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Medical Termination of Pregnancy (Amendment) Bill, 2020

CA Satbir Singh — Thu, 05 Mar 2020 07:44:31 +0000

Medical Termination of Pregnancy (Amendment) Bill, 2020 was introduced in Lok Sabha on 02nd March 2020, inter alia, provides for,—

(a) requirement of opinion of one registered medical practitioner for termination of pregnancy up to twenty weeks of gestation;

(b) requirement of opinion of two registered medical practitioners for termination of pregnancy of twenty to twenty-four weeks of gestation;

(c) enhancing the upper gestation limit from twenty to twenty-four weeks for such category of woman as may be prescribed by rules in this behalf;

(d) non applicability of the provisions relating to the length of pregnancy in cases where the termination of pregnancy is necessitated by the diagnosis of any of the substantial foetal abnormalities diagnosed by a Medical Board;

(e) protection of privacy of a woman whose pregnancy has been terminated.

The proposed Bill is a step towards safety and well-being of women and will enlarge the ambit and access of women to safe and legal abortion without compromising on safety and quality of care. The proposal will also ensure dignity, autonomy, confidentiality and justice for women who need to terminate pregnancy.

AS INTRODUCED IN LOK SABHA

Bill No. 55 of 2020

THE MEDICAL TERMINATION OF PREGNANCY (AMENDMENT)
BILL, 2020
A
BILL

further to amend the Medical Termination of Pregnancy Act, 1971.

BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—

1. Short title and commencement.

(1) This Act may be called the Medical Termination of Pregnancy (Amendment) Act, 2020.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. Amendment of section 2.

In the Medical Termination of Pregnancy Act, 1971 (hereinafter referred to as the principal Act), in section 2,—

(i) after clause (a), the following clause shall be inserted, namely:—

‘(aa) “Medical Board” means the Medical Board constituted under sub-section (2C) of section 3 of the Act;’;

(ii) after clause (d), the following clause shall be inserted, namely:—

‘(e) “termination of pregnancy” means a procedure to terminate a pregnancy by using medical or surgical methods.’.

3. Amendment of section 3.

In section 3 of the principal Act, for sub-section (2), the following sub-sections shall be substituted, namely:—

“(2) Subject to the provisions of sub-section (4), a pregnancy may be terminated by a registered medical practitioner,—

(a) where the length of the pregnancy does not exceed twenty weeks, if such medical practitioner is, or

(b) where the length of the pregnancy exceeds twenty weeks but does not exceed twenty-four weeks in case of such category of woman as may be prescribed by rules made under this Act, if not less than two registered medical practitioners are, of the opinion, formed in good faith, that—

(i) the continuance of the pregnancy would involve a risk to the life of the pregnant woman or of grave injury to her physical or mental health; or

(ii) there is a substantial risk that if the child were born, it would suffer from any serious physical or mental abnormality..

Explanation 1.—For the purposes of clause (a), where any pregnancy occurs as a result of failure of any device or method used by any woman or her partner for the purpose of limiting the number of children or preventing pregnancy, the anguish caused by such pregnancy may be presumed to constitute a grave injury to the mental health of the pregnant woman.

Explanation 2.—For the purposes of clauses (a) and (b), where any pregnancy is alleged by the pregnant woman to have been caused by rape, the anguish caused by the pregnancy shall be presumed to constitute a grave injury to the mental health of the pregnant woman.

(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.

(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) a Gynaecologist;

(b) a Paediatrician;

(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.”.

4. Insertion of new section 5A.

After section 5 of the principal Act, the following section shall be inserted, namely:—

Protection of privacy of a woman.

“5A. (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.”.

5. Amendment of section 6.

In section 6 of the principal Act, in sub-section (2), after clause (a), the following clauses shall be inserted, namely:—

“(aa) the category of woman under clause (b) of sub-section (2) of section 3;

(ab) the norms for the registered medical practitioner whose opinion is required for termination of pregnancy at different gestational age under sub-section (2A) of section 3;

(ac) the powers and functions of the Medical Board under sub-section (2C) of section 3.”.

STATEMENT OF OBJECTS AND REASONS

The Medical Termination of Pregnancy Act, 1971 (34 of 1971) was enacted to provide for the termination of certain pregnancies by registered medical practitioners and for matters connected therewith or incidental thereto. The said Act recognised the importance of safe, affordable, accessible abortion services to women who need to terminate pregnancy under certain specified conditions.

2. 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.

3. Accordingly, the Medical Termination of Pregnancy (Amendment) Bill, 2020, inter alia, provides for,—

(a) requirement of opinion of one registered medical practitioner for termination of pregnancy up to twenty weeks of gestation;

(b) requirement of opinion of two registered medical practitioners for termination of pregnancy of twenty to twenty-four weeks of gestation;

(c) enhancing the upper gestation limit from twenty to twenty-four weeks for such category of woman as may be prescribed by rules in this behalf;

(e) protection of privacy of a woman whose pregnancy has been terminated.

4. The proposed Bill is a step towards safety and well-being of women and will enlarge the ambit and access of women to safe and legal abortion without compromising on safety and quality of care. The proposal will also ensure dignity, autonomy, confidentiality and justice for women who need to terminate pregnancy.

5. The Bill seeks to achieve the above objects.

NEW DELHI;
The 14th February, 2020.

DR. HARSH VARDHAN

ANNEXURE
EXTRACT FROM THE MEDICAL TERMINATION OF PREGNANCY ACT, 1971
(34 OF 1971)

* * * * *

3. When pregnancies may be terminated by registered medical practitioners.

(1)* * * * *

(2) Subject to the provisions of sub-section (4), a pregnancy may be terminated by a registered medical practitioner,—

(a) where the length of the pregnancy does not exceed twelve weeks, if such medical practitioner is, or

(b) where the length of the pregnancy exceeds twelve weeks but does not exceed twenty weeks, if not less than two registered medical practitioners are, of opinion, formed in good faith, that—

(i) the continuance of the pregnancy would involve a risk to the life of the pregnant woman or of grave injury to her physical or mental health; or

(ii) there is a substantial risk that if the child were born, it would suffer from such physical or mental abnormalities as to be seriously handicapped.

Explanation I.—Where any pregnancy is alleged by the pregnant woman to have been caused by rape, the anguish caused by such pregnancy shall be presumed to constitute a grave injury to the mental health of the pregnant woman.

Explanation II.—Where any pregnancy occurs as a result of failure of any device or method used by any married woman or her husband for the purpose of limiting the number of children, the anguish caused by such unwanted pregnancy may be presumed to constitute a grave injury to the mental health of the pregnant woman.

* * * * *

LOK SABHA

A
BILL
further to amend the Medical Termination of Pregnancy Act, 1971.

(Dr. Harsh Vardhan, Minister of Health and Family Welfare)

Indian Institutes of Information Technology Laws (Amendment) Act, 2020

CA Satbir Singh — Thu, 05 Mar 2020 07:41:50 +0000

The Indian Institutes of Information Technology Laws (Amendment) Bill, 2020 was Introduced in Lok Sabha on 04th March 2020.

Indian Institutes of Information Technology Act, 2014 was enacted in pursuance of a scheme approved by the Government to set up twenty Indian Institutes of Information Technology in Public-private Partnership mode. Fifteen such institutes were incorporated as institutions of national importance under the said Act. The Government has decided to include five more institutes which have been subsequently established as societies at Bhagalpur (Bihar), Surat (Gujarat), Raichur (Karnataka), Bhopal (Madhya Pradesh) and Agartala (Tripura), also within the ambit of the said Act to be institutions of national importance.

