance Minister prepares budget for one year. In this budget all the sector includes. This year’s budget was prepared by Union Finance Minister Nirmala Sitharaman.

INTRODUCTION

India is the 7th largest country in the world with the total area of 3.287 million km square. India is also the second most populous country in the world with the total population of 1,380 million in 2020. The reason of high population is either due to greater birth rate than death rate or due to absence of population policies/ measures.

Indian economy is a developing market economy. India is a largest democratic country in the world. It is the world fifth largest economy by nominal GDP. It is the third largest by Public Purchasing Parity (PPP). In 2020, India ranked 142nd by GDP (nominal) and 124th by GDP (PPP) on the basis of per capita income by the International Monetary Fund (IMF).

The growth rate of Indian economy remains positive due to young population and low dependency ratio, investment rates and healthy savings. For the development policy, education has been accorded as a high priority in most of the country. In India, expansion of education is slow as compared to other developing countries.

Education plays an important role in accelerating socio-economic development. The most important area of government intervention in the country is the public provisioning of education. So, for the provisioning of foreign and quality education resources are requiring. In India, there is a number of concern not only regard to the public resources for education but also public spending in the education sector. As education mentioned in the list of the Constitution, both Union and State government share the responsibility towards the education.

To manage, control, operates and regulate the proper functioning and management of India we have different types of public institutions which have their own function under the control of government.

Some of the Ministries of India headed by central Government are as follows:

1. Ministry of Agriculture

2. Ministry of Civil Aviation

3. Ministry of Coal

4. Ministry of Commerce and Industry

5. Ministry of Communication and Information Technology

6. Ministry of Culture

7. Ministry of External Affairs

8. Ministry of Home Affairs

9. Ministry of Defence

10. Ministry of Finance

11. Ministry of Education

And many more

MINISTRY OF FINANCE

The Ministry of Finance was formed in 26 October, 1946. It is one of the important ministries of government of India which is concerned with economy, Indian Treasury Department. It is concern with the State finances, Union Budget, financial institutions, capital markets, financial legislations, and taxation.

Union Budget is prepared by the Financial Minister with the member of Ministry of Finance.

This ministry is related to the financial working of institutions. This ministry also planned how our economy is growing? And all the matters related to economy.

UNION BUDGET

INTRODUCTION

This is the Annual financial report of India. It includes income and expenditure of government on a periodic basis of one year. Article 112 of the Indian Constitution makes the Union Budget as the compulsory task for the government. The first budget after independence was presented by RK Shanmukhan Chetty on 26 November, 1947.

India’s financial year starts from April. So, Union Budget of India presented on the first day of February before the beginning of new financial year.

Morarji Desai has presented ten union budget of India followed by P. Chidambaram’s nine and Pranab Mukherjee’s eight.

TIME OF BUDGET ANNOUNCEMENT

Till the year 1999, Budget was announced on the last working day of February at 5:00 P.M. The practice of presenting budget continued till British rule. The reason of budget to announce in evening is that seems to raise the taxes. So, the budget gives producer and the tax collecting agencies to work out the change in prices.

DATE OF BUDGET ANNOUNCEMENT

According to the British era budget was presented on the last working day of February in 2016. In 2016, Arun Jaitley Finance Minister of Narendra Modi government said that from now new budget will be presented on February 1. Also, 92 years separate Rail Budget, merged with Union Budget.

HALWA CEREMONY AND BUDGET BRIEFCASE

After presenting the budget in the Parliament, it takes roughly a week of the printing of budget announcements. ‘Halwa Ceremony’ Halwa is a sweet dish. As Halwa is prepared in large quantities and served to the officers, ministers and other officials who are involved in budget making. The Financial Minister served the halwa. The halwa is a part of Indian tradition to having some sweet before any important work.

Finance Minister carried budget in leather briefcase till 2018. This tradition was started by the first Finance Minister of India Mr. R.K. Shanmukham Chetty. In the last Union Budget 2020-21, Financial Minister Nirmala Sitharaman had taken a new way of carrying budget in a Bahi- Khata. In that budget 2020-21 Financial Minister wear yellow saree like a Goddess Laxmi and take budget in hand wrapped with red cloth.

PAPERLESS BUDGET – FIRST TIME IN INDIAN INDEPENDENCE HISTORY

Due to the COVID- 19 Pandemic, Financial Minister decided not to print the budget document. The 2021 budget was presented on 1st February, 2021. This was a first paperless budget in independent history. Both the Houses of Parliament permitted to present the paperless budget.

The printing process includes several people to stay at the press for around a fortnight among the Coronavirus fears. The budget 2021 was printed in printing press of House of Finance Ministry.

This year Halwa Ceremony was also not taken place small function organized with small or limited gathering. The function started around 20th January attended by all people who involved in budget making. Until the presentation of budget by the Finance Minister, all the printing staff stayed inside the press. Only High – graded officials were allowed based on special identity card. The entire facilities like loading, unloading and transportation are managed by the Special Forces.

