Lower house approves bills amending the existing Aadhaar Act and Companies Act, softening the procedures

New Delhi, January 5: Amidst the Winter Session underway in the parliament and the day culminating the session at full, subject to exigencies of government business, the Lok Sabha passed 3 bills yesterday on the table constituting the one relating to the Companies and the other being Aadhaar and two other relating laws.

 

The bill relating to Aadhaar Act sought to amend relevant laws to comply with the Supreme Court Judgement passed in September last year. The bill will allow the individuals to offer oluntarily biometric ids as a means of identity verification for obtaining services such as opening bank accounts, procuring mobile phone connections. The Aadhaar and other laws amendment bill proposes changes in the Aadhaar Act, the Indian Telegraph Act and the prevention of Money Laundering Act to comply with the SC judgement.

 

The bill also gives minor the option to opt out of the identity scheme till attaining the age of 18 years. It also provides for the stiff penalties relating to the violation of the norms set for the use of Aadhaar. “This bill is capable of strengthening the existing system and respecting the privacy policies. Also this bill denies the mandatory linkages for attaining the services. Further the banks, mobile companies and other authorities failing to comply the norms will be subjected to severe proceedings.”, said Ravi Shankar Prasad.

 

Also the house passed the bill for the amendment in the Companies Act,2013 viewing to bring some strict ordinances and rules for the firms. The bill was passed with the voice votes moved by the minister of state affairs P P Chaudhary. The bill introduced by Jaitley on December 20 last year seeks to improve ease of business.

 

The bill focuses on penalising the companies selling their shares at discount to rupees one lakh and five lakh along with the imprisonments concerned. The company concerned will also be liable to refund the money received with interest at 12% per annum from the date of issue of the shares. It further has set some significant norms in relation to the registration of business and the charge concerned.

 

Under the bill, change in period of financial year for a company associated with a foreign company, has to be approved by the Central Government instead of the National Company Law Tribunal. Similarly, the powers of authorising any alteration in the incorporation document of a public company which has the effect of converting it to a private company, has been transferred to the Central Government from the NCLT.

 

The third bill passed by the LS, consists of the New Delhi International Arbitration Centre Bill, 2018 which was introduced in Lok Sabha by the Minister of State for Law and Justice, Mr. P.P. Chaudhary on January 5, 2018. This aims to establish an autonomous and independent institution for better management of arbitration in India. The seven membered committee of the NDIAC aims at promoting research, providing training and organising conferences and seminars in alternative dispute resolution matters.

 

However, facilitating conduct of arbitration and conciliation in a professional, timely and cost-effective manner will also be the key focus. The members of NDIAC will hold office for three years and will be eligible for re-appointment. The retirement age for the Chairperson is 70 years and other members is 67 years.