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Difference Between Statutory and Non Statutory Bodies

Difference Between Statutory and Non Statutory Bodies

by PW Gulf
January 5, 2024
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Difference between statutory and nonstatutory bodies: India has various types of government bodies frequently mentioned in the news, UPSC, IAS and NEET exams. Understanding these is essential for grasping their significant roles in Indian governance and the economy. This article simplifies these terms for better comprehension.

The term "statutory" means something regulated by the law, while "non-statutory" describes things based on traditions, customs, and previous legal cases.

Many people get confused about statutory and non-statutory bodies. In this we'll help clear up that confusion and provide a detailed understanding of these two types of organizations. 

Laws establish statutory bodies, usually run or funded by the government. On the other hand, non-statutory bodies aren't required by law but might still be controlled by it. Let's understand the difference between statutory and non statutory bodies in a better way in further sections!

Statutory Bodies in India

Do you know what are statutory bodies? These are non-constitutional bodies as they do not find any mention in the Constitution. They are also important bodies due to their function. They are created by an Act of Parliament that makes rules & regulations and makes decisions on behalf of the government.

The key  features of the statutory bodies are given below:

  • Statutory bodies are not mentioned in the Constitution of India, making them non-constitutional entities.

  • Despite not being constitutional, they play crucial roles due to their specific functions.

  • These bodies are established through Acts of Parliament, giving them legal legitimacy.

  • Non-constitutional bodies like these formulate rules and regulations and make decisions on behalf of the government.

  • The term 'statutory' comes from their reliance on statutes, which are laws created by the Parliament or the legislature.

  • The power of statutory bodies is derived from laws enacted by the Parliament, hence the name 'statutory bodies.'

  • Examples include the National Commission for Women, the National Human Rights Commission, and the National Green Tribunal.

List of Statutory bodies in India

Here is a list of significant Statutory bodies in India, along with the laws that establish them:

  • Securities & Exchange Board of India (SEBI): SEBI Act, 1992

  • National Human Rights Commission

  • National Green Tribunal

  • National Commission for Women

  • Armed Forces Tribunal

  • National Commission for Protection of Child Rights

  • National Legal Services Authority

  • National Bank for Agriculture and Rural Development (NABARD)

Regulatory Bodies and Quasi-Judicial  Bodies

Statutory Bodies can be  further divided into two types based on their roles:

1. Regulatory Bodies

These are government agencies responsible for overseeing and regulating specific areas of human activity. They have independent authority in their regulatory or supervisory roles, but the executive branch does not directly control their actions. 

List of Regulatory Bodies:

  • Biodiversity Authority of India (BAI) 

  • Pension Fund Regulatory and Development Authority (PFRDA)

  • RBI

  • National Housing Bank (NHB)

  • Board of control for cricket in India(BCCI)

The key jobs of Regulatory bodies can be simplified into:

  • Regulations and Guides: Creating rules and guidelines.

  • Review and Assessment: Evaluating situations and making judgments.

  •  Licensing: Granting permissions or licences.

  • Inspection: Checking and monitoring compliance.

  • Corrective Actions: Taking necessary steps to fix issues.

  • Enforcement: Making sure rules are followed.

2.Quasi-Judicial Bodies

 These are non-judicial bodies like Commissions or Tribunals that interpret the law. While they are not traditional courts, they have the authority to make legal decisions in their specific areas. 

List of quasi-judicial bodies:

  • National Green Tribunal

  • National Human Rights Commission

  • Central Information Commission

  • SEBI

These bodies differ from regular courts as they concentrate on specific issues within their jurisdiction.

The key jobs of Quasi judicial body can be described:

  • Adjudication and Penalties: Quasi-judicial bodies can make decisions and impose penalties on those found guilty.

  • Limited Scope: They differ from regular courts because their focus is narrower and specific to certain issues.

  • Formation and Appointment: They can be established by court order, especially when the court deems it necessary. The court also has the authority to appoint members to such bodies.

  • Varied Forms: Quasi-judicial bodies can take various forms, acting as tribunals for specific areas or serving as arbitrators.

  • Adjudicating Powers: They possess the power to adjudicate on matters like breach of discipline, trust in financial matters, conduct rules, etc.

  • Specific Jurisdiction: Their authority is confined to particular areas such as financial markets, land use and zoning, public standards, employment law, and the specific regulations of an agency.

  • Legally Enforceable Decisions: The decisions made by quasi-judicial bodies are often legally binding and can be enforced under the jurisdiction's laws.

Non-Statutory Bodies In India

In simpler terms, "non-statutory" is like saying "common law." These bodies are established by government actions, not formal laws. They can become statutory bodies if new laws are passed or existing ones are amended. They operate with less formality, lack clear structures, and their powers and responsibilities are often unclear.

List of Non Statutory Bodies in India are:

  • NITI Aayog

  • National Development Council

  • Central Bureau of Investigation

Key features of Non Statutory bodies in India are:

  • Non-statutory bodies are not in the Constitution or created by Parliament.

  • They are formed by the government's executive action, not by a law.

  • Examples include UIDAI, which later became statutory through a new law.

  • They can become statutory bodies if a law is passed or amended.

Key Difference Between Statutory Body and Nonstatutory Bodies

The key distinction between a statutory body and a Non statutory body lies in their ability to modify mechanisms. Constitutional bodies cannot make changes without amending the Constitution, while statutory bodies have the flexibility for modifications. Here's a summarised comparison in a table:

Key Difference Between Statutory and Non Statutory Bodies

Statutory Body

Non- Statutory Body

Mentioned in the Constitution with dedicated articles outlining their functions.

Not mentioned in the Constitution of India.

Changes in functions require amending 

Created through Acts of Parliament, allowing for definition or modification of functions.

Members appointed by special committees or higher governmental offices.

Members can be appointed by the President or entities of authority under which the statutory bodies are set up.

Examples: Attorney General of India, National Commission for Scheduled Castes, National Commission for Scheduled Tribes, National Commission for Backward Classes, etc.

Examples: National Commission for Women, Central Vigilance Commission, National Green Tribunal, etc.

Conclusion

 Statutory bodies are the must-share documents required by law with parties like customers and government agencies, while non-statutory reports. However, crucial for company leaders' decisions are not legally mandated for external sharing. Non-statutory and statutory bodies are both set up by the government, but they serve different purposes. Both these bodies usually provide advice to the government on certain issues or represent specific sectors of society. Understanding this difference helps us know who is responsible for different tasks.

Difference Between Statutory Bodies and Non-Statutory Bodies FAQs

Q1. How many non-statutory bodies are there in India?

Ans. There are nine non-statutory bodies in India.

Q2. Is NITI Ayog a non-statutory body?

Ans. It’s a non statutory body located in Delhi, as it is not created by the Indian Constitution nor by any act of parliament.

Q3. What is the role of a Statutory body?

Ans. Statutory bodies are authorized to pass the law and make the decision based on behalf of the state or country.

Q4. Is the Bank a statutory body?

Ans. Reserve Bank of India is a statutory body.RBI was established through the Reserve Bank of India Act, of 1935.

Q5. Is the Railway Board a statutory body?

Ans. The ministry operates Railway Board as a statutory body which is located in New Delhi.

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