This is not the first time that there was a change in the tradition of the presentation of budget under Finance Minister Nirmala Sitharaman ji. In the last Budget 2020 she carry budget in a brief case titled budget as ‘Bahi Khata’ wrapped with a red cloth and tied with a string.

UNION BUDGET 2020-21

Nirmala Sitharaman in her speaking of budget 2021 stated that today’s India has one of the lowest rate of death of 112 per million population and also has the lowest active cases of coronavirus about 130 per million. This resulted in a restoration to our economy. This is a digital budget. When we look into the Part A of the budget 2021, Finance Minister highlights that will build up the Sankalp of nation first like doubling the income of farmers, proper infrastructure, healthy India, good system of government, opportunities for the youth, education for all, women empowerment and so on. This Budget also lay down some vision of AtmaNirbhar Bharat.

IMPACT OF UNION BUDGET 2021-22 ON THE EDUCATION AND SKILL DEVELOPMENT SECTOR

The total provision for the educational sector stood at Rs. 54,873.66 Crore for school education and Rs. 38, 325.15 Crore for higher education in Budget of 2021. The Budget 0f 2021 is basically divided into six pillars including;

1. Health and Well being

2. Physical & Finance Capital and Infrastructure

3. Inclusive Development for Aspirational India

4. Reinvigorating Human Capital

5. Innovation and R&D

6. Minimum Government and Maximum Governance

The fourth pillar of the Union Budget of Fiscal Year 2021-22 is deals with the educational sector of India. There is an increment of Rs. 93, 224 Crore in education sector declared by Finance Minister.

The Cabinet presented the National Education Policy in July 2020. The Human Resource Development Ministry renamed as the Ministry of Education. With the New Education Policy 2020 the Indian Government loosened the regulations which boost the worldwide policies in educational partnership and for the higher learning of students. This New Education Policy will be totally different from the National Education Policy 1986 by Rajiv Gandhi.

The Budget 2021 provides several steps for improving the human resource in the Educational sector of India and also provides equal and excellence education to all. The National Education Policy 2020 announced recently has had good reception.

SCHOOL EDUCATION

• 15,000 Schools will be set up conditionally across the country and worked as ideal school in that area. Based on qualitative guide given by these institutions, school of these areas enhances the standard of education. Also set up to include all components of National Education Policy.

• 100 new Sainik Schools will be set up in collaboration with private schools, NGO’s and States. These Schools will set up in India where part of education for all mentioned by Finance Minister.

•To enhance the standard for school teacher, The National Professional Standard for Teachers (NPST) will be expanding.

HIGHER EDUCATION

• In the previous budget 2020- 21, the Finance Minister mentioned to set up Higher Education Commission of India. This year the legislature will be introducing the Commission for implementation. It will be a body like sunshade consists of four separate vehicles for Standard- setting, qualification, guideline, and aid.

• Many of the cities in India have many research bodies, Universities and Colleges that are supported by the Indian Government. In Hyderabad, there are about 40 such major educational bodies. In about 9 cities, such institute will be established for better cooperation and also maintain internal autonomy.

• Central University will be set up in Leh for higher education.

SCHEDULED CASTES AND SCHEDULED TRIBES WELFARE

• About 750 Eklavya Model Residency School will be built up in the tribal areas. The value of each of these schools will be increased from Rs. 20 Crore to Rs. 38 Crore and for the hilly and difficult areas increases to Rs. 48 Crore. These is one of the most important steps to strong the infrastructure for tribal students.

• The Finance Minister also announced Post- Matric Scholarship Scheme to Scheduled Castes for the welfare with central assistance. Allotting Rs. 35, 219 Crore for the period of 6 years to benefit about Crore Scheduled Castes Students.

• The budget expanded the scope for the privatization of public schools and also increases the PPP models controlling system of education in India. The aim of Finance Minister is to develop the Indian Schools and provide quality education in tribal region. It will be mandatory to look for the support from the private sector in providing quality education and infrastructure and skillset workshops to the faculty.

INITIATIVE ON EDUCATION AS PART OF NEP 2020

Annexure V of the Budget includes the steps taken on education as a part of National Educational Policy 2020. There are following steps mentioned below:

• Toys are both a method of learning and expression of children. Pedagogy will be developed for all levels of school education. This will leads to better and understandable way of learning with joyful engagement of children.

• For the education planning, governance and administrative functions of the State and Union Territories, The National Digital Educational Architecture (NDEAR) will be established within the context of a Digital First Mindset. Here Digital Architecture also supports teaching and activities of learning.

• For the children who having the problem in hearing, the Indian Government will introduced more Indian sign language across the world and provide materials for their use.

• Now the senior and retired teachers will trained the newly school teachers and researcher through virtual or offline support on subjects, methods and way of learning.

