MCQ Test: Important Committees - 1 - Assam Police Constable MCQ

Disinvestment Commission 

• In 1996, the Government of India set up a Disinvestment Commission under the Ministry of Industries.
  • The mandate of the commission was to assess the viability and advice the Government on disinvesting various PSE's through market development and diversifying transfer of ownership of the PSU's for five-ten years period.
  • Ministry of Industry (Department of Public Enterprises) vide a resolution dated 23 August 1996, constituted a Public Sector Disinvestment Commission for a period of three years under Shri G.V. Ramakrishna along with four other members.
  • The term was further extended till 30 November 1999.
  • The Commission submitted reports on 58 PSEs. 
• This disinvestment commission ceased to exist in May 2004.
• On 14th April 2016, the Department of Disinvestment was renamed as Department of Investment and Public Asset Management (DIPAM).
• In November 2005 National Investment Fund was constituted to channel the proceeds from the disinvestment of Central Public Sector Enterprises.
• Disinvestment helps in creating a better environment for investment.

Important Points 
The Rangarajan Committee:

• It was constituted by the government in 1993 for making recommendations in the context of disinvestment.
• The committee proposed that:
  • The public sector units to be disinvested should be first identified and disinvestment could be made up to any level. It put defense and atomic energy in exception where the government should retain the majority holding in equity.
  • It should be a transparent process thereby duly protecting the right of the stakeholders.
  • The setting up of an autonomous body for the smooth functioning and monitoring of the disinvestment programme. This recommendation led to the set up of the Disinvestment Commission in 1996 as an advisory body having a full-time chairman and four part-time members. The Commission was also required to advise the government on the extent, made, timing and pricing of disinvestment.

Central Vigilance Commission was established in 1964.

• It was set up on the recommendations of the Santhanam committee report.
  • Santhanam committee was appointed by Lal Bahadur Sastri In 1962.
  • Kasturiranga Santhanam was the chairman of the Santhanam Committee.
• Central vigilance commission conferred statutory status in 2003.
• The headquarters of the central vigilance commission is at Satarkata Bhavan in New Delhi.
• The central vigilance commission consists of a chairperson and not more than two members.
• Nittoor Srinivasa Rau was the first vigilance commissioner of India.
• Sh. P. K. Srivastava is the current vigilance commissioner of India.
• Gorwala committee is a committee on public administration.
• The first administrative reforms commission was established on 5 January 1966 and it was chaired by Morarji Desai.

Key Points

• National Planning Committee
  • The first attempt to develop a national plan for India came up in 1938.
  • In that year, Congress President Subhash Chandra Bose had set up a National Planning Committee with Jawaharlal Nehru as its president.
  • However, the reports of the committee could not be prepared, and only for the first time in 1948 -49, some papers came out.
  • In 1944 Eight Industrialists of Bombay viz. Mr. JRD Tata, GD Birla, Purshottamdas Thakurdas, Lala Shriram, Kasturbhai Lalbhai, AD Shroff, Ardeshir Dalal, & John Mathai working together prepared “A Brief Memorandum Outlining a Plan of Economic Development for India”.
  • This is known as the “Bombay Plan”.
  • This plan envisaged doubling the per capita income in 15 years and tripling the national income during this period.

Additional Information

• Jawaharlal Nehru
  • Jawaharlal Nehru was the first prime minister of India.
  • He had in many ways contributed to laying the foundation of post-independent India.
  • This can be reflected through policies of democratic socialism, non-alignment, secularism, and institutionalization of democracy, etc.
  • Nehru believed that India belonged to all who had contributed to its history and civilization and that the majority community had a special obligation to protect the rights, and promote the well-being, of the minorities.
  • This helped in building the narrative of ‘Unity in Diversity.
• Lal Bahadur Shastri
  • Lal Bahadur Shastri was born on 2nd October 1904 at Mughalsarai, Varanasi, Uttar Pradesh.
  • He was given the title “Shastri” meaning “Scholar” by Vidya Peeth as a part of his bachelor’s degree award.
  • He introduced the slogan “Jai Jawan Jai Kisan” and played a pivotal role in shaping India’s future.
  • He became a life member of the Servants of the People Society (Lok Sevak Mandal), founded by Lala Lajpat Rai.
  • There he started to work for the upliftment of backward classes, and later he became the President of that Society.
  • He participated in the non-cooperation movement and the Salt Satyagraha.

