**Executive Summary**
This report presents the findings of the 164th Report on the Demands for Grants (2026-27) for the Department of Legal Affairs, presented to Parliament on March 16, 2026. It highlights a significant 17.29% budget shortfall and emphasizes the urgent need to fill critical vacancies in the Indian Legal Service and the Income Tax Appellate Tribunal. Key action items include the modernization of litigation management through AI and the expansion of E-Lok Adalats to reduce case pendency.
**Key Points / Main Content**
**Budgetary Allocations**
* **Funding Shortfall:** The Committee noted a gap of ₹87.385 crore between the projected requirement (₹505.145 crore) and the actual allocation (₹417.76 crore) for BE 2026–27.
* **Regional Disparities:** While most secretariats saw increases, the Chennai Branch Secretariat faced a reduction, necessitating a review to ensure functional requirements are met.
* **Operational Risk:** Inadequate funding may constrain administrative expenditure, professional services, and technological initiatives.
**Staffing and Recruitment**
* **Vacancies:** Urgent recruitment is recommended for the Indian Legal Service (ILS) and 12 vacant posts of Additional Solicitors General in High Courts.
* **Recruitment Rules:** The Committee called for the priority finalization of Recruitment Rules for the ILS to facilitate timely selections through the UPSC.
* **Notary Services:** Recommendations include the timely issuance of Certificates of Practice and a review of notary distribution to address population growth and regional disparities.
**Litigation Management and Technology**
* **Case Pendency:** Implementation of the “Directive for the Efficient and Effective Management of Litigation” is required across all Ministries to reduce unwarranted appeals.
* **LIMBS Integration:** The Department must expedite the integration of the Legal Information Management & Briefing System (LIMBS) with e-Courts using AI and data visualization tools.
* **Alternative Dispute Resolution:** Expansion of E-Lok Adalats and the establishment of more Fast Track Courts are prioritized to ensure speedy disposal of cases involving vulnerable sections.
**Institutional Development**
* **ITAT:** Recruitment for 27 vacant Member posts (15 Accountant and 12 Judicial) must be expedited. The "ITAT e-Dwar" portal should be further strengthened.
* **IIAC:** Necessary steps must be taken to appoint a Chairperson and Governing Body members for the India International Arbitration Centre (IIAC) to ensure leadership continuity.
* **Law Commission of India:** The Commission is urged to adopt a more proactive outreach strategy with Parliamentarians and State Law Commissions.
**Impact Analysis**
**Department of Legal Affairs**
**Impact:** Budgetary constraints and high vacancy rates may hinder the department’s ability to handle litigation and implement infrastructure projects.
**Action Required:** Conduct a realistic reassessment of financial requirements for the RE stage and coordinate with UPSC/DoPT to fill vacant positions.
**Income Tax Appellate Tribunal (ITAT)**
**Impact:** Staff shortages and infrastructure delays across various Bench locations could lead to cost escalations and higher case pendency.
**Action Required:** Closely monitor ongoing construction projects and expedite the recruitment of the 27 remaining Member posts.
**India International Arbitration Centre (IIAC)**
**Impact:** Lack of permanent leadership and infrastructure at the World Trade Centre, New Delhi, may affect its credibility as a forum for commercial dispute resolution.
**Action Required:** Expedite high-level appointments and operationalize proposed arbitration facilities to enhance institutional accessibility.
**Notaries and Legal Professionals**
**Impact:** Delays in certificate issuance and stagnant fee structures affect the livelihood of notaries and the affordability of services for rural citizens.
**Action Required:** Finalize amendments to Rule 10 of the Notaries Rules, 1956, to balance fair remuneration with service affordability.
Key Entities Referenced
Department of Legal Affairs: The primary government department under the Ministry of Law and Justice responsible for advisory services, government litigation management, and administrative oversight of judicial bodies.
Income Tax Appellate Tribunal (ITAT): A quasi-judicial institution focused on adjudicating tax disputes, highlighted for its infrastructure development, e-filing portal (e-Dwar), and recruitment of judicial members.
Law Commission of India: An advisory body tasked with law reform and legal research, recommended to strengthen its public outreach and institutional legal capacity.
India International Arbitration Centre (IIAC): An autonomous body established to promote institutional arbitration and commercial dispute resolution, requiring infrastructure upgrades and leadership appointments.