• During the COVID- 19 Pandemic, The Government trained about 30 lakhs teachers of elementary schools by the way of digitalization. In 2021- 22, more than 56 lakhs teachers will be trained by the National Initiative for School Heads and Teachers for Holistic Advancement. (NISTHA).

• Before every CBSE exam our Prime Minister talked to students to help them to overcome stress and tension. So, CBSE Board Exam forum will be introduced from the 2022- 23 academic sessions in NEP 2020.

• Exam will more away from routine- learning and students shall be examining based on their analytical skills, clarity, interest and knowledge about real life situation.

• To promote enhanced academic collaboration with higher foreign educational institution, it is requested to put in place a monitoring machinery to allow dual degrees, joint degrees, linking arrangements and other such mechanisms.

SKILLING

• The Government of India had launched the National Apprenticeship Promotion Scheme in 2016. The government proposes to amend the Apprenticeship Act with an aim to enhance training opportunities for the youth. We will rearrange the current scheme of National Apprenticeship Training Scheme to provide earlier- education training, graduates training and holders of diploma in Engineering. About Rs. 3,000 Crore will be provided for the scheme.

• A development is in underway, in collaboration with the UAE, to level skill qualification valuation and authorization, accompanied by the arrangement of certified workforce. The partnership Training Inter Training Programme (TITP) between Japan & India also takes place to enable Industrial and Professional skills, technique and knowledge. We will take forward this initiative with many other countries.

REFERENCES

https://www.indiabudget.gov.in/bspeech.php

https://www.indiabudget.gov.in/doc/bh1.pdf

https://www.google.com/url?sa=t&source=web&rct=j&url=https:/

https://pib.gov.in/AATAMNIRBHARBHARATKABUDGET/

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Making it happen: Attracting investments

The steps announced by the Reserve Bank of India a few months ago have the potential to impact investors within the country even though these steps are limited to creating additional liquidity that need not necessarily lead to investments. There is an argument that liquidity was not the major factor even before the arrival of Covid-19.

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First the good news. Recently conducted survey by FICCI reveals that the Overall Business confidence Index is at a decadal high of 74.2. Now, the bad news. COVID keeps coming back and we may have to live with it. The world is already undergoing a change but it is difficult to predict what will finally emerge. As of now, even the end to this scourge does not appear to be in sight but one day it will. However, are we preparing ourselves when the world does come out of the crisis or starts living with it? Yes, there is bound to be greater focus on health care. It has been long overdue in India. It is a wake-up call. The biggest sufferers of the lockdown have been the poor unorganized workers, most of whom are daily wage earners. There were horrid stories about those that attempted to migrate back to their villages to be with their families. The country will have to seriously think in terms of social security for such workers, another long over-due intervention.

There are, however, a few opportunities that appear to be emerging. News is filtering from a number of countries that they want to withdraw their investment from China. Can India become a destination for such investment? Can we leverage the new business confidence? Some states have gone ahead with the suspension of certain labour laws to become attractive for investments. But the key question is whether labour laws are the primary inhibiting factor in promoting investment? (Ironically, the states are now competing with each other in the retrograde step of reserving jobs for the ‘locals’). I had tweeted some time ago: “The world is mighty upset with China on account of COVID 19. This presents a huge opportunity for India as many Companies plan to shift out of China. Let us prepare the ground forthwith to welcome such investment into India. Let us try and make life easy for investors. (We must also appreciate the difference between business “confidence” and “making-life-easy”. Former relates to the potential whereas the latter one relates to actual conditions on the ground) It can be done”. The world will keep debating about the “role” of China in the emergence and spread of this virus but it is clear that a large number of countries have already started thinking in terms of shifting their investments out of China. Can India seize this opportunity? (We have indeed created a lot of goodwill around the world by supplying the COVID vaccine to a number of countries.) In my understanding, it can but the key question is, how?

The steps announced by the Reserve Bank of India a few months ago have the potential to impact investors within the country even though these steps are limited to creating additional liquidity that need not necessarily lead to investments. There is an argument that liquidity was not the major factor even before the arrival of COVID. It was more on account of the “fear” factor and the lack of demand. COVID will only aggravate the problem of lack of demand. However, the “fear” factor can and should be tackled.

The Government will have to consider the following steps forthwith to attract international investment (These steps will also help revive the sentiments for domestic investors)

Revive the Project Monitoring Group (PMG) in letter and spirit. This Group came into existence during UPA II and managed to do what was unthinkable during that time when scams were breaking out every other day. Enforcement agencies were hounding civil servants and decision making had come to a grinding halt. Clearance of various projects were stuck. By putting in place a transparent web-based mechanism for clearances and by engaging intensively with the State Governments to expedite clearances, projects worth more than Rs 5 lakh crores were cleared in a period of 15 months. Both the premier Chambers of Commerce and Industry (CII and FICCI) wrote to the Prime Minister “the PMG has been playing an exemplary role in getting the necessary approvals and clearances for projects that have been stalled”. There was also a request from these chambers to expand the mandate of PMG.

