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In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.? 1. Ad Hoc Committees set up by the Parliament 2. Parliamentary Department Related Standing Committees 3. Finance Commission 4. Financial Sector Legislative Reforms Commission 5. NITI Aayog Select the correct answer using the code given below.
Explanation
The correct answer is option A (1 and 2) because independent sectoral regulators in India are reviewed through Parliament's committee mechanisms.
India has relatively comprehensive regulators in sectors like telecommunications [1]and electricity, and these regulators are subject to parliamentary oversight. Parliamentary Department Related Standing Committees (DRSCs) are permanent committees that examine the functioning of various ministries and their attached bodies, including independent regulators. These committees scrutinize their annual reports, budgets, and policies. Additionally, Ad Hoc Committees can be constituted by Parliament for specific purposes, including reviewing the performance and functioning of regulators in particular sectors.
While existing laws and rules establish the mandates of sectoral regulators, there is a need to address gaps in the powers and independence of the regulators, especially in the infrastructure sectors[2], which indicates ongoing parliamentary review and concern about their functioning.
Options 3, 4, and 5 are incorrect because the Finance Commission primarily deals with fiscal federalism and resource allocation between the Centre and states, the Financial Sector Legislative Reforms Commission was a one-time body focused on financial sector laws, and NITI Aayog, while a policy think tank, does not have a formal review mandate over independent regulators, though it may suggest policy improvements.
Sources- [1] https://www.niti.gov.in/sites/default/files/2023-08/11th_vol1.pdf
- [2] https://www.niti.gov.in/sites/default/files/2021-08/India_ActionAgenda.pdf
PROVENANCE & STUDY PATTERN
Guest previewThis question tests the fundamental concept of 'Executive Accountability' in a parliamentary democracy. It filters aspirants who understand that the ultimate oversight ('review') of statutory regulators lies with the Legislature (Parliament) via its Committees, not with advisory think-tanks (NITI) or fiscal distribution bodies (Finance Commission).
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Do Ad Hoc Committees set up by the Parliament of India review independent sectoral regulators such as those for telecommunications, insurance, and electricity?
- Statement 2: Do Parliamentary Department-Related Standing Committees of the Indian Parliament review independent regulators in sectors such as telecommunications, insurance, and electricity?
- Statement 3: Does the Finance Commission of India review independent sectoral regulators such as those for telecommunications, insurance, and electricity?
- Statement 4: Did the Financial Sector Legislative Reforms Commission (FSLRC) of India review independent regulators in sectors such as telecommunications, insurance, and electricity?
- Statement 5: Does NITI Aayog review independent sectoral regulators such as those for telecommunications, insurance, and electricity in India?
Defines ad hoc committees as Inquiry or Advisory Committees constituted to inquire into and report on specific subjects.
A student could infer that Parliament could constitute an ad hoc inquiry into regulatory bodies (telecom/insurance/electricity) when a specific issue arises and then check historical examples.
Explains that Joint Parliamentary Committees (JPCs) can be set up for discussing particular bills or matters and that standing committees supervise departments and related work.
Use this pattern (special committees for particular matters) to hypothesize that Parliament might use ad hoc or joint committees to review independent regulators and then look for such committee reports.
Describes Department-Related Standing Committees (DRSCs) whose remit is to secure accountability of the Executive and to cover ministries/departments.
Since DRSCs supervise departments, a student could compare whether regulators fall under departmental oversight or are instead dealt with by ad hoc committees in specific cases.
Shows that Parliament has a Committee on Subordinate Legislation which scrutinizes exercise of delegated powers and regulations.
Because regulators issue rules/regs under delegated powers, one could extend that parliamentary committees (standing or ad hoc) concerned with subordinate legislation might review regulator actions; check instances involving sectoral regulators.
Presents a multiple-choice question listing 'Ad Hoc Committees set up by the Parliament' and 'Parliamentary Department Related Standing Committees' as possible reviewers of independent regulators.
Treat this as an example showing the topic is debated in study material; a student could use it to guide targeted searches for case examples where ad hoc committees examined sectoral regulators.
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