New Delhi, Sept. 19 (UNI) The Lok Sabha on Saturday passed the Companies (Amendment) Bill, 2020 following a discussion that lasted for about an hour during the extended hours of the sitting.
Replying to the discussio , Union Finance Minister Nirmala Sitharaman said the amendments in the Bill which came into force in 2013 were aimed at achieving ease of living for small companies and start ups.
She said the amendment pertaining to decriminalising the offences will certainly benefit the smaller companies but the number of serious non-compoundable offences will remain the same at 35 relating to causing injury to public interest and committing fraud. She said that 48 sections will be decriminalised while 17 would add to the ease of living by removing burdensome clauses. She said that a new chapter for companies in the rural sector has been added in the amendments.
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Earlier, initiating the discussion on the Bill Manish Tewari of the Congress alleged that the priority of the NDA government appeared to be with the ``suit-boot' class and the ease of living was being proposed for the corporates. He said that proposed amendments would dilute the Corporate Social Responsibility which was brought in the Bill when initially passed in 2013.
Mr Tewari allleged that in the past six years of rule the government had unleased persecution and a climate of fear which have resulted in bringing the wheels of economy to a grinding halt but it was now going overboard by proposing the amendments in the Bill.
Aparajita Sarangi, BJP member from Bhubaneshwar, listed seven key features of the amendments which were being brought after wide consultations with all stakeholders. She said that it showed that the government was responsive to the changing environment. She said that decriminalisation of offences was based on their gravity and companies would be required to pay penalty. She said that it would promote the ease of doing business.
Sougata Ray of Trinamool Congress admitted that the 2013 Bill was harsh but had brought in the concept of Corporate Social Responsibility. He said that there should be a balance between strictness and the ease of doing business. In his view, the amendments would bring in important changes, He said that he would not quarrel with the amendments pertaining to decriminalisation and lowering certain monetary penalties. He also said that he would not move any further amendments.
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