Make all clearances time-bound and process transparent. This is already being attempted by Samagra Foundation in Haryana in close co-ordination with the State Government. These processes need to be understood, replicated and scaled in other states as well.

Streamline all the processes of clearances. With the data getting generated at the PMG, the bottlenecks can be clearly identified.

Don’t suspend operation of Labour Laws as this will create wrong impression all over the world about our concern for this vulnerable section of the society. The workers are already suffering on account of the lockdown. The problem is not as much with the laws as with their implementation. The problem is with the “inspector raj” that can easily be dispensed with without conveying our lack of concern for legitimate rights of the labour force.

Refrain from reserving jobs for the “locals”. Mobility of labour should not be restricted but needs to be encouraged.

The aforementioned steps will provide comfort to the investors. These steps do not require any legislation or any amendment to an existing legislation. This can be done forthwith. The investor will have at his disposal an institutional mechanism which he can approach in case he runs into a problem. Over a period of time, as the processes become streamlined and digitalized, the role of PMG will also undergo a change.

The Budget for 2021-22 has already sent the right signals to the investing community. The stock market is upbeat. All this will need to be leveraged. Steps will have to be taken to revive construction activities. Construction sector is the biggest employment-creator. The precipitous fall in petroleum prices (though on the rise again) and the consequent reduction in bitumen price can be leveraged. Government will be well advised to make all the payments due expeditiously.

There have been efforts on the part of the government to revive the economy but the key really is the sentiment that will help private investor (both domestic and international) feel “comfortable”. Road-shows did not help in that past. They will not help now. What will help is action on the ground. It can be done. It should be done in the interest of the country and its people.

Anil Swarup has served as the head of the Project Monitoring Group, which is currently under the Prime Minister’s Offic. He has also served as Secretary, Ministry of Coal and Secretary, Ministry of School Education.

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Road accidents and automobile pollution emerge biggest challenge

Government has announced the vehicle scrappage policy; let’s hope that this policy proves to be effective.

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Of course, the newly-announced Vehicle Scrappage Policy of the Central Government kindles a ray of hope that perhaps everything will be hunky-dory in the years to come! But a question also arises as to why there is still the shortage of laws? There are many existing rules which if strictly followed in letter and spirit can make roads safe and our lungs can be saved from hazards of automobile smoke. By the way, Union Road Transport and Highways Minister Nitin Gadkari has assured that the new policy will increase safety on roads and reduce pollution. He has also assured to pay the scrap value of the vehicle and a 25 per cent concession has also been announced in road tax.

Safety on the roads in India is indeed a very crucial issue. Government statistics show that on an average 53 accidents take place every hour in our country and one person dies every four minutes. Among those who are victims of road accidents, more than 76 per cent are aged between 18 and 45 years. A report from the World Bank states that more than four and a half lakh road accidents occur annually in India and one and a half lakh people die. In the last ten years, road accidents have killed 13 lakh people and injured 50 lakh people. There are thousands of people who have either been killed or wounded.

Now compare India at the international level. You will be surprised to know that India has only one per cent of the world’s vehicles but India’s share of deaths in road accidents is 11 per cent! That is, our roads remain graveyards. Though there might not be any loopholes or shortcomings in our policies, but there must be a mistake in following the law, otherwise why would there have been so many deaths? And yes, also consider that if someone dies or someone becomes completely crippled in an accident, his entire family is devastated. The figure of this social and economic loss is very large. Nobody cares about it! If accidents stop then life will be saved and you will also avoid financial loss!

If we investigate the reasons behind the accidents, then one thing that clearly emerges is that we do not have a proper system to train the drivers. Getting a licence is not a difficult task. There is no proper system to regulate the unruly drivers on the roads. If you go abroad, you will not see any arrogance on the road there. If anyone crosses the speed limit, he will be caught before the next stop. He has to pay a heavy penalty and if he repeats the mistake the next time, the licence is terminated forever.

A stringent law was also talked about in India and in 2019 the Motor Vehicle Act was amended to impose heavy fines on those who break traffic rules! The objective of amending the Act was to create fear among the people that if the traffic rules are broken, greater penalties will have to be paid. Even after looking at the number of road accidents and the deaths, I do not think that increasing the penalty has made any difference. Actually, if the system of monitoring is not right there, then how will they be punished?

Now let’s talk about the dangerous smoke being emitted by the vehicles. If you go out on any road in any city of the country, you will see vehicles passing you by leaving a thick black cloud of smoke behind! There are no restrictions! Sometimes inspection is done as a matter of protocol. The rule is that every vehicle must have a PUC i.e. Pollution Under Control certificate, but who among us does not know how easy it is to get this certificate despite all the rules and regulations in force! I think that the government should take a strict action in this direction as it has become the biggest threat to the health of the people. The city air is becoming poisonous due to the smoke emanating from old and condemned vehicles. Hazardous gases such as carbon dioxide, sulfur dioxide, nitrogen oxides and harmful particles like the lyocell have made the air poisonous. For your information, let me tell you that there are more than 50 lakh vehicles which are above 15 to 20 years old. Now, if the new scrappage policy is followed properly, then such vehicles can be scrapped. It is obvious that if the old vehicles are off the road, then new vehicles are needed. With this the automobile industry can be expected to get a boom but all this can be achieved only if the law is followed.

