Vashishth IAS Academy Ludhiana

Vashishth IAS Academy for IAS/IPS/PCS/UPSC/PPSC Coaching | Visit Our Youtube Channel For Daily Live Classes | Daily Free Live Current Affairs | For Admission Contact Us On Give Numbers:+91-94640-31200

Money Bill Route for Contentious Amendments

The Supreme Court of India has agreed to hear petitions challenging the use of the Money Bill route by the Centre to pass contentious amendments in the Parliament.

Background

Rojer Mathew vs. South Indian Bank Ltd. (2019): This case referred to the Supreme
Court addresses whether certain amendments could be passed as a Money Bill,
circumventing the Rajya Sabha, potentially violating Article 110 of the Constitution.

Concerns

  • Amendments to the Prevention of Money Laundering Act (PMLA): Since 2015,
    amendments have been made via Money Bills, granting the Enforcement Directorate
    extensive powers of arrest, raids, etc.
  • Finance Act, 2017: Passed as a Money Bill, it altered appointments to 19 key judicial
    tribunals, including the National Green Tribunal and Central Administrative Tribunal.
  • Aadhaar Act, 2016: Petitioners argue that parts of the Act, passed as a Money Bill,
    contain provisions unrelated to the subjects listed under Article 110.

Money Bill

Article 110: Defines a Money Bill and specifies that it must deal exclusively
with matters such as taxation, government borrowing, and expenditure
from the Consolidated Fund of India.

Key Provisions:

  • Imposition, abolition, remission, alteration, or regulation of any tax.
  • Regulation of borrowing or guarantees by the Government of India.
  • Custody and withdrawal of money from the Consolidated or Contingency Fund of India.
  • Appropriation of money from the Consolidated Fund of India.
  • Declaration of expenditure charged on the Consolidated Fund of India.
  • Receipt, custody, or issue of money from the public account of India or audit of accounts.

Passing of Money Bills

Introduction: Only in the Lok Sabha, by a minister, on the President’s recommendation.

Speaker’s Decision: If there is a question about whether a bill is a Money Bill, the Speaker of the Lok Sabha’s decision is final.

Role of Rajya Sabha:

  • Cannot reject or amend a Money Bill.
  • Can only make recommendations within 14 days.
  • Lok Sabha may accept or reject these recommendations.
  • If not returned within 14 days, the bill is deemed passed in its original form.
  • President’s Assent: The President may either assent or withhold assent but cannot return the bill for reconsideration.

Key Issues

  • Circumventing Rajya Sabha: Using the Money Bill route for passing contentious amendments circumvents the Rajya Sabha,
    raising constitutional concerns.
  • Scope of Article 110: Determining whether certain provisions fall within the exclusive scope of a Money Bill.

Conclusion

The Supreme Court’s decision on this matter will be pivotal in defining the boundaries of the Money Bill provision under
Article 110, ensuring that legislative processes adhere to constitutional mandates and maintaining the balance of power
between the two Houses of Parliament.

Facebook
LinkedIn
Scroll to Top