The proposed legislation also provides for rectifying a patent error in sub-section (3) of section 41 of the Indian Institutes of Information Technology Act, 2014 so as to substitute the word “elected” with “nominated”, for clarity.

Text of the Same is as follows:-

AS INTRODUCED IN LOK SABHA

Bill No. 61 of 2020

THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY LAWS
(AMENDMENT) BILL, 2020

A
BILL

further to amend the Indian Institutes of Information Technology Act, 2014 and to amend the Indian Institutes of Information Technology (Public-private Partnership) Act, 2017.

BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—

CHAPTER I
PRELIMINARY

1. Short title and commencement.

(1) This Act may be called the Indian Institutes of Information Technology Laws (Amendment) Act, 2020.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

CHAPTER II
AMENDMENT TO THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY ACT, 2014

2. Amendment of section 41 of Act 30 of 2014.

In the Indian Institutes of Information Technology Act, 2014, in section 41, in sub-section (3), for the word “elected” at both the places where they occur, the word “nominated” shall be substituted.

CHAPTER III
AMENDMENT TO THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY (PUBLIC-PRIVATE
PARTNERSHIP) ACT, 2017

3. Amendment of Schedule to Act 23 of 2017.

In the Schedule to the Indian Institutes of Information Technology (Public-private Partnership) Act, 2017,—

(a) after serial number 2 and the entries relating thereto, the following shall be inserted, namely:—

(1)	(2)	(3)	(4)	(5)
“2A.	Bihar	Indian Institute of Information Technology, Bhagalpur being a society registered under the Societies Registration Act, 1860 (21 of 1860)	Indian Institute of Information Technology, Bhagalpur	Indian Institute of Information Technology, Bhagalpur.”;

(b) after serial number 3 and the entries relating thereto, the following shall be inserted, namely:—

(1)	(2)	(3)	(4)	(5)
“3A.	Gujarat	Indian Institute of Information Technology, Surat being a society registered under the Societies Registration Act, 1860 (21 of 1860)	Indian Institute of Information Technology, Surat	Indian Institute of Information Technology, Surat.”;

(1)	(2)	(3)	(4)	(5)
“7A.	Karnataka	Indian Institute of Information Technology, Raichur being a society registered under the Societies Registration Act, 1860 (21 of 1860)	Indian Institute of Information Technology, Raichur	Indian Institute of Information Technology, Raichur.”;

(d) after serial number 8 and the entries relating thereto, the following shall be inserted, namely:—

(1)	(2)	(3)	(4)	(5)
“8A.	Madhya Pradesh	Indian Institute of Information Technology, Bhopal being a society registered under the Societies Registration Act, 1860 (21 of 1860)	Indian Institute of Information Technology, Bhopal	Indian Institute of Information Technology, Bhopal.”;

(e) after serial number 13 and the entries relating thereto, the following shall be inserted, namely:—

(1)	(2)	(3)	(4)	(5)
“13A.	Tripura	Indian Institute of Information Technology, Agartala being a society registered under the Societies Registration Act, 1860 (21 of 1860)	Indian Institute of Information Technology, Agartala	Indian Institute of Information Technology, Agartala.”.

STATEMENT OF OBJECTS AND REASONS

The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017 (the said Act) was enacted to declare certain Indian Institutes of Information Technology established under Public-private Partnership mode as institutions of national importance, with a view to develop new knowledge in information technology and to provide manpower of global standards for the information technology industry and to provide for certain other matters connected with such institutions or incidental thereto.

2. The said Act was enacted in pursuance of a scheme approved by the Government to set up twenty Indian Institutes of Information Technology in Public-private Partnership mode. Fifteen such institutes were incorporated as institutions of national importance under the said Act. The Government has decided to include five more institutes which have been subsequently established as societies at Bhagalpur (Bihar), Surat (Gujarat), Raichur (Karnataka), Bhopal (Madhya Pradesh) and Agartala (Tripura), also within the ambit of the said Act to be institutions of national importance.

3. The proposed legislation also provides for rectifying a patent error in sub-section (3) of section 41 of the Indian Institutes of Information Technology Act, 2014 so as to substitute the word “elected” with “nominated”, for clarity.

4. The Bill seeks to achieve the above objectives.

RAMESH POKHRIYAL ‘NISHANK’

NEW DELHI;
The 21st February, 2020.

FINANCIAL MEMORANDUM

The five institutes proposed to be included in the Schedule to the Indian Institutes of Information Technology (Public-private Partnership) Act, 2017 are already being provided budgetary support in accordance with the scheme approved by the Government.

2. The Bill does not involve any other additional expenditure of recurring or non-recurring nature.

ANNEXURE

EXTRACTS FROM THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY ACT, 2014

(30 OF 2014)

* * * * *

41. Term of office and allowances payable to members of Council.

(1) * * * * *

(3) The term of office of a member elected under clause (ii) of sub-section (2) of section 40 shall expire as soon as he ceases to be a member of the House which elected him.

Mineral Laws (Amendment) Bill, 2020

CA Satbir Singh — Thu, 05 Mar 2020 07:33:16 +0000

The Mineral Laws (Amendment) Bill, 2020 which seeks to replace the Mineral Laws (Amendment) Ordinance, 2020 was introduced in Lok Sabha on 02nd March 2020, inter alia, provides for the following, namely:—

(i) to insert a new section 4B in Mines and Minerals Act empowering the Central Government to prescribe conditions for sustained production of minerals by the holders of mining leases who have acquired rights under section 8B;

(ii) to insert a new section 8B in the Mines and Minerals Act relating to provisions for transfer of statutory clearances;

(iii) to amend section 5 of the Mines and Minerals Act to provide for the dispensation of the previous approval of the Central Government in respect of minerals specified in part A of the First Schedule;

(iv) to amend section 10C of the Mines and Minerals Act to provide incentives for exploration of deep seated minerals and their auction;

(v) to amend section 11A of the Mines and Minerals Act so as to provide for allocation of coal blocks for composite prospecting licence-cum-mining lease;

(vi) to amend section 4 of the Coal Mines Act so as to clarify the power of the Central Government to allocate mines for any purpose;

(vii) to amend sections 4, 5 and 8 of the Coal Mines Act for allocation of coal mines for composite prospecting licence-cum-mining lease; and

(viii) to amend section 9 of the Coal Mines Act so as to clarify the priority of disbursal of amount of compensation.

As the Parliament was not in session and an urgent legislation was required to be made, the President promulgated the Mineral Laws Ordinance, 2020 (Ord. 1 of 2020) under clause (1) of article 123 of the Constitution.

The Bill seeks to replace the aforesaid Ordinance.

Bill No. 60 of 2020

THE MINERAL LAWS (AMENDMENT) BILL, 2020

A
BILL

further to amend the Mines and Minerals (Development and Regulation) Act, 1957 and to amend the Coal Mines (Special Provisions) Act, 2015.

E it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—

CHAPTER I
PRELIMINARY

1. Short title, commencement and operation.

(1) This Act may be called the Mineral Laws (Amendment) Act, 2020.

(2) It shall be deemed to have come into force on the 10th day of January, 2020.

(3) Without prejudice to the effect of the amendments made by this Act, it shall remain in force for a period of sixty days from the date of assent by the President and shall be deemed to have been repealed after the expiry of the said period.

