Anti-corruption act discouraging bureaucrats from taking timely decisions: Jaitley

The Union Finance Minister says govt committed to ensuring ease of doing business

Finance Minister Arun Jaitley said on Monday the Centre was committed to creating a business-friendly environment in the country and that several issues in the Companies Act, introduced by the previous government, were being addressed.

The Union Minister also said that the Prevention of Corruption Act, dated before the liberalisation in 1991, is discouraging bureaucrats in many departments like Defence and Disinvestment from taking decisions on time.

The Union Minister also said 15 provisions in the Companies Act, which cannot be corrected through notifications have been amended and passed through Lok Sabha and it is currently pending with Rajya Sabha.

Speaking at the Confederation of Indian Industry (CII's) meeting, he said "I am surprised what various Chambers of commerce were doing when the Bill (the new Companies Act, 2013 introduced by the previous government) was made. Some chambers wanted the bill to be passed."

He said that some of the provisions in the new Companies Act introduced by the previous government, were copied from the repealed Prevention of Terrorism Act (POTA).

Through discussions with the industry, the present ministry has identified around 50 points to be taken step on and the required action is being taken. Many of the provisions are not being notified. Around 15 provisions were beyond correctional measures, which are being amended, he added.

The Minister also said the Prevention of Corruption Act is not allowing bureaucrats to take decisions and many are tend to leave the onus to their successor.

"Language of some of the provisions in the Act are so wide that it covers actions taken by the Bureaucrats. The Act has become inconsistent with current economic climate," he said.

There are delays in some departments like defence and disinvestment, because of this.