The people should mend their conduct or the government will have to act vigorously.

Just recall the days during the lockdown when there were no accidents, pollution had almost ended, animals and birds had also started coming to the urban landscape. As the lockdown ended and the unlock process started, it was back to the pavilion with the vehicles returning to the roads and the situation worsening again. Can we not bring pollution-free days back?

Hope that someday our roads will be safe and free of pollution too!

The author is the chairman, Editorial Board of Lokmat Media and former member of Rajya Sabha.

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HARYANA PASSES BILL TO RECOVER DAMAGES FROM PROTESTERS

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It is most refreshing, most rejuvenating and most reasonable that the state of Haryana has also now joined the distinguished club of states who have their own exclusive law for recovering damages from protesters. It is high time and now all the States must join this distinguished club and no State should be left out under any circumstances! How can burning of buses, burning of public buildings and damage to public property be justified under any circumstances?

It goes without saying that to protest peacefully is an intrinsically fundamental right of every citizen of India. But to damage property and indulge in acts of arson, violence and all such acts which causes huge loss to the people as also to the State cannot be given to any citizen not even to the President of India. No person should under any circumstances be allowed to go scot free who damages public and private property no matter who he/she may be! Only then will the right message go to the people that, “Be you ever so high, the law is above you!”

It also goes without saying that all those who still dare to indulge in wanton acts of violence, damaging property both public and private and resorting to acts of arson have to be put behind bars and held accountable for their misdeeds and made to pay for what all they damaged. Any leniency shown on this score will only send a wrong message and encourage others to follow suit as we see most unfortunately in our very own country! Therefore, no one should be spared at any cost and under any circumstances whatsoever!

Needless to say, it is most gladdening to see that the Haryana State Assembly has just recently passed the “Haryana Recovery of damages to property during disturbance to public Bill, 2021” on March 18, 2021 to recover the compensation from the protesters if they dare to cause damage to property. The Bill was passed by a voice vote even though Congress members objected to it. Later, we saw how the Haryana Chief Minister Manohar Lal Khattar very rightly and remarkably said that, “This law should have been made long time ago. It is the responsibility of the State Government to protect the property of the State, whether it is private or government. No one benefits from the loss of property, in fact, the loss of property leads to economic loss. It was necessary to instill fear in the minds of those who damage property and this is our constitutional legal system.”

He also further rightly added that, “In a democracy, everyone has the right to speak and protest peacefully but no one has the right to damage property.” Haryana State Assembly Speaker Gian Chand Gupta ensured that the Bill was smoothly passed. It must be underscored that the damage and destruction to public or private property is most condemnable and cannot be justified on any ground whatsoever under any circumstances!

To be sure, it must also be pointed out here that the statement of reason and objects for the Haryana Bill says:

“Whereas the general public has taken a serious note of various past and recent instances of mob violence where there was a large scale destruction, burning-looting of public and private properties, injury or loss of lives during disturbances to public order by an assembly, lawful or unlawful, including riots and violent disorder etc and therefore, the State as well as the private individuals, trusts etc had to suffer huge losses in terms of property and costs. The State Government is supposed to take all preventive, remedial measures so that such incidents are not repeated and public order is maintained. In order to prevent recurrence of such circumstances, there should be a legal framework to cause deterrence in the minds of the perpetrators of violence as also the organisers, instigators etc.” The Bill describes “damages” as “loss, injury or deterioration caused by any act or omission by any person to property of central government or state government or another person during disturbance to public order”. It further describes disturbance as one “caused by an assembly, lawful or unlawful and includes a riot, revolt or violent disorder”.

Truth be told, the Bill which will now become law after the Governor’s assent, “provides for recovery of damages to properties caused by persons during disturbances to public order by an assembly, lawful or unlawful, including riots and violent disorder”. Those who damage property must be made liable in all states of India to pay back for it and should not be left scot free under any circumstances as it sets a very bad and dangerous precedent for others to follow merrily! Only then will there be a fear among hoodlums and vandalisers that they shall be strictly punished as per law if they dare to break the law and no political party or leader would be able to save them under any circumstances whatsoever!

Of course, it must be also mentioned here that this new Bill has also provisions for the constitution of a Claims Tribunal to determine the liability, to assess the damages caused and to award compensation. The DM will recover the compensation amount in the same manner as the arrears of land revenue. The Collector shall also have the power to issue an order of attachment of property or bank account of any person against whom an order has been passed by the Claims Tribunal to pay compensation. The Bill provides that such property or bank account shall remain attached till the person makes the payment of the amount due.

