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Legislations, The Law

Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020

In the midst of 2020, when the global pandemic of COVID-19, has wreaked on economic stability both in India and worldwide, The Parliament of India passed a number of resolutions to improve traditional corporate practices and evolving better systems of governance. One of the important Bill passed by the Indian Parliament in its Monsoon session is The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020. The article discusses the key highlights of Taxation and other Laws (Relaxation and Amendment of certain provisions) Bill, 2020.

By: Syed Suhaiba Geelani, 4TH year B.A.L.L.B, (Five-year law), University of Kashmir.


Taxation and other Laws (Relaxation and Amendment of certain provisions) bill, 2020 was initially introduced by Finance Minister Nirmala Sitaraman on 18-9-2020 in Lok Sabha and was subsequently passed in the Lok Sabha and Raj Sabha on 19-09-2020 and 22-09-2020 respectively. It received the Presidential assent on 29.09.2020 and finally, on the same day, it was notified to become Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020).

This newly proposed bill embodies a number of tax-related and other changes that seeks to provide relief to taxpayers, from various compliances under certain ‘specified Acts’, for the Financial Year 2020-21. The Bill aims to provide concessions in the payment of interest arising due to delay in the payment of taxes.  In addition to this, in cases where there is any delay in the payment of taxes for the specified period if the same is paid within the prescribed date, the bill contains provisions for waiver of penalty and prosecution. The bill has incorporated and ratified all the provisions of the Ordinance and the two notifications issued thereunder.

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, containing a lot of amendments seek to supersede prior law of Taxation and further to amend the Income Tax Act, 1961 including amending section 12AB – new registration procedure for Trusts and Institutions, faceless assessment, and other various faceless proceedings.

The amendments have been made, either through changes in existing provisions or by incorporation of new ones. The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 covers  8 laws including Wealth-tax Act, 1957, Income-tax Act, 1961, Prohibition of Benami Property Transactions Act, 1988, Chapter VII of the Finance (No. 2) Act, 2004 (related to Securities Transaction Tax), Chapter VII of the Finance Act, 2013(related to Commodities Transaction Tax), Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Chapter VIII of the Finance Act, 2016 (Equalisation Levy), Direct Tax Vivid se Vishwas Act, 2020. As the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 provides relaxation in compliances, it is also known as Specified Act, 2020.

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 is composed of the following 8 Chapters:

Chapter-IPreliminary chapter.
Chapter-IIRelaxation of certain provisions of specified Act
Chapter-IIIAmendments to the Income-tax Act, 1961
Chapter-IVAmendments to the Direct Tax Vivad Se Vishwas Act
Chapter-VRelaxation of a time limit under certain Indirect Tax laws
Chapter-VIAmendment to the Central Goods and Services Tax Act, 2017
Chapter-VIIAmendment to the Finance (No. 2) Act, 2019
Chapter-VIIIAmendment to the Finance Act, 2020

Highlighted below are the important changes introduced by the new Bill and the objectives that it seeks to achieve: 

  • The provisions of section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, provides for the extension of various time limits for completion of actions under the specified Acts. It provides that where any due date is specified or prescribed or notified under any specified Acts including the Income Tax Act and such due date falls between the period of March 20, 2020, and December 31, 2020, then the tax or levy may be paid by 31 March 2020 or such extended date as may be notified later by the Central Govt.
  • The Bill further provides for a reduction in interest, waiver of penalty and prosecution for the delay in payment of certain taxes or levies during the specified period. However, all the above relaxations are provided only for payment of any tax, cess, or levy under the Income Tax Act, 1961 and or under any other specified Acts.
  • The Bill also offers amendments to the Income-tax Act, 1961. Such amendments include providing of tax incentive for Category-III Alternative Investment Funds located in the International Financial Services Centre (IFSC) to encourage relocation of foreign funds to the IFSC, deferment of a new procedure of registration and approval of certain entities introduced through the Finance Act, 2020, providing for a deduction for donation made to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) and exemption to its income, incorporation of Faceless Assessment Scheme, 2019 therein, empowering the Central Government to notify schemes for faceless processes under certain provisions by eliminating physical interface to the extent technologically feasible and to provide deduction or collection at source in respect of certain transactions at a three-fourths rate for the period from 14th May 2020 to 31st March 2021.
  • It proposes to amend the Direct Tax Vivad se Viswas Act, 2020 and the Finance Act, 2020. 

The Direct Tax Vivad se Vishwas Act, 2020  has been amended to extend the date for payment without 10% additional amount to 31-12-2020 in line with the relaxation provided in the Ordinance of 2020.

