Previous Year Question
In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?
Ad Hoc Committees set up by the Parliament
Parliamentary Department Related Standing Committees
Finance Commission
Financial Sector Legislative Reforms Commission
NITI Aayog
Select the correct answer by using the codes given below:
1 and 2
1, 3 and 4
3, 4 and 5
2 and 5
Correct Answer: A
Detailed Solution
Statement 1 is correct. Parliament may constitute an Ad Hoc Committee to investigate a particular subject, controversy, administrative problem or the functioning of a regulatory institution. Such a committee ceases to exist after completing its assigned work and presenting its report.
For example, a Joint Parliamentary Committee or another Ad Hoc Committee may be constituted to examine policies, allocation of licences, administrative decisions or regulatory failures in a particular sector. Thus, Ad Hoc Committees can review the functioning of independent regulators.
Statement 2 is correct. Parliamentary Department Related Standing Committees review the functioning of the ministries concerned and the institutions and regulators falling within their respective jurisdictions. They generally examine:
Demands for grants,
Bills relating to the concerned ministry,
Annual reports of ministries, and
Long-term policy documents.
For example, the parliamentary committee dealing with communications and information technology may examine matters concerning the Department of Telecommunications and TRAI. Similarly, committees dealing with finance and energy may examine regulatory matters concerning insurance and electricity.
Statement 3 is incorrect. The Finance Commission is a constitutional body constituted under Article 280. Its principal functions concern the distribution of tax revenues between the Union and the States, grants-in-aid to States and augmentation of resources of local bodies. It does not conduct parliamentary review of telecommunications, insurance or electricity regulators.
Statement 4 is incorrect. The Financial Sector Legislative Reforms Commission was constituted to review laws and the institutional framework governing the financial sector. It was not a permanent institution conducting regular parliamentary scrutiny of independent regulators. Moreover, its mandate did not generally extend to every sector, such as telecommunications and electricity.
Statement 5 is incorrect. NITI Aayog is the Government’s policy think tank and an institution for cooperative federalism. It may provide policy recommendations, but it is not the parliamentary review authority responsible for ensuring the accountability of independent regulators.