Ignoring the din created by the Congress over the National Herald case, the lok Sabha on Wednesday went ahead with the debate and passed the Amendment Bill to modify the archaic Indian Trusts Act of 1882.
The Indian Trusts (Amendment) Bill, 2015, was passed by a voice vote amid continued protests by the Congress members, who were in the Well raising slogans throughout the discussion on the Bill. They also opposed taking it up for passage, citing that the House was not in order.
Moving the bill for passage, Minister of State for Finance Jayant Sinha said the 1882 Act was a “relic of the colonial past”. Sections 20 and 20A needed to be amended to allow trustees to invest trust funds in securities and bonds notified by the Government, he said.
Section 20 deals with the investment of trust money and restricts the trustees to investing only in the prescribed securities, including promissory notes, debentures, stock or other securities of any State Government or Central Government or of the United Kingdom of Britain and Ireland. Section 20A lists the limits of the power of the trustee to purchase redeemable stock at a premium.
The Minister said the Bill would give greater autonomy and flexibility to trustees in deciding on investment on trust money. “Through this Bill, the Indian Trust Act will be ready for the 21st century.”
Parliamentary Affairs Minister Venkaiah Naidu said functioning of Parliament cannot be disrupted and people of the country want the legislation. Naidu was replying to the objections raised by Mallikarjun Kharge, Congress leader of the House.
Participating in the short debate on the bill, B Mahtab (BJD) wanted the Government to come out with a model legislation for Trusts, Societies and Wakf Board. “The Bill is consistent with the current economic scenario and has rightly shifted from merit based to disclosure based reporting,” he said.
Hukum Singh (BJP) said permitting trusts to invest in shares and bonds of listed companies would be a market boosting measure. P K Biju (CPI-M) said the amendments in the Act should ensure that there is no harm to the Trusts in the country. “This Government and the previous Government are always looking to favour corporates,” he said.
After Sinha completed his reply, some Opposition members, including NCP’s Tariq Anwar, said they too wanted to speak. However, the requests were not entertained by Deputy Speaker M Thambidurai who was in the Chair. Congress members protested against the decision and Sushmita Dev was heard shouting “you (the Chair) are biased”. Minister of State for Parliamentary Affairs Minister Rajiv Pratap Rudy then remarked “you people have no respect to courts, democracy.”
law Minister D V Sadananda Gowda moved for consideration the Bill to set up commercial benches in select High Courts to deal with high value business disputes. However, Rudy requested the Chair to take up discussion on drought situation in the country which was pending.