  • It also empowers the Central Government to notify certain dates relating to filing of declaration and making of the payment.  It provided to amend the Finance Act 2020 to clarify regarding capping of the surcharge at 15 per cent. on dividend income of the Foreign Portfolio Investor.
  • The Bill empowers the Central Government to remove any difficulty up to a period of two years and provide for repeal and savings of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020.
  • The Bill under clause 4 seeks to amend certain provisions relating to the Income-Tax Act, 1961. It provides the mechanism for calculation of the income of non-resident in the prescribed manner. (clause (4D) of section 10.)  

The Bill has prescribed a new registration procedure for Charitable Trusts and Institutions under section 12AB.

  • Regarding furnishing statement of donations, the proposed amendment to sub-section (5) of section 80G empowers the Board to provide for furnishing a statement of donations received from the dunes to the income-tax authority in the prescribed form and within the prescribed time limit.
  • The authority to withdraw approval to an association or institution for carrying out any eligible project or scheme has been granted to Principal Chief Commissioner of Income Tax (Exemption) or the Chief Commissioner of Income Tax (Exemption) 
  • Additionally, the insertion of sub-section (1A) in section 115AD provides for the calculation of income that is attributable to units held by a non-resident in the prescribed manner.


Taxation and other Laws (Relaxation and Amendment of certain provisions) bill, 2020 has introduced a number of progressive provisions, curbing the effect of the pandemic, and proving beneficial for National economy.


Legislations, The Law

The Uttar Pradesh Temporary Exemption from Certain Labor Laws Ordinance, 2020

The Uttar Pradesh government, on May 8, 202O, cleared an ordinance that exempts its factories and industries from all labor laws. Could a boon to industrialists and factory owners possibly be a curse to the laborers?  The article focuses on the conditions and impact of such an ordinance on the factory owners and the laborers they employ.

By: Maulika Memane, 3rd Year Student, ILS Law College.

Labor laws 

It is needless to say that industrial progress is fundamental to the growth of any nation. The growth of industries in a country determines the overall development of a nation. That being said, it is also important that there be continuous production and to ensure that matters such as disputes and safety concerns do not hamper the growth of an industry and that the rights and welfare of individuals working in such industries are given equal importance. Labor laws ensure exactly this.

Labor laws are an assortment of laws, administrative rulings, and precedents that address the legal rights of the people working in an organization and the organization itself.

Labor laws attempt to intervene in numerous parts of the relationship between an employer and the employees. It seeks to define the obligations between both these parties. As far as labor law regulations in India are concerned, it is important to shine a light on the major acts regulating the labor laws in India which are- Industrial Labor Act, 1947, Contract Labor Act, 1970, Minimum Wages Act, 1948, and Factories Act, 1948. 

According to Article 246 which talks about issues related to labor and labor welfare, these matters fall under List- III which is the concurrent list. In simple terms, it means that both the central as well as the state government can make laws regulating labor.

Due to this, there are currently 47 central laws and 200 state laws concerning the matters of labor and industries. 

The state legislature may exercise its right to regulate labor laws by either amending central law according to the feasibility and requirement of its state or by enacting its law regulating labor. In times when the state law does not adhere to the central laws, the state laws can be implemented after it receives the approval of the President.  

Terms and conditions of the ordinance 

On May 8, 2020, the Uttar Pradesh cabinet cleared an ordinance, the “Uttar Pradesh Temporary Exemption from Certain Labor Laws Ordinance, 2020″ which exempts all factories and other manufacturing establishments from the application of certain labor laws for three years.

This ordinance was promulgated by the governor of the state on the belief that such an ordinance would increase investment and provide the necessary boost to industries in hard times brought about due to the CO-VID 19 pandemic.

The ordinance also clearly states that even though the state legislature is not in session, the Governor is satisfied that such circumstances exist which make it necessary for him to take immediate action. The ordinance goes on to define the meaning of necessary terms such as factory, minimum wage, wages, and workers. Chapter two of the ordinance, however, talks about the conditions required for such an exemption by all factories and establishments engaged in manufacturing

So what are the conditions required?

Wages: The ordinance prohibits employers from paying less than the minimum wage prescribed by the UP government. The ordinance also states that employers are required to make payments to their employees within the time limit that has been prescribed under the sections of Payment Of Wages Act, 1936. The act states that “any establishment, in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day after the last day of the wage period. In case of all other establishments, the employer shall pay its employees before the expiry of the tenth day, after the last day of the wage period in respect of which the wages are payable.” Lastly, the ordinance states that all payments must be made only to the bank accounts of the workers.

Safety and health of workers: The ordinance states that provisions of the Factories Act, 1948, and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 relating to the safety and security of workers shall remain applicable.

