Administrative Agencies
Definition
In Indian administrative law, an administrative agency is a body created by Act of Legislature or Executive to perform some special administrative functions which are essential to the governmental scheme of India. Many of these agencies actively take part in implementing the policies of the government and regulating various fields; they also act as adjudicatory bodies for resolving disputes arising within their jurisdiction.
It can be defined as specialized bodies or authorities, either statutorily or by executive order, designed to assume some of the governmental functions that require specialized expertise and technical knowledge with operational capability beyond the ordinary purview of the civil service or judiciary. These agencies work within the executive branch of the government but exercise powers that are of a quasi-legislative, quasi-judicial, and executive nature to fulfill their mandate.
Examples
-Securities and Exchange Board of India (SEBI), controls the securities market and ensures protection of investor interest.
-Reserve Bank of India (RBI), it is a central banking institution mandated to regulate the formulation of monetary policy, banking activities, and currency management.
Characteristics
-Statutory Creation:
Administrative agencies in India trace their origin either in legislation enacted by Parliament or State Legislatures in respect of central and state agencies, respectively or through executive instruments issued under the mandate of such legislation. Their statutory framework defines the objectives of the agency, powers, organizational structure, and operational modalities.
-Specialization:
They are generally allotted specific sectors or areas of policy in the public domain for management and regulation. Specialization enables such agencies to develop their expertise and comprehensive knowledge necessary to discharge regulatory supervision and administer effectively their sphere of operations.
-Quasi-Legislative Powers:
Within the ambit of the enabling legislation, administrative agencies are vested with the power to promulgate regulations, rules, and directives. The regulatory instruments possess the force and effect of law and are the primary vehicles employed to implement or carry out statutory goals and policies.
-Quasi-Judicial Powers:
Most administrative agencies are conferred with powers for adjudicating disputes, making inquiries, and imposing penalties or sanctions for breaches of provisions under their regulatory control. Hence, administrative adjudication allows for speedy resolution of issues within that particular agency's area of concern, many times eliminating the need to enter the regular courts.
-Executive Functions:
It also conducts executive functions, including licensing, inspection, regulation enforcement, and governmental policy implementation within their respective jurisdictions.
-Accountability and Oversight:
As agencies operating in the executive branch of government, administrative agencies are thus made liable for various modes of oversight, intended to provide for accountability and transparency. These mechanisms include parliamentary committee scrutiny, judicial review, audits by the Comptroller and Auditor General of India, and public accountability through tools such as the Right to Information Act.
-Exercise of Administrative Discretion:
The discretionary power of administrative agencies in arriving at decisions falls within the ambit of their statutory authority. No doubt, such administrative discretion makes the administration responsive to the particular circumstances and provides administrative flexibility.
-Public Interest Orientation:
The mandate of an administrative agency is to work in the public interest through protection of the welfare of the citizens, consumer rights, assurance of fair competition, and socio-economic development as laid out by legislative mandates and government policies.
Roles of Administrative Agencies
1. Policy Implementation:
-An administrative agency is called upon to implement policies of the government and programs enunciated by the legislature and the executive. They transform legislative intent into binding rules, regulations, and directives.
For example, the Securities and Exchange Board of India is required to enforce legislation pertaining to the securities market.
- Government Program are look after. They manage various programs and schemes run by the government. For instance, the Ministry of Health and Family Welfare handles programs and projects dealing with health-related issues.
2. Regulation and Supervising:
- They are empowered to lay down detailed standards and norms relating to their jurisdiction. For example, FSSAI lays down standards relating to the safety and quality of food.
- They are responsible for checking compliance with the regulations and standards laid down by them. For example, to monitors environmental pollution and ensures compliance with environmental laws.
-These agencies regulate areas such as finance, telecommunications, environment. They ensure that there is compliance with the statute to ensure fair play, consumer protection, and stability in the concerned sector.
