Money Bill Route for Contentious Amendments

General Studies Paper -2

Context: The Supreme Court of India agreed to list petitions challenging the Money Bill route taken by the Centre to pass contentious amendments in the Parliament.

Background

• The Money Bill case was referred to the supreme court in 2019 in the case of Rojer Mathew vs. South Indian Bank Ltd.
• The issue is whether such amendments could be passed as a Money Bill, circumventing the Rajya Sabha, in violation of Article 110 of the Constitution.

What are the concerns?

• The case includes legal questions concerning amendments made from 2015 onwards in the Prevention of Money Laundering Act (PMLA) through Money Bills, giving the Enforcement Directorate blanket powers of arrest, raids, etc.
• The present case raises questions about the passage of the Finance Act, 2017, as a money bill. The act had altered the appointments to 19 key judicial tribunals, including the National Green Tribunal and Central Administrative Tribunal.
• In the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, the petitioners have argued that parts of the Act, passed through the two houses as a money bill, contained provisions unrelated to the subjects listed under Article 110.

Money Bill

• Article 110 of the Constitution deals with the definition of money bills.
• It states that a bill is deemed to be a money bill if it contains ‘only’ provisions dealing with all or any of the following matters:
• The imposition, abolition, remission, alteration or regulation of any tax;
• the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;
• The custody of the Consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;
• the appropriation of moneys out of the Consolidated Fund of India;
• The declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
• The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or
• Any matter incidental to any of the matters specified above.

Passing of Money Bills

• A Money Bill can be introduced only in the Lok Sabha, only by a minister, and only on the recommendation of the President.
• If any question arises whether a bill is a Money bill or not, the decision of the Speaker of Lok Sabha is final.
• After a Money bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha.
• The Rajya Sabha has very restricted powers w.r.t. Money Bills:
  • Rajya Sabha cannot reject or amend a Money bill.
  • Rajya Sabha can only make recommendations.
  • Rajya Sabha must return the bill within 14 days, with or without recommendations.
• The Lok Sabha can either accept or reject all or any of the recommendations of Rajya Sabha.
• If the Rajya Sabha does not return the bill within 14 days, the bill is deemed to have been passed by both the Houses in the form originally passed by Lok Sabha.
• Once a Money Bill is passed by both the Houses, it is presented to the President.
  • He/she may either give the assent or withhold assent, but cannot return the bill for reconsideration by the Houses of Parliament.