Executive Summary:
Bill No. 52 of 2014, also known as the Telecom Regulatory Authority of India Amendment Act, 2014, amends the Telecom Regulatory Authority of India Act, 1997. The Act modifies employment restrictions for the Chairperson and members of the Telecom Regulatory Authority of India after they leave office. It was deemed to have come into force on May 28, 2014, and seeks to replace the Telecom Regulatory Authority of India Amendment Ordinance, 2014.
Key Points / Main Content:
Amendment to Section 5 of the Telecom Regulatory Authority of India Act, 1997:
* Replaces subsection 8 of Section 5: The Chairperson and whole-time members are restricted from accepting employment under the Central Government, any State Government, or any telecommunication services company for two years after leaving office, without prior Central Government approval.
* Removes the Explanation at the end of Section 5.
Repeal and Saving:
* The Telecom Regulatory Authority of India Amendment Ordinance, 2014 is repealed.
* Actions taken under the principal Act, as amended by the Ordinance, are considered to have been taken under the corresponding provisions of the principal Act, as amended by this Act.
Objects and Reasons:
* The amendment aligns the employment restrictions for the Chairperson and Members of the Telecom Regulatory Authority of India with those of other regulatory bodies.
* It limits the restriction on further employment in the Central Government, any State Government, or any telecommunication services company to a period of two years from the date of demitting office, with a provision for prior approval from the Central Government.
Impact Analysis:
Central Government:
* Impact: Requires the Central Government to consider and approve potential employment opportunities for former Chairpersons and Members of the Telecom Regulatory Authority of India within two years of their leaving office.
* Action Required: Implement procedures for reviewing and approving employment requests from former Chairpersons and Members, ensuring compliance with the two-year restriction period.
Chairperson and Whole-time Members of the Telecom Regulatory Authority of India:
* Impact: Modifies employment options for two years after leaving their position, requiring Central Government approval for specific roles.
* Action Required: Be aware of the two-year employment restriction and seek prior approval from the Central Government before accepting certain employment opportunities.
Telecommunication Companies:
* Impact: Impacts the ability to hire former Chairpersons/Members of the Telecom Regulatory Authority of India within two years of their leaving office, unless Central Government approval is obtained.
* Action Required: Be aware of the two-year employment restriction and ensure any hiring of former Chairpersons/Members complies with the Central Government approval requirement.
Key Entities Referenced
Telecom Regulatory Authority of India Act, 1997: The principal Act being amended by this bill, regulating the telecom sector in India.
Telecom Regulatory Authority of India Amendment Act, 2014: The Act amending the Telecom Regulatory Authority of India Act, 1997.
Parliament: The legislative body enacting the bill.
Central Government: The Union Government of India, which has approval authority over employment restrictions.
State Government: The government of an individual state within India; employment restrictions also apply to these governments.
Telecom Regulatory Authority of India Amendment Ordinance, 2014: The ordinance that this bill seeks to replace, which amended the Telecom Regulatory Authority of India Act, 1997.
Insurance Regulatory and Development Authority Act, 1999: Act related to employment of Chairperson or Members of the Insurance Regulatory and Development Authority.
Pension Fund Regulatory and Development Authority Act, 2013: Act related to employment of Chairperson or Members of the Pension Fund Regulatory and Development Authority.
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LOK SABHA
————
The following Bill was introduced in Lok Sabha on 11th July, 2014:—
BILL NO. 52 OF 2014
A Bill further to amend the Telecom Regulatory Authority of India Act, 1997.
BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:—
1. (1) This Act may be called the Telecom Regulatory Authority of India (Amendment)
Short title
Act, 2014. and com-
mencement.
(2) It shall be deemed to have come into force on the 28th day of May, 2014.
24 of 1997. 2. In the Telecom Regulatory Authority of India Act, 1997 (hereinafter referred to as the Amendment
principal Act), in section 5,— of section 5.
(i) for sub-section (8), the following sub-section shall be substituted, namely:—
“(8) The Chairperson and the whole-time members shall not, for a period
of two years from the date on which they cease to hold office as such, except
with the previous approval of the Central Government, accept—
(a) any employment either under the Central Government or under
any State Government; or2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(b) any appointment in any company in the business of
telecommunication services.”;
(ii) the Explanation at the end shall be omitted.
Repeal and 3. (1) The Telecom Regulatory Authority of India (Amendment) Ordinance, 2014, is Ord. 3 of 2014.
saving. hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the principal
Act, as amended by the said Ordinance, shall be deemed to have been done or taken under
the corresponding provisions of the principal Act, as amended by this Act.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
STATEMENT OF OBJECTS AND REASONS
Sub-section (8) of section 5 of the Telecom Regulatory Authority of India Act, 1997
places certain restrictions on employment of persons who have served as Chairperson or
Members of the Telecom Regulatory Authority of India after demitting office. A person who
has served as Chairperson or Member in the Telecom Regulatory Authority of India is
ineligible for employment in the Central Government or any State Government. But under the
provisions of the Insurance Regulatory and Development Authority Act, 1999, the Pension
Fund Regulatory and Development Authority Act, 2013 and the Airports Economic Regulatory
Authority of India Act, 2008, the Chairperson or Members of the Insurance Regulatory and
Development Authority, the Pension Fund Regulatory and Development Authority and the
Airports Economic Regulatory Authority respectively, are eligible for employment in the
Central Government or any State Government after demitting office as Chairperson or Member,
after a gap of two years. Under the provisions of the Competition Act, 2002, there is no
restriction on employment in the Central Government or any State Government after demitting
charge. Likewise under the provisions of the Electricity Act, 2003, the restrictions on
employment of persons who have served as Chairperson or Members of the Central Electricity
Regulatory Commission, are less limiting than those imposed upon persons who have served
as Chairperson or Members of the Telecom Regulatory Authority of India.
2. In view of the above, a need was felt that the provisions in the Telecom Regulatory
Authority of India Act may be harmonised with similar provisions applicable to other regulators
in economic sectors. Accordingly, it was proposed that the restriction on further employment
of a person who has served as Chairperson or Member of the Telecom Regulatory Authority
of India, in the Central Government or any State Government or any appointment in any
company in the business of telecommunication services shall be limited to a period of two
years from the date of demitting office. Prior approval of the Central Government is provided
in case such employment is proposed before the completion of two years.
3. In order to overcome the above difficulties, a need was felt to suitably amend the
provisions of sub-section (8) of section 5 of the aforesaid Act. As both Houses of Parliament
were not in session and immediate action was required to be taken, the President was satisfied
that the circumstances existed which rendered it necessary for him to take immediate action
to amend the said Act, the President promulgated the Telecom Regulatory Authority of India
(Amendment) Ordinance, 2014 on the 28th May, 2014.
4. The Bill seeks to replace the aforesaid Ordinance.
RAVI SHANKAR PRASAD
NEW DELHI;
The 3rd July, 2014.
————
P. SREEDHARAN,
Secretary-General.
PRINTED BY DIRECTORATE OF PRINTING AT GOVT. OF INDIA PRESS, MINTO ROAD, NEW DELHI
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI—2014.
GMGIPMRND—1121GI(S-3)—14.07.2014.