Furthermore, this new Bill disallows any civil court to entertain any question pertaining to the claim for the compensation and compensation imposed and “no injunction shall be granted by any civil court in respect of anything which is done or intended to be done by or under this Act”. It is also clarified that all proceedings of the Claims Tribunal shall be deemed to be judicial proceedings. In addition, according to this new legislation, the Claims Tribunal shall also have the right to proceed ex-parte against any person who fails to appear before it despite the summons issued to them.

What’s more, it is then also added that apart from the compensation, the Claims Tribunal can also award “exemplary damages” to be paid by the accused into the Consolidated Fund of India. The Claims Tribunal can also charge simple interest at the rate of 6 percent per annum on the compensation amount. The Bill also adds that no appeal against the order of the Claims Tribunal will be entertained until 20 percent of the compensation amount is deposited with the Collector.

No doubt, it also deserves mentioning here that Uttar Pradesh was the first State to bring a Bill for recovery from the people for damages caused to public property during agitation and protests. It was promulgated by the State Governor Anandiben Patel on 15 March 2020. As per the “Uttar Pradesh Recovery of Damages to Public and Private Property Bill, 2021” if the protesters were found guilty of damaging the public or private properties would be facing the legal imprisonment for one year or fine of Rs 5000 to Rs 1 lakh. This Bill was passed to empower the Joint and Deputy Commissioners of Police in order to act under the legislation.

It goes without saying that this definitely prompted other States also to act similarly for which UP State Government led by Yogi Adityanath must be commended! It was passed on 22 August 2020. I really just fail to understand that why can’t all other State Chief Ministers prefer to emulate the worthy precedent set by the Chief Minister of Uttar Pradesh – Yogi Adityanath in this regard?

As we saw, Karnataka also had then subsequently passed similar such law in August 2020 to ensure that rioters are made to pay damages for violence in Bengaluru during the anti-CAA protests. It must be revealed here that Karnataka had invoked a 2009 Apex Court order that had allowed the High Court to constitute machinery to investigate losses and award compensation in cases of riots. The Apex Court had clearly stated that nobody had the right to vandalise public property. The Punjab government under the Akali Dal-BJP rule had also brought in an Act like this in 2014 that provided for recovery of damages to public or private property.

It would be pertinent to mention here that “The Prevention of Damage to Public Property Act, 1984” punishes anyone “who commits mischief by doing any act in respect of any public property” with a jail term of up to five years and a fine or both. This Act must be amended and should include private property also just like we now see in the case of Haryana also! The provisions of this law can be coupled with those under the Indian Penal Code.

Truly speaking, protests against the “farmers laws” or “any other laws” can never be allowed under any circumstances to be used as a convenient pretext for violence and causing damage and destruction to public or private property. This alone explains that why Haryana State Government has now finally decided to act tough just like UP did earlier! Home Minister of Haryana – Anil Vij very rightly stated that the Bill was meant to hold accountable those who burn shops and damage other public and private property during protests. “We are not bringing this Bill against people’s democratic right to hold a protest,” Vij said adding that, “the actual perpetrators of such acts of violence and crimes as also the instigators, organisers be made liable for damages to public and private property and the cost of the forces requisitioned from outside the state for controlling such acts of violence and crime”.

All in all, there has to be zero tolerance for all forms of violence and damage caused to public and private property under any circumstances! Why no one damages one’s own property? Why should public and private property of some other individual be allowed to be damaged and worst still why should the protesters be allowed to either escape lightly or be allowed to go scot free?

It must be reiterated that every Indian has the right to dissent and hold different opinion from that of State but no one which means no one has the right to damage public and private property under any circumstances and cite the name of some senior Supreme Court lawyer in order to justify it as violence cannot be justified by any lawyer or anyone else on any pretext whatsoever! Can Kapil Sibal or Harish Salve or Vivek Tankha or Rajeev Dhavan or anyone else justify under any circumstances the damaging of public and private property under any circumstances on any grounds whatsoever? The answer is: Definitely not!

It must also be pointed out here that senior and eminent lawyer Rajeev Dhavan had earlier rightly cautioned also that the process for awarding compensation for damages cannot be arbitrary or aimed at targeting the innocent. He very rightly said that, “Nobody can claim the right to destroy private or public property. It is a crime and a tort for which damages can be awarded by a court of law. But the method and due process by which this is to be done cannot be arbitrary or target the innocent.”

It is good to see that Haryana too has now taken the right call on this. Now no one can take law in their own hands in Haryana and yet hope to escape without being held strictly accountable. All the remaining states who don’t have similar such laws must also follow suit on this!