Working hours: According to the ordinance, the workers cannot be required or be permitted to work for more than eleven hours a day. It also requires that the spread over of the work should not be more than twelve hours in a day.

Compensation Act: The ordinance requires establishments to provide compensation to employees for any death or disability due to an accident occurring because of and in the course of employment under the Employees Compensation Act of 1923. The act states that compensation should be made as follows:

1) Where death results from the injury: An amount equal to fifty percent. of the monthly wages of the deceased [employee] multiplied by the relevant factor; or an amount of one lakh and twenty thousand rupees, whichever is more;

2) Where permanent total disablement results from the injury: An amount equal to sixty percent. of the monthly wages of the injured [employee] multiplied by the relevant factor or one lakh and twenty thousand rupees, whichever is more be payable to the employee.

 The relevant factor mentioned being the complete age of the worker as per his last birthday. The act also lays down provisions in case of temporary disablement as well as the employer’s liability in case of non-payment of compensation.

Provisions relating to women and children: All provisions of labor law relating to women and children shall remain applicable to establishments according to the acts such as the Maternity Act, Equal Remuneration Act, and Child Labor Act.

Bonded Labor Act: All the provisions under the Bonded Labor Act which was introduced to abolish bonded labor and prevent economic and physical exploitation of weaker sections of the society and all matters concerning that are also to remain applicable to all establishments. 

Critical analysis 

The government of Uttar Pradesh issued a statement that stated that due to the negative impact of the COVID-19 pandemic on the economic and industrial activities, the workers’ welfare has also been affected. In an attempt to revive economic activities and bring them back on track by creating new investment opportunities and boosting old industrial, it has proposed such an ordinance.  The ordinance, which even though, has not received the required approvals to be made into law has received a considerable amount of criticism.

The ordinance has been accused of focusing merely on the growth of industries but considerably overlooking the welfare and rights of its workers.

Many provisions relating to the workers’ rights of the already existing acts have been rendered completely inapplicable due to the ordinance which exempts both old and new units of industries from previous provisions.

What is being considered a victory by factory owners and industrialists, may not have the same effect on laborers, who in uncertain times that this pandemic has brought about, are being subjected to face more uncertainty in terms of employment. The ordinance hands more power to owners of factories and industries with regards to hiring and termination of employment while attracting minimum corrective measures from the labor department.  Since the ordinance nullifies such provisions as related to settling disputes, trade unions, contract workers, and migrant workers, one can argue that it may lead to the ill-treatment of workers. The government must consider the negative impact such an ordinance could have on poor workers who have already been hit hard by the lockdown and what it would mean for their employment status and working conditions.

Other states which have amended laws 

Uttar Pradesh is not the only state to promulgate ordinances exempting laws related to labor due to the economic downfall during the pandemic, but Madhya Pradesh as well the state of Gujarat have also issued similar ordinances. The Gujarat ordinance, however, is limited to only new units that are being established. The ordinance issued by the Madhya Pradesh government provides an exemption from state laws under the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961, and the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 and exemption from certain provisions of the Industrial Dispute Act of 1947 to all new factories. 


The Uttar Pradesh Temporary Exemption from Certain Labor Laws ordinance, 2020 is yet to receive the assent of the president as it restricts the application of central laws. The passing of such ordinances has also resulted in states extending working hours of laborers such as in states of Haryana, Himachal Pradesh, Rajasthan, Assam, and Odisha that have increased working hours to 12 hours a day for three months. It is however important to keep in mind that labor laws fall under the concurrent list that provides joint jurisdiction and needs to be approved at a federal level. The labor ministry is examining whether the ordinances impact the conventions of the International Labor Organization. The ILO, in return, has expressed concerns over the moves of free labor law in the states and has issued an appeal to the Prime Minister regarding the same.

Legislations, The Law

Four Labour Codes

The article deals with a view to reform the archaic labour laws and to facilitate the ease of doing business in India, the Government of India had decided to consolidate twenty-nine (29) central labour laws into four (4) labour codes.

By: Shefali Jha, 2nd Year, B.A.LL. B, New Law College, Pune.


On 23rd September 2020, the Rajya Sabha passed three labour codes which is, The Industrial Relations Code, The Social Security Code and the Occupational Safety, Health and Working Conditions Code. The central government proposes to replace 25 existing labour laws with four codes. The goal is to rearrange and modernise labour regulation. The major challenge in labour reforms is to encourage employment growth while protecting worker’s rights.

The Occupational Safety, Health And Working Conditions Code, 2020

It has defined between-state migrant workers as the worker who has gone ahead on his own from one state & acquired work in another state, earning up to Rs 18,000/month. 

The proposed definition makes a distinction from the present definition of just authoritative work.

