LS passes Companies Bill allowing buyback

The Bill, among other things, provides for constitution of a national advisory committee on accounting standards. This, in turn, will provide for compliance of accounting standards by a company in preparation of profit and loss account and balance sheet.

The Bill also provides for nomination facility to the holders of shares, debentures and fixed deposit holders. It also entails issuing sweat equitysubject to fulfilment of certain conditions.

The government also introduced the Essential Commodities (Amendment) Bill in the House today to make the statute more stringent against hoarders and black marketeers. Moving the Bill, Food & Consumer Affairs Minister Surjit Singh Barnala, said the Bill proposed to prescribe maximum fines of Rs. 25,000 for the first offence and Rs 50,000 for the second and subsequent offences. No court shall have the discretionary power to impose less than the minimum prescribed imprisonment in case of conviction under the Act.

In case of conviction in summary trial, the maximum imprisonment shall be of two years instead of one year. Summary trials will not be mandatory so as to enable courts to award imprisonment up to seven years provided in the existing Act.

Further, a Bill seeking to replace the Urban land (Ceiling and Regulation) ULCRA Repeal ordinance, 1999 was tabled in the Lok Sabha today to enable states to have their own legislation on the subject according to theirneeds. The repealing of long awaited ULCRA is expected to make available more land for construction.

Introducing the Bill, Urban Affairs Minister Ram Jethmalani said the new Bill had been modified after incorporating suggestions of Parliament’s standing committee on urban and rural affairs to protect interests of economically weaker sections and low income group in urban housing.

The statement of objects and reasons of the Bill says the proposed repeal is expected to revive the stagnant housing industry and facilitate construction of dwelling units both in public and private sector to meet targets contemplated under the national agenda of governance.

The standing committee had felt that land, which is yet to be put to use for the original purposes stated in the Act, under possession of the Government should not be restored to previous owners as it may lead to avoidable discrimination.

It had also suggested that the repeal Bill should contain a provision for abatement of proceedings in differentcourts. The original Act of 1976 was passed to prevent concentration of urban land in a few hands and to provide affordable housing to economically weaker sections but on the contrary it pushed up land prices and practically brought the housing industry to a stop providing opportunities for corruption.