Having said this, it is definitely the bounden duty of the State to ensure that innocents are not harassed or harangued for no fault of theirs under any circumstances under the garb of this new law! It must always be used for the basic purpose for which it is meant – to ensure that those who damage public and private property are punished strictly in accordance with law and no innocent is harassed on any ground whatsoever if he/she is not involved in destruction of public and private property! Only then will the new law serve the true purpose for which it is meant! Let’s hope so fervently!

We have to certainly concede that a good beginning has been made by Haryana thus very rightly emulating UP and Karnataka in this regard! Let’s hope now earnestly that all other states too similarly follow suit in this worthy direction! Rule of law has to be followed always under any circumstances and those who dare to damage public and private property and indulge in naked vandalism must be made to pay through their nose and they should not be released on bail easily!

Before parting, it must be asked: Why should innocent citizens suffer endlessly for no fault of theirs? Even political parties too must be held accountable if they indulge in such despicable, dangerous and dastardly acts! Only then will the right message go all across the country that no one is above the law!

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PRIVATE EQUITY AND VENTURE CAPITAL IMPORTANT IN NEW INDIA JOURNEY: GOYAL

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Minister of Commerce and Industry, Railways and Consumer Affairs and Food & Public Distribution, Piyush Goyal today said that New India is moving with a New Energy towards a bright future, and Private Equity & Venture Capitalists are our partners in this New Journey towards a New Horizon. Speaking at the Indian Private Equity and Venture Capital Association Annual Conclave 2021, he said that we are happy to work in the true spirit of partnership, so that investors, startups & venture capital funds enjoy working in India.

Stating that the Prime Minister talks about changing the mindset of the nation, “Soch badlo, Desh Badlo”, Goyal said that we can change the destiny of the nation if we change the mindset of our people. The Minister called upon all investors to stick to the spirit and ambit of the law & not try to find loopholes in the policies or laws. He said that despite our best efforts to provide predictable and stable policy environment, some of the investors have been trying to circumvent and misuse the provisions through ingenuity and innovations. He said that this leads to the government trying to plug the loophole, and bring in changes. Goyal said that things will never go wrong if people follow the law honestly.

Goyal said that International investors are important for Startup funding and are welcome in the country but having their own limitations. He said domestic investors can possibly penetrate much deeper into the hinterland and smaller towns & cities where there is a lot of innovation and potential waiting to be tapped. He said that domestic investors chasing good Startup ideas can even bring confidence and comfort level among the international investors.

Goyal said that Prime Minister is very clear that it is the start-up ecosystem that has the strength, ability and agility to move things forward. He said that our Government is willing to strengthen the Startup ecosystem and are open to new ideas. He said that recognising the strength of our Startup ecosystem, the Government is giving Startups priority, giving them exemption in various taxes, and providing support through preferential procurement. He described our startups’ success as our nation’s success. “We have an open mind, and our doors are always open to fresh ideas & thinking. We are happy to work in the true spirit of partnership.”

Inviting the investors to take India’s ‘3D advantage’: Demand, Democracy & Demographic dividend, he said that collectively, we can do good for the largest set of people, who are aspiring for a better quality of life. “If you look at INDIA, the IN is our Innovation DI is our Disruption A stands for Asia. We are the innovators & disrupters in Asia and we can define the progress & prosperity for a large section of society. New India today is moving with more energy & excitement about the future. We can see before us a bright future, a billion people aspiring for a better quality of life and that is what provides opportunities to look at innovative solutions to the day to day problems”, he said.

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Analysis of assets and liabilities of national & regional parties: FY 2018-19

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There are a set of accounting standards set for commercial, industrial and business enterprises and these accounting standards are issued by the Institute of Chartered Accountants of India (ICAI). Political parties fall under the non-commercial, non-industrial or non-business entity. Thus, the standard accounting formats of the other entities are not applicable to political parties.

The Election Commission of India (ECI) requested the ICAI for recommendations to bring uniformity in the accounting and auditing practices of political parties. Thus, the “Guidance note on Accounting & Auditing of political parties” or the “Accounting guidelines” were formulated in February, 2012 by the ICAI on the request of the ECI, in order to improve accounting and auditing standards of political parties and improve transparency in their finances. These guidelines lay down principles of recognition, measurement and disclosure items of income, expenditure, assets and liabilities in the financial statements of political parties.

Association for Democratic Reforms (ADR), in its report dated 16th October, 2017, analysed the assets and liabilities declared by the seven National Parties (BJP, INC, NCP, BSP, CPI, CPM and AITC) between FY 2004-05 to 2015-16. In the report dated 9th March, 2018, ADR analysed the assets and liabilities declared by the 22 Regional Parties between FY 2011-12 to 2015-16. ADR also released a report on the Analysis of IT Returns: Assets and Liabilities of National Parties – FY 2016-17 & 2017-18 dated 31st July, 2019. The total assets declared by the 7 National Parties during FY 2016-17 amounted to Rs 3260.81 cr which increased by 6% to Rs 3456.65 cr during FY 2017-18. In case of Regional Parties, ADR’s analysis showed that the assets and liabilities declared by the 39 Regional Parties in FY 2016-17 amounted to Rs 1267.81 cr while 41 Regional Parties in FY 2017-18 declared Rs 1320.06 cr.

