SC to hear petitions against passing laws as Money Bills

The Supreme Court of India is set to hear petitions challenging the use of the Money Bill route by the Centre to pass contentious amendments in Parliament.

Key-highlights of the Issue

• Referred to Seven-Judge Bench: The five-judge Bench, led by Chief Justice Ranjan Gogoi, referred the Money Bill question to a seven-judge Bench in November 2019.
• Article 110 of the Constitution: A Money Bill is deemed to contain only provisions dealing with specified financial matters under clauses (a) to (g) of Article 110(1), including the appropriation of money and taxation.

Provisions and Implications

• Legal Questions: The reference includes legal questions concerning amendments made since 2015, particularly those in the Prevention of Money Laundering Act (PMLA), passed as Money Bills.
• Impact on Tribunals: The 2017 Finance Act, also passed as a Money Bill, altered appointments to 19 key judicial tribunals, including the National Green Tribunal and the Central Administrative Tribunal.
• Executive Control over Tribunals: Petitioner Jairam Ramesh argued that categorizing the 2017 Act as a Money Bill was intended to extend executive control over tribunals by altering selection committees and downgrading qualifications for staff.

Reason behind the Situation

• Circumventing Rajya Sabha: The core issue is whether the Money Bill route was used to bypass the Rajya Sabha, violating Article 110 of the Constitution.
• Amendments via Money Bills: Since 2015, several contentious amendments have been passed using the Money Bill classification, raising constitutional and legal concerns.

Impact of Such Actions

• Judicial Review: The classification of laws as Money Bills impacts the judiciary's ability to review and check executive actions.
• Separation of Powers: Using the Money Bill route can undermine the separation of powers by limiting the Rajya Sabha's role in scrutinizing significant legislative changes.
• Precedent for Future Laws: The outcome of these petitions could set a precedent for the classification of future laws and the scope of executive powers.

Required Measures

• Clarification on Money Bills: There is a need for a clear definition and guidelines on what constitutes a Money Bill to prevent misuse.
• Strengthening Legal Frameworks: Legislative and judicial measures are necessary to ensure that the Money Bill route is not used to circumvent parliamentary scrutiny.
• Ensuring Checks and Balances: Effective checks and balances should be maintained to uphold the constitutional provisions and the role of the Rajya Sabha in legislative processes.

Mains Practice Question

Q: "Discuss the implications of passing laws as Money Bills on the separation of powers and the role of the Rajya Sabha in the Indian parliamentary system."