It will merge and amend the laws managing the work-related safety, wellbeing and working conditions of persons employed in an establishment and related matters.

The government has, under the code, permitted single licence for staffing firms to hire workers on contract across various locations rather than multiple licences needed earlier.

It has expanded the threshold limit of contractor employees from 20 to 50 under OSH Code.

The Code on Social Security, 2020

It means to accommodate for universal social security to all workers, including the unorganised and the gig and platform workers.

These together record for over 90% of India’s total workforce estimated at 50 crores. 

It proposes a National Social Security Board which will be prescribed to the central government for figuring suitable schemes for various sections of unorganised workers, gig workers and platform workers.

Also, aggregators employing gig workers should contribute 1-2 per cent of their annual turnover for social security.

The Industrial Relations Code, 2020

It tries to consolidate and revise laws identifying with Trade associations, states of work in modern foundations or undertaking, examination and settlement of mechanical questions. 

The legislature has raised the cut-off on number of representatives required in an association 

For preservation and conclusion of foundations without government endorsement to 300 from 100, essentially improving the straightforwardness of firing for representatives. 

For instance, the IR code suggests that no individual utilized in a mechanical foundation will go on strike without a 60-day notice, And during the pendency of procedures before a council or a National Industrial Tribunal and sixty days after the completion of such procedures. 

Hence, extending the lawfully allowable time before the labourers can go on a legitimate strike, making a lawful strike well-near inconceivable. 

Starting at now, an individual utilized in a public utility help can’t picket except if he withdraws from a strike inside about a month and a half before protesting or inside 14 days of giving such notification, which the IR Code as of now proposes to apply for all the modern foundations. 

In reality, these work codes set up by law acknowledgment of an influx of piecemeal endeavor by which state governments have been working on key work laws under the position conceded to them in the simultaneous rundown inside which work falls. Intermittent changes to the Industrial Disputes Act, Factories Act, Industrial Employment Act, and so on by a few states, just as various leader orders passed at the state and focal level in the proposal to draw in unfamiliar and homegrown speculation, are notable. 

Clearly, most of the changes have zeroed in on presenting self-insistence of businesses’ consistency with work laws in little and miniature modern foundations, and the exception of these foundations from the ambit of pivotal work laws. In 2014, the Labor Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act was revised to change the importance of “little” foundations to cover units utilizing a bigger number of workers than the principal piece of enactment. Presently, with the Central Acts being changed and supplanted by the new work codes, the security offered by the law to laborers of bigger foundations stand eliminated. 

In certified terms, the fundamental push of the new work codes is the speculation of a perspective of work capital relations, which relies upon diminished state intercession or liberation, and its conclusion, bipartite mechanical relations. 

Nonetheless, with reformist governments consistently pulling out from guideline of contemporaneous mechanical relations, the region of the work environment is looked to be decreased to a private space in which bosses will yield improved capacity to singularly fix the compensation, remove extra time, oversee leaves, decide remuneration, recruit and fire, and so on Once inside the workplace, work will be under the sweeping authority of businesses. Given that work, the review has moved towards the self-affirmation system and outsider examination by the business, the private intensity of managers is even more expected to develop with the implementation of the work codes. Starting now and into the foreseeable future, state intercession will be restricted to the utilization of the criminal law system to check work distress; a pattern which is now rising. 

The quick result of liberation is the speculation of the exceptionally abusive worldview of work relations run of the mill of the casual area. In the casual area where a piece of lion’s share of common people is laboring in labor-concentrated, lower-section occupations, the nonattendance of the state has sustained the state of semi authoritative forces of bosses over the work contract. Presently, obviously, such improved private intensity of managers as for the work agreement will be the norm over a huge portion of the formal sector as well.


Introduction of the labour codes to streamline the various labour laws is a very good initiative. The Codes clearly characterize the rights and liabilities of employers and employees and lay down proper dispute resolution mechanisms. The Social Security Code has taken a creative step by including aggregators within its ambit.

The Codes will certainly help coordinate the labour laws, it experiences some conflicts, inconsistencies and loopholes, which should be accommodated before its enforcement to prevent future legal conflicts.


Legislations, The Law

Industrial Relations Code, 2020

On September 28, 2020, three new work law codes specifically, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020, and the Code on Social Security, 2020 (“Codes”) got the President’s assent. The Government of India is yet to educate the feasible date regarding the Codes. Further, the standards concerning the Codes are yet to be dispersed. The Codes alongside the Code on Wages, 2019 that was passed by the Parliament a year prior, structure some part of the Government’s work change plan in India. This article plans to summarize a segment of the striking features of and huge adjustments accomplished by the Industrial Relations Code, 2020 (“IR Code”). 

