Question 65 from UPSC CSE 2019 - Polity & Governance

Question

In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.? 1. Ad Hoc Committee set up by the Parliament. 2. Parliamentary Department's Related Standing Committee. 3. Finance Commission. 4. Financial Sector Legislative Reforms Commission. 5. NITI Aayog. Select the correct answer using the code given below.

A

1 and 2

B

1, 3, and 4

C

3, 4, and 5

D

2 and 5

IASCODEX · Accepted Answer

Correct Option: A. 1 and 2

Strategy: Identify the correct institutional oversight mechanisms for regulators. Focus on Parliamentary Ad Hoc Committees and Department Related Standing Committees, as they are directly empowered for scrutiny. Exclude the Finance Commission, Financial Sector Legislative Reforms Commission, and NITI Aayog, as they have no oversight role.

Key Info: **Oversight of Independent Regulators in India**

Independent regulators in India, such as TRAI, IRDAI, and CERC, are public bodies established by acts of Parliament. Their review and accountability primarily rest with specific Parliamentary mechanisms.

**Bodies with Oversight Mandate**

- **Parliamentary Department Related Standing Committees:** These permanent committees scrutinize the work of specific ministries and departments, including the functioning of sector regulators within their purview.
- **Ad Hoc Committees:** These temporary committees are constituted by Parliament to address specific issues. Joint Parliamentary Committees (JPCs), for example, have been formed to investigate matters involving regulators like SEBI, RBI, and those in the telecom sector.

**Bodies Without Oversight Mandate**

- **Finance Commission:** A constitutional body that recommends the distribution of taxes between the Centre and States. It has no regulatory oversight mandate.
- **Financial Sector Legislative Reforms Commission (FSLRC):** An expert body from 2011–2013 that recommended legal reforms. It has no ongoing review or oversight role.
- **NITI Aayog:** An executive policy think-tank with no statutory oversight functions over individual sectoral regulators.

IASCODEX · Answer

Option B: 1, 3, and 4

IASCODEX · Answer

Option C: 3, 4, and 5

IASCODEX · Answer

Option D: 2 and 5