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Audit laws to keep them on their toes

Audit laws to keep them on their toes

Economic Times05-05-2025

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Laws are made, implemented, but aren't systemically reviewed. Last week, hearing a case on validity of provisions of the Consumer Protection Act , the Supreme Court directed the Central Consumer Protection Council and Central Consumer Protection Authority to undertake a review of the 'working of the statute'. The bench said that it was the apex court's duty to direct GoI to undertake performance audits and assess impact of legislations.While whether the judiciary has such a mandate is a matter for a broader debate on the pecking order of statutory institutions. But that debate aside, the Supreme Court is on to something critical to government efficiency and effectiveness: need to review laws.Performance audit is an idea that one of the judges, P S Narasimha, articulated last year when hearing a case related to the Maharashtra Slum Areas Act 1971. Reviewing the impact and efficacy of laws is not just a good idea, but should be deemed a necessary one, particularly in a dynamic society like ours still dealing with developmental deficits.Laws must be fit for purpose, and not just de jure but also de facto. Sometimes, despite due diligence, laws turn out to be ineffective, have unintended consequences, or encounter challenges that blunt their intended impact. Sometimes they may just outlive their utility. A periodic performance audit can help ensure that the laws remain 'on their toes'.GoI has undertaken exercises in identifying redundant and outdated laws and weeding them out. A performance audit would make that exercise regular, more detailed, ensuring that laws are changed with time and their utility. It would certainly help the government ascertain impact, identify deficiencies, challenges, as well as positive outcomes.

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