Monday, May 21, 2012

Parliamentary committee for making Model Code of Conduct part of Representation of People’s Act


 Parliamentary committee for making Model Code of Conduct part of Representation of People’s Act

The Parliamentary Standing Committee on Law and Justice recommended making the Model Code of Conduct, a part of the Representation of People's Act. In its latest report on Demands for Grants of the Law Ministry, the panel said the Model Code of Conduct is a voluntary agreement among the parties for regulating the conduct of political parties and its members during elections to assemblies and Parliament. 

The panel felt that the legal status of the Model Code of Conduct , is a grey area after insertion of para 16 A in the Election Symbols (Reservation and Allotment) Order, 1968, which authorises the Election Commission to suspend or withdraw the recognition of political parties in case of violation of Code of Conduct. Besides, some paras in the code attract penal provisions in other laws.

The report said that the power of cancellation of registration of a political party is substantive in nature, therefore, it should not be regulated or provided for under an order of the Commission.

It also suggested that the scope of Article 324 also needs to be examined as many of the aspects which should have been covered under the rules framed under R P Act are presently covered under instructions issued under Article 324 of the Constitution by the Commission.

The recommendation comes months after an internal note of the Group of Ministers (GoM) on Corruption asked the Law Ministry to look into aspects where executive instructions of the Election Commission were required to be given statutory shape.

Government suggests four pronged strategy to curb black money


White Paper suggests four pronged strategy to curb black money

The government tabled a White Paper on black money in Parliament as promised by the Finance Minister at the beginning of the Budget session. Tabled by Finance Minister Pranab Mukherjee in the Lok Sabha,the White Paper, made a strong case for setting up Lokpal and Lokayuktas to deal with the menace.

The minister categorically informed the House that there was no exact estimation of the black money generated in the country but refuted the reports that Indians held the largest deposits in Swiss banks by providing data.

The Government in the White Paper also stressed the need for more research to arrive at reliable estimates of extent of black money and sought the cooperation of the state governments too in addressing the problem. The 97-page document, however, pitched for fast-track courts to expeditiously deal with financial offences and deterrent punishment for offenders.

It has also suggested tax incentives for encouraging use of debit and credit cards as these leave audit trails. On the possibility of any tax immunity scheme, especially gold deposit scheme, to deal with black money, it said, the issue of complete tax immunity needs to be examined in the light of other policy objectives.

The Paper suggested four-pronged strategy to curb generation of black money. These include more incentives for voluntary compliance of tax laws, reforms in vulnerable sectors of economy and creation credible deterrence. It mentioned that reform of financial and real estate sectors would help in reducing generation of black money in long term as freeing of gold imports had helped in checking smuggling.

In order to curb black money in the real estate sector, which accounts for 11 per cent of GDP, the Paper suggested that government should develop a nationwide data base, introduce TDS on sale of property and set up electronic payment system.

The document seeks to dispel the impression that government was not doing enough to deal with black money and talks about various policy options and strategies it has been pursuing to address the issue of corruption in public life. In order to check the menace of black money, Mr.Mukherjee in his foreword to the Paper said, the government has brought five bills the Lokpal Bill, the Judicial Accountability Bill, the Whistle Blowers Bill, the Grievance Redressal Bill and the Public Procurement Bill, which are at various stages of consideration by Parliament.

He said the expansion of information exchange network at the international level will help in curbing cross-border flow of illicit wealth, adding while these measures will set the tone for an equitable, transparent and a more efficient economy, there is much that we could do, both individually and collectively, to strengthen the moral fibre of the society.