CHAPTER II
AMENDMENTS TO THE MINES AND MINERALS
(DEVELOPMENT AND REGULATION) ACT, 1957

2. Insertion of new section 4B.

In the Mines and Minerals (Development and Regulation) Act, 1957 (hereafter in this Chapter referred to as the principal Act), after section 4A, the following section shall be inserted, namely:—

“4B. Notwithstanding anything contained in section 4A, the Central Government may, in the interest of maintaining sustained production of minerals in the country, prescribe such conditions as may be necessary for commencement and continuation of production by the holders of mining leases who have acquired rights, approvals, clearances and the like under section 8B.”.

3. Amendment of section 5.

In section 5 of the principal Act, in sub-section (1), after the proviso, the following proviso shall be inserted, namely:—

“Provided further that the previous approval of the Central Government shall not be required for grant of reconnaissance permit, prospecting licence or mining lease in respect of the minerals specified in Part A of the First Schedule, where,—

(i) an allocation order has been issued by the Central Government under section 11A; or

(ii) a notification of reservation of area has been issued by the Central Government or the State Government under sub-section (1A) or sub-section (2) of section 17A; or

(iii) a vesting order or an allotment order has been issued by the Central Government under the provisions of the Coal Mines (Special Provisions) Act, 2015.”.

4. Amendment of section 8A.

In section 8A of the principal Act, in sub-section (4), the following proviso shall be inserted, namely:—

“Provided that nothing contained in this section shall prevent the State Governments from taking an advance action for auction of the mining lease before the expiry of the lease period.”.

5. Insertion of new section 8B.

After section 8A of the principal Act, the following section shall be inserted, namely:—

Provisions for transfer of statutory clearances.

“8B. (1) The provisions of this section shall apply to minerals, other than the minerals specified in Part A and Part B of the First Schedule.

(2) Notwithstanding anything contained in this Act or any other law for the time being in force, the successful bidder of mining leases expiring under the provisions of subsections (5) and (6) of section 8A and selected through auction as per the procedure provided under this Act and the rules made thereunder, shall be deemed to have acquired all valid rights, approvals, clearances, licences and the like vested with the previous lessee for a period of two years:

Provided that subject to such conditions as may be prescribed, such new lessee shall apply and obtain all necessary rights, approvals, clearances, licences and the like within a period of two years from the date of grant of new lease.

(3) Notwithstanding anything contained in any other law for the time being in force, it shall be lawful for the new lessee to continue mining operations on the land, in which mining operations were being carried out by the previous lessee, for a period of two years from the date of commencement of the new lease.”.

6. Amendment of section 10C.

In section 10C of the principal Act, in sub-section (2), the following shall be inserted, namely:—

“Provided that the holder of non-exclusive reconnaissance permit who carries out the prescribed level of exploration in respect of deep seated minerals or such minerals as may be notified by the Central Government, may submit an application to the State Government for the grant of any prospecting licence-cum-mining lease as per the procedure laid down under section 11 or a mining lease as per the procedure laid down under section 10B and with a view to increase the reconnaissance and prospecting operations of such minerals, the Central Government shall prescribe such procedure, including the bidding parameters for selection of such holders.

Explanation.—For the purposes of this sub-section, the expression “deep seated minerals” means such minerals which occur at a depth of more than three hundred meters from the surface of land with poor surface manifestations.”

7. Amendment of section 11A.

In section 11A of the principal Act,—

(i) in the marginal heading, after the words “or mining lease”, the words “or prospecting licence-cum-mining lease in respect of coal or lignite” shall be inserted;

(ii) in sub-section (1)—

(a) in the opening portion, for the words “in respect of any area containing coal or lignite”, the words “or prospecting licence-cum-mining lease in respect of coal or lignite” shall be substituted;

(b) for the long line, the following long line shall be substituted, namely:—

“to carry on coal or lignite reconnaissance or prospecting or mining operations, for own consumption, sale or for any other purpose as may be determined by the Central Government”;

“Provided that the auction by competitive bidding under this section shall not be applicable to coal or lignite—

(a) where such area is considered for allotment to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, for own consumption, sale or for any other purpose as may be determined by the Central Government;

(b) where such area is considered for allotment to a company or corporation that has been awarded a power project on the basis of competitive bid for tariff (including Ultra Mega Power Projects).”;

(iii) in sub-section (3),—

(a) after the words “mining lease”, the words “or prospecting licence-cum-mining lease” shall be inserted;

(b) for the words “competitive bidding or otherwise”, the words “competitive bidding or through allotment” shall be substituted.

8. Amendment of section 13.

In section 13 of the principal Act, in sub-section (2),—

(i) after clause (a), the following clauses shall be inserted, namely:—

“(aa) the conditions as may be necessary for commencement and continuation of production by the holders of mining leases, under section 4B;

(ab) the conditions to be fulfilled by the new lessee for obtaining all necessary rights, approvals, clearances, licences and the like under the proviso to sub-section (2) of section 8B;

(ac) the level of exploration in respect of deep seated minerals or such minerals and the procedure, including the bidding parameters for selection of the holders under the proviso to sub-section (2) of section 10C;”;

(ii) for clause (d), the following clauses shall be substituted, namely:—

“(d) the terms, conditions and process of auction by competitive bidding and allotment in respect of coal or lignite;

(da) the regulation of grant of reconnaissance permit, prospecting licence, mining lease or prospecting licence-cum-mining lease in respect of coal or
lignite;

(db) the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal or lignite reconnaissance, prospecting or mining operations;

(dc) utilisation of coal or lignite including mining for sale by a company;”.

9. Amendment of section 17A.

In section 17A of the principal Act, in sub-section (2A), in the proviso, the words and letter “Part A and” shall be omitted.

CHAPTER III
AMENDMENTS TO THE COAL MINES (SPECIAL PROVISIONS) ACT, 2015

10. Amendment of section 4.

In section 4 of the Coal Mines (Special Provisions) Act, 2015 (hereafter in this Chapter referred to as the principal Act),—

(i) in sub-section (2),—

(a) in the opening portion, for the words “in respect of any area containing coal”, the words “or prospecting licence-cum-mining lease in respect of coal” shall be substituted;

(b) for the long line, the following long line shall be substituted, namely:—

“to carry on coal reconnaissance or prospecting or mining operations, for own consumption, sale or for any other purpose as may be determined by the Central Government, and the State Government shall grant such reconnaissance permit, prospecting licence, mining lease or prospecting licence-cum-mining lease in respect of Schedule I coal mine to such company as selected through auction by competitive bidding under this section.”;

(ii) sub-section (3) shall be omitted.

11. Amendment of section 5.

In section 5 of the principal Act, in sub-section (1),—

(i) for the words, brackets and figures “sub-sections (1) and (3)”, the words, brackets and figures “sub-sections (1) and (2)” shall be substituted;

(ii) for the words “or mining lease in respect of any area containing coal”, the words “, mining lease or prospecting licence-cum-mining lease in respect of such
Schedule I coal mine” shall be substituted;

(iii) in the first proviso, for the words “in accordance with the permit, prospecting licence or mining lease, as the case may be”, the words “as may be determined by the Central Government” shall be substituted.

12. Amendment of section 8.

In section 8 of the principal Act,—

(i) in sub-section (4), in clause (b), for the words “a mining lease”, the words, “prospecting licence, mining lease or prospecting licence-cum-mining lease, as the case may be” shall be substituted;

(ii) in sub-section (8), for the words “a prospecting licence or a mining lease”, the words “prospecting licence, mining lease or prospecting licence-cum-mining lease” shall be substituted;

(iii) in sub-section (9), for the words “a prospecting licence or a mining lease”, the words “prospecting licence, mining lease or prospecting licence-cum-mining lease” shall be substituted;

(iv) after subsection (12), the following sub-sections shall be inserted, namely:—

“(13) The vesting order or allotment order may be terminated by the nominated authority in such manner as may be prescribed.