The government appointed a committee under the chairmanship of Mr. Kelkar to examine the structure of direct and indirect taxes.

• Established on 1 January 1979, the Mandal Commission was a committee that worked for the socially and educationally backward classes in India. It was responsible for considering reservations for the backward classes and therefore, suggested that jobs in the Central Government should be reserved for OBC.
• It was set up by the Janata Party under Prime Minister Morarji Desai and was headed by B. P. Mandal.

The Lodha committee, which was primarily assigned with the task of determining the quantum of punishment for players and others involved in spot-fixing in IPL, also gave a recommendation on the change in the structure and ecosystem in the Indian cricket board saying no to politicians’ involvement in BCCI.

The correct answer is ​Shah Commission.

• The Emergency declared in 1975 (internal emergency) proved to be the most controversial.
• There was widespread criticism of the misuse of Emergency powers.
• In the elections held to the Lok Sabha in 1977 after the Emergency, the Congress Party led by Indira Gandhi lost and the Janta Party came to power.
• This government-appointed the Shah Commission to investigate the circumstances that warranted the declaration of an Emergency in 1975.
• The commission did not justify the declaration of the Emergency.
• Hence, the 44th Amendment Act was enacted in 1978 to introduce a number of safeguards against the misuse of Emergency provisions.

Key Points

• The Regional Rural Banks were established on the recommendations of the Narsimha Committee Rural Credit.
• Regional Rural Bank:
  • Regional Rural Banks were established on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislation of the Regional Rural Banks Act, 1976.
  • They are financial institutions that ensure adequate credit for agriculture and other rural sectors. 
  • They were set up on the recommendations of the Narasimham Working Group (1975).
  • RRBs were granted legal provisions under the Regional Rural Banks Act, 1976.
  • The first Regional Rural Bank "Prathama Grameen Bank" was set up on 2nd October 1975. 
  • The equity of a regional rural bank is held by the Central Government, the concerned State Government, and the Sponsor Bank in the proportion of 50:15:35.
  • The RRBs have combined characteristics of a cooperative and a commercial bank.
  • It operates within the local limits as notified by the Government.
  • The main objectives of RRBs are:
    • To provide credit and other facilities to the small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs in rural areas.
    • To check the outflow of rural deposits to urban areas.
    • To reduce regional imbalances.
    • To increase rural employment generation.
    • They are required to provide 75% of their total credit as priority sector lending.

Additional Information

• Rekhi Committee on Indirect Tax Reform:-
  • The Rekhi Committee was constituted in 1992 under the chairmanship of K.L. Rekhi. The recommendations are a Tribunal should be set up to deal with problems between taxpayers and tax collectors.
  • A High-Level India classification committee with trade and industry representatives should be set up.
  • Important consignments should be cleared within 3 days.
  • The monopoly of one nominated bank in each state should be supplemented by another bank.
  • Coercive measures must not be used for recovery of disputed duty amount when the assessee files a stay application.
• Kelkar Committee Report on Tax Reforms:-
  • A task force on Direct and Indirect Taxes was constituted under the chairmanship of DR. Vijay Kelkar in 2002. The recommendation of the Vijay Kelkar committee are:
    • The income tax exemption limit must be increased to Rs. 1 Lakh from the present 50,000 tax exemption limit for senior citizens and widows should be Rs. 1.5 lakhs.
    • There should be a two-tier income tax structure with a 20% tax for earnings of Rs. 1 lakh to 4 lakh and 30% tax for over Rs. 4 lakhs. The standard deduction must be abolished but suggested an exemption for conveyance
      allowance.
    • There should be the abolition of long-term capital gains tax, dividend tax, and wealth tax. There should not be any surcharge on income tax.
    • There should be an interest subsidy of 2% for housing loans up to Rs. 5 lakh.
    • There must be a 30% corporate tax for domestic companies and 35% for foreign companies and there should be no Minimum Alternate Tax (MAT).
    • There Should be a 14% Central Value Added Tax (CENNAT) rate.
    • There should be nationwide VAT and Comprehensive Service Tax.
    • Exemptions for life-saving drugs, security items, and farm products.
    • Exemption of tax for small-scale units with a turnover up to Rs. 50 lakh.