By: Shail Maheshwari

Meaning of Labourer

The significance of an ” expert” has been stretched out to join inside its ambit working editorialists as portrayed in Section 2(f) of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 and bargains headway delegates as described Section 2(d) of the Sales Promotion Employees (Conditions of Service) Act, 1976. Further, individuals used in an authoritative cutoff and procuring not as much as Rupees Eighteen Thousand Only (Rs. 18,000/ – ) consistently (or any whole as educated by the Central Government) have been brought under the definition. 

Meaning of Industry

Under the IR Code, the significance of ” industry” unequivocally bars the going with: 

  1. foundations had or administered by affiliations completely or significantly busy with any gainful, social or liberal help; or 
  2. any development of the appropriate Government relatable to the sovereign components of the fitting Government including all the activities carried on by the parts of the Central Government overseeing shield research, atomic energy, and space; or any local help; or some other development as may be educated by the Central Government. 

Under the ID Act, a couple of various establishments, for instance, clinical facilities, enlightening, intelligent foundations, etc. which were earlier dismissed, have now been eliminated from this once-over of extraordinary cases under the definition. 

Meaning of Mechanical Dispute

This definition has been stretched out to consolidate any discussion or differentiation between an individual worker and manager related to or arising out of any delivery, dismissal, preservation, or end of such expert inside its ambit. 

Meaning of Strike 

This definition has been reached out to join inside its ambit, the conscious nice leave on a given day by half or more workers used in the industry. 

Meaning of Boss 

The importance of “business” has been stretched out to include: 

  1. According to an establishment which is an assembling plant, the occupier of the modern office as portrayed in fragment 2(n) of the Factories Act, 1948 and, where an individual has been named as ahead of the plant under region 7(1)(f) of such act, the individual so named; 
  2. According to some other establishment, the person who, or the position which has extraordinary authority over the endeavors of the establishment and where the said issues are blessed to a boss or regulating boss, such overseer or supervising boss; 

Meaning of Fixed Term Employment 

The IR Code presents another course of action for “fixed-term business” which means and insinuates the dedication of a pro dependent on a made understanding out of work for a fixed period gave that: 

  1. his/her extended lengths of work, wages, payments, and various preferences won’t be not as much as that of a never-ending authority achieving a comparable work or work of similar nature;
  2. he/she will be equipped for all legitimate preferences open to a ceaseless authority proportionately according to the hour of organization conveyed by him/her whether or not his/her season of business doesn’t loosen up to the progressing season of work required in the standard; and 
  3. he/she will be equipped for a tip if he/she conveys organization under the arrangement for a period of one year. 

Standing Orders 

The IR Code gives that the courses of action concerning the standing solicitations will apply to all mechanical establishments with 300 specialists. The organizations of such establishments are expected to design standing solicitations on the issues penetrated down in the essential plan to the IR Code (“Schedule”). The issue recorded in the Schedule is given here beneath: 

Characterization of workers, whether or not enduring, short-lived, understudies, probationers, badlis, or fixed-term business. 

  1. Way of intimating to workers periods and a significant length of work, events, pay-days, and pay rates. 
  2. Move to work. 
  3. Participation and late coming. 
  4. States of, philosophy in applying for, and the force which may permit leave and events. 
  5. The necessity to enter premises by explicit gateways, and danger to look. 

Shutting and reporting of territories of the mechanical establishment, brief stoppages of work, and the rights and liabilities of the business and workers rising along these lines. 

  1. End of business, and the warning thereof to be given by director and workers.
  2. Suspension or dismissal for grievous conduct, and acts or oversights which build up the offense. 

Methods for change for workers against baseless treatment or out of line exactions by the business or his administrators or laborers. 

Some other issue which may be controlled by the appropriate Government by notice. 

The Central Government is expected to make model standing solicitations relating to conditions of organization and various issues unintentional thereto or related therewith.

Where a business gets a model standing solicitation of the Central Government with respect to issues appropriate to the business’ cutting edge establishment or undertaking, by then such model standing solicitation will be considered to have been attested and the business will propel the information in such a way to the concerned ensuring official in the manner as may be recommended. 

Protest Redressal Committee 

The IR Code gives that every establishment using in any event twenty workers is to have at any rate one grievance redressal boards for the objective of discussions and such warning gathering is to include an equal number of people addressing the business and the workers picked in a manner as may be embraced. Further, the total number of people in such committee won’t outperform ten and there will be a comparable depiction of women workers in the board and such depiction won’t be the degree of women workers to the hard and fast masters in an establishment. The ongoing law obliged protest settlement experts to bet set up in establishments using at any rate fifty workers. Further, it didn’t oblige identical depictions of women as decided under the IR Code. 