(14) Upon termination of vesting order or allotment order, the nominated authority may auction the coal mine under section 4 or allot the coal mine under
section 5 as may be determined by the Central Government.

(15) The successful bidder or allottee of the coal mine whose vesting order or allotment order has been terminated shall be deemed to be the prior allottee for the purposes of immediate next auction or allotment of the said coal mine.”.

13. Amendment of section 9.

In section 9 of the principal Act,—

(i) in the opening portion, for the portion beginning with the words “The proceeds arising out of land” and ending with the words “as may be prescribed.”, the following shall be substituted, namely:—

“The compensation for land and mine infrastructure in relation to a Schedule I coal mine as valued in accordance with section 16 shall be deposited by the successful bidder or allottee with the nominated authority and shall be disbursed maintaining, inter alia, the following priority of payments and in accordance with the relevant laws and such rules as may be prescribed.”;

(ii) in clause (b), for the words “compensation payable”, the words “amount payable” shall be substituted.”.

14. Amendment of section 18.

In section 18 of the principal Act, in sub-section (1), for the words and figure “allotment of Schedule I coal mines is not complete”, the words and figures “allotment of Schedule II coal mines is not complete, or vesting order or allotment order issued under this Act has been terminated in case of a coal mine under production,” shall be substituted.

15. Amendment of section 20.

In section 20 of the principal Act,—

(i) in sub-section (1), for the words “A successful bidder or allottee or coal linkage holder shall”, the words “A successful bidder or allottee shall” shall be substituted;

(ii) for subsection (2), the following sub-section shall be substituted, namely:—

“(2) A successful bidder or allottee may also use the coal mine from a particular Schedule I coal mine, in any of its plants or plant of its subsidiary or holding company engaged in same specified end-uses in such manner as may be prescribed.”.

16. Amendment of section 31.

In section 31 of the principal Act, in sub-section (2),—

(i) in clause (b), for the words “prospecting licence or mining lease”, the words “prospecting licence, mining lease or prospecting licence-cum-mining lease” shall be substituted;

(ii) after clause (l), the following clause shall be inserted, namely:—

“(la) the manner of termination of vesting order or allotment order under sub-section (13) of section 8;”.

17. Repeal and savings.

(1) The Mineral Laws (Amendment) Ordinance, 2020 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the principal Act as amended by this Act.

STATEMENT OF OBJECTS AND REASONS

The Mines and Minerals (Development and Regulation) Act, 1957 (the Mines and Minerals Act) was enacted with a view to provide for the development and regulation of mines and minerals under the control of the Union.

2. The Coal Mines (Special Provisions) Act, 2015 (the Coal Mines Act) was enacted to provide for allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure together with mining leases to successful bidders and allottees with a view to ensure continuity in coal mining operations and production of coal, and for promoting optimum utilisation of coal resources consistent with the requirement of the country in national interest.

3. The mining leases in respect of 334 mines of iron ore, manganese ore and chromite are expiring on 31st March, 2020, out of which 46 are working non-captive mines. It has been observed that some of the States have initiated action to auction these blocks. However, the mines allocated through auction can start mining operations only after obtaining as many as twenty clearances from different Government agencies. This process is causing inordinate-delay in commencing of mining operations and subsequent production of the minerals. Further, during the allocation of coal blocks under the Mines and Minerals Act and the Coal Mines Act, certain difficulties have arisen which need to be addressed immediately.

4. To overcome the aforesaid difficulties in mining sector, it has become necessary to make certain amendments in the Mines and Minerals Act and the Coal Mines Act so as to facilitate seamless transfer of all valid rights, approvals, clearances, licenses and the like for a period of two years to a new lessee in case of minerals other than coal, lignite and atomic minerals.

5. The Mineral Laws (Amendment) Bill, 2020 which seeks to replace the Mineral Laws (Amendment) Ordinance, 2020, inter alia, provides for the following, namely:—

(ii) to insert a new section 8B in the Mines and Minerals Act relating to provisions for transfer of statutory clearances;

(iv) to amend section 10C of the Mines and Minerals Act to provide incentives for exploration of deep seated minerals and their auction;

(v) to amend section 11A of the Mines and Minerals Act so as to provide for allocation of coal blocks for composite prospecting licence-cum-mining lease;

(vi) to amend section 4 of the Coal Mines Act so as to clarify the power of the Central Government to allocate mines for any purpose;

(vii) to amend sections 4, 5 and 8 of the Coal Mines Act for allocation of coal mines for composite prospecting licence-cum-mining lease; and

(viii) to amend section 9 of the Coal Mines Act so as to clarify the priority of disbursal of amount of compensation.

6. As the Parliament was not in session and an urgent legislation was required to be made, the President promulgated the Mineral Laws Ordinance, 2020 (Ord. 1 of 2020) under clause (1) of article 123 of the Constitution.

7. The Bill seeks to replace the aforesaid Ordinance.

NEW DELHI;
The 20th February, 2020.

PRALHAD JOSHI

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 8 of the Mineral Laws (Amendment) Bill, 2020 seeks to amend sub-section (2) of section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 that empowers the Central Government to make rules by notification in the Official Gazette for providing of all or any of the following matters:—

(i) the conditions as may be necessary for commencement and continuation of production by the holders of mining leases, under section 4B;

(ii) the conditions to be fulfilled by the new lessee for obtaining all necessary rights, approvals, clearances, licences and the like under the proviso to sub-section (2) of section 8B;

(iii) the level of exploration in respect of deep seated minerals or such minerals and the procedure, including the bidding parameters for selection of the holders under the proviso to sub-section (2) of section 10C;

(iv) the terms, conditions and process of auction by competitive bidding and allotment in respect of coal or lignite under section 11A;

(v) the regulation of grant of reconnaissance permit, prospecting licence, mining lease or prospecting licence-cum-mining lease in respect of coal or lignite under section 11A;

(vi) the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal or lignite reconnaissance, prospecting or mining operations under section 11A;

(vii) utilisation of coal or lignite including mining for sale by a company under section 11A.

Clause 16 of the Bill seeks to amend sub section (2) of section 31 of the Coal Mines (Special Provisions) Act, 2015 that empowers the Central Government to make rules by notification in the Official Gazette for providing all or any of the following matters:—

(i) the terms and conditions for granting reconnaissance permit, prospecting license, mining lease or prospecting license-cum-mining lease and the manner and conditions of competitive bidding under sub section (2) of section 4;

(ii) the manner of termination of vesting order or allotment order under sub-section (13) of section 8.

2. The matters in respect of which the said rules may be made are matters of procedure and administrative detail, and as such, it is not practicable to provide for them in the proposed Bill itself. The delegation of legislative power is, therefore, of a normal character.

ANNEXURE
EXTRACTS FROM THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957
(67 OF 1957)

11A. Granting of reconnaissance permit, prospecting licence or mining lease.

(1) Notwithstanding anything contained in this Act, the Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal or lignite, select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed, namely:—

(a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or

(b) a company or a joint venture company formed by two or more companies,

* * * * *

(3) The State Government shall grant such reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal or lignite to such company as selected through auction by competitive bidding or otherwise under this section:

Provided that the auction by competitive bidding under this section shall not be applicable to an area containing coal or lignite—

(a) where such area is considered for allocation to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be;

(b) where such area is considered for allocation to a company or corporation or that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects).