Legal Information Management & Briefing System (LIMBS): A unified digital platform for monitoring government litigation, slated for integration with e-Courts and the implementation of AI-driven litigation management.
Rajya Sabha Secretariat
PRESS RELEASE ON THE 164TH REPORT OF
THEDEPARTMENT-RELATED PARLIAMENTARY
STANDING
COMMITTEE ON PERSONNEL, PUBLIC GRIEVANCES, LAW
AND JUSTICE
Posted On: 16 MAR 2026 5:54PM by PIB Delhi
The Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and
Justice chaired by Shri Brij Lal, MP, Rajya Sabha, presented its 164th Report on the Demands for Grants
(2026-27) of the Department of Legal Affairs (Ministry of Law and Justice) on 16th March, 2026 to both
the Houses of Parliament.
While examining the Demands for Grants, the Committee has made an appraisal of performance,
programmes, and policies of the Department of Legal Affairs along with that of Income Tax Appellate
Tribunal (ITAT) and Indian Law institute (ILI) vis-à-vis expenditure made out of Consolidated Fund of
India in the current financial year during the meeting held on 19th February, 2026.
The Committee scrutinised the Demands for Grants thoroughly in its meeting with the Law
Secretary. The Report was considered and adopted by the Committee on 12th March, 2026. The
Recommendations/Observations made by the Committee in this Report are enclosed. For reference
purpose para Nos. of the Report are also mentioned at the end of each recommendation/observation. The
entire Report is available on http://sansad.in/rs.
RECOMMENDATIONS/OBSERVATIONS
IN
164TH REPORT ON DEMANDS FOR GRANTS (2026-27) OF THE
DEPARTMENT OF LEGAL AFFAIRS
OVERALL ASSESSMENT OF THE DEMANDS FOR GRANTS
BUDGET
1. The Committee notes that against the projected requirement of ₹505.145 crore for BE 2026–27,
the allocation at the BE stage has been fixed at ₹417.76 crore, resulting in a shortfall of ₹87.385 crore
(17.29%). The Committee recommends that the Ministry furnish detailed reasons for this variation and
undertake a realistic assessment of its financial requirements in consultation with the Ministry of Finance
to ensure that adequate funds are made available to meet its operational and institutional commitments.
(Para 2.8)2. The Committee notes that while allocations under certain Heads such as Main Secretariat, Central
Agency Section in the Supreme Court and Branch Secretariats at Mumbai, Bengaluru and Kolkata have
registered an increase at BE 2026–27 over RE 2025–26, there has been a reduction in allocation under the
Branch Secretariat at Chennai. The Committee recommends that the Department may review the adequacy
of allocation under the Chennai Branch Secretariat so as to ensure that its functional requirements are not
adversely impacted and that the office is able to effectively discharge its responsibilities in handling
litigation and related legal matters.
(Para 2.11)
3. The Committee observes from the financial data furnished by the Department that the Budget
Estimates for 2026–27 in respect of various units and institutions under the Department of Legal Affairs
are lower than the projections submitted by the Ministry to the Ministry of Finance. This variation
between the projected requirements and the actual allocation may have implications for the smooth
implementation of ongoing activities, infrastructure development projects, and the institutional
functioning of bodies such as the Income Tax Appellate Tribunal, Law Commission of India and other
associated organisations.
(Para 2.14 )
4. The Committee is of the view that inadequate provisioning at the Budget stage may constrain the
Department in meeting its committed liabilities relating to administrative expenditure, professional
services and technological initiatives. The Committee, therefore, recommends that the Ministry may
undertake a realistic assessment of its financial requirements and pursue the matter with the Ministry of
Finance at RE stage of the budgetary process to ensure that adequate allocation of funds are made so that
essential activities and committed obligations of the Department and its associated institutions may be
carried out without disruption.
(Para2.15 )
INCOME TAX APPELLATE TRIBUNAL (ITAT)
5. The Committee is of the view that, in light of the significant capital outlay and ongoing
infrastructure works across various Bench locations, close financial and physical monitoring of projects is
essential to ensure optimal utilisation of allocated funds and to avoid delays or cost escalation. The
Committee, therefore, recommends that the Department may closely monitor the progress of ongoing
projects and take necessary measures for their timely completion so as to facilitate the shifting of ITAT
Benches to permanent premises and strengthen institutional efficiency and functioning.
