*ToxicsWatch Alliance *




To

Smt Sumitra Mahajan

Hon'ble Speaker

Lok Sabha

Parliament of India



Date: January 30, 2015


 Subject- How Parliamentary Standing Committees on subordinate
legislation's report undermines Parliament


Madam,


This is to draw your attention towards the report of the Parliamentary
Standing Committee on Subordinate Legislation on the subject of Civil
Liability for Nuclear Damage (CNLD) Rules, 2011 under the Civil Liability
for Nuclear Damage Act, 2010 that undermines Parliament. The report on
action taken by government on the observations/recommendations contained in
the 27th report of the Parliamentary Standing Committee (PSC) on
Subordinate Legislation on the Civil Liability for Nuclear Damage Rules,
2011 was presented to the 16th Lok Sabha on December 19th, 2014.


I submit that this PSC is headed by Shri Dilipkumar Mansukhlal Gandhi, a
Member of Parliament from Gujarat. The 27th report was presented in the 15th
Lok Sabha in August 2012 by Shri P. Karunakaran headed PSC on Subordinate
Legislation on August 28, 2012. Shri Karunakaran is a Member of Parliament
from Kerala. Both reports are attached for your perusal and consideration.
The latter report is deeply flawed and is in manifest contempt towards
Parliament as it callously subordinates itself to the whims and fancies of
the government which has made subordinate legislation superior to
legislation passed by Parliament. It sets a very unhealthy precedent that
merits your prompt intervention to set it right.



I submit that PSC's report has observed that it does not wish to pursue its
own recommendation with the government in the matter of "Interim Relief to
the victims of Nuclear Damage". This is quite bizarre because PSC report is
manifestly self contradictory in its reasoning and inference.


The relevant part of the report reads: "The recommendation of the Committee
was aimed at incorporating a suitable enabling provision either in the
Civil Liability for Nuclear Damage (CLND) Act or the Rules for treating the
amount awarded as compensation by the Claims Commissioner/ Nuclear Damage
Control Commission (NDCC) as interim relief and disbursing the same in the
event of an applicant seeking judicial review of the award....The Committee
are dismayed to note that Chapter IV of the CLND Rules, 2011 deals with
various issues viz., application of compensation, notice to opposite
parties, supply of copies of documents, examination of applicant,
appearance and examination of the parties etc. which are not connected with
treating the compensation awarded as interim relief and disbursing the same
pending verdict of the court. The Committee are of the opinion that the
Department (of Atomic Energy) has digressed the issue and have not
considered the aspect of inherent wider public interest in the right
perspective. The Committee, therefore, once again reiterate that suitable
enabling provision be incorporated either in the CLND Act or the Rules to
take care of the interests of the applicant seeking judicial review of the
award. The Committee would also like to be apprised of conclusive action
taken in this regard." But later it concluded that it has decided not to
pursue it.


I submit that the report presented to the 16th Lok Sabha also observes that
it has decided not to pursue its own recommendation with the government
dealing with "Right of Recourse". This is quite strange as well because PSC
report is manifestly inconsistent its approach.


On the issue of "Right of Recourse", the report of PSC states, "The
Committee are perplexed to note that on the one hand, the Department (of
Atomic Energy) has concurred with the observations made by the Committee
that victims of nuclear incident will keep filing claims as and when a
damage is noticed by them and on the other hand, the Department has curtly
linked this aspect with Explanation 2 of Rule 24 which stipulates that the
operator's claim shall in no case exceed the actual amount of  compensation
paid by him to the date of filing such claim. The moot question, therefore,
still remains unanswered as to whether the operator can make successive
claims from the supplier irrespective of time limit prescribed under
Section 15(2) and 18 of the CLND Act. The Committee are of the firm belief
that any ambiguity in the Act/ Rules cannot be wiped out by way of
clarifications which are especially not part of relevant Act/ Rules and
such types of situations often pave way for avoidable litigations before
the already burdened courts. The Committee would, therefore, reiterate
their earlier recommendation that CLND Act or Rules thereunder should be
suitably amended to provide necessary clarity on this aspect. The Committee
would await further development on follow-up exercise in this direction."


I submit that instead of waiting to follow up, the committee states that it
has decided not to pursue the matter with the government.


I submit that on the issue of Rule 24 of the CLND Rules that violates the
stringent liability mandate provided in Section 17 of the CLND Act by
delegated legislation, the PSC states that it does "not desire to pursue in
view of the replies received from the government" contrary to its own
contention against government's stance.


The PSC's report rightly observes, "The Committee are of the view that
reply of the Department is devoid of specific mechanism as well as remedial
measures to ensure that delegated legislation should be consistent with the
substantial provisions of the Act and should not contain any limitations or
excesses which are not contemplated under the Act and the Department (of
Atomic Energy) seems to be happy to go with the existing provisions of
excessive delegation mechanically. In the process they have tried to
justify the status quo by stating that specifying a minimum amount for the
operator's right of recourse and the corresponding time period as specified
in Rule 24 is intended to secure the interest of the Indian Operator. The
Department has failed to appreciate that Rule 24 is restrictive and may
encourage Supplier at the cost of Indian Operator. Though the existing
provision may not prohibit the Operator and the Supplier from entering into
a larger right of recourse, yet the Committee are apprehensive that there
may not be any propensity for the Supplier to agree for a recourse higher
than the minimum amount and the time period prescribed. The Committee,
therefore, expect the Department to re-visit the related provisions of the
CLND Rules which appear to be in conflict with the relevant Sections of the
Act and work out modalities to provide an effective prescription for
delegated legislation consistent with the provisions of the Act."


