http://www.thehindu.com/opinion/lead/what-exactly-is-a-money-bill/article17372184.ece

What exactly is a money bill?

Suhrith Parthasarathy

 FEBRUARY 27, 2017 01:02 IST
UPDATED: FEBRUARY 27, 2017 02:08 IST

 Supreme Court will begin hearing final arguments next month on a writ
petition challenging the validity of the Aadhaar (Targeted Delivery of
Financial & Other Subsidies, Benefits & Services) Act, 2016 — or the
Aadhaar Act. The proceeding, initiated by Jairam Ramesh, a Member of
Parliament in the Rajya Sabha, primarily questions the legality behind
the Union government’s move in introducing the Aadhaar Act as a money
bill. Through this categorisation, the government had the law enacted
by securing a simple majority in the Lok Sabha while rendering
redundant any opposition to the legislation in the Upper House of
Parliament.

Imperils liberties
During preliminary hearings, the Supreme Court has suggested that it
isn’t entirely convinced of the merits of Mr. Ramesh’s petition. But a
closer examination will only show that the introduction of the Aadhaar
Act as a money bill contravenes the bare text of the Constitution. In
this case, the breach is particularly disturbing, because the
legislation imperils our core liberties, in manners both explicit and
insidious.

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Originally, Aadhaar was conceived as a scheme to provide to every
Indian a unique identity number, with a purported view to enabling a
fair and equitable distribution of benefits and subsidies. There is
little doubt that the scheme’s introduction, with no prior legislative
backing, was a flagrant wrong, and was completely unjustifiable as a
measure of democratic governance. For this Mr. Ramesh’s party, the
Congress, must take full responsibility. But, when a draft of a
statute was eventually introduced in the Rajya Sabha, in December
2010, it was done so as an ordinary bill. This meant that both Houses
of Parliament had to provide their imprimatur to the bill for it to
become law.

Nonetheless this draft legislation contained serious misgivings, so
much so that a parliamentary standing committee released a detailed
report differing with the government of the time over critical aspects
of the bill, particularly its treatment of concerns over privacy and
protection of data security. In the meantime, given that the Aadhaar
project was being implemented even without statutory support, public
interest petitions were filed in the Supreme Court challenging the
project’s legitimacy. In these cases, the court issued a series of
interim orders prohibiting the state from making Aadhaar mandatory,
while permitting its use only for a set of limited governmental
schemes.

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Parliamentary system of India

In March 2016, the Union government withdrew the earlier bill, and
introduced, in its place, as a money bill, a new draft legislation,
titled the Aadhaar (Targeted Delivery of Financial & Other Subsidies,
Benefits & Services) Bill, 2016. This categorisation was extraordinary
because a money bill, under India’s constitutional design, requires
only the Lok Sabha’s affirmation for it to turn into law. Right on
cue, within days of the bill’s introduction, the Lower House, in
complete disregard of the Rajya Sabha’s protestations, passed the
legislation, as Act No. 18 of 2016. This law, Mr. Ramesh now argues,
is patently illegal, because its classification as a money bill
infringes the Constitution’s mandates.

A money bill is defined by Article 110 of the Constitution, as a draft
law that contains only provisions that deal with all or any of the
matters listed therein. These comprise a set of seven features,
broadly including items such as the imposition or regulation of a tax;
the regulation of the borrowing of money by the Government of India;
the withdrawal of money from the Consolidated Fund of India; and so
forth. In the event a proposed legislation contains other features,
ones that are not merely incidental to the items specifically
outlined, such a draft law cannot be classified as a money bill.
Article 110 further clarifies that in cases where a dispute arises
over whether a bill is a money bill or not, the Lok Sabha Speaker’s
decision on the issue shall be considered final.

Flawed counterpoint
The government’s response to Mr. Ramesh’s claim is predicated on two
prongs: that the Speaker’s decision to classify a draft legislation as
a money bill is immune from judicial review, and that, in any event,
the Aadhaar Bill fulfilled all the constitutional requirements of a
money bill. A careful examination of these arguments will, however,
show us that the government is wrong on both counts.

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To be fair, the assertion that the Speaker’s decision is beyond
judicial review finds support in the Supreme Court’s judgment in Mohd.
Saeed Siddiqui v. State of UP (2014). Here, a three-judge bench had
ruled, in the context of State legislatures, that a Speaker’s decision
to classify a draft statute as a money bill, was not judicially
reviewable, even if the classification was incorrect. This is because
the error in question, the court ruled, constituted nothing more than
a mere procedural irregularity.

But there are significant problems with this view. Chief among them is
the wording of Article 110, which vests no unbridled discretion in the
Speaker. The provision requires that a bill conform to the criteria
prescribed in it for it to be classified as a money bill. Where a bill
intends to legislate on matters beyond the features delineated in
Article 110, it must be treated as an ordinary draft statute. Any
violation of this mandate has to be seen, therefore, as a substantive
constitutional error, something which Siddiqui fails to do.

There are other flaws too in the judgment. Most notably, it brushes
aside the verdict of a Constitution Bench in Raja Ram Pal v. Hon’ble
Speaker, Lok Sabha (2007), where the court had ruled that clauses that
attach finality to a determination of an issue do not altogether oust
the court’s jurisdiction. That is, the bench held, there are numerous
circumstances where the court can review parliamentary pronouncements.
These would include instances where a Speaker’s choice is grossly
illegal, or disregards basic constitutional mandates, or, worse still,
where the Speaker’s decision is riddled with perversities, or is
arrived at through dishonest intentions.

What Aadhaar Act shows
A simple reading of the Aadhaar Act would show us that its contents go
far beyond the features enumerated in Article 110. If anything, it is
the provisions in the legislation that pertain to the Consolidated
Fund and its use that are incidental to the Act’s core purpose —
which, quite evidently, is to ensure, among other things, the creation
of a framework for maintaining a central database of biometric
information collected from citizens. Ordinarily, a draft legislation
is classified as a money bill when it provides for funds to be made
available to the executive to carry out specific tasks. In the case of
the Aadhaar Act, such provisions are manifestly absent. The Speaker’s
decision to confirm the government’s classification is, therefore, an
error that is not merely procedural in nature but one that
constitutes, in substance, an unmitigated flouting of Article 110.

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In many ways, Aadhaar has brought out to plain sight the worryingly
totalitarian impulses of our state. The government has argued, with
some force, that Indian citizens possess no fundamental right to
privacy. This argument, however, is predicated on judgments of the
Supreme Court that have little contemporary relevance, and that have,
in any event, been overlooked in several subsequent cases where the
court has clarified the extent of the liberties that the Constitution
guarantees.

Right to privacy
Privacy is important not merely because it advances the cause of
equality and freedom but also because it is, in and of itself, a
treasurable value. A failure to protect privacy adequately can have
disastrous consequences that affect our abilities to determine for
ourselves how we want to live our lives. And the Aadhaar Act hits at
the core of this value. It permits the creation of a database of not
only biometric information but also various other private data,
without so much as bothering about safeguards that need to be
installed to ensure their security. We scarcely need to stretch our
imaginations to wonder what the government — and other agencies to
which this information can be shared without any regulatory checks —
can do with all this material.

That a statute so pernicious in its breadth can be enacted after being
introduced as a money bill only makes matters worse. It has the effect
of negating altogether the Rajya Sabha’s legislative role, making, in
the process, a mockery of our democracy. It is imperative, therefore,
that the court refers the present controversy to a larger bench, with
a view to overruling Siddiqui.

Suhrith Parthasarathy is an advocate practising at the Madras High Court

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