Thursday 11 August 2016

Judicial Reforms in India

Judicial Reforms


Of the three pillars of a democracy, the judiciary is perhaps the only institution which has the most respect. Courts are the last resort for any person to get his problems redressed and in a democracy, the judicial system needs to be strong to protect the rights of people. A free, fair and efficient judicial system can ensure that justice is done in its true sense. For that, every country has to make sure that all the problems of the judiciary are addressed in a timely manner.

In India, the judicial system, known to be one of the strongest judiciary in the World, is facing a lot of problems. As the biggest democracy in the World, the Indian courts have an enormous task to deliver fast and efficient justice to lakhs of citizens. Apart from that, the legislature and the executive are known for their inefficiency and problematic functioning. In such a case, the whole burden is put on the judiciary to manage the affairs of the country. This means that there are lakhs and lakhs of cases and very few judges to deliver justice. The administration of justice takes decades in each case.  Therefore, the most important problem is that of judicial backlog. In this regard, there are many inter-connected reforms that can be initiated. First of all there are multiple old and new laws on the same subject that create confusion, loopholes and various reasons for litigation. Poorly drafted legislations hamper the task of justice administration.  The country should enact a Uniform Civil Code, which is a long overdue reform.

Another related problem is that the quality of lawyers and judges is not upto mark. There are inexperienced judges, oversmart lawyers and inefficient public prosecutors. The lawyers take advantage of the laws and mislead the courts to delay the trials of cases. Lack of strictness on part of judges and government lawyers adds to the fact that most of the cases are decided in years.

To reform this, firstly, it is needed that the judicial infrastructure is enhanced. There should be more number of lower court judges, staff and they should be well qualified.  The state of affairs today is that the High Courts and the Supreme Court have widened their powers so much that they are full of cases. It is estimated that a High Court judge in High Court gets only 2-5 minutes to decide a case. This has serious impact on the quality of judgments as well. Secondly, the Government is the biggest litigator in India and therefore it should develop mechanism whereby only important cases reach courts. There should be ways to solve the disputes at the departmental level. If this is done, a lot of petty matters will be solved quickly without waste of resources and time. Alternative Dispute Mechanisms like mediation, conciliation, arbitration where the procedures are relaxed should be encouraged. Such informal methods are speedy, efficient and cost effective therefore poor and illiterate people would be more open to solve disputes by such methods.

Another problem area is that the common man does not have access to justice. The weaker sections of the society, who are in need of justice the most, are left out of the process due to the delays, costs and hassles. Courts are located at far off places and this coupled with the fact that the complex procedures are out of the understanding of common people, means that such people avoid courts. To reform this, it is needed that there is focus on creation of rural courts. The judiciary should focus on encouraging settlement of disputes via ADR methods. There should be more stress on Legal Aid and the law schools, other NGOs should also be encouraged to be involved in giving Legal Aid.  This would ensure that the poor person also has good representation in courts.

Judicial Appointments is another important issue that has been in controversy lately. Although the lower court appointments are with the respective State Governments, the judges of the High Courts and the Supreme Court are appointed by the collegium process. This opaque and secretive process means that the judiciary is self-appointing and the executive has no say in the appointment of the judges. The criticism is of favoritism and lack of transparency. One of the suggestions for reform was the appointment of the National Judicial Commission, which was recently struck down as unconstitutional by the Supreme Court on the ground that it violates the doctrine of judicial independence. However, the independent commission which represents the executive, the judiciary and other independent legal personalities could be a good method to ensure transparency and merit in such appointments. This tussle between the judiciary and the executive means that the judicial appointments are delayed and huge vacancies are made in High Courts. At the lower level, the creation of Indian Judicial Services can help in enhancing the quality of judges.

One of the connected issue is that of Judicial accountability and there should be a law to ensure that judges are made accountable for their actions and this would also help curb down the corruption in the judicial system. An independent commission can be formed to assess the accountability of judges.

There are many other and connected issues like the proper crime investigation by police, more powers to the public prosecutors, plea bargaing etc. that should be looked into to ensure that justice is neither delayed and not denied. There have been certain positive steps in this direction but a lot more needs to be done.

- Dev Chaudhary




Goods and Services Tax (GST)

Goods and Services Tax

The GST is one of the biggest tax reform proposal in India. GST is a comprehensive tax levied on manufacture, sale and consumption of goods and services at the national level. The demand for GST has been growing since years.

The tax system in India is a very complex system with lots of loopholes and procedures. There were a lot of different taxes imposed both at State and National level like excise duty, service tax, sales tax, octroi. Therefore, the GST is aimed at bringing together most of the indirect taxes under a single mechanism. The proposal for a unified tax system has been going on since decades. Even though everyone acknowledged the need for GST, there were no steps taken at the political level to implement it. Since India follows a federal structure, the GST can only be implemented in India by amending the Constitution and hence The 122nd Constitution Amendment Bill was introduced in the Parliament.

One of the major aims of the GST is to reduce the double taxation over goods and services. It will reduce the number of times a tax is imposed on the goods and therefore there will be less possibility of manipulation. Other major uses of having a single GST is that it will improve transparency and simplify the process. There will be many direct and indirect impacts of GST on our country. First of all it will greatly help the business. The business would have clarity over the uniform rate of taxation and it will help in improving business environment. Secondly, inter-state trade will be increased and made simpler.

In the longer run, the GST will ensure that there is better tax collection, lesser chances of tax evasion and that there is a boost in the collection of revenue. GST has been implemented in a lot of countries and it has been successful in boosting the economy of such countries. It is estimated that GST will add 0.5% to the GDP of India. Also, the major benefit is that since the multiple taxes would come down, it will ensure lower tax rates for the people.

However, there are a number of possible problems as well. Under the Constitution of India, both the States and Center are empowered to impose taxes. Therefore, the GST proposed is of a dual nature where there will be a Central GST as well as a State GST. This means that again there would be more than one tax and it will be difficult to manage the collections, distribution of such taxes. Other than that, the States would loose power to amend the tax rate, exempt certain items from taxation. Therefore, if the State was able to exempt certain item from tax to promote a product, it would not be able to do that after GST is implemented. The autonomy of the States would be lost.

The biggest problem is deciding on the rate of taxation. There are suggestions of the tax rate between 12-26 per cent. Since the interest of both the Center and the States is involved, it is difficult to agree on one rate of tax. Apart from that, the GST even if implemented would not address the major tax problems on India. It is an indirect form of tax. In India, the major tax collection is from indirect taxes, which is totally opposite the other developed countries where the majority of tax collection is from direct taxes like income tax. Hence, the Government has to find ways to ensure that direct tax base is widened.


In the end, it can be safely said that the GST is a good step towards ensuring economic growth in India. There will be certain problems in the implementation of the GST and then in the short run but it is a good step in the reform of taxation of our country and it will benefit India in the long run.

- Dev Chaudhary