Explanation.—For the purposes of this section, “company” means a company as defined in clause (20) of section 2 of the Companies Act, 2013.

* * * * *

RULES FOR REGULATING THE GRANT OF PROSPECTING LICENCES AND MINING LEASES

13. Power of Central Government to make rules in respect of minerals.

(1) * * * * *

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a) the person by whom, and the manner in which, applications for reconnaissance permits, prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor;

* * * * *

(d) the terms and conditions of auction by competitive bidding, the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal mining operations including mining for sale by a company under sub-section (1) and sub-section (2) of section 11A.

* * * * *

17A. Reservation of area for purposes of conservation.

(1)* * * * *

(2A) Where in exercise of the powers conferred by sub-section (1A) or sub-section (2), the Central Government or the State Government, as the case may be, reserves any area for undertaking prospecting or mining operations, the State Government shall grant prospecting licence or mining lease, as the case may be, in respect of such area to such Government company or corporation:

Provided that in respect of any mineral specified in Part A and Part B of the First Schedule, the State Government shall grant the prospecting licence or mining lease, as the case may be, only after obtaining the previous approval of the Central Government.

* * * * *

(3) Where in exercise of the powers conferred by sub-section (1A) or sub-section (2) the Central Government or the State Government, as the case may be, undertakes prospecting or mining operations in any area in which the minerals vest in a private person, it shall be liable, to pay prospecting fee, royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it would have been payable under this Act if such prospecting or mining operations has been undertaken by a private person under prospecting licence or mining lease.

EXTRACTS FROM THE COAL MINES (SPECIAL PROVISIONS) ACT, 2015
(11 OF 2015)

CHAPTER II
AUCTION AND ALLOTMENT

4. Eligibility to participate in auction and payment of fees.

(1)* * * * *

(2) Subject to the provisions in sub-section (3) of this section and section 5, the Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal, select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed–

(b) a company or a joint venture company formed by two or more companies,

that carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the permit, prospecting licence or mining lease, as the case may be, and the State Government shall grant such reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal to such company as selected through auction by competitive bidding under this section.

(3) Subject to the provisions of section 5, the following persons who fulfil such norms as may be prescribed, shall be eligible to bid in an auction of Schedule II coal mines and Schedule III coal mines and to engage in coal mining operations in the event they are successful bidders, namely:—

(a) a company engaged in specified end-use including a company having a coal linkage which has made such investment as may be prescribed. Explanation.—

“company with a coal linkage” includes any such company whose application is pending with the Central Government on the date of commencement of this Act;

(b) a joint venture company formed by two or more companies having a common specified end-use and are independently eligible to bid in accordance with this Act;

(c) a Government company or corporation or a joint venture company formed by such company or corporation or with any other company having common specified end-use:

Provided that nothing contained in sub-section (2) shall apply to this subsection.

5. Allotment of mines to Government companies or corporations.

(1) Notwithstanding the provisions contained in sub-sections (1) and (3) of section 4, the Central Government may allot a Schedule I coal mine to a Government company or corporation or to a joint venture between two or more Government companies or corporations or to a company which has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects) from specified Schedule I coal mines by making an allotment order in accordance with such rules as may be prescribed and the State Government shall grant a reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal to such company or corporation:

Provided that the Government company or corporation may carry on coal mining in any form either for its own consumption, sale or for any other purpose in accordance with the permit, prospecting licence or mining lease, as the case may be:

* * * * *

8. Nominated authority to issue vesting order or allotment order.

(1) * * * * *

(4) The vesting order shall transfer and vest upon the successful bidder, the following, namely:—

* * * * *

(b) entitlement to a mining lease to be granted by the State Government;

* * * * *

(8) Upon the execution of the vesting order, the successful bidder of the Schedule I coal mine shall be granted a prospecting licence or a mining lease, as applicable, by the concerned State Government in accordance with the Mines and Minerals (Development and Regulation) Act, 1957.

(9) A Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India, allotted a Schedule I coal mine shall be granted a prospecting licence or a mining lease, as applicable, by the concerned State Government in accordance with the Mines and Minerals (Development and Regulation) Act, 1957.

9. Power to make rules.

The proceeds arising out of land and mine infrastructure in relation to a Schedule I coal mine shall be disbursed maintaining, inter alia, the priority of payments in accordance with the relevant laws and such rules as may be prescribed—

* * * * *

(b) compensation payable to the prior allottee in respect of the Schedule I coal mine.

* * * * *

18. Central Government to appoint designated custodian.

(1) On and from the appointed date, if the auction or allotment of Schedule I coal mines is not complete, the Central Government shall appoint any person as a designated custodian to manage and operate such coal mines as may be notified by the Central Government.

CHAPTER V
CERTAIN ARRANGEMENTS

20. Power of Central Government to approve certain arrangements.

(1) A successful bidder or allottee or coal linkage holder shall, with the prior approval of the Central Government and in accordance with such rules as may be prescribed, be entitled to enter into certain agreements or arrangements with other successful bidder or allottee or coal linkage holder, as the case may be, for optimum utilisation of coal mine for the same end-uses in the public interest and to achieve cost efficiencies.

(2) A successful bidder or allottee may also use the coal mine from a particular Schedule I coal mine for any of its plants engaged in common specified end-uses, in accordance with such rules as may be prescribed.

* * * * *

31. Power to make rules.

(1)* * * * *

(2) In particular, and without prejudice the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–

* * * * *

(b) the terms and conditions for granting reconnaissance permit, prospecting licence or mining lease and the manner and conditions of competitive bidding under sub-section (2) of section 4;

* * * * *

(l) the form and manner of furnishing of bank guarantee and the time within which such furnishing of bank guarantee under sub-section (6) of section 8;

Banking Regulation (Amendment) Bill, 2020

CA Satbir Singh — Wed, 04 Mar 2020 07:36:36 +0000

AS INTRODUCED IN LOK SABHA on 03/03/2020

Bill No. 56 of 2020

THE BANKING REGULATION (AMENDMENT) BILL, 2020
A
BILL

further to amend the Banking Regulation Act, 1949.

BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—

1. Short title and commencement.

(1) This Act may be called the Banking Regulation (Amendment) Act, 2020.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and that different dates may be appointed for state co-operative banks, central co-operative banks and primary co-operative banks and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

2. Substitution of new section for section 3.

In the Banking Regulation Act, 1949 (hereinafter referred to as the principal Act), for section 3, the following section shall be substituted, namely:—

Act not to apply to certain cooperative societies.

‘3. Notwithstanding anything contained in the National Bank for Agriculture and Rural Development Act, 1981, this Act shall not apply to—

(a) a primary agricultural credit society; or

(b) a co-operative society whose primary object and principal business is providing of long term finance for agricultural development, if such society does not use as part of its name, or in connection with its business, the words “bank”, “banker” or “banking” and does not act as drawee of cheques.’.

