7 Significant Bills that the Parliament Passed in the Budget Session: Legislative Digest

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  1. The Medical Termination of Pregnancy (Amendment) Bill, 2020 | MINISTRY OF HEALTH AND FAMILY WELFARE
  • Statement of Object and Reasons, inter-alia, provides, “With the passage of time and advancement of medical technology for safe abortion, there is a scope for increasing upper gestational limit for terminating pregnancies especially for vulnerable women and for pregnancies with substantial foetal anomalies detected late in pregnancy. Further, there is also a need for increasing access of women to legal and safe abortion service in order to reduce maternal mortality and morbidity caused by unsafe abortion and its complications. Considering the need and demand for increased gestational limit under certain specified conditions and to ensure safety and well-being of women, it is proposed to amend the said Act. Besides this, several Writ Petitions have been filed before the Supreme Court and various High Courts seeking permission for aborting pregnancies at gestational age beyond the present permissible limit on the grounds of foetal abnormalities or pregnancies due to sexual violence faced by women.”
  • Amends Section 2, 3, 6 and introduces a new Section 5A to the Medical Termination of Pregnancy Act, 1971.
  • Two additional clauses introduced under Section 2; (aa) Medical Board means the Medical Board constituted under Section 3(2C) of the Act and (e) Termination of pregnancy means a procedure to terminate a pregnancy by using medical or surgical methods.
  • Amends Section 3(2) substantially; (1) Opinion of only one medical practitioner now  required for termination of pregnancy uptil 20 weeks (2) Termination of pregnancy allowed beyond 20 weeks < 24 weeks, in exceptional circumstances, by opinion of two medical practitioners
ACT TIME PERIOD MEDICAL PRACTITIONER
Medical Termination of Pregnancy Act, 1971

< 12 weeks

 

> 12 weeks < 20 weeks

 

>20 weeks

One

 

Two

 

No provision

Medical Termination of Pregnancy (Amendment) Bill, 2021

< 20 weeks

 

> 20 weeks < 24 weeks

One

 

Two

  • Amends Explanation to Section 3(2), under which even an unmarried female can opt for termination on the ground that pregnancy occurred as a result of failure of any contraceptive measure or device. This option was restricted only to a ‘married woman’ under the 1971 Act.
  • Inserts the following clauses after Explanation to Section 3(2), namely;

(2A) The norms for the registered medical practitioner whose opinion is required for termination of pregnancy at different gestational age shall be such as may be prescribed by rules made under this Act.

(2B) The provisions of sub-section (2) relating to the length of the pregnancy shall not apply to the termination of pregnancy by the medical practitioner where such termination is necessitated by the diagnosis of any of the substantial foetal abnormalities diagnosed by a Medical Board. [EXCEPTION]

(2C) Every State Government or Union territory, as the case may be, shall, by notification in the Official Gazette, constitute a Board to be called a Medical Board for the purposes of this Act to exercise such powers and functions as may be prescribed by rules made under this Act.

(2D) The Medical Board shall consist of the following, namely - (a) Gynaecologist (b) Paediatrician (c) Radiologist or Sonologist and (d) such other number of members as may be notified in the Official Gazette by the State Government or Union territory, as the case may be.

  • Introduces Section 5A Protection of privacy of a woman, which provides that,

“(1) No registered medical practitioner shall reveal the name and other particulars of a woman whose pregnancy has been terminated under this Act except to a person authorised by any law for the time being in force.

 (2) whoever contravenes the provisions of sub-section (1) shall be punishable with imprisonment which may extend to one year, or with fine, or with both.”