Constitution of Industrial Tribunals 

The IR Code obliges the constitution of in any event one current gatherings and a National Industrial Tribunal to pick mechanical inquiries. The mechanical boards will be set up rather than the current distinctive interceding bodies under the ID Act, for instance, the court of solicitation, driving gathering of mollification, work courts.

Each mechanical court will involve two people to be named by the best possible Government out of whom one will be a lawful part and the other, a definitive part rather than simply a solitary legitimate part eventually.

Further, the Central Government may by notice, involve at any rate one National Industrial Tribunals for the settling of current discussions which, in the evaluation of the Central Government, incorporate requests of public importance or are of such a nature that mechanical establishments organized in more than one State are presumably going to be enthusiastic about, or impacted by, such debates. The National Industrial Tribunal will moreover include two people to be named by the Central Government. 

Disallowance on Strikes and Lock-Outs 

No worker can go on a strike without pulling out to the business inside a period of sixty days preceding striking; or inside fourteen days of giving such notice; or before the expiry of the date of the strike showed in such notice, or during the pendency of mollification methods; or seven days after the completion of pacification systems; or during the pendency of intercession strategies; or sixty days after the completion of intervention techniques; or during any period wherein a settlement or award is in action in respect of any issues covered by the settlement or grant. Likewise, no business of a mechanical establishment would dart out any of his/her workers aside from if the conditions referred to above are met. While the ID Act contained relative game plans as per prior warning of strike and lock-out, in any case, such courses of action were essentially relevant to public utility organizations. 

Lay-off, Retrenchment, and Closure 

Under the ID Act, present-day establishments with more than a hundred workers used were expected to secure before approval from the fitting Government to lay-off/monitor workers similarly as in occurrences of determination of a mechanical undertaking. The IR Code has conceded off this need for current establishments, for instance, mines, modern offices, and estates using in any event 300 experts or such higher number as may be told by the Government. Regardless, it isn’t critical to get prior approval in cases wherein such lay-off is a direct result of a lack.

Legislations, The Law

DSPE over the Years: peeping into the domains of the CBI While CBI remains as the centrally equipped, most reliable and efficient investigation agency, there is still a need to look into journey

Society runs on the fore-wheels of laws. The laws are defined as the rules that govern the society and it is equally clear that these rules are not self-enforceable. There has to be an enforcing body that governs, controls and maintains the follow-up pattern of these rules thus maintaining a sense of security. Since the monarchical times this function has been performed by police (although different rulers defined them with different terminology for eg. The Kotwals during Mughal Dynasty). Gradually with time the structure of society changed and that of the Police. Now, rather than having just one force, all states have their own Police Establishments, divided by jurisdictions and laws. While these were capable to tackle the problems in their local areas, there arose a need to establish a larger, potent, and single unit that could deal with ‘special cases’. Today, we call it the Delhi Special Police Establishment (DSPE).

By: Lalima Gupta


The DSPE, traces its roots back to the British Era in India. It was a part of the then Ministry of Was and Supply Department of India in 1941.

Facing a number of internal Corruption and bribery Issues during WW-II, the department was given the task to solve such ‘special issues’. It was then called the Special Police Establishment (SPE) under the DSPE Act under the Superintendence of Qurban Ali Kan. Though the war ended but not the corporality of the department. In 1946 it acquired the name of DSPE. On partition when Qurban Ali Khan opted for Pakistan, Rai Sahib Karam Chand Jain became the first legal advisor of the department. On Independence, there seemed to be a dire need to handle the rampant corruption in various States for which the department maintained its grip and extended its jurisdiction to the UTs as well.  CBI as acronym came later only in 1963 when the Ministry of Home Affairs declared it to be Central Bureau of Investigation on April 1st, 1963. Finally, the CBI brought in its ambit the investigation of more serious and heinous crimes like murder, money laundering, kidnapping, terrorism etc. due to growing reliability and efficiency. With greater number of cases being entrusted to the Bureau, the work categorised and put under three different divisions which are namely,

1. Anti-Corruption Division,

2. Special Crimes Division and

3. Economic Offences.

and an entire new Ministry under the leadership of Prmine Minister was assigned the DSPE work-load called Ministry of Personnel, Public Grievances and Pensions with three separate departments under it:

  1. Department of Personnel and Training (DOPT) (this also includes recruitment of officers through UPSC and SPSC)
  2. Department of Administrative Reforms and Public Grievances
  3. Department of Pensions and Pensioners’ Welfare.