But PSC has chosen to surrender parliament's prerogative to defend its
legislation before the DEA due to some invisible hand when it offers its
recommendation.


In this way it is evident that although government's reply is so
unsatisfactory, the PSC of the 16th Lok Sabha felt "dismayed", "perplexed"
and noted that DAE "digressed" the issue. Unmindful of this Shri Dilipkumar
Mansukhlal Gandhi headed Parliamentary Committee does "not desire to pursue
(affront to parliament) in view of the replies received from the
government."


This is inexplicable and enigmatic given the agreement of PSC of the 16th
Lok Sabha with the recommendations of its predecessor Shri P. Karunakaran
headed PSC presented to the 15th Lok Sabha on August 28, 2012.


I submit that the Civil Liability for Nuclear Damage Rules, 2011 under the
Act was notified on 11th November, 2011 ahead of the November 18th,
2011  meeting
between US President and our Prime Minister. There was a delay of about
thirteen months in enforcing the Act in violation of the provisions of the
legislation, it is apparent that this provided nuclear companies ample time
to influence subordinate legislation.


This gives a sense of déjà vu in the 30th year of the Bhopal disaster. On
February 20, 1985 Bhopal Gas Disaster (Processing of Claims) Ordinance,
1985 promulgated whereby Government of India appoints itself as sole
representative of victims in any legal dealings with Union Carbide
Corporation (UCC). On March 29th, 1985, the Parliament had enacted the
Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985. In violation of
Act, government of India accepted $ 470 million (RS 750 crore) after
demanding $ 3.3 billion as compensation, as settlement money with UCC for
the victims of the disaster without consulting the victims. In 2010,
government filed a curative petition seeking Rs 7,844 crores as damages
although survivors demanded $8.1 billion ((Rs 37,000 crores)) as
compensation for the disaster.


I submit that its relevance can be understood from the 57 page report of
Federation of Indian Chambers of Commerce and Industry's (FICCI) Working
Group on Civil Nuclear Energy that repeatedly cited the Supreme Court's
order in the Charan Lal Sahu Vs. Union of India, case in which the validity
of the doctrine of *parens patriae *(government's guardianship of citizens)
invoked through Bhopal Act, 1985, was upheld. This excluded the victims
from filing their own cases. The consent of the victims was never sought at
any stage. The FICCI's report formed the basis for the legislation on civil
liability for nuclear damage.


I submit that the reports of the PSC underlines what has been changing
under the influence of nuclear companies like Westinghouse and GE-Hitachi
articulated through joint statements.


I wish to submit that it is being argued that government is following the
Canadian example with regard to liability for nuclear disaster; the fact is
Canada's Nuclear Liability and Compensation Act that was passed by its
legislature on November 7th, 2014 provides for preservation of principle of
absolute liability even if a nuclear incident is caused by "terrorist
activity. In India's CNLD Act, terrorist activity is not covered although
Shri G K Pillai, then Secretary, Ministry of Home Affairs had argued for it
as per parliamentary records. The Canadian Act provides for a progressive
increase in the operator's liability from $650 million if the nuclear
incident arises within one year after the Act comes into force and $1
billion if the nuclear incident arises after the third year after the Act
comes into force. In India, the operator's liability is fixed at $250
million (Rs 1,500 crore). In the case of oil spill disaster by BP,
Government of USA got a compensation of $ 20 billion (Rs 1,240,177,208,223
crores).


I wish to draw your attention towards what Ms K Sujata Rao, as Secretary,
Ministry of Health and Family Welfare while deposed before the
Parliamentary Standing Committee on Science & Technology, Environment &
Forests mentioned in its report tabled in Lok Sabha on August 18, 2010. She
said, "while drafting the (CLND) Bill the Dept. of Atomic Energy did not
consult them. Since the response system to deal with any kind of emergency
of such type, the hospitals are not well-equipped, it is natural that
mortality and morbidity due to multiple burn, blasts, radiation injuries
and psycho-social impact could be on very high scale and medical tackling
of such a large emergency could have enough repercussions in the nearby
areas of radioactive fallout." She was not alone. Parliamentary Committee
noted in its report on Civil Liability on Nuclear Damage Bill that
secretaries of eight relevant ministries were not consulted during the
drafting the Bill and recommended that they should be consulted in future.
This consultation never happened.


I submit that PSC report of December 2014 appears to have been influenced
by US nuclear lobbies. It seems that it was tailor made to facilitate the
joint statement of US Present and Prime Minister of India on January 25th,
2015 as a follow up their joint statement of September 30th, 2014.


In view of the above, I wish to request you constitute a high powered
parliamentary committee to examine how the unfolding of negotiations on
civil liability nuclear damage are undermining the existing parliamentary
institutions and cold shouldering them for a bear hug with the foreign
nuclear companies. Having rigorously studied the legislative proceedings on
the matter of industrial disaster of Bhopal, it is evident that
government's promotion and insulation of hazardous chemical companies from
liabilities resulted in catastrophic consequences.


Kindly intervene promptly in national interest and in the interest of
present and future generations to ensure that similar indulgence towards
nuclear companies do lead to subversion of Parliament.



Yours faithfully

Gopal Krishna

ToxicsWatch Alliance (TWA)

Mb: 08227816731, 09818089660
E-mail:[email protected]
Web: www.toxicswatch.org

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