Statutory and Regulatory Bodies — Practice Questions
UPSC Prelims-pattern practice questions on statutory, regulatory and quasi-judicial bodies with full explanations — CBI, Lokpal, tribunals, SEBI and national commissions.
Questions
These are original UPSC-pattern practice questions. Attempt each one before revealing the answer.
How many of the following are statutory bodies?
- National Human Rights Commission
- National Commission for Women
- National Commission for Minorities
- Central Vigilance Commission
Solution
All four are created by Acts of Parliament — PHRA 1993, NCW Act 1990, NCM Act 1992, CVC Act 2003. The CVC began as an executive body (1964) but has been statutory since 2003.
Answer: D
With reference to the Central Bureau of Investigation, consider the following statements:
- It was established by the Delhi Special Police Establishment Act, 1946.
- It needs the consent of the State government concerned to investigate an offence within that State.
Which of the statements given above is/are correct?
Solution
Statement 1 is wrong — the CBI was set up in 1963 by a Home Ministry resolution; it only draws powers from the DSPE Act. Statement 2 is correct — Section 6 of the DSPE Act requires State consent (general or specific). Constitutional courts can, however, order CBI investigations without such consent.
Answer: B
Which of the following are members of the Selection Committee that recommends the appointment of the Chairperson and Members of the Lokpal?
- Prime Minister
- Speaker of the Lok Sabha
- Leader of the Opposition in the Lok Sabha
- Union Minister of Law and Justice
Select the correct answer using the code given below.
Solution
The committee consists of the PM, the Speaker, the Leader of the Opposition in the Lok Sabha, the CJI or a nominated judge, and an eminent jurist nominated by the President. The Law Minister is not a member (he heads the search committee for Election Commissioners — a different body).
Answer: A
Consider the following statements:
- Articles 323A and 323B were inserted in the Constitution by the 42nd Amendment Act, 1976.
- Only Parliament can establish tribunals under Article 323B.
- In L. Chandra Kumar v. Union of India, the Supreme Court held that decisions of tribunals are subject to the writ jurisdiction of the High Courts.
Which of the statements given above is/are correct?
Solution
Statements 1 and 3 are correct. Statement 2 is wrong — under Article 323B, both Parliament and State legislatures can create tribunals. Article 323A (service matters) is limited to Parliament.
Answer: C
The Securities and Exchange Board of India was given statutory powers in which year?
Solution
SEBI was set up in 1988 as a non-statutory body and became statutory under the SEBI Act, 1992. 1997 is the TRAI Act; 2002 the Competition Act.
Answer: B
Mains
Independent regulators are meant to be insulated from the executive but answerable to the public. Discuss how this balance can be achieved in India.
Solution
Introduction: Statutory regulators such as SEBI, TRAI, IRDAI and the CCI combine rule-making, licensing and adjudication in a sector, which makes both their autonomy and their accountability critical.
Body:
- Need for independence: technical decisions insulated from short-term politics; protection from capture by regulated firms or the parent ministry; credibility with investors.
- Current constraints: appointments and reappointments controlled by the ministry; government directions on policy; budgets and staff linked to government; post-retirement roles.
- Accountability gaps: limited parliamentary scrutiny; uneven transparency in rule-making; appellate bodies with long pendency.
- Balancing tools: fixed tenure and transparent selection; consultation papers and reasoned orders; annual reports discussed in departmentally related standing committees; appeals to specialised tribunals and constitutional courts.
Conclusion: Autonomy in operations and accountability in outcomes are complements, not opposites — clear statutes, transparent processes and parliamentary oversight can deliver both.