1963: the establishment Year and the constitution process

Although formed in 1946, the established date of CBI is considered to be April 1, 1963 with D.P.Kohli as the founding director (1 April 1963 to 31 May 1968).The CBI Director is appointed, for not less than a term of 2 years, by the Appointment Committee on recommendation of Selection Committee as mentioned in DSPE Act 1946. The Appointment Committee (under section 4A of the SDPE Act) consists of:

·   Prime Minister – Chairperson

·   Leader of Opposition of Loksabha or the Leader of the single largest opposition party in the Lok Sabha, if the former is not present due to lack of mandated strength in the Lok Sabha – member

·   Chief Justice of India or a Supreme Court Judge recommended by the Chief Justice – member

When making recommendations, the committee considers the views of the outgoing director.

The Selection Committee( consisting of other members like Central Vigilance Commissioner, Vigilance Commissioners, Secretary to the Government of India in-charge of the Ministry of Home Affairs in the Central Government, Secretary, Co-ordination and Public Grievances, Cabinet Secretariat ) nominates a certain number of names to the Appointment Committee, and one among whom the Appointment Committee appoints as the CBI director.

Ambivalent Constitutional Validity of CBI

The constitutional validity of CBI went under spotlight when in 2013 Gauhati High Court’s Judge Justice (retd) Ansari  in 2013 stated in a judgment that

“The CBI was never constituted under any statute, but under an executive order of the Union Home Ministry in the year 1963, and that too, with no backing from the Constitution,

and asked the Supreme Court to clarify its status. “In India, police is, strictly speaking, a state subject under the Constitution. At best, the Centre, under our Constitution, has power to collect intelligence. But it cannot enter a state to investigate crimes unless Constitution so permits.”

In an impromtu action the  judgment was immediately stayed by then Chief Justice of India P. Sathasivam. According to Justice Ansari says it cannot be considered “settled in law” since the apex court has never really discussed or decided the matter.[1]

The Authority of CNI Vis-a-Vis the State Police

Deriving  its authority from the central government, the CBI follows the rules for investigation laid down in DSPE Act 1946.

Section 5-Extension of powers and jurisdiction of DSPE.

Accordingly, Scetions 6 and 6A clarify. The central government may extend its power to any area for investigation, subject to the consent of the government of the concerned state but not in cases investigating offences committed within union territories by state government employees acting in their official capacity.[2](Apex Court’s verdict as on April 25th,2020). Being the central investigating agency, the CBI can investigate union subjects like:

·   Offences against central-government employees, or concerning affairs of the central government and employees of central public-sector undertakings and public-sector banks

·   Cases involving the financial interests of the central government

·   Breaches of central laws enforceable by the Government of India

·   Major fraud or embezzlement; multi-state organised crime

·   Multi-agency or international cases

However, in order to conduct such investigations within a state, the CBI is required to take prior consent from the State Government. This consent can be in the form of a ‘general consent’ under Section 6 of the Delhi Special Police Establishment Act, or a ‘specific consent’ concerning individual cases. Almost every state in India has provided the CBI with a general consent to investigate within their borders but the contrary might fall in action at times.

The CVC and the CBI: The Ruckus

The DOPT supervises and controls the following organizations, namely:

  1. Union Public Service Commission (supervises)
  2. Staff Selection Commission
  3. Public Enterprises Selection Board
  4. Lal Bahadur Shastri National Academy of Administration
  5. Institute of Secretariat Training and Management
  6. Central Vigilance Commission (CVC) (supervises)
  7. Central Bureau of Investigation
  8. Indian Institute of Public Administration
  9. Central Information Commission

Central Vigilance Commission (CVC) (not an investigating agency), is an apex Indian governmental body created in 1964 to address governmental corruption.

On the recommendations of the Committee on Prevention of Corruption, headed by Shri K. Santhanam Committee, who stated the need of  an autonomous body, free of control from any executive authority,

charged with monitoring all vigilance activity under the Central Government of India, advising various authorities in central Government organizations in planning, executing, reviewing and reforming their vigilance work, and to advise and guide Central Government agencies in the field of vigilance, CVC was set up by the Government of India Resolution on 11 February 1964. In 2003, the Parliament enacted a law conferring statutory status on the CVC.

The row between CVC and the CBI started when the Ministries and Departments in the Central Government issued a directive that required the CBI to seek approval of the Central Government before pursuing investigation against bureaucrats of the level of Joint Secretary.

But in  1997 Vineet Narain & Others vs. Union of India [3]the SC struck down the validity of a directive on grounds that it violated the independence of the investigative process. 

It was tried to be re-instated in 2003 by another directive however it was again struck down by the Supreme Court in the course of another judgment in 2014 on the basis that it violated the right to equality guaranteed by the Constitution. 

