Q. 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 using the code given below. (UPSC Prelims 2019)
Answer:
1 and 2
Notes: The correct answer is
[A] 1 and 2. Independent regulators like TRAI (Telecom), IRDAI (Insurance), and CERC (Electricity) are overseen by the Parliament to ensure accountability.
- Ad Hoc Committees (Statement 1 – Correct): Parliament frequently appoints Ad Hoc committees for specific purposes, such as examining a particular bill or investigating a specific issue within a regulated sector. For example, a Joint Parliamentary Committee (JPC) is an Ad Hoc committee that can review the functioning or specific conduct of regulators during scams or policy shifts.
- Parliamentary Department Related Standing Committees (Statement 2 – Correct): These are permanent committees (currently 24 in number) that oversee the working of various ministries and their associated statutory regulators. They review annual reports, examine bills, and analyze the budgetary demands of the regulators.
- Finance Commission (Statement 3 – Incorrect): Under Article 280, its primary role is to recommend the distribution of financial resources between the Union and the States. It has no mandate to review sectoral regulators.
- Financial Sector Legislative Reforms Commission (Statement 4 – Incorrect): FSLRC (headed by Justice B.N. Srikrishna) was a body set up to recommend reforms to the legal and institutional structures of the financial sector. It was not a body meant to perform the ongoing review of regulators.
- NITI Aayog (Statement 5 – Incorrect): It is a policy think tank that provides strategic and technical advice. While it may suggest policy changes affecting sectors, it does not have the constitutional or statutory authority to "review" the performance of independent regulators in an oversight capacity.
The oversight mechanism ensures that while regulators have operational autonomy, they remain accountable to the sovereign will expressed through Parliament.