  •  Introduces clause (aa), (ab) and (ac) to Section 6(2), widening the powers of the Central Government to make rules in furtherance of the present Act.
  1. The Government of National Capital Territory of Delhi (Amendment) Bill, 2021 | MINISTRY OF HOME AFFAIRS
  • Statement of Objects and Reasons, inter-alia, provides; “seeks to ensure that the Lieutenant Governor is necessarily granted an opportunity to exercise the power entrusted to him under proviso to clause (4) of article 239AA of the Constitution, in select category of cases and also to make rules in matters which incidentally encroach upon matters falling outside the preview of the Legislative Assembly.”
  • Introduces sub-section 3 to Section 21 Restrictions on laws passed by Legislative Assembly with respect to certain matters of Government of NCT of Delhi Act, 1991 (“Principle Act”), amending the expression ‘Government’ referred to in any law to be made by the Legislative Assembly to mean ‘Lieutenant Governor’
  • Amends Section 24 Assent to Bills, introducing sub-section (d) that allows any incidental matter outside the purview of the powers conferred upon Legislative Assembly to be reserved for the consideration of the President.
  • Amends Section 33 Rules of Procedure, to mean that the Legislative Assembly shall make rules for regulating its Procedure and the Conduct of its business in consonance with the Rules of Procedure for the Lok Sabha. The amended provision reads as; The Legislative Assembly may make rules for regulating, subject to the provisions of this Act, its procedure and the conduct of its business which shall not be inconsistent with the Rules of Procedure and Conduct of Business in House of People.
  • Introduces the following Proviso to sub-section (2) of Section 44 Conduct of business; Provided that before taking any executive action in pursuance of the decision of the Council of Ministers or a Minister, to exercise powers of Government, State Government, Appropriate Government, Lieutenant Governor, Administrator or Chief Commissioner, as the case may be, under any law in force in the Capital, the opinion of Lieutenant Governor in term of proviso to clause (4) of article 239AA of the Constitution shall be obtained on all such matters as may be specified, by a general or special order, by Lieutenant Governor.
  1. The Arbitration and Conciliation (Amendment) Bill, 2021 | MINISTRY OF LAW AND JUSTICE
  • Statement of Objects and Reasons of the Amendment Bill provides, ““In order to address the issue of corrupt practices in securing contracts or arbitral awards, a need was felt to ensure that all the stakeholder parties get an opportunity to seek unconditional stay of enforcement of arbitral awards, where the underlying arbitration agreement or contract or making of the arbitral award is induced by fraud or corruption. Also to promote India as a hub of international commercial arbitration by attracting eminent arbitrators to the country, it was also felt necessary to omit the Eighth Schedule of the Act.”
  • By the present Bill, Court shall stay the award unconditionally pending disposal of the challenge under Section 34 of the Act, where the Court finds it vitiated by fraud or corruption.
  • This change will be applicable retrospectively from October 23, 2015.
  1. The Insurance (Amendment) Bill, 2021 | MINISTRY OF CORPORATE AFFAIRS
  • Amends Section 2, Section 27 and Section 114 of the Insurance Act, 1938, mainly increasing the threshold of foreign investment in an Indian Insurance Company.
  • Section 2 clause (7A) which defines Indian Insurance Company stipulates 49% of holding by a foreign investor in the paid up equity capital. The bill increases the ceiling to 74%. Amended provision would read as; “Indian insurance company means any insurer, being a company which is limited by shares and (b) in which the aggregate holdings of equity shares by foreign investors including portfolio investors, do not exceed seventy-four percent of the paid-up equity capital of such Indian insurance company, and the foreign investment in which shall be subject to such conditions and manner, as may be prescribed”
  • In Section 27 Investment of Assets, Explanation to sub-section (7) shall be omitted. Sub-section (7) says: “The assets required by this section to be held invested by an insurer incorporated or domiciled outside India shall, except to the extent of any part thereof which consists of foreign assets held outside India, be held in India and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in India and approved by the Authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the Authority and shall define the manner in which alone the subject-matter of the trust shall be dealt with.

Explanation - This sub-section shall apply to an insurer incorporated in India whose share capital to the extent of one-third is owned by, or the members of whose governing body to the extent of one-third consists of members domiciled elsewhere than in India.”

Essentially the cap of 1/3rd has been removed for the purpose of insurance claim liability.

  • Section 114 Power of Central Government to make Rules which says “In particular and without prejudice to the generality of the foregoing power, such rules may prescribe, (aaa) the manner of ownership and control of Indian insurance company under sub-clause (b) of clause (7A) of section 2”, shall be substituted by clause (aaa) the conditions and manner of foreign investment under sub-clause (b) of clause (7A) of section 2.

Thus, removing excessive control and manner of ownership earlier regulated by the Central Government to mere laying down of conditions and manner of foreign investment for the purpose of Section 2(7A).