3. Adjudication:
-They are empowered with rendering of quasi-judicial functions for dispute resolution and levying penalties for wrongs committed within their jurisdictions. This will provide an administrative adjudication process that is more expedient for the resolution of disputes.
4. Investigation and Enforcement:
- They are empowered to investigate infringement of Acts and Regulations. Agency compliance function is enforced through a variety of measures, such as the imposition of penalties or sanctions. ED investigates economic offences and money laundering, CBI investigates grave criminal offenses, more particularly, corruption and fraud cases.
5. Public Interest:
-Protection of public interest by the administrative agencies in maintaining safety standards, preserving a healthy environment, protecting consumer rights, and promoting fair competition among enterprises.
6. Accountability and Transparency:
-The administrative agencies remain under statutory frameworks and hence remain accountable to the stakeholders. They remain under parliamentary oversight, auditing, and judicial review for transparency and fair play in their functioning.
7. Promotion of Socio-Economic Objectives:
-Through the working of administrative agencies, the socio-economic objectives enunciated by the government are met and served, promoting economic growth, employment, and the equitable distribution of resources in the economy.
8. Expertise and Specialization:
-Because of their mandates in special areas, these agencies develop the expertise to make informed decisions and give recommendations that help the development and growth of the sector.
Powers of Administrative Agencies
1. Rule-Making Power:
- This gives the administrative agencies the authority to formulate rules under the Acts passed by the legislature. These rules are in the nature of laws and permit detailed application of a legislative mandate. For example, the regulations formulated by the FSSAI under the Food Safety and Standards Act, 2006.
-The power of administrative agencies to make rules and regulations consistent with the framework supplied by the rule-making statute. They have legal effect and constitute an important means of implementing statutory objectives and policies.
2. Adjudicatory Power:
- Agencies vested with quasi-judicial powers settle disputes and enforce penalties or sanctions. Their decisions are thus based on evidence and rule of law, much like judicial functions.
-They have the power to settle disputes, hold investigations or inquiries, and decide upon matters of their concern. This includes determination of disputes between parties and imposing penalties or sanctions for violations against prescribed regulatory requirements.
3. Quasi-Legislative Powers:
-The authority of the agencies to issue orders, notifications, and directives for implementing the purposes of the statutes they are responsible for administering. This includes making procedural rules, standards, and guidelines necessary for compliance within their respective sectors.
4. Executive Power:
-They undertake executive functions such as licensing, enforcement of regulation and collecting fees. For instance, the RBI regulates banking operations and supervises monetary policy.
5. Discretionary Power:
-The agencies do have an amount of discretion while implementing laws or making any kind of regulatory decisions which falls under their domain. The discretionary power supports them in modifying the policies and actions according to situations.
6. Enforcement Power:
- The agency can impose sanctions, fines, or other such penalties on any entity or individual upon the violation of any law or regulation. For example, TRAI can impose penalties on telecom operators for their failure to comply with regulations.
7. Advisory Power:
- The agencies render professional advice and advisory opinion on policy and regulatory issues. The Planning Commission, now succeeded by NITI Aayog, offered strategic recommendations related to economic planning and development.
8. Licensing and Certification:
- They have power to issue licenses and certifications necessary for the practice of certain professions or the running of specific businesses. They work out criteria, conditions, and procedural frameworks under which such authorizations will be issued. For example, licensing to practice law is a function of the Bar Council of India.
9. Policy Formulation and Recommendation:
-The agencies often take part in policy making and recommend suggestions to the state government upon their experience and expertise in the regulatory areas. This assists in shaping new legislative proposals and administrative reforms in the times to come.
10. Cooperative Arrangements:
-The administrative agencies may have cooperative arrangements with other agencies, domestic and international, for adopting regulator cooperation and aligning themselves with the dissemination of information for related joint enforcement.
11. Enforcement Authority:
-The agencies are empowered with the responsibility to ensure that their respective regulated environments adhere to the concerned regulations. This would include investigations, inspections, and audits for ascertaining compliance with legal provisions and initiating enforcement actions against any violations.