3. Amendment of section 56.

In section 56 of the principal Act,—

(A) in the opening portion, for the words “The provisions of this Act, as in force for the time being,” the words “Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act” shall be substituted;

(B) in clause (a), after sub-clause (ii), the following sub-clauses shall be inserted, namely:—

‘(iii) references to “memorandum of association” or “articles of association” shall be construed as references to bye-laws;

(iv) references to the provisions of the Companies Act, 1956, except in Part III and Part IIIA, shall be construed as references to the corresponding provisions, if any, of the law under which a co-operative bank is registered;

(v) references to “Registrar” or “Registrar of Companies” shall be construed as references to “Central Registrar” or “Registrar of Co-operative Societies”, as the case may be, under the law under which a co-operative bank is registered;’;

(D) in clause (f),—

(i) the words “or co-operative land mortgage banks”; and

(ii) the words “or a co-operative land mortgage bank”, shall be omitted;

(E) clauses (fi), (fii) and (g) shall be omitted;

(F) for clause (i), the following clause shall be substituted, namely:—

‘(i) for section 12, the following section shall be substituted, namely:—

Issue and regulation of paid-up share capital and securities by co-operative banks.

“12. (1) A co-operative bank may, with the prior approval of the Reserve Bank, issue, by way of public issue or private placement,—

(i) equity shares or preference shares or special shares, on face value or at premium; and

(ii) unsecured debentures or bonds or other like securities with initial or original maturity of not less than ten years, to any member of such co-operative bank or any other person residing within its area of operation, subject to such conditions and ceiling, limit or restriction on its issue or subscription or transfer, as may be specified by the Reserve Bank in this behalf.

(2) Save as otherwise provided in this Act,—

(i) no person shall be entitled to demand payment towards surrender of shares issued to him by a co-operative bank; and

(ii) a co-operative bank shall not withdraw or reduce its share capital, except to the extent and subject to such conditions as the Reserve Bank may specify in this behalf.”;’;

(G) clauses (l), (n), (p), sub-clauses (ii) and (iv) of clause (q), clauses (r), (ria) and (sa), sub-clause (i) of clause (t), clauses (u), (v), (x), (y), (z) and (za) shall be omitted;

(H) in clause (zaa),—

(i) for the words “multi-State co-operative bank” wherever they occur, the words “co-operative bank” shall be substituted;

(ii) after the portion beginning with ‘‘36AAA. (i)Where the Reserve Bank is satisfy’’ and ending with ‘‘shall not exceed five years.’’, the following proviso shall be inserted, namely:—

‘‘Provided that in case of a co-operative bank registered with the Registrar of Co-operative Societies of a State, the Reserve Bank shall issue such order in consultation with the concerned State Government
seeking its comments, if any, within such period as the Reserve Bank may specify.’’;

(iii) for the portion beginning with “36AAB. Where a Multi-State Cooperative bank” and ending with “(c) shall not be liable to be called in question in any manner.”, the following shall be substituted, namely:—

“(10) The provisions of section 36ACA shall not apply to a co-operative bank.”;

(I) for clause (zb), the following clause shall be substituted, namely:—

“(zb) Part IIC shall be omitted;”;

(J) sub-clause (i) of clause (zc) and clauses (zd) and (zf) shall be omitted;

(K) for clause (zg), the following clause shall be substituted, namely:—

‘(zg) in section 49B, references to “Central Government” shall be construed as references to “Central Registrar” or “Registrar of Co-operative Societies”, as the case may be, under the law under which a co-operative bank is registered;’;

(L) clause (zh) shall be omitted;

(M) for clause (zj), the following clause shall be substituted, namely:—

‘(zj) after section 53, the following section shall be inserted, namely:

Power to exempt cooperative banks in certain cases.

“53A. Notwithstanding anything contained in any other provision of this Act, the Reserve Bank may, from time to time, on being satisfied that it is necessary so to do, declare by notification in the Official Gazette, that the provisions of item (iii) of clause (b) of sub-section (1) and sub-section (2) of section 10, clause (a) of sub-section (2) of section 10A, sub-section (1A) of section 10B and clause (b) of sub-section (1) of section 35B of this Act shall not apply to a co-operative bank or class of co-operative banks, either generally or for such period as may be specified therein, subject to such conditions, limitations or restrictions as it may think fit to impose.”;’.

STATEMENT OF OBJECTS AND REASONS

The Banking Regulation Act, 1949 was enacted to consolidate and amend the law relating to banking. Part V of the said Act provides for the application of the Banking Regulation Act, 1949 to co-operative banks, subject to certain modifications specified in section 56 thereof. Keeping in view the developments in the banking sector and regulation
thereof overtime, it has become necessary to strengthen the provisions of the said Act as applicable to co-operative banks.

2. It is proposed to bring the co-operative banks on par with the developments in the banking sector through better management and proper regulation of co-operative banks with a view to ensure that the affairs of the co-operative banks are conducted in a manner that protects the interests of the depositors. It is further proposed to strengthen the co-operative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the Reserve Bank of India.

3. In view of the above, it is decided to amend the Banking Regulation Act, 1949 by the Banking Regulation (Amendment) Bill, 2020, inter alia, to provide for the following:

(i) to amend section 3, so as to make the provisions of the said Act not applicable to—

(a) a primary agricultural credit society; or

(ii) to substitute clause (i) of section 56, so as to provide for the issue and regulation of paid-up share capital and securities by co-operative banks;

(iii) to amend clause (zaa) of section 56, so as to provide that in the case of a co-operative bank registered with the Registrar of Co-operative Societies of a State, the Reserve Bank shall consult the concerned State Government before issuing order for supersession of the board of directors under section 36AAA;

(iv) to omit certain clauses of section 56 as the other provisions of the Banking Regulation Act, 1949 would apply to co-operative banks;

(v) to make other consequential changes in section 56.

4. The Bill seeks to achieve the above objectives.

NEW DELHI;
The 10th February, 2020.

NIRMALA SITHARAMAN

ANNEXURE
EXTRACTS FROM THE BANKING REGULATION ACT, 1949
(10 OF 1949)

3. Act to apply to cooperative societies in certain cases.

Nothing in this Act shall apply to—

(a) a primary agricultural credit society;

(b) a co-operative land mortgage bank; and

* * * * *

PART V
APPLICATION OF THE ACT TO CO-OPERATIVE BANKS

56. Act to apply to cooperative societies subject to modifications.

The provisions of this Act, as in force for the time being, shall apply to, or in relation to, co-operative societies as they apply to, or in relation to, banking companies subject to the following modifications, namely:—

* * * * *

(d) for section 5A, the following sections shall be substituted, namely:—

Act to override byelaws, etc.

“5A. (1) The provisions of this Act shall have effect, notwithstanding anything to the contrary contained in the bye-laws of a co-operative society, or in any agreement executed by it, or in any resolution passed by it in general meeting, or by its Board of directors or other body entrusted with the management of its affairs, whether the same be registered, executed or passed, as the case may be, before or after the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965.

(2) Any provision contained in the bye-laws, agreement or resolution aforesaid shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be.”;

(e) in section 6, in sub-section (1),—

(i) in clause (b), the words “, but excluding the business of a managing agent or secretary and treasurer of a company” shall be omitted;

* * * * *

(iii) in clause (m), after the word “company”, the words “or co-operative society” shall be inserted;

(f) for section 7, the following section shall be substituted, namely:—

Use of words “bank”, “banker” or “banking”.

“7. (1) No co-operative society other than a co-operative bank shall use as part of its name or in connection with its business any of the words “bank”, “banker” or “banking”, and no co-operative society shall carry on the business
of banking in India unless it uses as part of its name at least one of such words.

