Money bill: Centre opposes priority hearing of pleas by Supreme Court
The government has used the money bill provision to pass crucial laws.
The Centre on Thursday opposed the Supreme Court’s decision to give priority to hearing pleas challenging the manner in which the government passed key legislations by declaring them money bills, reported Live Law.
For a bill to be enacted into law, it generally requires the approval of both the Lok Sabha and the Rajya Sabha. However, a money bill can be introduced only in the Lok Sabha and the Rajya Sabha cannot amend or reject such bills. The Upper House can offer recommendations but those are non-binding.
The case was on Thursday listed before a seven-judge bench comprising Chief Justice of India DY Chandrachud and Justices Sanjay Kishan Kaul, Sanjiv Khanna, BR Gavai, Surya Kant, JB Pardiwala and Manoj Mishra for issuing procedural directions.
Senior advocate Kapil Sibal, appearing for the petitioners, urged the judges to prioritise the matter.
After the chief justice concurred, Solicitor General Tushar Mehta requested him to give importance based on “seniority [of the cases]”, reported Live Law.
“My lords can’t decide priority based on political exigencies,” he added.
The court said it will take an appropriate call.
Congress Rajya Sabha MP Jairam Ramesh, who is one of the petitioners in the case, said the verdict will have far-reaching implications on the functioning of Parliament.
“I have repeatedly raised this issue in the Parliament and outside it through 3 petitions in the Supreme Court – first one filed on April 6th, 2016 – as it denies the Rajya Sabha the opportunity to discuss or pass amendments to key legislations,” he said in a tweet.
Finally, the Supreme Court has set up a seven judge bench, headed by the CJI himself, to hear my petitions challenging the unconstitutional manner in which the Modi government has passed key Bills by getting them declared as Money Bills.
— Jairam Ramesh (@Jairam_Ramesh) October 12, 2023
I have repeatedly raised this issue in…
The case
Technically, money bills deal with taxation, borrowing by the government and appropriation of money from the Consolidated Fund of India, among others.
The Lok Sabha Speaker decides if a bill qualifies as a money bill and that decision is final.
The Bharatiya Janata Party at the Centre has often used this money bill provision to pass crucial laws.
It has passed the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, and amendments to the Foreign Contribution Regulation Act, 2010, and the Reserve Bank of India Act, 1934, as money bills. The BJP also introduced the electoral bond scheme as a money bill.
The BJP government even made crucial amendments to the Prevention of Money Laundering Act with the help of Finance Acts passed in 2015, 2016, 2018 and 2019. Finance Bills passed during the budget are introduced as money bills.
The Opposition has alleged that the Centre used the money bill route to pass key legislations since it did not have majority in the Rajya Sabha. The BJP only has 93 members in a House of 238.
The seven-judge bench will examine the constitutionality of these laws that were passed as money bills.