(Para 2.19)
STAFF STRENGTH IN THE DEPARTMENT
Indian Legal Service
6. While noting the steps taken by the Department to fill up the existing and anticipated vacancies in
the Indian Legal Service (ILS) cadre through direct recruitment as well as promotions, the Committee
recommends that the Ministry take expeditious and time-bound measures, in coordination with UPSC,
SSC and DoPT, to complete the ongoing recruitment and promotion processes and fill up the vacant posts
across all grades at the earliest. The Committee further recommends that the Recruitment Rules for the
ILS be finalised and notified on priority so as to facilitate timely selection through UPSC and ensure
availability of adequately qualified legal professionals for the effective functioning of the Department,
including the Law Commission of India, thereby strengthening the overall institutional legal capacity of
the Government.(Para 3.8)
VACANCIES OF NOTARIES
7. The Committee notes the substantial enhancement in the sanctioned strength of Notaries and the
significant number of appointments made through the digital Notary Portal. The Committee recommends
that timely issuance of Certificates of Practice to all provisionally selected candidates be ensured so that
the increased sanctioned capacity effectively translates into improved access to notarial services,
particularly in underserved and rural areas.
(Para 3.13)
8. The Committee further recommends that the impact of the enhanced notary strength be
periodically reviewed to assess whether the revised allocation adequately reflects population growth,
litigation trends and regional disparities. A mechanism for regular monitoring may be institutionalised to
ensure optimal distribution across States and UTs.
`
(Para 3.14)
9. With regard to the revision of notarial fees, the Committee desires that the amendment to Rule 10
of the Notaries Rules, 1956 be finalized expeditiously. At the same time, the revised fee structure should
strike a balance between fair remuneration to Notaries and affordability of services for citizens, especially
in smaller towns and rural areas.
(Para 3.15)
LAW COMMISSION OF INDIA
10. The Committee recommends that the Law Commission of India may adopt a more structured and
proactive approach in engaging with Members of Parliament, State Law Commissions and other relevant
stakeholders so as to ensure wider consultation and informed deliberation on important legal issues. The
Committee further recommends that the Commission strengthen its outreach and communication
mechanisms, including periodic briefings, publication of updates and wider dissemination of its studies
and reports, in order to enhance transparency, promote public awareness and reinforce institutional
accountability in the law reform process.
(Para 3.18)
ENGAGEMENT OF LAW OFFICERS AND ADVOCATES
11. The Committee notes that out of the total 39 sanctioned posts of Additional Solicitors General of
India, while all 14 posts earmarked for the Supreme Court of India are presently filled, only 13 out of 25
sanctioned posts for various High Courts are in position, leaving 12 posts vacant. The Committee is of the
view that such vacancies at the level of Additional Solicitors General in High Courts may adversely affect
effective representation of the Union of India, particularly in matters involving substantial questions of
law and significant public interest. The Committee, therefore, recommends that the Department take
expeditious steps to fill up the 12 vacant posts of Additional Solicitors General in High Courts in a time-
bound manner, and periodically review the sanctioned strength vis-à-vis actual requirement, keeping in
view the volume and complexity of litigation before different High Courts, so as to ensure effective and
timely representation of the Union of India.
(Para 3.22)
PENDENCY OF GOVERNMENT CASES12. In view of the substantial pendency of Government cases across various Courts and Tribunals and
the rising litigation expenditure incurred over the years, the Committee recommends that the Department
ensure effective and time-bound implementation of the “Directive for the Efficient and Effective
Management of Litigation by the Government of India” across all Ministries/Departments, including their
attached and subordinate offices, autonomous bodies and CPSEs. The Committee further recommends that
Ministries/Departments with a high volume of litigation may undertake periodic internal reviews to
identify systemic and procedural causes contributing to avoidable litigation and take appropriate
administrative and policy-level corrective measures so as to minimise unwarranted appeals, streamline
inter-departmental coordination and reduce both pendency and litigation-related expenditure in a
sustainable manner.