Important Points

• For estimating Poverty Line in India, Lakdawala Committee, 1993 was an expert group chaired by D.T. Lakdawala, that set the poverty line such that anyone who was above it was able to afford 2100 and 2400 calories in the urban and rural areas respectively including shelter and clothing.
• According to them, the poor were not able to meet these average energy requirements.

Additional Information

Key Points

• Telangana, as a geographical and political entity, was born on June 2, 2014, as the 29th and the youngest state in the Union of India.
• The Committee headed by the former Chief Justice, B. N Srikrishna was formed to look into the proposed state of Telangana. It was known as the Srikrishna committee or the Committee for Consultations on the Situation in Andhra Pradesh (CCSAP).
• The committee was constituted by the Government of India on 3 February 2010 and submitted its report on 30 December 2010 to the Ministry of Home Affairs.
• Its main aim was to examine the situation in the State of Andhra Pradesh with reference to the demand for a separate State of Telangana as well as the demand for maintaining the present status of a united Andhra Pradesh.
• Some of the other members of the committee were Professor (Dr.) Ranbir Singh, Dr. Abusaleh Shariff, Ravinder Kaur|Dr. Vinod K Duggal, former Home Secretary, also functioned as its member-secretary.

Key Points

• The Acworth Committee was a British committee that was set up in 1920 to investigate the financial management of the Indian Railways. The committee's main recommendations were:
  • Consolidation and nationalization of the Indian Railways: The committee recommended that the Indian Railways should be consolidated into a single, unified system, and that it should be nationalized, i.e., owned and operated by the government.
  • Separation of the railway budget from the general budget: The committee recommended that the railway budget should be separated from the general budget, so that the railways could have more autonomy in financial matters.
  • Investment in new technology: The committee recommended that the railways should be encouraged to invest in new technology, in order to improve efficiency and safety.
• The Acworth Committee's recommendations were implemented in 1924, and they had a significant impact on the development of the Indian Railways.
• The consolidation and nationalization of the railways led to improved efficiency and coordination, and the separation of the railway budget from the general budget gave the railways more autonomy in financial matters.
• The investment in new technology also helped to improve the railways, and made them safer and more efficient.

Key Points:

• Malegam Committee was constituted for suggesting reforms in the micro finance sector.
  • Malegam was in charge of a 1995 review of public issue disclosure rules.
  • Guidelines were created by SEBI based on his recommendations, and they suggested things like firms disclosing loans to subsidizing companies.
  • Malegam was chosen to lead the renowned Malegam Committee, a subcommittee of the RBI Central Board of Directors created to investigate problems and difficulties in the MFI Sector.
  • In January 2011, the committee delivered its report to the RBI.
  • Malegam argued that microfinance organizations had abandoned the underprivileged. 

Additional Information:

• Chakravarty Committee: 
  • To evaluate how the Indian monetary system operated, the Sukhamoy Chakravarty Committee was established in December 1982.
  • Prof. Sukhamoy Chakroborty served as the committee's head.
• Narasimhan Committee:
  • ​The most influential banker in India since independence is Narasimham.
  • It is admirable how his findings, the Narasimham Committee on Financial System (1991) and the Narasimham Committee on Banking Sector Reforms (1998), changed how the Indian banking industry operated.
• Khan Committee:
  • ​Wide-ranging modifications to the foreign portfolio investment (FPI) policy were proposed by the HR Khan committee, which was established by the Securities and Exchange Board of India (SEBI).