Looking towards the weakening power of CBI in the 1991 Jain Hawal Case failure, the SC decided to consider the and  take account of recommendations made by the Committee headed by N.N. Vohra constituted by Government in 1993, and by the Independent Review Committee (IRC) constituted by Government in 1997, the SC also stated some of the following worth mentioning measure to be taken by the government which are:

  1. The Central Vigilance Commission (CVC) shall be given statutory status.
  2. Selection for the post of Central Vigilance Commissioner shall be made by a Committee comprising the Prime Minister, Home Minister and the Leader of the Opposition from a panel of outstanding civil servants and others with impeccable integrity, to be furnished by the Cabinet Secretary. The President on the basis of the recommendations made by the Committee shall make the appointment. This shall be done immediately.
  3. The CVC shall be responsible for the efficient functioning of the CBI. While Government shall remain answerable for the CBI’s functioning, to introduce visible objectivity in the mechanism to be established for overviewing the CBI’s working, the CVC shall be entrusted with the responsibility of superintendence over the CBI’s functioning.
  4. Recommendations for appointment of the Director, CBI shall be made by a Committee headed by the Central Vigilance Commissioner with the Home Secretary and Secretary (Personnel) as members.

The views of the incumbent Director shall be considered by the Committee for making the best choice. The Committee shall draw up a panel of IPS officers on the basis of their seniority, integrity, experience in investigation and anticorruption work.

The final selection shall be made by the Appointments Committee of the Cabinet (ACC) from the panel recommended by the Selection Committee. If none among the panel is found suitable, the reasons thereof shall be recorded and the Committee asked to draw up a fresh panel.

It was then in year 2003 that the recommendations of the Hon’ble Court were adhered to and Central Vigilance Commission Act was enacted which provided CVC statutory status, and DSPE Act was amended so far as the CVC and the CBI is concerned, some of the provisions (of CVC Act, 2014) and amended provisions  (of DSPE Act, 1946) are:

  1. Section 8 of the CVC Act conferred on Central Vigilance Commission (CVC) the power of superintendence over the Delhi Special Police Establishment insofar as it relates to the investigation of offences under the Prevention of Corruption Act, 1988; or an offence under the Cr.PC for certain categories of public servants. Also, under the Section 8 CVC can review the progress of investigations conducted by the DSPE into offences alleged to have been committed under the Prevention of Corruption Act, 1988 or an offence under the Cr.PC, and review the progress of the applications pending with the competent authorities for sanction of prosecution under the Prevention of Corruption Act, 1988. Also under Section 4C of DSPE Act, 1946 The Central Government shall appoint officers to the posts of the level of Superintendent of Police and above except Director, and also recommend the extension or curtailment of the tenure of such officers in the Delhi Special Police Establishment, on the recommendation of a committee consisting of : – (a) The Central Vigilance Commissioner – Chairperson; (b) Vigilance Commissioners – Members; (c) Secretary to the Government of India in Charge of the Ministry of Home – Member; (d) Secretary to the Government of India in charge of the Department of Personnel – Member. Provided that the Committee shall consult the Director before submitting its recommendation to the Central Government.
  2. Section 4 of DSPE Act, vested the power of superintendence over the Delhi Special Police Establishment in Central Vigilance Commission.
  3. Section 4A (1) of DSPE Act, provided for Committee for appointment of Director of CBI – The Central Government shall appoint the Director of CBI on the recommendation of a committee consisting of the Central Vigilance commissioner as Chairperson, the Vigilance Commissioners, the Secretary to the Government of India in-charge of the Ministry of Home Affairs, and the Secreatary (coordination and public grievances) in the Cabinet Secretariat.
  4. Section 4B (1) provided that the Director shall, notwithstanding anything to the contrary contained in the rules relating to his conditions of service, continue to hold office for a period of not less than two years from the date on which he assumes office. (2) The Director shall not be transferred except with the previous consent of the Committee referred to in subsection (1) of section 4A.[4]

Conclusively it can be stated that despite going through crests and troughs like a challenge to its constitutionality, the CBI v. CBI row, the DSPE’s position as the most trusted investigating agency remains unshaken and affirmed. Hence, now is the peak time to provide it with a statutory authority of its own relying on its popularity an demand else in words of Joginder Singhv(former CBI director)

“The political class will never give independence to the CBI”.

End Notes:

[1] Constitutionality of CBI is questionable: Ex-HC judge who ruled CBI has no legal backing. The Print on August 20th , 2020 at 7 at

[2] CBI need not take state consent to probe offences within UTs by state employees. Hindustantimes on August 20th ,2020 at 7 at

[3] 1998 CRI LJ 1208.

[4] CBI feud: History of CBI and CVC. Clatpossible on August 20th ,2020 at 5 at

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