  1. The Jammu and Kashmir Reorganisation (Amendment) Bill, 2021 | MINISTRY OF HOME AFFAIRS
  • Repeals the Jammu and Kashmir Reorganisation (Amendment) Ordinance, 2021.
  • Amends Section 13 and Section 88 of the Jammu and Kashmir Reorganisation Act, 2019.
  • Section 13: Article 239A of the Constitution to apply to Union territory of J&K, in addition to any other article containing reference to elected members of the Legislative Assembly of the State.
  • Section 88: “In order to provide uniformity in the governance of all the Union territories and to further enhance efficiency in their administration, it is felt necessary to amend section 88 of the aforesaid Act so as to merge the existing cadre of Jammu and Kashmir with Arunachal Pradesh, Goa, Mizoram and Union territories (AGMUT) cadre in relation to the All India Services namely, Indian Administrative Service, Indian Police Service and Indian Forest Service”, statement of Object and Reason states.
  1. The National Bank of Financing Infrastructure and Development (NaBFID) Bill, 2021 | MINISTRY OF FINANCE AND MINISTRY OF CORPORATE AFFAIRS
  • The bill seeks, “to establish the National Bank for Financing Infrastructure and Development to support the development of long term non-recourse infrastructure financing in India including development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure and for matters connected therewith or incidental thereto.”
  • Essentially, proposes to create Development Finance Institution (DFI) for long-term Infrastructural Projects, initially wholly owned by the Government, shares of which shall later be reduced up to 26%. The bill seeks to establish National Bank For Financing Infrastructure and Development (NBFID) as a corporate body with an authorised share capital of one lakh crore Rupees. Head Office to be in Mumbai.
  • Section 4 enumerates the purpose and objectives of the NaBFID as, “(a) coordinate with the Central and State Governments, regulators, financial institutions, institutional investors and such other relevant stakeholders, in India or outside India, to facilitate building and improving the relevant institutions to support the development of long-term non-recourse infrastructure financing in India including the domestic bonds and derivatives markets. (b) Financial objective shall be to lend or invest, directly or indirectly and seek to attract investment from private sector investors and institutional investors, in infrastructure projects located in India, or partly in India and partly outside India, with a view to foster sustainable economic development in India.”
  • Section 35 Sanction for enquiry/enquiry/investigation and prosecution bars the jurisdiction of all investigative agencies, including but not limited to, the Police, Central Bureau of Investigation, Serious Fraud Investigation Office, Directorate of Enforcement and such other agencies, in relation to any recommendation made or decision taken by the Chairperson or other directors, employees or officers of the Institution in discharge of his official functions or duties, without the previous approval of: (a) the Central Government, where the offence is alleged have to been committed by the Chairperson or other directors; OR (b) the Managing Director, where the offence is alleged to have been committed by an employee or officer of the Institution. Sub-section (2) also bars the jurisdiction of the Courts, without the previous sanction of the Central Government and the Managing Director, for the specified cases under the Act.
  • Chapter V, Section 21-23 of the Act discusses of Government Grants, Guarantees and other concessions; “The Central Government shall, by the end of the first financial year from the establishment of Institution, grant or contribute an amount of 5000 crore rupees to the Institution in the form of cash or marketable Government securities.”
  • Chapter VI, Section 24-27 of the Act mentions about Accounts, Audit and Report; “The Institution shall establish a reserve fund to which may be transferred such sums as the Board may deem fit out of the annual profits accruing to the Institution: Provided that the sums to be transferred under this sub-section shall not be less than twenty per cent of the annual profits accruing to the Institution.”
  1. The Mines and Minerals (Development and Regulation) Amendment Bill, 2021 | MINISTRY OF MINES
  • The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957.
  • No mine to be reserved for a particular end use.
  • All approvals and clearances granted to a lessee in respect of a mine shall continue to be valid, even after expiry/termination of lease and such clearances shall be transferred and vested to the successful bidder of the mining lease to ensure continuity and efficiency in mining operations.
  • Government companies to take up short term mining lease where auction pursuant to sub-section (4) of Section 8A has failed.
  • Captive mines allowed to sell up to 50% of their annual profit after meeting their own requirements; “The sale of minerals by captive plants would facilitate increase in production and supply of minerals, ensure economies of scale in mineral production, stabilize prices of ore in the market and bring additional revenue to the States.”
  • “To close the pending cases of non-auctioned concession holders which have not resulted in grant of mining leases despite passage of a considerable time of more than five years. The existence of these cases is anachronistic and antagonistic to the auction regime.”
  • Fix a time period for grant of leases for the areas specified for Government companies
  • Allow Central Government to notify and conduct auction in the areas/cases where the State Government face difficulty in notifying.
  • “To remove the restrictions on transfer of mineral concessions for non-auctioned mines to attract fresh investment and new technology in the sector.”