This report analyses the assets and liabilities declared by the 7 National Parties and 41 Regional Parties in FY 2018-19.

DECLARATION OF ASSETS BY THE NATIONAL AND REGIONAL PARTIES: FY 2018-19

The total assets declared by the 7 National and 41 Regional Parties during the FY 2018-19 amounted to Rs 5349.25 cr and Rs 2023.71 cr, respectively.

Among the 7 National Parties, the highest assets for the FY 2018-19 were declared by BJP amounting to Rs 2904.18 cr (54.29%) followed by INC which declared assets worth Rs 928.84 cr (17.36%) and BSP declared assets worth Rs 738 cr (13.80%).

In the FY 2018-19, among the Regional Parties, the highest assets were declared by SP worth Rs 572.21 cr (28.28%), followed by BJD worth Rs 232.27 cr and AIADMK worth Rs 206.75 cr.

DECLARATION OF LIABILITIES BY THE NATIONAL & REGIONAL PARTIES: FY 2018-19

The total liabilities declared by the 7 National and 41 Regional Political Parties for the FY 2018-19 amount to Rs 213.231 cr.

The liabilities declared by Political Parties fall under 2 major heads: Borrowings (from banks, overdraft facilities and sundry creditors) and other liabilities. Political Parties declared Rs 123.40 cr (57.87%) under Other Liabilities and Rs 89.831cr (42.13%) under Borrowings.

In the FY 2018-19, INC declared the highest total liabilities of Rs 78.415 cr (58.75%) followed by BJP that declared Rs 37.463 cr (28.06%).

The Regional Political Parties declared the total liabilities of Rs 79.751 cr in FY 2018-19. Regional Parties declared Rs 47.181 cr under Borrowings and Rs 32.57 cr under Other Liabilities.

In the FY 2018-19, TDP declared the highest total liabilities of Rs 18.10 cr (22.696%) followed by JDS that declared Rs 18.01 cr (22.583%).

CAPITAL/ RESERVE FUNDS DECLARED BY THE NATIONAL & REGIONAL PARTIES: FY 2018-19

The total Capital/Reserve Fund set aside by the National and Regional Parties during FY 2018-19 was Rs 5215.77 cr and Rs 1943.976 cr, respectively.

For the FY 2018-19, among National Parties, BJP declared the highest capital of Rs 2866.717 cr followed by Rs 850.426 cr of INC and Rs 735.77 cr of BSP.

The lowest capital was declared by CPI of Rs 24.87 cr followed by NCP of Rs 31.05 cr.

For the FY 2018-19, SP declared the highest capital of Rs 571.70 cr followed by Rs 223.85 cr of BJD and Rs 206.708 cr of AIADMK.

RECOMMENDATIONS OF ADR

1. Changing of auditors every three years:

The amended Companies Act, 2013, which came into force on 29th Aug, 2013, stated that no Company shall have an auditor for more than 5 years but this rule was not applied for political parties. Once a firm/person is responsible for auditing of accounts of parties for long duration, there is a possibility that finances of parties could be made as opaque as possible.

Indian laws do not permit foreign auditing firms to operate directly in India but might have a tie-up with domestic auditing firms. This becomes a worrisome factor if the domestic firm is auditing Indian parties’ accounts. By having no provision to change auditors frequently, foreign companies might have a bird’s eye view of the parties’ internal accounting.

The accounts of political parties should be “audited by a qualified and practicing Chartered Accountant from a panel of such accountants maintained for the purpose by the Comptroller and Auditor General.” This differs from the current practice where political parties choose their auditors entirely on their own.

2. As the income-expenditure statements of political parties are assessed rarely (even those of National Parties), authenticity of the accounts submitted remains doubtful. When the authenticity is not verified, the auditors who might be under-reporting the accounts, remain out of purview of punishment. With online submission of IT Returns, political parties do not submit details of income, expenditure and assets and liabilities as attachments. Thus, the IT department too does not have enough information on the finances of political parties. Annual scrutiny of documents submitted by political parties is recommended.

3. The 170th Law Commission report recommended the introduction of Section 78A in the Representation of the People Act, 1951 and proposed penalties for political parties defaulting in the maintenance of accounts. This needs to be introduced and implemented.

4. Section 276CC of the IT Act penalizes individuals who fail to submit their IT returns. Similar legal provisions should be applicable to political parties too. Supreme Court judgement in Common Cause vs. Union of India & ors. had stated that when parties default in filing their returns, prima facie they violate provision of the IT Act. For FY 2018-19, Audit Reports of major Regional Parties such as JKNC, NPP among others are unavailable on the website of the ECI. In case of National Parties, 4 parties namely NCP, BJP, INC and CPI delayed the submission of their audit reports by 5 to 42 days.

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