(2) Nothing in this section shall apply to—

(a) a primary credit society, or

(b) a co-operative society formed for the protection of the mutual interest of co-operative banks or co-operative land mortgage banks, or

(i) a banking company or the State Bank of India or a corresponding new bank or a subsidiary bank of such banking company, State Bank of India or a corresponding new bank, or

(ii) a co-operative bank or a primary credit society or a co-operative land mortgage bank, insofar as the word “bank”, “banker” or “banking” appears as part of the name of the employer bank, or as the case may be, of the bank, whose subsidiary the employer bank is.”;

(fi) in section 8, for the proviso, the following proviso shall be substituted, namely:—

“Provided that this section shall not apply—

(a) to any such business as aforesaid which was in the course of being transacted on the commencement of clause (iii) of section 42 of the Banking Laws (Amendment) Act, 1983, so, however, that the said business shall be completed before the expiry of one year from such commencement; or

(b) to any business as is specified in pursuance of clause (o) of sub-section (1) of section 6;

(fii) in section 9, for the second proviso, the following provisos shall be substituted, namely:—

“Provided further that in the case of a primary credit society which becomes a primary co-operative bank after the commencement of clause (iii) of section 42 of the Banking Laws (Amendment) Act, 1983, the period of seven years shall commence from the day it so becomes a primary co-operative bank:

Provided also that the Reserve Bank may, in any particular case, extend the aforesaid period of seven years by such period as it may consider necessary where it is satisfied that such extension would be in the interests of the depositors of the co-operative bank.”;

(g) sections 10, 10A, 10B, 10BB, 10C and 10D shall be omitted;

* * * * *

(i) sections 12, 12A, 13 and 15 to 17 shall be omitted;

* * * * *

(l) for section 20 of the principal Act, the following section shall be substituted, namely:—

Restriction on loans and advances.

“20. (1) No co-operative bank shall—

(a) make any loans or advances on the security of its own shares; or

(b) grant unsecured loans or advances—

(i) to any of its directors; or

(ii) to firms or private companies in which any of its directors is interested as partner or managing agent or guarantor or to individuals in cases where any of its directors is a guarantor; or

(iii) to any company in which the chairman of the Board of directors of the co-operative bank (where the appointment of a chairman is for a fixed term) is interested as its managing agent, or where there is no managing agent, as its chairman or managing director:

Provided that nothing in clause (b) shall apply to the grant of unsecured loans or advances—

(a) made by a co-operative bank—

(i) against bills for supplies or services made or rendered to Government or bills of exchange arising out of bona fide commercial or trade transactions; or

(ii) in respect whereof trust-receipts are furnished to the co-operative bank;

(b) made by a primary co-operative bank to any of its directors or to any other person within such limits and on such terms and conditions as may be approved by the Reserve Bank in this behalf.

(2) Every co-operative bank shall, before the close of the month succeeding that to which the return relates, submit to the Reserve Bank a return in the prescribed form and manner showing all unsecured loans and advances granted
by it to companies in cases other than those in which the co-operative bank is prohibited under sub-section (1) to make unsecured loans and advances in which any of its directors is interested as director or managing agent or guarantor.

(3) If, on examination of any return submitted under sub-section (2), it appears to the Reserve Bank that any loans or advances referred to in that sub-section are being granted to the detriment of the interests of the depositors of the co-operative bank, the Reserve Bank may, by order in writing, prohibit the co-operative bank from granting any such further loans or advances or impose such restrictions on the grant thereof as it thinks fit, and may by like order direct
the co-operative bank to secure the re-payment of such loans or advances within such time as may be specified in the order.”;.

* * * * *

(n) in section 21, in sub-section (2), in clauses (c) and (d), for the words “any one company, firm, association of persons or individuals”, the words “any one party” shall be substituted;

* * * * *

(p) in section 23,—

(i) for sub-section (1), the following sub-section shall be substituted, namely:—

“(1) Without obtaining the prior permission of the Reserve Bank, no co-operative bank shall open a new place of business or change otherwise than within the same city, town or village, the location of an existing place of business:

Provided that nothing in this sub-section shall apply to—

(a) the opening for a period not exceeding one month of a temporary place of business within a city, town or village or the environs thereof within which the co-operative bank already has a place of business, for the purpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela or any other like occasion;

(b) the opening or changing the location of branches by a Central co-operative bank within the area of its operation.”;

(ii) after sub-section (4), the following sub-section shall be inserted, namely:—

“(4A) Any co-operative bank other than a primary co-operative bank requiring the permission of the Reserve Bank under this section shall forward its application to the Reserve Bank through the National Bank which shall give its comments on the merits of the application and send it to the Reserve Bank:

Provided that the co-operative bank shall also send an advance copy of the application directly to the Reserve Bank.”;

(q) in section 24,—

* * * * *

(ii) for sub-section (2A), the following sub-section shall be substituted, namely:—

“(2A) A scheduled co-operative bank, in addition to the average daily balance which it is, or may be, required to maintain under section 42 of the Reserve Bank of India Act, 1934 and every other co-operative bank, in addition to the cash reserve which it is required to maintain under section 18, shall maintain in India, assets, the value of which shall not be less than such percentage not exceeding forty per cent. of the total of its demand and time liabilities in India as on last Friday of the second preceding fortnight as the Reserve Bank may, by notification in the Official Gazette, specify from time to time and such assets shall be maintained in such form and manner, as may be specified in such notification.”;

* * * * *

(iv) in sub-section (6), in clause (a), for the words “fourteen days”, the words “thirty days” shall be substituted;”;

* * * * *

(r) section 25 shall be omitted;

* * * * *

(ria) in section 26A, for the words “banking companies”, the words “co-operative Bank” shall be substituted;

* * * * *

Audit.

(sa) for section 30, the following section shall be substituted, namely:—

“30. (1) Without prejudice to anything contained in any other law for the time being in force, where the Reserve Bank is satisfied that it is necessary in the public interest or in the interest of the co-operative bank or its depositors so to do, it may at any time by general or special order direct that an additional audit of the co-operative bank accounts, for any such transactions or class of transactions or for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order appoint a person duly qualified under any law for the time being in force to be an auditor of companies to conduct such audit, and the auditor shall comply with such directions and make a report of such audit to the Reserve Bank and forward a
copy thereof to the co-operative bank.

(2) The expenses of, or incidental to, the additional audit specified in the order made by the Reserve Bank shall be borne by the co-operative bank.

(3) The auditor referred to in sub-section (1) shall have such powers, exercise such functions vested in and discharge the duties and be subject to the liabilities and penalties imposed on auditors of companies by section 227 of the Companies Act, 1956 and also that of the auditors, if any, appointed by the law establishing, constituting or forming the co-operative bank to the extent the provisions of the Companies Act, 1956 are not inconsistent with the provisions of such law.

