Increased penalty for firms unwilling to dispense data

The new rules are aimed at improving data collection.

The statistics ministry has started the process to operationalise the newly passed Collection of Statistics Act, 2008, by framing draft rules and guidelines that will enable better data collection and dissemination.

The new rules are being circulated to various departments and a final decision is likely only after the new government takes charge after the ongoing general elections.

“The rules and guidelines would not be very stringent. They would be more focussed on improving data collection than empowering employees,” said SK Das, director general of Central Statistical Organisation (CSO), a unit of the Ministry of Statistics and Programme Implementation (MOSPI).

The ministry will levy higher cumulative penalty for not sharing data, say officials. However, criminal charges will be pressed in cases where manipulation of data is involved, they say.

Under the new Act, people or companies not divulging data would have to pay a fine of Rs 1,000 and they would be given a 14-day notice period to comply. If the information is not provided even after two weeks, the penalty will rise to Rs 5,000 per day.

Under the old Act, which was passed in 1953, the penalty is only Rs 500 for the first default and Rs 200 per day thereafter.

“We had seen a trend that companies preferred paying the penalty than going through their books and providing us information,” said Pronab Sen, India’s Chief Statistician and secretary, MOSPI.

The increased fine will make it obligatory for companies to comply with MOSPI data collection activities and will ensure that most data are collected on time.

“The new penalty scheme will ensure that data collection is done on time. It will increase the accuracy of the data,” Sen added.

The Act also makes wilful manipulation or omission of data a criminal offence, punishable by a prison term that may extend up to 6 months. This penalty will also apply if a company prevents or obstructs any employee from collecting data.

The government is also planning to finalise a list of data series that will be called as “core statistics”, that is, numbers which are of national importance, within the next three months.

The Collection of Statistics Bill, 2008, gave powers to the government to classify any statistics as “core statistics” and also determine the method to collect and disseminate the same.