Centre ponders Economic Law Commission to push reforms

By J. Venkatesan

NEW DELHI, OCT. 30. Concerned over the tardy pace of second generation reforms, the Centre is considering setting up an Economic Law Commission (ELC) to review all economic laws and suggest changes in tune with global trade practices.

The brainchild of the Union Law Minister, Mr. Arun Jaitley, the ELC will have economic and legal experts to suggest measures to bring laws on par with international economic standards and also cut down delays in disposal of cases relating to these.

According to highly-placed sources in the Government, the proposal to set up an ELC is an offshoot of a letter written by the Finance Minister, Mr. Yashwant Sinha, to Mr. Jaitley about the outdated economic laws causing hindrance to the progress of economic development.

Mr. Sinha was reported to have expressed anguish over the fact that several international agencies, financial institutions, multi-national corporations and foreign investors were dismayed by the `archaic' legal system, which hindered foreign direct investment and fast track economic growth.

He pointed out to Mr. Jaitley that during the last decade, though globalisation had been set in motion, the progress in terms of growth was very slow. He drew his attention to the fact that India had committed itself to revamp all economic laws to put India in the category of the fastest-growing nations.

It was in this context that Mr. Sinha requested Mr. Jaitley to consider the proposal to set up an ELC. Mr. Jaitley called a meeting of senior officials in the Law Ministry to discuss the proposal. According to sources, the dominant view was that the existing Law Commission itself could be expanded and there was no need for another Economic Law Commission.

The Law Ministry was stated to be keeping its options open on whether to set up a new ELC or expand the present Law Commission, which would entail additional expenses.

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