(Para 3.31)
LEGAL INFORMATION MANAGEMENT & BRIEFING SYSTEM (LIMBS)
13. In view of the importance of the Legal Information Management & Briefing System (LIMBS) as a
unified platform for monitoring Government litigation, the Committee recommends that the Department
ensure complete and accurate entry of all Government cases in the system and expedite the proposed
integration of LIMBS with the e-Courts platform through the development of intelligent APIs. The
Committee further recommends that the planned automation of litigation-related processes, including
processing of Advocate Bills, and the proposed use of Artificial Intelligence and data visualisation tools be
implemented in a time-bound manner so as to facilitate proactive litigation management, early
identification of repetitive and avoidable cases and informed decision-making by Ministries/Departments.
(Para 3.34)
FAST TRACK COURTS
14. The Committee recommends that the Department may pursue the State/UT Governments to
expedite the establishment of Fast Track Courts so as to progressively achieve the recommended targets
and ensure speedy disposal of cases relating to vulnerable sections and long-pending matters. The
Committee further recommends that adequate coordination and monitoring mechanisms be strengthened
to assess the performance and effectiveness of such courts in reducing pendency.
(Para 3.37)
LOK ADALATS
15. In view of the growing utilisation of E-Lok Adalats, wherein 10.52 crore cases have been taken up
and 1.34 crore cases disposed of up to November 2025, the Committee recommends that appropriate
measures be undertaken to further strengthen and expand the conduct of E-Lok Adalats across all
States/UTs. The Committee is of the view that wider adoption and effective implementation of digital Lok
Adalat mechanisms would facilitate amicable settlement of disputes at the pre-litigation as well as pending
case stages, thereby contributing towards expeditious disposal of cases and reduction of pendency before
regular courts.
(Para 3.42)
INCOME TAX APPELLATE TRIBUNAL
16. The Committee notes that recruitment for the remaining 27 posts of Members (15 Accountant
Members and 12 Judicial Members) in the Income Tax Appellate Tribunal (ITAT) is presently under
process. In this regard, the Committee recommends that the Department take expeditious and time-boundsteps to fill up the existing vacancies in the ITAT so as to strengthen its adjudicatory capacity and improve
the disposal rate of appeals, thereby addressing the growing pendency of cases.
(Para 3.49)
17. The Committee notes that the ITAT e-Dwar (e-Filing Portal), launched to facilitate electronic filing of
appeals and applications by appellants, is functioning smoothly and has been updated periodically based
on stakeholder feedback. In this regard, the Committee recommends that continued efforts be made to
effectively utilise and further strengthen the ITAT e-Dwar Portal for streamlining case management and
facilitating electronic filing processes, with a view to achieving a better balance between institution and
disposal of appeals and reducing overall pendency.
(Para 3.54)
INDIA INTERNATIONAL ARBITRATION CENTRE
18. The Committee recommends that the Department of Legal Affairs may take necessary steps to
expedite the process of appointment of the Chairperson and other Members of the Governing Body of the
India International Arbitration Centre (IIAC) so as to ensure continuity in leadership and effective
institutional governance. Timely filling up of these positions would be crucial for maintaining functional
efficiency and providing policy direction for the growth of institutional arbitration in the country.
(Para 3.66)
19. The Committee further recommends that sustained efforts be made to strengthen the physical as well
as ICT infrastructure of IIAC, including early operationalisation of the proposed arbitration facilities at
World Trade Centre, Nauroji Nagar, New Delhi, and continued upgradation of its digital platforms for
online arbitration and dispute resolution. The Committee also desires that adequate financial and
administrative support be provided to enable IIAC to effectively discharge its statutory functions and
enhance accessibility, efficiency and credibility of institutional arbitration
services.
(Para 3.67 )
20. The Committee also recommends that sustained efforts be made to further strengthen the institutional
framework of arbitration through the India International Arbitration Centre (IIAC) so as to enhance its
acceptability among Public Sector Undertakings and private entities. The Committee is of the view that
focused measures may be undertaken to promote institutional arbitration, build stakeholder confidence and
improve awareness regarding the services offered by IIAC. The Committee, therefore, recommends that
the challenges faced by the Centre in establishing institutional credibility and attracting arbitration matters
at the initial stage may be suitably addressed through policy support, capacity building and outreach
initiatives to enable IIAC to emerge as a preferred forum for commercial dispute resolution in the country.
(Para 3.68 )
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