PAC to take up ‘performance review’ of regulatory bodies

• PAC has picked 160 subjects for deliberations during its tenure, which includes review of regulatory bodies like the SEBI and TRAI.

Highlights:

• The Public Accounts Committee (PAC), chaired by senior Congress leader K.C. Venugopal, will undertake a performance review of regulatory bodies established by Acts of Parliament, including the Securities and Exchange Board of India (SEBI). The PAC will also examine the fees, tariffs, and user charges levied on public infrastructure such as airports, many of which are managed by the Adani Group.

Role and Scope of PAC:

• The PAC is responsible for auditing government revenue and expenditure. As per a Lok Sabha bulletin from September 2, the PAC has chosen 160 subjects for its tenure, with the subjects decided at the committee's first meeting on August 29. The 22-member PAC includes 12 members from the BJP-led NDA and eight Opposition MPs, with Congress members playing a crucial role.

Suo Motu Investigations:

• Among the five topics for suo motu investigations, two key areas align with the Congress's 2024 election campaign:
  • Performance Review of Regulatory Bodies: Includes oversight of bodies like SEBI and TRAI.
  • Levy and Regulation of Fees, Tariffs, and User Charges: Focus on public infrastructure such as airports, railways, and highways.

SEBI and the Adani Group Controversy:

• SEBI, under scrutiny for its role following the Hindenburg Research report on the Adani Group's alleged stock price manipulation, will be a major focus. The controversy resurfaced when Hindenburg Research accused SEBI Chairperson Madhabi Puri Buch of involvement in an "Adani money siphoning scandal."

Focus on Public Infrastructure and Airports:

• The second subject under review deals with public infrastructure charges. The Congress has alleged government favoritism towards the Adani Group in managing Indian airports. Seven major airports, including Mumbai and Ahmedabad, are managed by Adani Airport Holdings Limited, which handles 23% of India’s total passenger traffic.

Historical Significance of PAC:

• Formed in 1921, the PAC has a rich history and greater powers than other parliamentary committees. It can summon individuals for investigations, and its recommendations are binding on the government.

Prelims Takeaways:

• Public Accounts Committee (PAC)
• TRAI