Key Points

• The Punchhi Commission was a commission set up by the Government of India in 2007 to review the working of the Indian federal system and to make recommendations for improving centre-state relations.
• The commission was headed by former Chief Justice of India Madan Mohan Punchhi.

Highlights of the commission:

• To examine what could be the role, responsibility, and jurisdiction of the Centre during major and prolonged outbreaks of communal violence, caste violence, or any other social conflicts.
• To review other aspects of Centre-States relations including taxes and linking of rivers.
• To study the role, responsibility, and jurisdiction of the Centre vis-à-vis States in promoting effective devolution of powers and autonomy to Panchayati Raj institutions and local bodies.
• To study the need and relevance of separate taxes for freeing inter-state trade to establish a unified domestic market.

Additional Information

• Madan Mohan Punchhi was the former Chief Justice of India, appointed on 18-1-1998 and retired on 9-10-1998.
• He was born on 10th October 1933 at Pakpattan, District, Montgomery (now in Pakistan).

Key Points

• Tendulkar Committee - Suresh Tendulkar committee was constituted by the Planning Commission in the year 2005.
• Suresh Tendulkar's committee adopted the cost of living as the basis for identifying poverty.
• Rangarajan Committee - The Expert Group under the Chairmanship of Dr. C. Rangarajan was formed to Review the Methodology for Measurement of Poverty in the country.
• It was constituted by the Planning Commission in the year 2012.
• Sarkaria commission - On March 24, 1983 Government announced the proposal to appoint a Commission under the Chairmanship of R. S. Sarkaria, a retired Judge of the Supreme Court.
• The Commission reviewed the arrangements between the Centre and the States.

Key Points

• Ashok Mehta Committee
  • It was constituted in 1977 by the Janata Government under the chairmanship of Ashok Mehta.
  • This  committee submitted its report in 1978 and gave some recommendations:
  • The 3-tier system of Panchayati Raj should be replaced by the 2- tier System: Zilla Parishad at district levels and below it the Mandal Panchayat at village levels.
  • Zilla Parishad should be the executive body and made responsible for planning at the district level.
  • Seats for SCs and STs should be reserved based on their population.
  • The State government should not supersede the Panchayati Raj institutions.
  • There should be an official participation of political parties at all levels of Panchayat elections.
  • The Panchayati Raj institutions should have compulsory powers of taxation to mobilize their own financial resources.
  • The Chief Electoral Officer of state in consultation with the Chief Election Commissioner should organize and conduct the Panchayati Raj elections.
  • Development functions should be transferred to the Zila Parishad and all development staff should work under its control and supervision.
  • A minister for Panchayati Raj should be appointed in the state council of ministers to look after the affairs of the Panchayati Raj institutions.

Additional Information

The Dinesh Goswami Committee was concerned with electoral reforms.

• The Dinesh Goswami Committee was formed in 1990.
• This committee was concerned with the electoral reforms.
• It recommended that there is a need for restructuring of the accounting of election expenses.
• According to the committee, the army and para-military personnel, diplomats, and other citizens living outside India shall be allowed proxy voting.
• In addition, it recommended that the security deposit for Lok Sabha and Assembly should be increased to Rs. 5000 and Rs. 2500 respectively.
• Furthermore, it also suggested that a candidate should not be allowed to contest from more than two constituencies.

Indrajit Gupta

• Indrajit Gupta was the chairman of the committee on state funding of elections.
• It was an 8-member committee that was set up by the all-party conference in May 1998.

Tarkunde Committee

• Jayprakash Narayan had appointed a committee to study and report on the scheme for electoral reforms in 1974 under the chairmanship of V.M. Tarkunde known as JP Committee or Tarkunde Committee.
  • Besides other recommendations, the Committee recommended that the minimum age of voting should be 18 years. It was enacted by the 61st Amendment Act of 1988.
  • The committee submitted the report in 1975.
• Vithal Mahadeo Tarkunde has been referred to as the "Father of the Civil Liberties movement" in India.