(4) In addition to the matters referred to in the order under sub-section (1) the auditor shall state in his report-

(a) whether or not the information and explanation required by him have been found to be satisfactory;

(b) whether or not the transactions of the co-operative bank which came to his notice have been within the powers of the co-operative bank;

(c) whether or not the returns received from branch offices of the co-operative bank have been found adequate for the purpose of his audit;

(d) whether the profit and loss accounts, shows a true balance or profit or loss for the period covered by such account;

(e) any other matter which he considers should be brought to the notice of the Reserve Bank and the shareholders of the co-operative bank.”;

(t) in section 31,—

(i) for the words “within three months” and “of three months”, the words “within six months” and “of six months” shall, respectively, be substituted;

* * * * *

(u) sections 32 to 34 shall be omitted;

(v) in section 34A, sub-section (3) shall be omitted;

* * * * *

(x) in section 35A, in sub-section (1), in clause (c), for the words “any banking company”, the words “the banking of business any co-operative bank” shall be substituted;

(y) section 35B shall be omitted;

(z) in section 36, in sub-section (1),—

(a) clause (b) shall be omitted;

(b) for clause (d), the following clause shall be substituted, namely:—

“(d) at any time if it is satisfied that for the re-organisation or expansion of co-operative credit on sound lines it is necessary so to do, by an order in writing and on such terms and conditions as may be specified
therein,—

(i) depute one or more of its officers to watch the proceedings at any meeting of the Board of directors of the co-operative bank or of any other body constituted by it and require the co-operative bank to give an opportunity to the officer so deputed to be heard at such matters as the officer may consider necessary or proper for the reorganisation and expansion of co-operative credit on sound lines, and also require such officer to send a report of such proceedings to the Reserve Bank;

(ii) appoint one or more of its officers to observe the manner in which the affairs of the co-operative bank or its offices or branches are being conducted and make a report thereon;”;

(za) in section 36A,—

(i) for sub-section (1), the following sub-section shall be substituted, namely:—

“(1) The provisions of section 11, section 18 and section 24 shall not apply to a co-operative bank which has been refused a licence under section 22 of whose licence has been cancelled under that section or which is or has been prohibited or precluded from accepting deposits by virtue of any order made under this Act or of any alteration made in its bye-laws.”;

(ii) after sub-section (2), the following sub-section shall be inserted, namely:—

“(3) Subject to the provisions of sub-sections (1) and (2), a co-operative society carrying on business as a primary co-operative bank at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965, or a co-operative society which becomes a primary co-operative bank after such commencement shall, notwithstanding that it does not at any time thereafter satisfy the requirements of the definition of primary co-operative bank in clause (ccv) of section 5, continue to be a primary co-operative bank within the meaning of this Act, and may, with the approval of the Reserve Bank and subject to such terms and conditions as the Reserve Bank may specify in that behalf, continue to carry on the business of banking.”;

(zaa) after section 36AA of the principal Act, the following sections shall be inserted, namely:—

Supersession of Board of directors of a multi-State co-operative bank.

36AAA. (1) Where the Reserve Bank is satisfied that in the public interest or for preventing the affairs of a multi-State co-operative bank being conducted in a manner detrimental to the interest of the depositors or of the multi-State co-operative bank or for securing the proper management of the multi-State co-operative bank, it is necessary so to do, the Reserve Bank may, for reasons to be recorded in writing, by order, supersede the Board of directors of such multi- State co-operative bank for a period not exceeding five years as may be specified in the order, which may be extended from time to time, so, however, that total period shall not exceed five years.

(2) The Reserve Bank may, on supersession of the Board of directors of the multi-State co-operative bank under sub-section (1) appoint an Administrator for such period as it may determine.

(3) The Reserve Bank may issue such directions to the Administrator as it may deem appropriate and the Administrator shall be bound to follow such directions.

(4) Upon making the order of supersession of the Board of directors of a multi-State co-operative bank,—

(a) The chairman, managing director and other directors as from the date of supersession of the Board shall vacate their offices as such;

(b) All the powers, functions and duties which may, by or under the provisions of the Multi-State Co-operative Societies Act, 2002 or this Act or any other law for the time being in force, be exercised and discharged by or on behalf of the Board of directors of such a multi-State co-operative bank or by a resolution passed in general meeting of such co-operative bank, shall, until the Board of directors of such co-operative bank is reconstituted, be exercised and discharged by the Administrator appointed by the Reserve Bank under sub-section (2):

Provided that the power exercised by the Administrator shall be valid notwithstanding that such power is exercisable by a resolution passed in the general meeting of such multi-State co-operative bank.

(5) (a) The Reserve Bank may constitute a committee of three or more persons who have experience in law, finance, banking, administration or accountancy to assist the Administrator in discharge of his duties.

(b) The committee shall meet at such times and places and observe such rules of procedure as may be specified by the Reserve Bank.

(6) The salary and allowances to the Administrator and the members of the committee constituted by the Reserve Bank shall be such as may be specified by the Reserve Bank and be payable by the concerned multi-State co-operative bank.

(7) On and before expiration of period of supersession of the Board of directors as specified in the order issued under sub-secion (1), the Administrator of the multi-State co-operative bank shall call the general meeting of the society to elect new directors.

(8) Notwithstanding anything contained in any other law or in any contract, or bye-laws of a multi-State co-operative bank, no person shall be entitled to claim any compensation for the loss or termination of his office.

(9) The Administrator appointed under sub-section (2) shall vacate office immediately after the Board of directors of the multi-State co-operative society has been constituted.

Order of winding up of multi-State co-operative bank to be final in certain cases.

36AAB. Where a multi-State co-operative bank, being an eligible co-operative bank, has been registered under section 13A of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, as an insured bank, and subsequently—

(a) in pursuance of a scheme prepared with the previous approval of the Reserve Bank under section 18 of the Multi-State Co-operative Societies Act, 2002, an order sanctioning a scheme of compromise and arrangement or reorganisation or reconstruction has been made; or

(b) on requisition by the Reserve Bank, an order for winding up of the multi-State co-operative bank has been made under section 87 of the Multi-State Co-operative Societies Act, 2002; or

(c) an order for the supersession of the Board and the appointment of an Administrator therefor has been made under section 36AAA, such order for sanctioning the scheme of compromise and arrangement or reorganisation or reconstruction under clause (a) or the winding up of the multi-State co-operative bank under clause (b) or an order for the supersession of the Board and the appointment of an Administrator under clause (c) shall not be liable to be called in question in any manner.

Reimbursement to Deposit Insurance Corporation by liquidator or transferee bank.

36AAC. Where a multi-State co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 is wound up and the Deposit Insurance Corporation has become liable to the depositors of the insured bank under sub-section (1) or sub-section (2) of section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that Act.

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(zb) Part IIA except sections 36AAA, 36AAB and 36AAC, Part IIC, Part III, except sub-sections (1), (2) and (3) of section 45, and Part IIIA except section 45W shall be omitted;

(zc) in section 46,—

(i) in sub-section (4), the word “or” occurring at the end of clause (i) and clause (ii) shall be omitted;

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(zd) in section 47, the words, brackets, figures and letters “sub-section (5) of section 36AA or” shall be omitted;

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(zf) in section 49A, for the proviso, the following proviso shall be substituted, namely:—

“Provided that nothing contained in this section shall apply to—

(a) a primary credit society;

(b) any other co-operative society accepting such deposits at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965, for a period of one year from the date of such commencement; and

(zg) sections 49B and 49C shall be omitted;

(zh) in section 50, the figures and letters “10, 12A, 16,”, “35B,” and “43A” shall be omitted;

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(zj) in section 52,—

(i) in sub-section (2), the words, figures and letter “and the form in which the official liquidator may file lists of debtors to the court having jurisdiction under Part III or Part IIIA and the particulars which such lists may contain” shall be omitted;

(ii) sub-section (4) shall be omitted;

(zk) for section 55 and the First Schedule, the following section shall be substituted, namely:—

Act 18 of 1891 and Act 46 of 1949 to apply in relation to co-operative banks.

“55. (1) The Bankers’ Books Evidence Act, 1891 shall apply in relation to a co-operative bank as it applies in relation to a bank as defined in section 2 of that Act.

(2) The Banking Companies (Legal Practitioners, Clients’ Accounts) Act, 1949, shall apply in relation to a co-operative bank as it applies in relation to a banking company as defined in section 2 of that Act.”.

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LOK SABHA

A
BILL
further to amend the Banking Regulation Act, 1949.

(Smt. Nirmala Sitharaman, Minister of Finance)