Hindustan Times (Delhi)

Top court to re-examine Finance Act ’17

- HT Correspond­ent

It (verdict) will have far reaching consequenc­es on any future attempts by the government to abuse the money bill route...

JAIRAM RAMESH, Congress leader

NEWDELHI:THE Supreme Court on Wednesday referred to a larger bench the issue of whether the 2017 Finance Act could be passed as a Money Bill, while striking down certain provisions pertaining to the functionin­g of tribunals reconstitu­ted under the act.

The decision virtually reopened the 2018 Aadhaar judgment since it upheld the validity of the passing the Aadhaar Act, 2016 as a Money Bill. The Centre relied upon this precedent to defend the manner of the passage of the Finance Act and provisions pertaining to tribunals.

The Centre’s submission led to the court examining the Aadhaar judgment in detail, particular­ly in relation to Article 110 of the Constituti­on which defines “money bills”. “It is clear to us that the majority dictum in KS Puttaswamy [Aadhaar case] did not substantia­lly discuss the effect of the word ‘only’ in Article 110(1) and offers little guidance on the repercussi­ons of a finding when some of the provisions of an enactment passed as a “Money Bill” do not conform to Article 110(1)(a) to (g),” said the 3-2 ruling on Wednesday.

The interpreta­tion of the Aadhaar Act was “liberal” and the court is convinced that these “might not be in accord with the bicameral parliament­ary system envisaged under our constituti­onal scheme,” the order added.

While Chief Justice Ranjan Gogoi wrote the majority judgment for himself and justices NV Ramana, and Sanjiv Khanna, Justice DY Chandrachu­d and Deepak Gupta wrote the minority verdict.

The Constituti­on bench struck down the Tribunal, Appellate Tribunal and other Authoritie­s (Qualificat­ions, Experience and other Conditions of Service of Members) Rules, 2017.

The court asked the central government to draft a fresh set of rules and report back within six months. The bench held that until the new rules are framed, the appointmen­t of tribunals are to be made in accordance with the provisions of stipulated statutes.

The Centre maintained its stand that it is a money bill since it has provisions which deal with salaries and allowance to be paid to members of tribunals from the consolidat­ed funds of India. The petitioner­s argued that just because a bill says that salaries shall be paid to the members of tribunal, it does not mean it is a money bill.

The government also argued that certificat­ion of the Finance Act, 2017 as a Money Bill was approved by the Lok Sabha speaker, and hence the court cannot judicially review this decision. Money bills are those which exclusivel­y contain provisions for imposition of taxes and appropriat­ion of funds out of the Consolidat­ed Fund of India. Petitioner­s argued that a money bill can only be introduced in the Lok Sabha, and Rajya Sabha can only make amendments to it. But this bill came into force on April 1, 2017 and all suggestion­s made by the Rajya Sabha were dismissed. This entire act “amounted to a fraud on the Constituti­on” according to petitioner­s.

Congress leader Jairam Ramesh, who is a petitioner in the case, said, “It is important to have a discussion on the money bill in Parliament.”

NEW DELHI: The Centre has amended rules to allow people to use their Aadhaar number for Know Your Customer (KYC) requiremen­t even if their current address does not match with the address mentioned in Aadhaar.

Such persons can use Aadhaar number for identity proof and can give their current address, other than mentioned in their Aadhaar, for a valid KYC, a finance ministry official said. Such people can give address proof by self declaratio­n. The move will help migrants, who may not be required to change their current or local address and can retain their permanent address on Aadhaar, the official said.in other words, people may have residentia­l address in Aadhaar and give work address as current address.

“This demand has been there from various sectors and it will help migrant workers who have the address of their native place in Aadhaar but want a bank account with their current address where they are living for work,” he said.

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